What is Vehicle Value Loss? How to Get Vehicle Value Loss?

What is Vehicle Value Loss? How to Get Vehicle Value Loss?

Traffic accidents not only result in physical damage but also cause a decrease in the market value of the vehicles involved. Even after repair, the vehicle, now classified as a "damaged vehicle" in the second-hand market, experiences a reduction in its commercial value. This loss is referred to as vehicle depreciation, a type of damage that can be legally compensated.

In this article, we will comprehensively examine vehicle depreciation, including its legal basis, calculation methods, and the processes for claiming compensation.

What is Vehicle Depreciation?

Vehicle depreciation refers to the difference between the value of a vehicle in its undamaged state before an accident and its market value after undergoing repairs. Even when a vehicle is repaired to the highest standards, its classification as "damaged" in the second-hand market leads to a decrease in its value. This loss constitutes financial damage to the vehicle owner and is legally recognized as a compensable loss.

The key factors affecting vehicle depreciation include:

• Vehicle Brand and Model: Depreciation rates may be higher for prestigious brands or special edition models.
• Vehicle Age and Mileage: Newer and low-mileage vehicles typically experience more pronounced depreciation compared to older, high-mileage vehicles.
• Extent of Damage and Repaired Parts: Damage to critical structural components significantly increases depreciation.
• Condition Before the Accident: Vehicles that were previously undamaged and had no accident history are more sensitive to depreciation.

These factors directly influence how the market perceives the vehicle's condition before and after the accident.

Legal Basis of Vehicle Depreciation

In Turkish law, claims for compensation due to vehicle depreciation are grounded in various legal provisions. These provisions outline the general framework for compensation and clarify the rights and obligations of the parties involved.

1. Article 49 of the Turkish Code of Obligations

Article 49 of the Turkish Code of Obligations regulates liability for tortious acts and states:

"Anyone who causes damage to another through an unlawful and culpable act is obliged to compensate for that damage."

In traffic accidents, the party at fault is required to compensate not only for physical damage but also for the depreciation of the other party's vehicle. In this context, depreciation is considered a type of financial damage arising from a tortious act.

2. Articles 85 and 91 of the Turkish Highway Traffic Law

Article 85 of the Highway Traffic Law No. 2918 regulates the liability of motor vehicle operators:

"If the operation of a motor vehicle causes the death or injury of a person or damage to something, the operator of the motor vehicle is liable for that damage."

Article 91 mandates compulsory liability insurance to cover such damages. Commonly referred to as traffic insurance, this coverage includes compensation for vehicle depreciation resulting from accidents.

3. General Conditions of Compulsory Liability Insurance (ZMMS)

The General Conditions of ZMMS detail the types of financial damages covered by insurance and the methods of compensation. Article A.5 explicitly includes vehicle depreciation as one of the covered types of damage.

In light of these provisions, vehicle depreciation is a type of damage that insurance companies are required to compensate.

4. Article 1459 of the Turkish Commercial Code

Article 1459 of the Turkish Commercial Code sets out principles for insurance compensation. Insurance companies are obligated to cover the insured's losses within the limits specified in the policy. Vehicle depreciation is included within these limits.

How is Vehicle Depreciation Calculated?

Vehicle depreciation is typically calculated based on the criteria outlined in the General Conditions of ZMMS. These calculations are performed by insurance experts and take the following factors into account:

1. Vehicle Brand and Model: The brand's prestige and the model's popularity influence market perception.
2. Date of First Registration: Newer vehicles are more susceptible to depreciation.
3. Mileage: Lower mileage vehicles experience higher depreciation.
4. Damaged Parts in the Accident: Damage to critical structural and safety components increases depreciation.
5. Previous Accident and Repair History: Vehicles with prior damage may have a different depreciation rate.

These calculations are supported by mathematical formulas and market analysis. However, the outcome varies for each vehicle and accident.

Vehicle Depreciation Compensation Process

To claim compensation for depreciation, the following steps must be followed:

1. Application to the Insurance Company

The at-fault party's insurance company must be approached with a written application. The following documents must be included:

• Traffic accident report,
• Photocopy of the vehicle registration certificate,
• Repair invoices,
• Photographs of the accident,
• The applicant's identification and contact information.

2. Evaluation Process by the Insurance Company

The insurance company is required to evaluate the application and provide a written response within 15 days. If no response is received or the offered compensation is insufficient, the claimant may pursue other legal remedies.

3. Legal Remedies in Case of Disputes

The claimant has two options against the insurance company:

• Insurance Arbitration Commission: This method offers a faster resolution compared to litigation.
• Filing a Lawsuit: The claimant can file a lawsuit in the relevant courts to seek compensation for the loss.

4. Statute of Limitations

The statute of limitations for depreciation claims is two years from the date the damage is discovered. If no application is made within this period, the claim is barred by the statute of limitations.

Conclusion

Vehicle depreciation represents a significant financial loss for vehicle owners following traffic accidents. However, it is possible to obtain compensation by following the correct procedures. Özkan Legal | Özkan Avukatlık Bürosu provides comprehensive legal support to clients in these matters. For professional advice and assistance in preventing loss of rights after traffic accidents, feel free to contact our expert team.

 

 

 

 

Supreme Court of Appeals Decisions on Vehicle Depreciation

 

"The case concerns a claim for material compensation related to the depreciation cost of a vehicle resulting from a traffic accident. In the expert report that served as the basis for the decision, the determination of the vehicle's depreciation was not carried out in accordance with the criterion adopted by the Supreme Court of Appeals. This criterion involves calculating the difference between the second-hand market value of the undamaged vehicle at the time of the accident and the second-hand market value of the vehicle after it has been repaired. The calculation was instead based on a method specified in the expert report. A judgment cannot be based on a report using a method inconsistent with the specified criterion. The vehicle's model, brand, features, damages, repair processes, mileage, age at the time of the incident, the claims of the plaintiff, the defenses of the defendant, and the entire content of the file must be collectively evaluated. A new, detailed, reasoned, and reviewable report should be obtained to determine the depreciation damage according to the difference between the second-hand market value of the vehicle before the accident and its value after the repair. Following this, a decision should be made based on all the evidence in the file."
(Supreme Court of Appeals, 17th Civil Chamber, Case No. 2016/9407, Decision No. 2019/4672, Date: 11.04.2019)

"The court should obtain a report from an expert (different from those who prepared previous reports) who will examine the photographs, invoices, accident report, and prior expert reports in the file. The report should consider the vehicle's model, age, the severity of the damage, painted areas, and the characteristics of the damaged regions. Based on the principle that the difference between the second-hand market value of the vehicle before the accident and its value after repair constitutes depreciation, a recalculation of depreciation should be conducted, and a decision should be made accordingly."
(Supreme Court of Appeals, 17th Civil Chamber, Case No. 2016/8159, Decision No. 2017/1793, Date: 21.02.2017)

"The case concerns a claim for compensation arising from a traffic accident. Regarding the incident under review, the determination of the existence and amount of depreciation on the plaintiff’s vehicle can only be achieved through the collection and evaluation of evidence during the trial process, as stipulated in the relevant provisions of the Code of Civil Procedure. Consequently, it must be accepted that the plaintiff could not be expected to precisely determine the amount and value of the alleged loss at the time of filing the case. For these reasons, it has been concluded that the claims made by the plaintiff are of a nature that could be subject to an indeterminate debt claim, and the plaintiff cannot be expected to determine the exact amount and value of the damage at the time of the lawsuit. Therefore, pursuant to the relevant provisions of the Code of Civil Procedure, the plaintiff may initiate proceedings by specifying a minimum amount or value in connection with the legal relationship."
(Supreme Court of Appeals, General Assembly on the Unification of Judgments, Case No. 2017/1099, Decision No. 2019/460, Date: 16.04.2019)

"The case concerns a claim for material compensation due to depreciation and loss of earnings resulting from a two-sided traffic accident. In the present case, although the plaintiff demanded depreciation and loss of earnings claims jointly and severally from both defendants, the preparatory decision indicated only the insurance company (Sigorta A.Ş) as a defendant. The case petition and expert report were not sent to the individual defendant, and the proceedings continued without proper notification to this party. Consequently, the individual defendant was not included in the case, and no positive or negative ruling was made concerning this party. Later, based on the plaintiff's petition for correction and clarification, the individual defendant was added to the decision. The correction ruling and subsequent notification of the reasoned judgment to this individual are inconsistent with the provisions of the Code of Civil Procedure concerning judgment corrections. The defendant individual should have been included in the case to ensure proper party formation, and a ruling (positive or negative) should have been made regarding the plaintiff's claims against this individual. Additionally, the expert report was served on the plaintiff's attorney on 03.05.2018, and despite the Code of Civil Procedure allowing a two-week objection period for the expert report, a decision was rendered at the hearing on 17.05.2018 before the objection period had expired. This is procedurally and legally improper."
(Supreme Court of Appeals, 17th Civil Chamber, Case No. 2020/335, Decision No. 2021/1554, Date: 18.02.2021)