Vehicle depreciation is a concept that describes the condition of the damaged vehicle. Vehicle depreciation refers to a decrease in the second-hand market value of the vehicle being repaired by taking damage. If the car is damaged by an accident, it will be reduced in value even if it is repaired in the best way.
However, if a part of the vehicle which has been subjected to paint due to an accident is not depreciated again after an accident, Replacement of the damaged part can cause loss of value.
How is Vehicle Value Loss Calculated?
There are many variables that are influential in calculating vehicle depreciation. Some of the variables relate to the tool, and some relate to the way the tool is used. These variables can be listed as follows:
Year of production
Damage history and quality
Brand and model knowledge
Date of release to traffic
Market values are some of the factors that influence this calculation.