Vehicle Depreciation: Compensation for Material Losses Following a Traffic Accident

 

  Vehicle depreciation refers to the decrease in the value of a vehicle on the used car market after it has been damaged in a traffic accident and subsequently repaired.

  Simply put, even if the vehicle is restored to its pre-accident condition, it will sell for a lower price because it has an accident record. This decrease in value is an obligation that the at-fault party involved in the accident must compensate for. However, if a part of a vehicle has been repainted as a result of an accident, there will be no decrease in value if the vehicle is involved in another accident; however, replacing the damaged part will result in a decrease in value.

  The concept of vehicle depreciation arose from the idea and expectation that a damaged vehicle would suffer a financial loss compared to its value before the accident. Accordingly, the less culpable party seeks compensation for actual damages resulting from the tortious act from the more culpable party. In short, the difference between the pre-accident and post-accident resale value of a vehicle involved in an accident is called "vehicle depreciation.".

  The item of depreciation, unlike natural depreciation, "vehicle depreciation" . Depreciation or damage to the vehicle due to natural causes or use is not considered. The most explanatory Supreme Court decision on this matter is the 19th Civil Chamber's decision dated January 24, 2001, numbered 2001/115 E. and 2001/536 K.: "However, if the value of the plaintiff's assets after the incident is less than their value if the incident had not occurred, then there is damage. Even if the repaired vehicle is well-repaired, if its value is less than its value if the incident had not occurred, then there is damage."

  While the criteria for determining depreciation or loss of value may vary depending on the specific circumstances of each case, factors such as the vehicle's make, specifications and model year, intended use, duration of use, wear and tear, the severity and location of damage, and the quality of parts used in repairs (whether they are original or not) should be considered. The difference between the vehicle's resale value at the time of the accident and its resale value after repair should be accepted as the depreciation.

 

  Although our laws do not contain a specific article titled "diminishing value," we believe that the legal nature of this damage item is the concept of "tort" found in Article 49 of the Turkish Code of Obligations. This article states that "Anyone who causes damage to another through a culpable and unlawful act is obligated to compensate for that damage." Accordingly, a person who, due to their fault, collides with another vehicle must pay for the diminishing value of that vehicle.

It is essential that the injured party's situation be restored to what it was before the tort, and that their financial loss be fully compensated. Since the operator who caused the damage through their tortious act must fully compensate for the damage, it is also essential that the insurer, who assumes the operator's liability through the mandatory insurance policy required by law, fully compensate for the damage incurred, in accordance with Articles 49 of the Turkish Code of Obligations and 1459 of the Turkish Commercial Code.

 

Example of Vehicle Depreciation:

1. You own a vehicle, and it was damaged in an accident.
2. Your vehicle has been repaired and restored to its original condition.
3. However, due to the accident record, your vehicle will be sold for a lower price than its pre-accident value.
4. This decrease in value must be compensated by the party at fault in the accident.

To make the example given above more understandable and illustrative, it needs to be adapted to everyday life:

 

 Accident Date: March 1, 2024
 Vehicle Make and Model: 2022 BMW 3 Series
 Mileage: 15,000 km
 Accident Status: The vehicle sustained heavy damage from a rear-end collision. The rear bumper, trunk lid, and rear fender were replaced. Original parts were used, but the vehicle's accident history has been recorded.

 Depreciation Calculation:

 Market Value Before Accident: 1,000,000 TL
 Market Value After Accident: 900,000 TL

 Diminution in Value:
The difference between the market value of a vehicle before and after an accident determines its depreciation.

1. Market Value Before Accident: 1,000,000 TL
2. Market Value After Accident: 900,000 TL

 Amount of Depreciation:
1,000,000 TL – 900,000 TL = 100,000 TL

 Explanation:

•  Vehicle Depreciation: The market value of the vehicle has decreased by 100,000 TL due to the accident.
•  Repair Status: Although the vehicle has been repaired with original parts, its accident history has reduced its value.
• Compensation Claim: The vehicle owner can claim 100,000 TL in compensation for the depreciation in value from the insurance company or the person who caused the accident.

 

  ERDINÇ KARAHAN