What does diminished value mean in regards to an automobile wreck?

Howdy gizzimae-ga,

The Goldcar.com website has a good explanation of diminished value (DV)
in these circumstances.  It is sometimes referred to as diminution of
value.
http://www.goldcar.com/go01006.htm

"Diminished value is the loss in a damaged vehicle's market value after
repairs have been completed.
...
Suppose your car was damaged in an accident. It was then repaired and
the repairs were absolutely perfect. This car has still lost value since
it is now perceived by any potential buyer as "damaged goods." This type
of loss in value is known as "inherent diminished value" as it applies
regardless of the quality of repairs. There are two other types of
diminished value as well."

You will want to read the above page in full for the other two types of
diminished values.

The Automotive Service Association (ASA) website has an interesting
article on the subject.
http://www.asashop.org/autoinc/nov2002/collision.cfm

"What is inherent DV? Consider this example: A consumer walks onto a
used car lot and sees two identical cars. He is told one has been in an
accident and one has not. That person would likely not be willing to pay
as much for the previously damaged car, even though it appeared to be
the same. That difference is inherent DV."

The Car Values Plus website has more on the subject.
http://www.hvaa.com/diminution.htm

"DIMINUTION (loss) OF VALUE?"

The KOMO TV website has some advice on the topic.
http://www.komotv.com/news/story.asp?ID=11470

"Getting 'Diminished Value' Compensation After A Car Crash"

If you need any clarification, please feel free to ask.


Search strategy:

Google search on: "diminished value"
://www.google.com/search?q=%22diminished+value%22

Looking Forward, denco-ga - Google Answers Researcher