Diminished Value (Loss of Market Value)
Traffic Accidents
- Yaizu & Makinohara Attorneys Top
- Traffic Accidents
- Diminished Value (Loss of Market Value)
- I want to consult about a traffic accident in Yaizu/Makinohara
- My vehicle was classified as an accident vehicle due to a traffic accident
- I want to learn about diminished value (loss of market value)
Are you troubled by issues like these in Yaizu, Makinohara, Omaezaki, Fujieda, Shimada, Yoshida Town, or surrounding areas?
Yaizu Sogo Law Office offers a free initial legal consultation regarding traffic accident concerns. There is no obligation to retain our services after the initial consultation. We are also available on weekday evenings and Saturdays. Please feel free to contact us by phone or email.
What Is Diminished Value (Loss of Market Value)?
Diminished value (loss of market value) of a vehicle damaged in an accident is recognized when, even after repairs, defects remain in appearance or function, or when the vehicle's commercial value is expected to decline due to its accident history.
Specifically, diminished value is mainly divided into the following two types:
| ① Technical diminished value | When the vehicle cannot be fully restored to its original condition even after repairs (e.g., structural/frame repairs) |
|---|---|
| ② Commercial diminished value | When the market value decreases because an "accident history" remains, even if the vehicle is fully repaired |
In particular, type ② is often overlooked, and in many cases, a decline in value can be proven by obtaining an appraisal report.
Cases Where Diminished Value Is Likely Recognized
Diminished value is more likely to be recognized in the following cases:
- New vehicles or relatively new models (within 3 to 5 years of registration)
- Popular models (luxury vehicles, imported vehicles, etc.)
- Repairs to structural components (frame, radiator core support, etc.)
- High repair costs
- Vehicles where a repair history significantly affects the appraisal value
Conversely, it is extremely difficult to claim diminished value for older vehicles (10 years or more) or high-mileage vehicles (over 100,000 km).
How to Calculate Diminished Value
In practice, diminished value is often calculated as follows:
① Approximately 10% to 30% of repair costs
In judicial practice, diminished value is often assessed as a percentage (approximately 10% to 30%) of the repair costs.
For example, if the repair cost is 400,000 yen, the diminished value would be approximately 40,000 to 120,000 yen.
② Calculation based on a dealer appraisal report
In negotiations with insurance companies, an appraisal report may be obtained from a dealer, and the diminished value may be claimed and negotiated as: pre-accident valuation minus post-accident valuation = diminished value.
Cases Where Diminished Value Is Denied
In the following cases, diminished value claims tend to be denied:
- Minor repairs (e.g., bumper replacement only)
- Vehicle models where repair history does not affect market value
- Older vehicles or vehicles with high mileage
- Insufficient documentation such as appraisal reports or repair estimates
Frequently Asked Questions
I was rear-ended while waiting at a red light. The car was a brand-new vehicle, less than one month old. Can I ask the other party to buy me a new car? Or are there other ways to resolve this?
If you were rear-ended while waiting at a red light, you bear no fault, and the at-fault party must compensate for all damages you have suffered.
However, since the at-fault party is only obligated to compensate for actual damages suffered, if the vehicle can be repaired, the damages amount to the equivalent of the repair costs.
Therefore, if repairs are possible, even if the victim requests a new replacement vehicle, the at-fault party only needs to pay the repair costs.
However, in actual accidents, considering factors such as the extent of repairs, vehicle type, year of registration, and mileage, diminished value (loss of market value) may be recognized when the vehicle's function or appearance is not fully restored, or when the selling price decreases due to the accident history.
In practice, considering the above factors, it can be said that diminished value is often assessed at 10% to 30% of the repair costs.
In your case, since the vehicle that was rear-ended was a new car registered less than one month ago, you can claim 10% to 30% of the repair costs as diminished value against the other party.
Can anyone claim diminished value?
It is possible, but whether the claim is accepted depends on the vehicle type, model year, and extent of repairs.
How much can I receive for diminished value?
Generally, it amounts to 10% to 30% of the repair costs.
If the appearance is fully restored after repairs, is there no diminished value?
Even if the appearance is restored, the vehicle's value may decrease simply because of its "accident history," and diminished value may still be recognized.
The insurance company says they will not recognize diminished value. What should I do?
There are cases where the decision can be reversed by preparing documentation such as appraisal reports.
Within how many years of registration is diminished value more likely to be recognized?
Generally, vehicles within 3 to 5 years of registration tend to have their claims recognized more easily.
How does hiring an attorney change things?
An attorney can assist with collecting evidence for diminished value, performing calculations, and negotiating with the insurance company, increasing the likelihood of a successful claim.
The Initial Legal Consultation for Traffic Accidents at Yaizu Sogo Law Office Is Free of Charge
Yaizu Sogo Law Office provides a free initial legal consultation regarding traffic accidents.
We handle all traffic accident-related legal matters, regardless of severity or whether they involve property damage or personal injury. If you are feeling stressed by dealings with insurance companies, or if you want to know whether the amount offered by your insurance company is fair, please do not hesitate to consult with us.
Yaizu Sogo Law Office is available not only during regular weekday hours but also on weekday evenings and Saturdays. Please contact us by phone or email to schedule a legal consultation.
Contact
If you are facing issues with traffic accidents, debt restructuring, or inheritance:You can consult a lawyer for free
At Yaizu General Law Office, free legal consultations are available for those facing traffic accidents, debt restructuring, or inheritance issues. There is no obligation to retain our services after a free consultation. For other areas of law, consultations are available at 5,500 yen (tax included) per 30 minutes. Please do not hesitate to contact us if you need assistance.
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About Yaizu General Law Office
Yaizu Office
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- Address
- 〒425-0028
3-11-4 Ekikita, Yaizu City,
Shizuoka Prefecture
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- Phone
- 054-639-5573
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- Business Hours
- Mon-Fri 9:00 AM - 7:00 PM Sat 9:00 AM - 5:00 PM / Closed: Sundays & Holidays
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- Access
- 6-minute walk from Yaizu Station / Parking available
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- Yaizu, Makinohara, Fujieda, Shimada, Yoshida, and surrounding areas
Makinohara Office
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- Address
- 〒421-0422
Maison de Hautoku 1F, 140-4 Shizunami,
Makinohara City, Shizuoka Prefecture
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- Phone
- 0548-28-6710
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- Business Hours
- Mon-Fri 9:00 AM - 7:00 PM Sat 9:00 AM - 5:00 PM / Closed: Sundays & Holidays
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- Access
- 4-minute walk from Shizunami 1-chome (Bus Stop) / Parking available
- Access
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- Service Area
- Yaizu, Makinohara, Fujieda, Shimada, Yoshida, and surrounding areas
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Free Legal Consultation Process
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Making a Reservation for Free Legal Consultation
Please make a reservation by phone or email. There is absolutely no obligation to retain our services after a free consultation. If you are in need of help, please feel free to come in for a consultation.
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Free Legal Consultation with an Attorney
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If You Wish to Retain an Attorney
During the consultation, we will also explain the fees and outlook should we take on your case. If you wish to proceed, you may retain us at that time. You are also welcome to take the information home and consider it before making a decision.
