Most vehicles depreciate in value the moment they leave the dealer’s lot. When a vehicle has been repaired after an accident, it suffers even more depreciation. Generally, vehicles that have suffered damage are worth less than those with no damage. The stigma of previous damage reduces the resale value. When a previously-damaged vehicle is sold, the owner usually takes a financial hit. This reduction in value between an undamaged vehicle and a damaged vehicle is called “accelerated depreciation.”
If your vehicle has suffered damage over $2000, you must declare it when you sell it. That declaration will remain part of the vehicle’s record.
A damage declaration, of course, reduces the vehicle’s value, even if you weren’t at fault for causing the accident. When you go to sell it, you’ll be hit again — once in the accident, then again in your pocket because of the “accelerated depreciation.” It’s just not fair.
In a recent case (Jiwa v. Xu) ICBC, on behalf of the Defendant driver at fault, was ordered to pay the accelerated depreciation of $13,500 plus taxes to the Plaintiff driver. The Plaintiff was driving a brand new 2017 BMW when he was hit by the Defendant driver, who was fully at fault.
This is good news. But the Plaintiff driver, of course, had to sue ICBC to receive fair justice.
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