The term reduction in value is used particularly in connection with the insurance-technical completion by accident damages with motor vehicles.

Under certain circumstances, which consider the damage extent and the vehicle age, the remuneration of a reduction in value is entitled to a vehicle owner damaged by a traffic accident. In accordance with iurisdiction of the BGH the technical and the merkantile reduction in value are to be differentiated.

Technical reduction in value

A technical depreciation is present, if it is not possible to shift the vehicle again into the same technically functional condition which it had before the accident. It stays therefore thus still another damage, which cannot be repaired. The technical reduction in value can itself on the useability, refer which working reliability or the appearance of the vehicle. Automobiles of today's design can be placed by qualified body enterprises technically perfectly in conditions.

Here however without exception all damaged construction units are to be exchanged and accomplished remachining such as cavity sealing, which can equal a new building in the result. Afterwards technical reduction in value is void.

Back deformation instead of exchange, particularly basic vehicle parts ("“frameworks"”) for instance on alignment banks, changed against it the metal structure and is technically inferior.

Merkantiler reduction in value

The merkantile reduction in value refers to the theoretical depreciation, which would result with the sales of the car. Perhaps under the aspect that two identical used cars in the market are offered, it obtains the accident-free vehicle a better selling price than the repaired vehicle.

Courts compute reduction in value in difficult cases with the help of an expert opinion, otherwise predominantly according to the method Ruhkopf Sahm, a formula from age of the Kfz, odometer reading, current value and repair costs.

Not as reduction in value an unsatisfactorily implemented repair is designated. If the Instandstellung was not implemented perfectly, the vehicle owner must lodge a complaint in the context of a notice of defect in the repair shop.

Related links

• technical reduction in value
• Crashverhalten of accident-repaired vehicles
• merkantiler reduction in value
• individual on-line computation of a merkantilen reduction in value
• Demo example of a merkantilen reduction in value

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