Diminished value refers to the loss in value of a vehicle involved in an accident after the repairs have been done. For example, let’s say you purchased a new car valued at $35,000 and you’re involved in an accident at no fault of your own. You pick up your car after the repairs are complete and subsequently try to sell the car to a dealer, but the dealership is only willing to pay you $27,000 after discovering that your vehicle has been in an accident. They say your car lost value as a result of the accident and will not offer you anymore than $27,000. You have lost $8,000 in value as a result of an accident caused by someone else’s negligence.