How Much Does a Car Depreciate After an Accident?
In the exotic car market, vehicles can take a major hit on value after being involved in an accident. While just how much a car depreciates in value is going to vary, there are some ways to estimate vehicle depreciation and understand exactly what you’re working with.
Learn more about vehicle depreciation for SuperCars like Maseratis, Porsche, and Lamborghinis below, and get in touch if you need help filing a diminished value claim after an accident.
Understanding Vehicle Depreciation
Depreciation is a normal part of car ownership and refers to the natural loss in value that a vehicle incurs over time.
While most cars will depreciate, they all do so at different rates and for different factors. Rare and collectible cars, for example, tend to depreciate slower than other types of vehicles, including high-end luxury vehicles. Other factors that impact depreciation include mileage, wear and tear, maintenance quality, and, of course, accident history.
The specific term for vehicle depreciation after an accident is diminished value, which is the difference in a car’s value before the accident and after post-accident repairs.
Does a Car Depreciate After an Accident?
Yes, all cars will incur some sort of depreciation after being involved in an accident.
When we talk about post-accident property loss, most people focus on the cost of damages and repairs to their vehicle. However, it’s important to account for overall depreciation, too, especially for expensive cars.
Unfortunately, rare, collectible, and luxury vehicles may suffer greater depreciation than other types of vehicles. That’s due to the luxury market itself, as finding specialty parts and reliable comps can be difficult.
How Much Value Does a Car Lose After an Accident?
Okay, so how much does a car depreciate after an accident? There’s no one-size-fits-all answer, but you can expect to lose anywhere from 10% to 50% of a car’s value in these instances.
Factors that will impact the diminished value of your supercar include:
- Pre-accident vehicle condition
- Severity of damage
- Loss of historical value
- Vehicle integrity
- Current market value of the vehicle
- Availability of parts
- Repair quality
The more rare the vehicle, the more these factors are going to be at play. Your best bet when navigating luxury vehicle depreciation is going to be working with a law firm that specializes in diminished value claims for supercars and has the necessary resources for expert appraisals and market-informed comparative analyses.
Collecting Diminished Value on a Damaged Supercar
If you have a rare and/or expensive car that was damaged in an accident, you may be able to file a claim for diminished value. This will help you recoup the loss in value of your vehicle and even things out if/when you go to sell later on.
When you file a diminished value claim, insurance will perform their own calculations to determine the exact depreciation of your vehicle. This can be wildly off, though, especially for high-end vehicles.
We take a comprehensive approach to supercar vehicle depreciation claims that helps ensure a maximum payout from insurance. As part of this process, we may:
- Oversee independent research within the scope of the luxury and exotic car markets
- Collect all relevant evidence regarding car repairs and maintenance
- Have the car evaluated by a certified luxury car expert
- Get testimony from expert witnesses, including supercar appraisers and restoration specialists
Our goal is to get you the most accurate estimate possible of your vehicle’s diminished value and, from there, ensure that insurance makes things right. For more information, fill out an online contact form and schedule a consultation regarding your possible diminished value claim.
