Is depreciation damage compensable? It hurts to see your new car damaged in a crash!

My new car was rear-ended less than a month after I bought it. Although the dealership fixed it, used-car dealers say its value has dropped by at least 3 million. Can the at-fault party be held liable for this loss?

1. What is vehicle depreciation loss?

Vehicle depreciation loss refers to the reduction in a vehicle's market value after it has been damaged in an accident and repaired. This loss is objectively real: for the same model, there is a clear price difference between vehicles with accident history and those without.

II. Divergent Stances Among Courts

There is currently a divergence in judicial practice regarding whether compensation for depreciation losses should be awarded:

Support for Claims: Argues that depreciation loss constitutes actual property damage, aligning with the principle of full compensation. Courts in Beijing, Shanghai, and other regions have supported such claims under specific conditions.

Opposing view: The loss from depreciation is considered an indirect loss, and there is no unified evaluation standard. Therefore, it is not supported. The Supreme People's Court has stated in a reply that "in principle, it shall not be supported."

Compromise: Support granted only in special cases, such as when the vehicle is relatively new, damage is severe, or safety risks persist after repairs.

3. Conditions for Receiving Support

Based on precedents supporting depreciation loss claims, the following conditions are typically required:

1. Vehicle has been purchased recently (typically within 1 to 2 years);

2. The accident caused structural damage (beyond simple cosmetic repair).

3. Depreciation loss assessment report issued by a qualified appraisal agency;

4. The vehicle has not undergone major repairs.

IV. Protection Recommendations

1. Conduct a vehicle damage assessment promptly after the accident.

2. Select an appraisal agency with judicial appraisal qualifications.

3. Keep the purchase invoice, maintenance records, and other supporting documents.

4. Assert depreciation loss alongside other claims in litigation and be prepared for the possibility that it may not be supported.

Claiming compensation for vehicle depreciation loss is challenging but not impossible. For professional assessment and legal support, contact Fujian Ciji Law Firm—we fight to secure your maximum rights.