Definition: A diminished value calculator is an online tool that assists in estimating the diminished value of a vehicle after it has been involved in an accident or sustained other damage. The diminished value represents the reduction in the vehicle’s market value due to the accident or damage.
Importance and Benefits: If a vehicle is involved in an accident, it may suffer physical damage requiring repairs. Even after repairs, the vehicle’s value may not fully recover, resulting in a loss for the owner. A diminished value calculator helps quantify this loss by estimating the difference between the vehicle’s pre-accident value and its current value after repairs.