Reviewed by:
On May 23, 2012
Last modified:May 6, 2014


***UPDATE*** I compared three random diminished value settlements that clients have received using my appraisals and used the same Diminished Value Calculator most of these type of sites are using. Here’s the results:

  • 2012 Honda Odyssey: My Appraisal – $10,275; Settled for $8500; The Diminished Value Calculator’s result: $1590 
  • 2010 VW Beetle: My Appraisal – $3720; Settled for $3000; The DiminishedValue Calculator’s result: $526 
  • 2004 Ford Explorer: My Appraisal – $1225; Settled for $700; The Diminished Value Calculator’s result: $36
Something’s wrong here. Why would the formula be that different? I have two theories. 
  1. I can tell by the information that the calculator asks for that it must be based off of the 17c formula that a Georgia Supreme court found to be flawed. This makes me wonder if the insurance companies are actually the one’s behind this.
  2. Another explanation is the calculator intentionally gives low results so the insurance company will take the appraisal immediately. Why? because to most people, 2-300 hundred dollars is a good return for their investment. And they feel the calculator did an excellent job because the insurance company didn’t dispute it. Which leads them to write an awesome review stating how great the service is.

Back to our article:
You’ve seen the sites, offering a free calculator that will give you that magic number. Well, the ones that are not controlled by an Insurance company affiliate, are still giving you a number that has basically nothing to do with your actual Diminished Value. They claim they do, but in reality they’ve put together a program to pull some numbers from Kbb, Edmunds, or then multiply it by using a damage modifier, this will normally produce a safe number so the insurance company will take it. Many times the numbers are even less than what their appraiser came up with, so of course they’ll take it.

Using a DV Calculator, I’ve calculated several vehicles and the values tend to be about 25-35% of the real Diminished Value. So if you’re using an online calculator, and your real diminished value is $3000. then you’re going to lose around $1800. of your claim. All

The insurance companies are not stupid, they know it’s a computer generated report and that there’s no real value to it.


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Diminished Value FAQs

Diminished Value FAQs

What is Diminished Value? In Layman’s terms, Diminished Value is the immediate loss of value your vehicle suffers ...

Diminished Value Auto Appraiser Portland Oregon - Ken NixKen Nix – Diminished Value Expert & State Licensed Auto Appraiser – LIC# V34-075
Ken Nix is a nationally known Diminished Value Expert and Total Loss Fair Market Value appraiser. Ken is the founder of Volkswagen Owners Club, My Fast GTI, And Jetta Junkie automotive clubs which have a total of over 60,000 members. Ken Nix has received formal training from Volkswagen, Volvo, Honda, Ford, Toyota, Dodge, Chrysler, Chevrolet, Mazda, Oldsmobile, Pontiac, Mercury, Lincoln, Kia and Infiniti for product knowledge and marketing of these franchise vehicles. Ken has been a state licensed Auto Appraiser since April 19, 2010 and is in good standing with the Department of Transportation. Ken is a judicial expert, who by virtue of training, education, and experience hold’s sufficient knowledge of vehicle sales and valuation to valuate vehicles within his scope in all 50 states of the United States of America.