Diminution, as in the word diminished, simply means reduced. When a vehicle has been in an accident and subsequently repaired, historic damage can reduce its market value.
Myth 1: Old Cars Cannot Suffer Diminution
Using a Ferrari 612 example, two identical 20-year-old models—one with pristine history, one repaired after a crash—will have different values regardless of age.
Myth 2: A Fixed Formula Exists
No standardized formula determines diminution percentage. Assessors employ matrices as guidance tools, ultimately relying on expert judgment.
