The market value (valor venal) of a car is the value the vehicle has on the second-hand market immediately prior to an accident or loss. Essentially, it is the money you would have received for it had you sold it a second before the crash.
This is the reference value used by insurers to decide whether to repair your car or declare it a total loss (a "write-off"), which happens when the repair cost exceeds this market value.
1. How is it technically calculated?
Insurers and the tax authorities (HMRC equivalent) follow a standardised process to avoid subjectivity:
- Official Tax Value: The base is the price of the car when new according to the annual list published by the BOE (Ministry of Finance). This value depends on the make, model, engine type, and trim.
- Depreciation Percentage: A reduction percentage is applied to that "new" value based on the years passed since its first registration.
Depreciation Table (2026 Reference):
| Vehicle Age | Value Retained (Approx.) |
|---|---|
| Up to 1 year | 100% |
| More than 2 to 3 years | 67% |
| More than 5 to 6 years | 39% |
| More than 10 to 11 years | 17% |
| More than 12 years | 10% |
2. The different "types" of Market Value
Depending on your policy and who is at fault, different values will be discussed:
- Market Value (Valor Venal): Only takes into account the make, model, and age. It does not include mileage or optional extras that were not standard.
- Enhanced Market Value: Some policies include a clause that adds a percentage (usually between 20% and 30%) to the market value to ensure fairer compensation.
- Replacement Value: What it would cost you to buy an identical car from a second-hand dealership. It is usually 20-30% higher than the standard market value because it includes the dealer's margin and warranty.
- New Value: What the car costs today at a dealership. This is usually only paid if the car is less than 1 or 2 years old.
3. What if the market value is very low? (The problem in Málaga)
If you have a well-maintained 12-year-old car, its market value will be minimal (10% of its original value). If you are involved in a collision on a street in Málaga and the repair costs £3,000, but your market value is £1,200, the insurer will want to pay you that amount plus the scrap value if they keep the car, or minus that value if you decide to keep it.
What can you do?
- Loss of Use/Sentimental Value (Valor de Afección): You can claim up to 50% more than the market value as "sentimental value" or "utility value," since you had a perfectly functioning car and now you have nothing.
- Supreme Court Ruling 420/2020 of 14th July (First Chamber of the TS).
4. Where can I check my car's value?
To get an approximate figure today:
- Search for your model in the Tax Agency Tables (BOE) for the current year.
- Apply the percentage based on its date of registration.
- If you have fully comprehensive insurance, check your specific policy conditions to see if they guarantee New Value or Enhanced Market Value.
