Does the Court Support Compensation for Vehicle Depreciation Loss?
2 Answers
Generally, courts do not support compensation for vehicle depreciation loss, but they do support compensation for depreciation loss of new vehicles. The reasons why vehicle depreciation loss is not supported are as follows: 1. The "depreciation loss" of a vehicle is difficult to determine: For minor damages such as scratches or dents, the vehicle can be fully restored after repairs. For example, if components like headlights, bumpers, or doors are damaged and replaced, the vehicle may not depreciate but could even "increase in value." 2. Indirect loss: Vehicle depreciation loss is not an immediate direct loss but a potential indirect loss that may occur in the future. The "depreciation loss" of a vehicle is the difference between its value after repair and its value before the damage occurred. This difference only arises during a transaction; if no transaction occurs, there is no actual loss. 3. Lack of clear legal basis: According to China's Road Traffic Safety Law, in the event of a traffic accident causing vehicle damage, the compensation for the damaged vehicle itself is generally limited to restoring the vehicle to its normal usable condition—meaning only the repair costs are compensated, not the "depreciation loss."
Last time my friend's car was rear-ended, it looked quite new after repairs, but there was a significant price difference when selling it. Whether a judge awards depreciation compensation depends on three aspects: whether the accident liability is clear, whether there is a performance decline or obvious repair marks after the repairs, and whether a professional institution's depreciation certificate can be provided. There was a successful case in our local area where a new car's frame was deformed in a collision. Although the 4S shop fixed it, the evaluation report showed a residual value drop of 30,000 yuan, and the court finally ordered the at-fault party to compensate for this difference. For cars that are seven or eight years old or only have minor scratches, judges generally do not support compensation for depreciation.
