Date registered: Dec 2004
Vehicle: 300TE 4-Matic 300GD
Location: Oslo Norway
Mentioned: 0 Post(s)
Quoted: 0 Post(s)
RE: Diminished Value
Recording actual accident damage history is a double bladed sword. In the same way a sissor is a great tool, but horrible to trip over. I think owners and buyers should consider CarFax and competing institutions as somewhat unreliable.
The way I understand your post, you would have been just fine, if it wasn't for the mandatory notification. The fact that someone now can say your car is less worth is quite real, and you want the lesser value reimbursed.
The problem with CarFax history and actual "diminished value", is that CarFax is designed to assist you in getting a used vehicle without any structual damage, keeping your family safe. It's not supposed to be used as a bargaining tool. But everyone knows that anyone will use anything they can, to get a better price.
If a bottle of beer falls onto your hood, damaging ONLY that, and the whole complete hood was swapped, what damage would be left on the vehicle after reparation? The price may have been high enough to notify, so it might appear in CarFax. But where would the damage be? One can truly say that no part of this car has ever been damaged. And who would care if a perfect hood is the second one or not? So why should it appear anywhere?
CarFax should take this threat to it's integrity seriously. The reason for the threshold is probably because high prices are tell tales for structual damages. Not to give potential buyers bargaining hooks. If small petty damages float around with the serious stuff, people WILL find out, eventually. And that WILL reduce the importance of CarFax.
Value is like beauty, in the eye of the beholder. When establishing a value reduction correctly is impossible, the insurance companies tend to establish fixed rates to deal with it. I would ask around to see if any insurance company have ever paid out a "diminished value" compensation. If you can't find any, I think your prospects look bleak.
The bending point should be, you have taken a loss. Whether the loss has been realized or not at present, is of no consequence if it will for sure pop up when selling. Since the future loss is caused by someone, they or their insurance should compensate somehow.
You have my sympathy.