Ron Ananian and Ken Miller discuss the rising costs of vehicle repairs and the impact of diminished value after accidents, especially for newer, higher-priced cars. They explore how accident reports affect vehicle history records like Carfax, the challenges for leased vehicles, and the complexities of modern repairs involving advanced safety systems. The conversation also highlights the upcoming Northeast Automotive Trade Show, a major event for industry professionals to learn about certifications and new repair technologies.
On this episode of Ron Ananian, The Car Doctor, Ron sits down with Ken Miller, President of Alliance of Automotive Service Providers of New Jersey (AASP-NJ) and owner of 821 Collision, for an important conversation about diminished value — the loss in a vehicle’s market value after it has been involved in an accident.
Even when a vehicle is repaired properly, it may still be worth less simply because it now has an accident history. Ron and Ken explain what diminished value means, how insurance companies handle it, and what steps vehicle owners can take to pursue proper reimbursement.
They also discuss the upcoming Northeast Automotive Services Show, the largest regional auto body and mechanical trade show in the country, held each year in New Jersey. The event brings together technicians, shop owners, manufacturers, and industry leaders for training, new technology, and a look at the future of automotive repair.
If you’ve ever wondered how accidents affect your vehicle’s true value — or how the repair industry is evolving — this conversation offers valuable insight from the people who deal with it every day.
Good mechanics aren’t expensive — they’re priceless.
"And we started talking about diminished value. I'll tell you what, let me get Ken in here."
Diminished value means a car is worth less money after it has been in an accident and fixed, even if it looks like new again.
Diminished value refers to the loss in a vehicle's market value after it has been damaged and repaired, even if the repairs restore it to its original condition.
"You know, we've had a run in the shop lately of the infamous Chrysler oil filter adapter housing leak. That oil filter adapter housing leak on the V6 Chrysler becomes the housing, the switches,"
Chrysler V6 means a six-cylinder engine made by Chrysler, which some cars have and can have certain problems.
The Chrysler V6 engine is a common six-cylinder engine used in various Chrysler vehicles, known for certain maintenance issues like oil filter adapter housing leaks.
"You know, we've had a run in the shop lately of the infamous Chrysler oil filter adapter housing leak. That oil filter adapter housing leak on the V6 Chrysler becomes the housing, the switches,"
The oil filter adapter housing is a part that holds the oil filter on the engine and helps oil flow; if it leaks, it can cause problems.
The oil filter adapter housing is a component that connects the oil filter to the engine and directs oil flow; leaks here can cause oil loss and engine damage.
"So you're doing spark plugs, you're going to do at least three ignition coils,"
Ignition coils are parts that help make the spark needed to start the car's engine.
Ignition coils are components that convert the battery's voltage to the high voltage needed to create a spark in the spark plugs to ignite the fuel-air mixture.
"then it won't hit the car fax, right? And then I won't have that diminution of value of my vehicle. But that's no longer the case because they get information from different sources. And oftentimes that is still going to hit either from police reports or from estimating systems. That's still going to hit the vehicle car fax and you still have that diminution of value."
Carfax is like a report card for used cars that shows if the car has been in accidents or had problems before.
Carfax is a service that provides vehicle history reports, including information about accidents, damage, and ownership, which can affect a car's resale value.
"Well, this person, they did some, they actually hit the side of the garage pulling in. And it was fender damage, like they scraped the left front fender and banged it up. And they had an estimate of about two grand to fix."
The fender is the curved part around the car's wheel that helps keep dirt and rocks from hitting the car.
A fender is the part of a car's body that frames the wheel well and protects the vehicle from road debris and minor impacts.
"So if they've leased the vehicle, I wonder how that affects them. If they've leased the vehicle and, you know, they go to turn it in that the less see is expecting you to get back this 2026 XYZ automobile in good mechanical, good body, no accident condition."
When you lease a car, at the end you have to give it back. The company checks if the car is in good shape, and if not, you might have to pay extra.
Lease turn-in is the process at the end of a vehicle lease where the lessee returns the car to the leasing company, often subject to inspections for damage and wear that can result in additional charges.
"...right in the contract with Lincoln says that any repairs must be performed by whatever facility... utilizing all OEM parts, the original equipment manufacturer parts."
OEM parts are the original parts made by the car company, so they fit better and work like the parts the car came with.
OEM parts are Original Equipment Manufacturer parts made by the car's maker or approved suppliers, ensuring proper fit and quality compared to aftermarket parts.
"You guys are starting to see it now also with advanced cruise control, lane keep assist systems, all of the other stuff."
Lane keep assist helps your car stay in its lane by gently steering or warning you if you start to drift off the road line.
Lane keep assist systems help drivers stay within their lane by providing steering inputs or warnings if the vehicle begins to drift out of its lane without signaling.
"You guys are starting to see it now also with advanced cruise control, lane keep assist systems, all of the other stuff."
Advanced cruise control helps your car keep a safe distance from the car in front by slowing down or speeding up automatically, so you don't have to do it yourself.
Advanced cruise control is a driver assistance system that automatically adjusts a vehicle's speed to maintain a safe distance from vehicles ahead, often using radar or cameras.
"That disturbs the mounting of the radar. You have to do a calibration of the radar."
Radar calibration means fixing the sensors on your car that help it detect other cars and obstacles, so safety features work properly after repairs.
Radar calibration is the process of adjusting a vehicle's radar sensors, typically after repairs or part replacements, to ensure accurate functioning of safety systems like adaptive cruise control and collision avoidance.
"You potentially may have to do a wheel alignment before you do the calibration of the radar."
Wheel alignment means adjusting your car's wheels so they point the right way, helping your car drive straight and your tires last longer.
Wheel alignment is the adjustment of a vehicle's suspension angles to ensure the wheels are set to the correct positions, improving handling, tire wear, and safety.
"And when we come back, I want to talk a little bit about that VIN and the process of how Carfax gets that information. So, you know, it's just food for thought,"
A VIN is like a car's fingerprint, a special number that helps people know everything about the car's past. It helps buyers and sellers see if the car has been in accidents or had problems.
VIN stands for Vehicle Identification Number, a unique code assigned to every motor vehicle when it's manufactured. It is used to track the car's history, including ownership, accidents, and service records.
"Yes. And, you know, if it were a collision, you'd have an accident report tied to it, you'd have an insurance event tied to it."
An accident report is a paper that tells what happened when a car got hurt in a crash, so people know how bad the damage was.
An accident report is an official document created after a vehicle collision, detailing the circumstances and damages involved. It is used by insurance companies and vehicle history services to assess the impact on the vehicle's value.
"Yes. And, you know, if it were a collision, you'd have an accident report tied to it, you'd have an insurance event tied to it."
An insurance event is when something happens to a car, like damage, and the insurance company gets involved to help fix it or pay for it.
An insurance event refers to any incident reported to an insurance company, such as a claim for damage or repair. These events are tracked and can affect the vehicle's history and resale value.
"that $45,000 car with the $2,000 worth of damage against it after depreciation, after it's, I don't know, three years old, what's that $45,000 car worth, $30,000 round numbers, right? Yeah. But that $2,000 accident may make that $30,000 car worth $25,000."
Depreciation means a car becomes worth less money as it gets older or if it has been damaged, even if fixed.
Vehicle depreciation is the loss of a car's value over time due to factors like age, wear, and damage. Even after repairs, a car that has been in an accident usually loses more value than one without damage.
"Yeah, that's the part that the tools don't consider. Right. It seems that, I'm going to say it, that it seems like the agencies are reaching with both hands."
These are websites or reports that tell you what happened to a car before, like if it was in a crash or fixed, but sometimes they don't show the whole story.
Vehicle history tools are services or databases that compile information about a car's past, including accidents, repairs, and maintenance. However, they may not fully account for the quality of repairs or the current condition.
""We've got, you know, no start issues, how to diagnose no start issues on the mechanical side, the module programming on the mechanical side.""
Cars have computers called modules that control different parts. Module programming means updating or setting up these computers so the car works right.
Module programming refers to the process of configuring or updating the software in a vehicle's electronic control modules to ensure proper operation and compatibility with various systems.
""Ford is doing something with iCar about repairability of their vehicles of right to appraisal, which is kind of ties into some of what we were just kind of talking about loosely.""
If your car gets damaged, right to appraisal means you can have someone check how much it will cost to fix it, so you get a fair price.
Right to appraisal is a consumer protection concept that allows vehicle owners to have their damaged cars independently evaluated for repair costs, ensuring fair estimates and preventing insurance undervaluation.
""Right. You know, when you talk about estimates and, you know, writing estimates and getting estimates approvals and that's a whole universe unto itself.""
Before fixing a car, someone has to agree on how much it will cost. This agreement is called estimate approval.
Estimate approvals refer to the process where repair cost estimates are reviewed and authorized by insurance companies or customers before work begins.
"so the conversation is about how the estimator is your liaison in the event of an accident body repair you know repair to your vehicle at a collision shop ken millers with us"
An estimator is someone who looks at your car after a crash and figures out how much it will cost to fix it.
An estimator in the automotive repair industry is a professional who assesses the damage to a vehicle after an accident and provides a detailed repair cost estimate to insurance companies and customers.
"repair to your vehicle at a collision shop ken millers with us of course continuing with us this hour a 21 collision north held in new jersey"
A collision shop is a place where cars that got hurt in crashes get fixed.
A collision shop is a specialized automotive repair facility that focuses on repairing vehicles damaged in accidents, including bodywork and mechanical repairs.
"you know it take that lincoln mirror you may have a surround view like if you have that when
you're sitting in the car you can see all around you uh or at least the it looks like you can see
all around you're looking at the top of the car and everything around it like that's a camera in
the mirror that requires calibration"
A surround view camera system is a set of cameras on your car that lets you see all around it on a screen, making parking and driving easier.
A surround view camera system uses multiple cameras around a vehicle, often including those in side mirrors, to provide a 360-degree view to the driver. This system helps with parking and maneuvering in tight spaces.
"if it's a $2,000 dent and it's a on the Civic well there's a certain amount of diminished value"
The Honda Civic is a small, reliable car that many people drive. It's often talked about when discussing how much it costs to fix cars and how much they're worth.
The Honda Civic is a popular compact car known for its reliability and fuel efficiency. It is often used as a reference point for repair costs and vehicle value in discussions about car ownership.
"but if it's a $2,000 dent and it's a new Porsche 911 like that $2,000 dent really hurts the value"
The Porsche 911 is a fancy sports car that many people want. If it gets damaged, it can lose a lot of its value because it's an expensive car.
The Porsche 911 is a high-performance sports car known for its distinctive design and strong resale value. Damage to such vehicles can significantly affect their market value due to their premium status.
"you know that was that was simple aside from paintless dent repairs obviously right yeah that's a different conversation"
Paintless dent repair is a way to fix small dents on your car without having to repaint it. This means the dent goes away and the paint stays the same, which can save money and time.
Paintless dent repair (PDR) is a method of removing minor dents from a vehicle's body without affecting the original paint. It is often less expensive and faster than traditional bodywork.
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