Is There Depreciation Compensation for New Cars Involved in Traffic Accidents?

[Sid]

No. During an accident, the vehicle's repair costs and reasonable transportation expenses are in line with legal provisions, but depreciation compensation lacks legal basis and is generally not supported by courts. Additional Information: Vehicle depreciation compensation is a financial representation of the recovery of vehicle investment. It involves allocating a certain amount of funds annually to update vehicles and maintain transportation reproduction. Vehicle depreciation compensation does not reflect the national economy's investment in transportation vehicles; what effectively reflects the economic cost of vehicle depreciation is the vehicle's capital recovery cost. The adjustment method for vehicle depreciation compensation is to replace the financial depreciation cost with the vehicle's capital recovery cost (under the social discount rate). The vehicle capital recovery cost equals the vehicle's economic price (excluding purchase surcharges) multiplied by the annual capital recovery coefficient, divided by the average annual transportation turnover per vehicle.