I went through this nearly identical situation a couple of years ago (car was 3 months old and about 4k miles). $864 doesn't sound like nearly enough, but good luck with the battle.
The difference should idealy be what your car would be worth without the damage, and what it is worth now that is has been wrecked. I hired a company who specializes in these types of claims to make the process more "official". While I could have done the required research myself, I would have received much more resistance from the insurance company.
The company's research used trade-in values to establish relative value. Undamaged value was gathered from the typical sources (edmunds, kbb), and local dealerships were asked to give a trade-in value with the full damage disclosed of my car. The averaged difference was my diminished value.
After establishing my diminished value and mailing in the report, I went back and forth a few times with the insurance company until we reached a number that we both agreed on. If I remember correctly, it was about 70% of the diminished value included in the report I sent them (and it was much higher then $864).
Personally, I wouldn't buy a 2007 camry that has been in a wreck for only $864 less then the same model camry that hasn't been in a wreck. The $$ savings to me would have to be much higher as a potential buyer.
Good Luck!