Scrap value

Vehicle only has scrap value

The scrap value or wreckage value describes the estimated value of a vehicle or a system that is likely to be no longer repairable. The scrap value is not a price negotiated on the market , but an estimated value.

Determination of the scrap value

The scrap value of a vehicle is decisive when it comes to the insurance- relevant question of whether there is a total loss after an accident . The value of a vehicle wreck that cannot be rebuilt arises from the possibility of using the wreck as a spare part donor. If you then add the raw material value and subtract a certain dealer margin and disposal costs, you get the objective wreck value. The objective wreck value is an empirically determined value. A residual value, often to be equated with scrap value, is the dealer purchase value of the damaged vehicle as a representative average price on the market.

In the case of merchant ships , the scrap value is based on the weight and expected value of the steel used.