More New Software. Diminished Value Calculator

March 3, 2010 by
Filed under: Collision Repair Industry 

I have had many requests from people wanting to buy my diminished value calculator software separately from my BodyShop Office suite. And one of the most popular keyword searches that bring people to this site is “Diminished Value Calculator.” So here it is. I’ve finally created a separate application.

In the days of Wreck Check, diminished value was a mystery revealed only to those willing to spend $10,000 on software and franchise licensing. It’s really not that complicated. My apologies to any DV professionals who may be offended by that statement.

The truth is, there is a very predictable depreciation to vehicles damaged in an accident. I learned this quickly while working for the dealership, Secor’s Auto Center, years ago. People would wreck their cars and then want to trade them in after they were repaired. I saw first hand the hit they took from diminished value and discovered the formula to for determining DV. Actually, there exists several formulas.

I first created my Diminished Value Calculator several years ago when I released BodyShop Office, my body shop management software. The DV calculator was, and still is part of that management system. As mentioned above, I received many requests to break it out into a separate application. I’ve done just that. Here is a screen shot of the software.

Screen shot of DV Calculator. Everything is done from this page. Click to see full sized image.

 Like all my software, ease of use is built in. Most of the information can be filled in by using the EMS feature of your estimating software. The more information you enter when writing an estimate, the less you have to enter when writing a DV report. Just fill your company information in at the top center of the screen, browse to your EMS folder and all extracted estimates will fill the list box in the upper left corner.

Check a few boxes and calculate the diminished value. Then you can choose to print the report or email it right from the same screen. Here is a sample report.

Sample Diminished Value Report. Click to see full size image.

The report is a simple and concise, one page report. It couldn’t be easier. Remember, this is for Inherent DV, or the psychological DV caused by the accident regardless of how well the damage was repaired. DV due to improper, incomplete or incompetent repairs is something different. That is something only a professional appraisal can determine, but there is a place to enter that figure in this report, along with an explanation that any estimate will be attached.

Download the software and try it free for ten days. If you like it you can purchase a registration number, if not uninstall it.

Now every shop can afford to give their customers a DV report with their estimate or final bill.

Visit the DV page to download or purchase the Diminish Value Calculator.

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Comments

11 Comments on More New Software. Diminished Value Calculator

  1. FIRMIN TROYE (TROY) on Tue, 16th Mar 2010 11:11 am
  2. SORRY,,,,,BUT YOUR CALCULATIONS ARE (AT A MINUMUM) 50% OFF, ON THIS SUBJECT VEHICLE,
    THE MINUMUM DV WOULD BE BETWEEN $7,000.00 – $9,000.00 OR HIGHER.
    PLEASE CHANGE YOUR PROGRAM AS IT WILL ONLY SERVE THE INS. INDUSTRY. THEY WILL USE IT AGAINS’T US HONEST DV PROFESSIONALS.

    THANK YOU
    F. E. TROYE

  3. John Shortell on Tue, 16th Mar 2010 4:03 pm
  4. Give me the details of the vehicle and the repairs so I can see what you are talking about.

  5. Justin Petty on Mon, 10th Jan 2011 9:55 pm
  6. John,

    I disagree with Troye. I came up with $3750.00 on the subject vehicle in the samples you listed on your site. I agree that inherent diminished value is grossly overstated by most DV professionals, and grossly understated by insurance carriers. Who would have thunk it.

    I will say that your report does not comply with USPAP standards which I find is very helpful when defending your methods and credibility in determining diminished value. I also would say that without having evidence of stellar repair, great maintenance records, and photos of the vehicle which reflect the condition, then the report would also hold little power to persuade me. It was pretty close to my calculation, though, was it a fluke? A BMW might suffer a 35% loss in the trade in value where a Ford Taurus would lose 18%. Market research on the specific vehicle is required, and I don’t see a market listing anywhere on yours. NADA is a pretty good guidepost, but I use at least 5 sources to get a solid value and I incorporate sales date on actual vehicles which have been sold in the relevant market area. Anyway, I’ll be keeping an eye on your program to see how it fares.

    Justin Petty

  7. Craig A on Mon, 12th Dec 2011 11:10 pm
  8. John, What can you tell me about the NADA mileage classifications. I have searched NADA’s site and can’t seem to find definitions for this. I am looking at your demo, and just want to make sure I am using it properly.

    Thanks, Craig

  9. John Shortell on Wed, 14th Dec 2011 5:26 pm
  10. You have to get a copy of the NADA guide. Most dealers have old copies.

  11. Paul Pham on Wed, 14th Mar 2012 10:18 pm
  12. Dear John ,I am working and enjoy your demo , My question is How do I kown the
    insurance Company they approve the report. by the way we figure through the software. Thanks.

  13. Justin Petty on Thu, 15th Mar 2012 9:13 am
  14. Paul,

    You can rest assured that most insurance companies will not accept the report as proof of lost value. Although John has made it easy for estimators to get a number for a DV demand, I would challenge anybody to show me a paid DV claim where the evidence used was a report from this calculator. I won’t be holding my breath on that one. I know from experience and hundreds of litigated cases, that if there is not a real live trained expert that can pass Daubert or Frye standard available to testify and produce a real appraisal based on accepted methodology (like USPAP), then it is unlikely you will see any reasonable settlement offer from an insurance company. Even when an expert is involved, most insurance companies wait until a trial is eminent and then they settle at the 11th hour to avoid creating any precedence when they lose a jury or bench trial.

  15. Paul Pham on Fri, 16th Mar 2012 9:13 pm
  16. dear Justin Petty
    Please let me know ,what type of the license qualify to do the DV in the state
    of Texas.If I really want to get in this Type of Business What and how can I ? right
    now I am an estimater for a body shop ,and I deal with my customer everyday, please let me know may be I can work with you .

  17. Billy Walkowiak on Mon, 23rd Dec 2013 2:37 pm
  18. You can’t use a formula. The only way to do a DV Assement is to know the vehicle and know who repaired it make and model play a big role. Structural vs Cosmetic. If you use a formula you might as well send it to the insurance companies they will manipulate it and make a generic one size fits all. It’s not practical, different regions have different total loss laws and NC Law requires your report any damage over 25% when selling or trading. Is all that in you formula? I get results based on market knowledge! No formula can do that. http://collisionsafetyconsultants.com/

  19. Justin Petty on Tue, 8th Sep 2015 7:11 am
  20. Do you think any insurance companies will use this software, and if not, why?

  21. Steven Paul on Thu, 10th Nov 2016 6:55 am
  22. I agree with most everyone else on this comment thread. While this program provides a rough idea of the actual diminished value this report will never stand up in court. It has been my experience as a vehicle appraiser that only USPAP formated appraisal reports are honored and accepted by insurance & finance companies and the court system.

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