Written by Maximilian Fromm, independent vehicle expert for damage and valuation (B.Sc. in Mechatronics) · Last updated: November 5, 2026
Not automatically. According to the case law of the Federal Court of Justice (BGH), you may usually rely on the residual value (Restwert) in your report (Gutachten). A considerably higher, specific offer that you have before the sale can change this.
Maximilian Fromm
Founder and engineer (B.Sc. in Mechatronics)
Because in a total loss, usually only the replacement expense (Wiederbeschaffungsaufwand) is paid: the replacement value minus the residual value.
The replacement value is the price you would have to pay on the regional market for an equivalent used vehicle. The residual value is the amount the damaged vehicle can still be sold for on the market. The higher the residual value that is used, the less the insurer pays for the vehicle. You do not lose the residual value: you keep the vehicle or you receive the residual value from the buyer. It can become expensive if the insurer uses a higher residual value than you actually get when you sell.
Example calculation, invented and not a real case. VAT is not taken into account, the other party is fully liable and there are no other items: The replacement value is €8,000. The report states a residual value of €1,500, so the replacement expense is €6,500. If the insurer instead uses an offer of €2,800 as the residual value, it is €5,200. You then receive €1,300 less.
The page Total loss shows which values belong to a total loss.
As a rule, the independent vehicle expert must get three offers on the relevant regional market and name them specifically in the report.
The Federal Court of Justice confirmed this in its judgment of October 13, 2009 (VI ZR 318/08, Leitsatz b, Rn. 11). So the report shows which offers the residual value is based on. An offer from an online salvage platform outside the region (Restwertbörse, an online platform for buyers of damaged vehicles) is a different offer than one that a dealer in your region makes for the vehicle in its condition.
Knowing the regional prices helps to assess an offer from the insurer from a technical point of view, for example whether it fits the vehicle, its condition and its location. More on the role of the region is on the page Choosing a vehicle expert.
Sale, continued use and the exception for a specific offer.
According to the case law of the Federal Court of Justice, a private person whose car was damaged may usually rely on the residual value shown in the report they ordered, if that report determined the value correctly on the regional market. A considerably higher, specific offer that can easily be taken up and that they have before the sale can change this.
In the case of June 1, 2010, the defendant had sent nine residual value offers to the person whose car was damaged before the sale. The highest was €1,730. It was binding until April 29, 2008, with pickup against cash payment, and the person could accept it by phone (Rn. 1 and 10). The person sold the vehicle on May 10, 2008 for €800 to a buyer of their own choice. They had to accept that the higher residual value of €1,730 was counted against their claim. The BGH did not object that the court of appeal saw this as a considerably better option to sell that the person could easily have used. The BGH did not discuss that the binding period had already ended at the time of the sale. It also stresses that such exceptions must stay within narrow limits. The person whose car was damaged must not be forced to sell the vehicle in the way the insurer wants.
In the case of June 1, 2010, the offer had been made before the sale (Rn. 10). The Federal Court of Justice links the exception to an option to sell that is offered to the person whose car was damaged (Rn. 9). An offer that only arrives afterwards usually comes too late.
In the judgment of July 12, 2005 (VI ZR 132/04), a binding offer arrived only two days after the sale. The Federal Court of Justice left open whether this offer met the requirements of its case law for an obligation to use it. In that case, the report of the person whose car was damaged was based on an unsuitable internet offer. The court decided that, in this situation, the person did not in principle have to tell the insurer about the planned sale.
The Federal Court of Justice sees a risk if the residual value is realized without sufficient backing from your own report (BGH, 13.10.2009, VI ZR 318/08, Rn. 9). A lawyer can clarify how a later offer is to be assessed in the individual case.
Four points that often matter before a sale. They do not replace a check of your individual case.
Have an offer you received assessed before you sell your damaged vehicle. Your lawyer can tell you whether this applies in your case.
A sale cannot be undone. That is why it makes sense to have an offer assessed beforehand, and quickly: offers often have a binding period, and waiting too long can increase the damage. The same applies to promises, signatures and handing over documents or keys to a buyer. How long you can wait depends on your individual case and is a legal question.
Write down the sender with name and address, the amount, the binding period (the date until which the bidder is bound by the offer), the pickup conditions, the payment method and any reservations. Take a photo of the letter or a screenshot of the email. If you get a phone call, write down the time, the name and the number.
An independent vehicle expert can check whether the offer fits your vehicle, its condition and its location, and where it comes from. Your lawyer then assesses whether it must be taken into account.
Whether you must take an offer into account is a legal question. You can clarify it with a traffic law lawyer before you sell or otherwise dispose of the vehicle. Write down when the offer arrived and what you did afterwards. If you do not have a lawyer yet, we can name law firms for traffic law on request. If the accident was not your fault, the other party's liability insurance usually also pays the lawyer's fees. With shared fault (Teilschuld), it pays according to the liability share (Haftungsquote).
Then there is no sale. If you settle on the basis of the replacement expense, the residual value from the report is usually the figure used in the calculation.
In its judgment of October 13, 2009 (Leitsatz a), the Federal Court of Justice accepted that a person who repairs the vehicle and continues to use it can in principle use the residual value from a report with a correct valuation. This applies if they settle on the basis of the replacement value minus the residual value. If you instead settle the actual repair costs within the 130% limit (130-Prozent-Grenze), the residual value usually does not matter. The page about the 130% rule explains when a repair is worthwhile despite a total loss. The page Fictitious settlement explains what applies to a fictitious settlement.
The residual value is the amount the damaged vehicle can still be sold for on the market. In a total loss, it is deducted from the replacement value (the price for an equivalent vehicle). The difference is called the replacement expense. A report states which offers the residual value is based on.
Not automatically. According to case law, a private person whose car was damaged may usually rely on the residual value shown in the report they ordered, if that report determined the value correctly on the regional market. A considerably higher, specific offer that can easily be taken up and that they have before the sale can change this. Have your lawyer assess an offer before the sale.
It can come from an online salvage platform outside the region, while the report is based on offers from the regional market. In principle, the Federal Court of Justice does not see private persons whose car was damaged as obliged to use a special online market for buyers of damaged vehicles themselves. But if the insurer gives you a specific, binding offer before the sale that you could easily accept, it can count even if it comes from the internet (BGH, 01.06.2010, VI ZR 316/09, Rn. 8 to 10). A lawyer assesses whether this applies in your case.
The binding period is the date until which the bidder is bound by the offer. If the letter states a period, write down the date and tell your lawyer and us about it first. Your lawyer assesses how a period affects your case.
In principle, the sale is allowed if you sell at the price that a report with a correct valuation shows for the regional market. A risk remains if the residual value is realized without sufficient backing from your own report. Before the sale, also check whether you have a considerably higher, specific offer.
According to the case law of the Federal Court of Justice, an independent vehicle expert must, as a rule, get them on the relevant regional market and name them in the report. The Federal Court of Justice confirmed this on October 13, 2009 in VI ZR 318/08 (Leitsatz b, Rn. 11). If a report is available, it states which three offers are named.
An offer that arrives only after the sale usually comes too late. The Federal Court of Justice links the exception to an option to sell that is offered to the person whose car was damaged (BGH, 01.06.2010, VI ZR 316/09, Rn. 9). In the case decided, the offer had been made before the sale (Rn. 10). In the judgment of July 12, 2005 (VI ZR 132/04), a binding offer arrived only after the sale. The court left open whether this offer met the requirements for an obligation to use it. Keep the letter and write down the date you received it. Have your lawyer assess the case.
What a total loss is, which values count and how it is settled.
Open topic RangeWhen a repair above the replacement value can still be settled.
Open topic SettlementWhat you receive if you do not repair, and which deadlines apply.
Open topic ReductionsWhich items insurers reduce and how this can be assessed.
Open topic ReviewIf the insurer reduces items: how an independent vehicle expert assesses this.
Open topicYou do not have a report yet, or you have questions about yours? Call us. On the phone, we explain the technical side: how the residual value and the replacement value are determined in a report. Your lawyer assesses whether an offer must be taken into account. If relevant, determining the residual value is part of our accident and damage report service.
We are based in Erlangen and inspect vehicles in the Nuremberg Metropolitan Region. You can find the overview under service areas. Go directly to the pages for Erlangen, Nuremberg and Fürth.
Legal information, not legal advice. This page gives general information about dealing with residual value offers after a total loss. It does not check your individual case and does not replace advice from a traffic law lawyer.
Last updated: November 5, 2026. The law and case law can change.
Maximilian Fromm
Independent vehicle expert for damage and valuation, B.Sc. in Mechatronics
Maximilian Fromm is an independent vehicle expert for damage and valuation and the founder of CleverCrash in Erlangen. He studied mechatronics. Since August 2025, he has written damage reports (Unfallgutachten) in the Nuremberg Metropolitan Region for people whose car was damaged in an accident. On request, he works together with the repair shop and the lawyer. He supports his customers until the insurer pays out.
