Diminished Value Explained
Depending on its age and conditon, an item that has been damaged and repaired generally has less resale value than the same item in pre-damage condition. Even if the item meets the highest quality standards, potential buyers are unwilling to pay as much for an item they know has been previously damaged.
This difference between what the pre-damage was worth and the market value of the post-repair item is known as diminished value. This can be applied to vehicle damage, home damage and commercial damage repairs.