Accelerated Depreciation appraisals
Determining if there is Accelerated Depreciation and more importantly, how much, continues to be a gray area. DCI Solution’s Valu-Rite® Accelerated Depreciation Appraisal provides a clear black and white answer.
what is Accelerated Depreciation?
It is the decrease in market value as it relates to a vehicle that has experienced a collision. There are basically three classifications or types of Accelerated Depreciation:
- Immediate – Decrease in value immediately following a collision. Although it cannot be calculated immediately, once there is an impact, there is a decrease in value.
- Repair–Related – Decrease in value occurs when a vehicle isn’t repaired/returned to its pre-collision condition.
- Inherent – After a collision, a vehicle has a damage history. This could cause a decrease in market value. It is assumed that the vehicle was properly repaired to pre-loss condition.
DCI Solution’s Accelerated Depreciation Appraisal determines the Inherent Accelerated Depreciation which is the most common and widely-used form of Accelerated Depreciation as related to insurance claims.
how is Accelerated Depreciation determined?
Unfortunately, there are no “approved formulas” by any Department of Insurance. It is not an exact science. There are no tables or books.
In today’s marketplace, there are numerous experts promoting exorbitant Accelerated Depreciation amounts, using unsubstantiated formulas, and presenting consumers with false expectations. Some of these “methods” use a comparison of Trade-In Value versus Retail Value from various industry guides. This is basically comparing a Wholesale price to a Retail price which is like comparing apples to oranges.
DCI Solution’s methodology provides a reasonable, consistent, and unbiased determination of the Accelerated Depreciation based on the actual damage incurred to the vehicle.
Why dci solution’s methodology is the best
It’s all about the damage. Replacing a windshield, or headlamp, or tires, does not effect the value of the vehicle while structural damage does. DCI Solution’s methodology focuses on the specific damage incurred to the vehicle.
First, we determine the “Pre-Loss” Value of the vehicle by utilizing industry recognized resources and standards to determine the market value of a like vehicle. Factors include but are not limited to year, make, model, trim, mileage, options, and geographic area.
Then we carefully scrutinize and review the damage repair estimate/invoice and any other photographs, supplements, and documentation specific to the vehicle in question. This review determines what damage contributes to a loss in value and which does not. Additionally, we review the InstaVin® Vehicle history report to detect any branded title issues or discrepancies which may effect the value. These factors are then combined to determine the amount of Accelerated Depreciation.
Our staff of DCI Certified Valuators has performed thousands of Accelerated Depreciation appraisals and has also provided expert witness testimony and other arbitration services on this subject matter. All Accelerated Depreciation appraisals meet the Uniform Standards of Professional Appraisal Practices.
Our Valu-Rite® Accelerated Depreciation Report clearly and precisely spells out how the Accelerated Depreciation is determined and the reasoning behind it, i.e. what damage effected value and what did not. It also includes applied case law.
Finally, you will receive peace of mind knowing that DCI Solution stands behind each and every valuation report.