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Vehicle Diminution Case Study

13:39, 6/2/2020

Home » News & Knowledge » Vehicle Diminution Case Study

Oakwood Solicitors Ltd was instructed to act for Mrs. S Khan based near High Wycombe. Here is a Vehicle Diminution case study describing the matter in detail.

Our client owned an Audi R8 FSi Spyder Quattro V10 and was the second owner of the vehicle. The vehicle had 9,000 miles on the clock when it was involved in an accident.

The vehicle was parked in a multi-story car park. Unfortunately, a Land Rover parked in a bay directly behind Mrs. Khan’s vehicle, reversed into collision with the rear of her Audi when attempting to leave the space.

Vehicle Diminution Case Study

 

Mrs. Khan wasn’t there at the time, but fortunately, the other driver left a note on our client’s windscreen which provided the driver’s name, address, vehicle registration, and insurance details.

Our client reported the matter to her motor insurers who started making the arrangements to have her car inspected by an engineer in order to ascertain the level of damage.

A motor engineer inspected our client’s vehicle and prepared a report which specified that the repair costs would be in the region of £16,200.

The repairs commenced and although they took a considerable amount of time, were completed in March 2019. The work took approximately 26 hours for the repairers to complete.

Mrs. Khan was concerned that her vehicle may have diminished in value and enquired with Oakwood solicitors as to whether the accident would warrant a diminished value claim.

It was the view of Rob Crompton, Head of Personal Injury at Oakwood Solicitors Ltd, that a claim for vehicle diminution would most certainly apply in this case.

We notified the third-party insurers of the diminished value claim and proceeded to instruct a company called Hindle & Co Assessors Ltd to visit the repaired Audi and undertake a physical inspection of it in order to determine how much value it would have lost on the market due to it having an accident history.

On inspection, some additional repairs were identified due to the repairers not completing them to a satisfactory standard. In this case, the left side cover panel was rubbing on the B-post and required some minor adjustment. Rob Crompton returned to Mrs. Khan and asked for arrangements to be made for the vehicle to be returned to the repairer to complete the outstanding repairs.

Once this had been achieved, the diminution report was completed by Hindle & Co Assessors Ltd. The report placed a pre-accident valuation on the car of £108,000.00.

A claim for diminished value can be calculated on a points-based system, where the contributory factors relative to vehicle diminution are explored for the specific vehicle that has been involved in an accident. These factors consist of:

  • The make and model of the vehicle.
  • The age of the car when the accident occurred.
  • The mileage of the vehicle at the time of the accident.
  • The vehicle’s desirability on the market.
  • The condition the vehicle was in at the time of the accident.
  • The number of previous owners.
  • The extent and nature of the vehicle damage.

The higher the number of points scored, the higher the percentage of deduction the vehicle will have sustained to its pre-accident value. In the case of Mrs Khan’s vehicle, most of the categories were given the full 15 marks.

The level and nature of the damage to the vehicle is the most important factor in determining the percentage of diminished value. The damage to Mrs Khan’s vehicle was mainly cosmetic rather than structural in nature and so the points allocated to the repairs were fairly low.

None the less, in Mrs. Khan’s case the percentage was 5.08%, meaning that the engineer felt her vehicle has devalued on the market by £5,486.00 due to the accident.

Mrs. Khan was happy with this report and it was duly submitted to the third party insurers.

Whilst the insurers took some time to refer this to their own motor engineers and return with their position with sheer persistence, Oakwood solicitors were able to recover the full amount of £5486.00 in compensation for Mrs. Khan’s claim for diminished value.

Court of Appeal Guidance

 

Mrs. Khan did not need to attend Court and Rob ensured that Mrs. Khan was kept up to date and informed through the whole process. Once the repairs had been completed and the car returned to its owner, the claim for diminished value was able to proceed and was all settled within nine months.

Mrs. Khan was delighted with the outcome of the case and informed Rob that should any of her friends or family find themselves in a similar position following a Road Traffic Accident, she would recommend that they contact Oakwood Solicitors Ltd.

Coming soon

We will have a special podcast relating to this Vehicle Diminution case study very soon, and we will link it here when it goes live.

Further reading

Our concise, easy-to-understand guide to Vehicle Diminution can be found here on our website.

WHAT TO DO NEXT

To learn how vehicle diminution could recover some of your losses after an accident that wasn’t your fault, get in touch today for a free initial consultation. Choose one of the methods on the right-hand side of this page, or call us on 0113 200 9787 to find out how we can help you.

Meet the author

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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