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Loss of car value after accident

firswood Avatar
6y, 6m agoPosted 6 years, 6 months ago
Hope some of you can give your thoughts to a dilema my wife & I face.

Recently our Honda FRV (valued at £8000) was very badly damaged by a truck whilst parked on a public road. We established the company/driver and liability has been admitted. A independant engineer has estimated the amount of work required as about £3500 and so the vehicle is repairable and not a write off. It will be repaired by Honda using their parts and receive a warranty.

My question is that when ever I come to sell it on and admit that it has had a substantial repair it will lose value. However I need to know by how much so that I can recover any loss through the other parties insurers in diminished value. Anybody any idea as to how much damaged vehicles lose in value?

Any thoughts appreciated.
firswood Avatar
6y, 6m agoPosted 6 years, 6 months ago
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#1
Similar thinng happened to me with a Rover. I dont think you are required to inform the purchaser if it was involved in an accident. I thought that you only had to inform them if it had been writen off and you had decided to repair it. I didnt tell the garage that I sold it too and they never mentioned anything about it.
#2
I dont think you can, they are only liable to put it right not compensate for future loss of value. Just trade it in
#3
iirc, if it costs less than 35% of your insured price (which in this case is £2800 for your £8000) then insurance will look to repair. anything over 35% and most insurance companies just write to off.

Happened to be back in 2006. X Reg Clio got pinched of the drive and was driven to bits, found 9 miles away, having travelled at least 20 miles in between full of stuff from a house burlgarly nearby.

Further searched found used needles etc and iirc a scratches on the drivers side wing, dents to the door and a brocken boot locking system. Insurance agreed to write it off as the car was used for our (then) 1 year old son and I wasnt putting him in the car full of used drug needles (fully valeted our not!)

Got £2050 from insurance after excess. Car was only worth £2000 but was able to claim upto £350 on contents
#4
Just make sure it has been repaired properly, i.e. that you cannot tell it has had an accident. Make sure that number plates do not say the name of a repair centre, but match (if they need to be replaced) as this is a giveaway a car has had an accident.

They wont give you money for any future loss in value, and it is impossible to tell how much (if any) it will loose by being repaired - the only time anyone should know if it has is if they ask you, but even then it does not mean it is worth any less if it has been repaired to a good standard.
#5
Nope, you can purchase category D scrap cars (damaged cars with light body damage) and you don't have to mention it in the log book or similar. So the car can be sold on as good as new after being repaired.
#6
You can claim diminuation, you will need to get an engineer to confirm how much value the vehicle has lost. If you have solicitors acting for you ask them to sort it.
#7
Thanks for your replies so far. I am alarmed that most think that we will not be able to claim anything but I found the following:

Diminution of value of a vehicle is the loss in value incurred when a car has been repaired after an accident.

Generally speaking if one is offered the choice of two identical vehicles, one of which has been repaired after a collision and one which has not most buyers would favour the unrepaired one over the one that had been accident damaged.

In law the Brightmore versus Eaton case in the early 1980s set the precedent on this issue. This involved a fairly new Mercedes, and the judge decided the loss of value (also known as 'diminution in value') was worth 15% of the normal retail value of the car.

It's important to remember that the car involved in this case was a 'luxury' model, and more recently judges have reduced awards to nearer 11%.

The award may be higher if the damage is structural but still repaired.

If you intend to go to court on this issue, then be aware that judges are generally less sympathetic to claims of this nature. Older, run-of-the-mill cars will suffer a smaller diminution in value, and for commercial vehicles the loss is regarded as negligible.

You will need legal assistance to make a claim and almost certainly an experts' report from and automotive professional.


A little confused now but I still think I should try.
#8
Thanks lizzy.p ... glad you agree.
#9
That's why one of the questions that you should always ask before purchase is, has the vehicle ever been in an accident. Whilst it may still be difficult to recover anything, if you don't ask you have zero recourse.
#10
Someone smashed in the back of my car a year ago. Load of hassle, but I have a brand new boot door and bumper with no trolley dents so it may have increased it's value.
#11
chalkysoil
Someone smashed in the back of my car a year ago. Load of hassle, but I have a brand new boot door and bumper with no trolley dents so it may have increased it's value.


Yep, paint was starting to come off on the corners of my rear bumper, then someone smashed into the back of it and dented it... Got the whole thing replaced by their insurance company and now it looks better than when I bought it :-D
#12
You need to make certain that once it has been repaired that there no signs whatsoever of damage repairs; ie; all paint matches perfectly, all panel gaps are correct, no signs of any panel beating.

If not do not accept the car back.
banned#13
melipona;8601173
That's why one of the questions that you should always ask before purchase is, has the vehicle ever been in an accident. Whilst it may still be difficult to recover anything, if you don't ask you have zero recourse.

and how would you prove that you even asked the question?
banned#14
To be honest if someone told me it had been an accident but repaired by Honda and you have proof of that I wouldn't pay any less for it.
#15
you have to declare the repair if anyone asked and it will show up in any report thats done on the car unless it wasnt recorded......

bear in mind the structural integrity of a car will change if its been in a major accident repair........a second crash could have the vehicle disintergrate and cause someone some real harm

this is why most people do not buy accident damaged cars
#16
When trading-in a vehicle previously I was asked by a salesman, "Has it been in a major accident?".

Although the front-end of the vehicle had hit a crash barrier at 30mph (with the air bags not inflating, incidentally), the repair costs were about 15% of the original list price so I did not consider that "major". I replied "no" to the question.

When trading-in another car I wasn't even asked about accident history; and that one had been shunted up the rear at the start of a four car pile-up.

I stopped to avoid a queue of traffic, as did the car behind me, the one behind that, but the next one on the road opted not to bother with something simple like brakes & pushed the other two cars into mine.

The repair was carried out professionally, through an approved bodyshop appointed by my insurers, and you could not tell by looking at the car that it had been involved in an accident (there was no evidence of re-spraying around the hinge of the boot, and everything lined-up as it should, for instance). The rear bumper was already dented from somebody kindly knocking it whilst I was parked at a supermarket & not leaving any details, and that was replaced completely so the car was better than it was previously (so, arguably, the value increased).

However, conversely, if ever I found a vehicle had been in an accident I would not buy it.

You do not know what consequential problems you will have in the future. For example, a rear-end shunt may result in the replacing of the boot/bumper/lights & so on, but the impact may have weakened the chassis, the drive shaft (gearbox, primarily), or any of the structural integrity of the vehicle.

Please could you provide the source of the "Diminution of value of a vehicle is the loss in value incurred when a car has been repaired after an accident" quote, firswood?

Thanks.

BFN,

fp.
#17
[Please could you provide the source of the "Diminution of value of a vehicle is the loss in value incurred when a car has been repaired after an accident" quote, firswood?

Thanks.

BFN,

fp.[/QUOTE]

Sorry for the late reply but please see link below from the AA:
http://www.theaa.com/motoring_advice/general-advice/car-servicing-and-repair-faqs.html#section15 :thumbsup:

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