Conventional car damage inspection techniques are labor-intensive, manual, and frequently overlook tiny surface imperfections like microscopic dents. Machine learning provides an innovative solution to the increasing demand for quicker and more precise inspection methods. The paper uses the YOLOv8 object recognition framework to provide a deep learning-based solution for automatically detecting microscopic surface flaws, notably tiny dents, on car exteriors. Traditional automotive damage inspection procedures are manual, time-consuming, and frequently unreliable at detecting tiny flaws. To solve this, a bespoke dataset containing annotated photos of car surfaces under various lighting circumstances, angles, and textures was created. To improve robustness, the YOLOv8m model and its customized variants, YOLOv8m-t4 and YOLOv8m-t42, were trained employing real-time data augmentation approaches. Experimental results show that the technique has excellent detection accuracy and low inference latency, making it suited for real-time applications such as automated insurance evaluations and automobile inspections. Evaluation parameters such as mean Average Precision (mAP), precision, recall, and F1-score verified the model's efficacy. With a precision of 0.86, recall of 0.84, and F1-score of 0.85, the YOLOv8m-t42 model outperformed the YOLOv8m-t4 model (precision: 0.81, recall: 0.79, F1-score: 0.80) in identifying microscopic surface defects. With a little reduced mAP@0.5:0.95 of 0.20, the mAP@0.5 for YOLOv8m-t42 stabilized at 0.60. Furthermore, YOLOv8m-t42's PR curve area was 0.88, suggesting more consistent performance than YOLOv8m-t4 (0.82). YOLOv8m-t42 has greater accuracy and is more appropriate for practical dent detection applications, even though its convergence is slower.