Compensation For Loss Of Vehicle Transaction Depreciation

Vehicle traffic accidents in China are at an all-time high,and claims for compensation for damages caused by such incidents are also on the rise.The compensation for the loss of vehicle transactional depreciation is the most contentious of them.Because the existing law lacks a clear compensation structure,there are several questionable examples in the practice of court trial of different decisions in the same case.It is necessary to address this issue further in order to better resolve it.The question of whether and how to compensate for the loss of car transactional depreciation is a hot topic in the legal world.In current judicial practice,the viewpoint against reimbursement for automobile depreciation losses continues to hold sway,as seen by the Supreme Court’s internal Reply.The opposing viewpoints are as follows: vehicle devaluation loss does not exist from the start,vehicle devaluation loss does not exist after vehicle repair,there is no legal provision for devaluation loss compensation,devaluation loss is an indirect loss that should not be compensated,and identifying the devaluation loss is difficult.The perspective of affirming depreciation loss compensation is described as follows: the loss is direct and identifiable.In judicial practice,the supporting views are weak and lack a system when compared to the opposing views,so it is vital to enhance the rationale of the supporting views.The amount of compensation for car depreciation loss is reasonable.To begin,car depreciation loss is classified as an objective loss,a direct property loss,and a non-pure economic loss.Second,opposing points of view have reasoning flaws.There is no such thing as automobile depreciation loss.Although the loss of vehicle depreciation is linked to the trader’s psychology,it is not the psychology of a single person,but rather the psychology of the entire market.Even if the car is fixed,its market value will be diminished as long as it is damaged in a traffic collision.As a result,car depreciation loss is objective rather than nonexistent.In addition,there is a law that can be used to compensate for depreciation losses.The civil code’s articles238 and 1165 can be utilized as a legal basis for compensating depreciation losses.Finally,while some perspectives acknowledge the presence of depreciation loss,they restrict the compensating requirements.Compensation must be based on car resale,the existence of a well-developed market,no minor accident damage,no responsibility of the victim,and damaged automobiles should be eliminated.The computation of depreciation loss,the selection of depreciation loss calculation time point,and the offset of profit and loss in depreciation loss are all factors to consider when determining the extent of compensation for vehicle depreciation loss.To begin with,traditional depreciation loss calculation methods have their own application limits and no sequence in which they are chosen,resulting in depreciation loss compensation in judicial practice being unstable.As a result,referring to the United States’ calculation formula 17（c）and using the calculation technique combining subjective and objective as the main calculation method will help to overcome the problems of depreciation loss calculation misunderstanding and difficulty in identification.Second,classification should be used to choose the time point for loss calculation.The time period from the occurrence of loss to the end of court debate shall prevail for vehicles sold after the accident,the time period from the occurrence of loss to the end of court debate shall prevail for domestic vehicles that are not sold after the accident,and the time period from the occurrence of loss to the end of court debate shall prevail for vehicles for sale specially used for sale.Finally,in vehicle repair,the exchange of old equipment for new equipment can help to balance earnings and losses.