German-law context: This page relates to German law and German automotive claims practice. It provides operational information, not individual legal advice.
The dealership documents repair facts and customer instructions. The assessor determines the relevant values. Legal interpretation and settlement strategy belong with authorised legal professionals.
Economic total loss
An economic total loss generally arises when the repair cost is not commercially reasonable in relation to the replacement values under the applicable German claims framework.
Residual value
Residual value is the value of the damaged vehicle in its unrepaired condition. Offers, market access and timing can be legally sensitive and should be handled consistently with the assessment and legal advice.
The 130% framework
German case law permits repair above replacement value only under defined conditions. Integrity of repair, actual use and the precise calculation are important. The workshop should avoid presenting the rule as a guaranteed option.
Operational decision path
Before ordering parts, clarify the assessment, customer instruction, financing exposure, salvage status and approval route. A written decision protects both customer communication and workshop economics.
Frequently asked questions
Is 130% a free repair budget?
No. It is a legally defined exception with conditions, not a general allowance.
Who determines replacement and residual value?
Normally the automotive damage assessor.
May the workshop advise the customer which legal route to choose?
The workshop can explain operational options but should refer legal strategy to authorised counsel.
What is the biggest business risk?
Starting a high-cost repair before the route, values and customer instruction are documented.
Frank Roll, MSc, MBA
Automotive claims management specialist working at the interface between dealerships, insurers, automotive damage assessors and legal professionals since 1998. Author of Schadenmanagement im Autohaus and developer of the R-SOS management consulting system.
Last reviewed: July 2026 · The specialist book is currently available in German.