Residual Value

The residual value (Restwert) is the amount a vehicle is still worth in its unrepaired condition despite the accident damage. It corresponds to the proceeds the injured party could obtain by selling the damaged vehicle on the market accessible to them – for example to a used car dealer or a buyer of accident vehicles.

The residual value is particularly relevant in the case of an economic total loss (wirtschaftlicher Totalschaden): here, the injured party generally receives the replacement value (Wiederbeschaffungswert) minus the residual value, since they can still realise the value of the damaged vehicle.

According to established German case law, when the residual value is determined, the injured party may in principle rely on the general regional market as used by the expert as the basis of their report. As a rule, they are not obliged to seek out a special market of salvage buyers on their own initiative – for instance via online salvage exchanges (Restwertbörsen).

• The injured party may generally sell their vehicle at the residual value stated in the expert report (Gutachten).
• If the insurer submits a specific, binding and readily acceptable higher residual value offer in good time, this may have consequences under the duty to mitigate damages (Schadensminderungspflicht).
• The expert usually documents the offers obtained in a comprehensible manner in the report.

These principles depend on the individual case; in the event of a dispute, the specific circumstances are decisive.

The motor vehicle expert determines the residual value conceptually in several steps:

• Establishing the extent of the damage: The nature and depth of the damage largely determine what the vehicle is still worth.
• Assessing usability: Is the vehicle still roadworthy, repairable, or only of interest as a donor vehicle for parts?
• Obtaining offers: In practice, several specific purchase offers are obtained from the regional market and documented.
• Stating the residual value: The residual value stated in the expert report is based on these offers and provides the injured party with a reliable basis for the sale.

A vehicle suffers severe front-end damage. The expert finds that the repair costs exceed the replacement value – an economic total loss. He obtains several purchase offers from regional buyers for the unrepaired vehicle and states the highest reputable offer as the residual value in the report. The injured party sells the vehicle at this value and receives from the insurer the difference between the replacement value and the residual value as compensation.

For injured parties, the key point is: as a rule, the damaged vehicle should not be sold prematurely before the expert report is available and the insurer has had the opportunity to review it – otherwise deductions may be imposed. At the same time, the residual value stated in the report protects the injured party from being referred to speculative top bids from salvage exchanges.

For experts, the proper, documented determination of the residual value is a frequent point of dispute with insurers. Offers that are obtained in a traceable manner and evidenced in the report make the stated residual value robust.