Detailed Answer

When you pursue a diminished value claim after a recent wreck, the key question is: what was the truck worth immediately before the new crash and what is it worth now after repairs? Prior accidents that happened before you owned the truck matter because they can change the “pre‑accident” baseline value and therefore reduce the amount you can prove as loss caused by the new crash.

How diminished value is measured

Diminished value generally equals the difference between the vehicle’s fair market value just before the current accident and its fair market value after repairs. To recover diminished value you must show (1) the vehicle had a particular market value immediately before the recent accident, (2) repairs were made for damage caused by the recent accident, and (3) even after competent repairs the vehicle’s market value is lower than the pre‑accident market value.

Why prior accidents matter

• Prior damage can lower the vehicle’s market value before the current crash. If the truck already had structural repairs, prior frame damage, a salvage title, or recurring mechanical issues, its pre‑accident value will likely be lower than an undamaged comparable truck. That reduces the maximum diminished value you can claim for the new accident.
• Insurers commonly offset or deny diminished value claims when prior damage exists. An insurer or a negligent third party can argue that a portion (or all) of the loss in resale value was caused by earlier accidents rather than the recent one.
• Title branding (salvage, rebuilt, flood, or lemon law branding) heavily affects value. If the truck carries a branded title from an accident before you owned it, the market has already discounted the vehicle. Recovering diminished value for a later accident is harder when the title already reflects major prior damage.
• Disclosure and notice matter. If prior accidents were disclosed to you at purchase (e.g., in a bill of sale, dealer disclosure, or a vehicle history report), a court or insurer may view any reduced value as part of the price you paid rather than a new loss caused by the recent crash.
• Hidden prior damage can complicate proof. If prior repairs were poor, or those repairs contributed to new damage, you will need expert evidence to separate the effects of the earlier collisions from the new accident.

Practical effect in a claim or lawsuit

Expect the opposing insurer to seek offsets for pre‑existing damage. The more prior damage you can document, the easier it is for the insurer to argue that your recoverable diminished value is small or zero. Conversely, if you can prove the truck was in good condition before the new accident and that the new accident caused unique damage that reduces resale value, you have a stronger claim.

Evidence you will need in New Mexico

To prove diminished value and isolate the new loss from earlier damage, collect the following:

• Pre‑accident value proof: dealer appraisals, purchase invoice, recent comparable listings, or an independent appraisal of value just before the new crash.
• Post‑repair value proof: independent diminished value appraisal, dealer offer, or comparable listings showing market value after repair.
• Vehicle history reports (e.g., CARFAX) showing previous accidents, titles, and reported odometer records.
• Repair invoices, estimates, and photos for both the prior damage (if available) and the recent accident.
• Title documents showing any salvage/rebuilt branding.
• Expert statements from a qualified appraiser or mechanic who can separate the effect of earlier damage from the recent loss in value.

How to approach the claim

1) Start by ordering a full vehicle history report and gathering all repair receipts and title documents. 2) Obtain an independent diminished value appraisal from an appraiser experienced in post‑repair market adjustments. 3) Present both before‑and‑after valuations in a written demand to the at‑fault party’s insurer or pursue a claim through small claims court if appropriate. 4) If the insurer disputes responsibility or offsets for prior accidents, consider hiring a lawyer to obtain deposition testimony or expert reports that explain incremental damage and loss.

Other legal considerations in New Mexico

New Mexico law treats diminished value claims as a claim for property damage. Time limits (statutes of limitation), notice requirements, and insurer duties can affect your claim. If you plan to sue a third party, check procedural rules and deadlines with a New Mexico attorney or at the New Mexico Legislature website (nmlegis.gov). For title branding and Motor Vehicle Division rules, refer to the New Mexico Motor Vehicle Division (mvd.newmexico.gov).

Helpful Hints

• Document everything early. The best evidence of pre‑accident condition is dated photos, recent maintenance records, and the purchase paperwork.
• Get a professional diminished value appraisal. General used‑car comparables alone often fail to convince insurers that the post‑repair value dropped because of the recent crash.
• Order a vehicle history report immediately. It shows prior reported accidents and title brands that the insurer will use to assess your claim.
• If the truck had a salvage or rebuilt title before you owned it, expect a much smaller diminished value recovery. Title brands reflect a market discount that occurred before your ownership.
• If prior damage was not disclosed to you at purchase, keep copies of sale documents and any statements showing you did not know—this can help your position but typically requires legal and expert support to prove incremental loss.
• Consider small claims court for modest diminished value amounts. For larger claims, an attorney and expert witnesses improve your chance to recover the true loss caused by the most recent accident.
• Talk to a New Mexico attorney if the insurer denies or offers a low settlement. An attorney can assess whether the prior damage allocation is reasonable and whether you can bring a successful claim against the at‑fault party.