Diminution VS Depreciation
When it comes to cars quite often there can be confusion about what the difference is between diminution and depreciation. Depreciation is a term most of us are familiar with, however we can sometimes think that diminution means the same thing.
Depreciation is a reduction in the value of an asset over time, due in particular to wear and tear. We’re all probably aware of the old saying that this occurs the moment you drive it out of the showroom. Factors such as mileage, service history and fuel economy can all contribute towards depreciation.
This happens to all vehicles and other than researching which cars depreciate slower than others there is not much you can do to avoid this.
Diminution, however, is a reduction in the size, extent, or importance of something. In relation to a vehicle this would refer to diminution, or a reduction in value, following an accident.
This occurs when a car, bike or other vehicle is damaged in an accident and despite full repairs to ensure it works and looks as it did previously, due to buyers prejudice, it is still valued at less than another identical vehicle that hasn’t previously been in an accident.
There is something we can do to try and rectify this diminution in value.
As long as the accident was not your fault, if your vehicle has suffered at least moderate damage to the bodywork or paintwork, and therefore has diminished in value, putting in a claim with Michael Lewin Solicitors can enable you to recover your losses.
If your vehicle is prestigious, rare or is no more than five years old and has damage costing over £3000 to repair, call Michael Lewin Solicitors today on 0113 200 9720 to discuss your rights and how you may be compensated for your losses.