At Oakwood Solicitors, we offer assistance to clients who have lost money due to damaged or repaired vehicles in non-fault accidents, focusing on maximising your Diminution Claim. Understand your guide to a claim today.
What is Vehicle Diminution?
Vehicle Diminution has been accepted in law for decades now. All the way back to 1974, the Court of Appeal deemed that if a potential buyer is considering two identical cars, one of which is unblemished and the other with a history of repair work, the buyer is likely to choose the unblemished car, or expect a discount on the purchase of the one that has a repair history.
Previous Vehicle Diminution Cases
The case of Payton –v- Brooks (1974), heard in the Court of Appeal, sets out that a claim can be brought for Diminution caused by a vehicle having been repaired.
The summary is that if the full cost of the repairs to the car is not enough to cover the financial loss to the owner, there is no reason the owner should be deprived of additional compensation under that head of damage also.
Another especially important case was called Coles -v- Hetherton (2013). This case determined that the financial loss to a vehicle owner is realised as soon as the vehicle becomes damaged. The loss sustained is not simply the cost of the repairs, it is Diminution.
The cost of the repairs to put the vehicle into its pre-accident condition is simply a contribution towards the Diminution. The Courts can award a sum of compensation which is greater than the cost of the repairs if they feel that the case justifies it.
What are the statistics?
A recent survey by Oakwood Solicitors Ltd revealed that only 9% of car buyers would buy a vehicle with previous accident damage and repair work.
The survey, which involved 2,087 people, found that buyers aged 18-34 were most likely to buy the damaged vehicle.
Additionally, when potential buyers were advised of the damage and the repair, they would pay 24% less for the damaged car, leaving the seller out of pocket. This can be significant for owners who believe their car is worth its full book value.
Why do I need a solicitor?
Although Vehicle Diminution has been around for some time, it is not a very well-known and understood area of law.
Insurers realise the impact that a number of claims would have on them financially if everyone who could seek compensation, did so. As such, they will try to avoid settling wherever they can and for the unrepresented diminution Claimant, this can prove to be extremely difficult and stressful to overcome.
Why use Oakwood Solicitors?
- Members of our Road Traffic Accident (RTA) department have been very well trained to know what to look out for and how to respond to specific arguments from third-party insurers.
- We work with experienced engineering firms nationally and have access to Barristers who have appeared in Court to represent clients pursuing Diminution claims.
- We strive to ensure that our clients recover the highest level of compensation possible.
- Oakwood Solicitors Ltd has a highly successful track record of recovering compensation for clients and are happy to conduct an initial FREE assessment of your claim.
- We work on a no-win, no-fee basis and our fees are based on a deduction from our clients’ compensation. This means that we are incentivised to ensure that we obtain the maximum possible level of compensation for our Diminution clients.
Frequently asked questions:
What should I do to ensure I recover the most diminution compensation, as quicky as possible?
You should take the full details of the driver at fault for the accident. This should consist of where possible of full name, address, phone number and vehicle registration.
You should try to take photographs of your own vehicle in its damaged condition.
Try to ensure that your car repairs are carried out at a reputable, approved repairer.
Ensure that your vehicle is returned to you from the repairer in a good condition and that you are satisfied with the quality of the repair work. If the car has been repaired to a poor standard, it makes it exceedingly difficult to assess the loss in vehicle value.
If possible, you should request a copy of the repair documentation from the body shop or garage. This should include any repair estimate and reports. Invoices should include a list of all parts and labour work carried out.
What evidence will I need?
When submitting a claim for Diminution to the third-party insurers, it is likely that they will want to see evidence of the loss in the form of engineering evidence, provided by a qualified motor engineer.
This will involve a review of the repair documentation and an inspection of the fully repaired vehicle.
Is it necessary to get a physical inspection of my vehicle carried out?
Although it is not impossible to obtain a ‘desktop’ engineer’s report and submit a claim for Diminution, it can create difficulties because without a physical inspection of the vehicle, the engineer’s report will be based on second-hand information (the repair documents) and it would also bring in to question how the engineer has determined a true and accurate market valuation of the car.
A desktop report without a physical inspection is likely to result in a report being open to criticism and the Courts may even not accept it as a loss that can be substantiated.
We would therefore always recommend that a physical inspection is carried out if you wish to pursue your matter.
When is the right time to get an engineer’s report?
A Diminution value can only be determined once the owner knows that the vehicle repairs have been carried out to a commercially satisfactory standard.
If there has been additional undiagnosed damage requiring further repair work, then the value of the eventual outcome could be affected.
You may also find that the insurers of the third-party insurers try to argue that the repairing garage was to blame for the loss in value due to incomplete or unsatisfactory repair work.
It is therefore important that you are satisfied that the repairs have been completed to a reasonable standard before an engineer is instructed to inspect the vehicle.
Further information:
Oakwood Solicitors: Vehicle Diminution.
WHAT TO DO NEXT
Contact Oakwood Solicitors Ltd and provide us with basic details about the accident, your vehicle, and the damage it sustained. We will then be able to tell you if you have a viable claim.
There is absolutely no obligation to proceed. You can provide information or get in touch by calling 0113 323 3135 or contact us by enquiries@oakwoodsolicitors.co.uk.
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Rob Crompton joined Oakwood Solicitors in July 2007 as a Road Traffic Accident Paralegal Fee Earner. Rob has progressed through the organisation and holds the current position of Head of Personal Inj…
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