Description

As a trained appraiser I use many resources to determine the value of a vehicle. These websites are just part of the appraisal process.

RATING DESCRIPTION

1 EXCELLENT/SHOW CAR A masterpiece, this perfect original car is in the same condition it was in when delivered new or better; or a professionally-restored car that has been restored to new or better than new condition. This car is not driven, and is transported to shows in an enclosed trailer. Normally stored in a secured, temperature and humidity controlled environment when not being shown, this car would be expected to come within a point or two of a perfect score when judged by professionals using current criteria.

2 FINE An original car with very low miles that has been meticulously maintained since new; or an older professional restoration that has seen very limited use since restoration. Very close inspection by an expert may detect almost insignificant flaws or wear, but to most enthusiasts the car would look perfect. This car would come within several points of a perfect score when judged, and would receive the top award at a show unless a true Number 1 car were also being judged.

3 VERY GOOD A well-maintained original car that has been driven limited miles over the years; is completely operable with all equipment working as designed, and at first glance may look perfect; or an older restoration that has been driven limited miles since the restoration was completed, and is showing minor wear and tear from being on display at car shows. Closer inspection may reveal minor wear on parts susceptible to showing wear, such as brake and gas pedals, and some thinning of paint and chrome finishes may also be noticed.

4 GOOD Major components function properly, and the vehicle is completely safe to drive but may need minor repairs to mechanical systems. No parts are missing, but this car has been driven on a regular basis and may need a paint job and a few trim pieces rechromed or replaced. Amateur restorations usually fall into this category, as do very old professional restorations that have deteriorated due to use and exposure to the elements.

5 RESTORABLE May or may not be running; everything on the car needs to be restored; may be missing minor parts, but the major components are there. Any body damage due to collision or rust should be minor; some surface rust may appear, but no holes should be present. The car is structurally sound, but needs cosmetic updating to paint, upholstery and top material, as well as repairs to various mechanical components.

6 PARTS CAR Probably not running well, if at all; missing some major as well as minor parts; may have serious body damage due to wreck or rust through. Soft trim and rubber parts are most likely completely ruined from weathering and exposure. This vehicle needs many parts and has deteriorated to the point of not being a good candidate for restoration.

Click here for appraisal guidelines

Pictured here are a few of the warbirds that we have appraised for clients and museums around the world. They are an A7 Corsair, Fuji LM-1, Curtiss P-40 Warhawk, Bac Jet Provost P84 T3A (Provost T3), and a Vietnam era Huey.

Kelley Blue Book, The Trusted Source for new and used car values and pricing.

Pictured are a few of the cars that Harry has appraised. They are a 1947 Chevy Fleetmaster Coupe, 1938 Ford Panel Van, Chevy Nova II Pro Street Car, and a 1970 El Camino that was second place in the PPG Hot Wheels contest.

For antique bicycle sale prices click here for Copake Auctions website

Click here for motorcycle & powersports prices by NADA

Reasons for Getting an Appraisal

There are several important reasons to get an appraisal for your custom car, street rod, collector car or classic car. These may include:

1. To determine the sales tax valuation when you register your vehicle. In many states, the price of the vehicle license depends upon the value of the vehicle.

2. To determine the diminished value of your vehicle after an accident.

3. To determine the value so you can be reimbursed for your car after a natural disaster, fire, or other circumstance in which the vehicle was destroyed.

4. To determine the value of your vehicle if it has been stolen.

5. To determine the value of your vehicle for insurance, financing, or for legal purposes.

6. To determine the value of your vehicle after a divorce settlement or for estate settlements.

Click here for Harry's Bio

Certified Appraisers

There are many companies that can provide the necessary appraisals for your vehicle. Make sure the company you select can provide certified and trained appraisers. These appraisers provide a report on your vehicle that includes such values as the Fair Market Value, Replacement Value, Actual Cash Value and Diminished Value of your vehicle. This appraisal report will also contain numerous photos, and a list of components and special parts such as signature wheels, fuel injection, shaved door handles, special sound systems, removable hardtop, etc.

Types of Values

Fair Market Value: A term often used in the appraisal business is called the “fair market value” of a vehicle. This is defined as an estimate of the market value of the vehicle. The value is based on what a willing, unpressured and knowledgeable buyer would most likely pay to a willing, unpressured and knowledgeable seller of the vehicle.

Replacement Value: Replacement value refers to the amount of money that an insurance company would pay to replace the vehicle at the present time, according to its current worth. This type of value would be important if the street rod were stolen or were totally destroyed by a fire or other natural disaster. Replacement value is designed so that the owner will not have to spend more money to replace the vehicle under these circumstances.

Actual Cash Value: The cash value is different from the replacement value in that the value of the vehicle is been reduced by depreciation (wear and tear, age, etc.). The actual cash value may change daily. It is determined by the condition of the vehicle, (excellent, good, fair, or poor), the mileage of the vehicle, and the make, model, age, (features) of the vehicle. These are all items that are part of the depreciation of the vehicle. For example, a vehicle with high mileage will be worth less that a vehicle with low mileage. The actual cash value is determined by subtracting the depreciation from the replacement costs. This is often used when selling a vehicle rather that replacing the vehicle.

Diminished Value: Another term used in the appraisal business is called the “diminished value” of a vehicle. This term is associated with a vehicle that has been in an accident in the past and is for sale. When a vehicle is in an accident, even if it has been completely fixed, it still isn’t worth the original value before the accident. It is estimated that between 50-60% of consumers won’t buy a vehicle after it has been in an accident even if it has been repaired correctly. In fact, more that 80% of the people would expect to pay a lower price if it has been in an accident.

For example, say a vehicle is worth $40,000. Then an accident occurs. In this example say there was $10,000 worth of damage. The insurance company pays the $10,000 (minus the deductable). Is the car now worth $40,000 again? Not really. This is because if a buyer knows that a vehicle has been in an accident, the value of the vehicle is diminished. The buyer expects to pay less that the $40,000 because the car has been in an accident. The value of the car has been diminished because of the accident.

Calculating diminished value:

The base loss of value is 10 percent. After an accident a vehicle has loss 10 percent of the retail before the accident.

Then you have the damage modifier (see below).

1 or 100% Severe damage to the structure of vehicle.

0.75 or 75% Major damage to structure and panels.

0.50 or 50% Moderate damage to structure and panels.

0.25 or 25% Minor damage to structure of vehicles.

0 No structural damage and replaced panels

Next you have Mileage Modifier.

0 to 19,999 Miles 1.0

20,000 to 39,999 miles 0.8

40,000 to 59,999 miles 0.6

60,000 to 79,999 miles 0.4

80,000 to 99,999 miles 0.2

100,000 and above miles 0

Let’s add it all up, using a Ford Hybird. Let’s assume this vehicle sustained $12,000 in damage caused by front end collision that deployed the airbags. The Ford has a NADA retail value of $21,950.00. The vehicle has 65,000 miles.
$21,950 x 10% = $2,195 (base LOV)
$2,195 x 0.5 = $1,098 (damage coefficient)
$1,098 x 0.4 = $439 (mileage modifier) - So the diminished value is $439 (not much).

The above method is only one way of calculating diminished value. This method does have flaws and it is not perfect.


Are you a classic car or motorcycle enthusiast? Do you like going to car and motorcycle shows? How about getting paid to go to these shows? The Flymall team is looking for knowledgeable car/motorcycle folks to join our team of appraisers. We need people knowledgeable on particular make/models and people to cover certain territories. We will provide you with advertising material for the first year. We provide the necessary training ($750 is the fee for initial training and $450 for recurrent training required each year). Your first 15 appraisals will be under our supervision. After 25 appraisals you will earn our junior appraisal status and after 50 appraisals you will earn our senior appraiser status. Appraisal forms and materials will be provided to you.

Our appraisal fees can be found at https://flymall.org/ and click on the Appraisals by Flymall link on our home page. We ask that you follow our fee structure listed. We receive a $10 fee for each appraisal you complete. Our appraisers are required to send in monthly reports showing the number of appraisals completed. Each appraisal completed will be added to the Flymall Market Watch found at http://flymall.org/market-watch/.


Tags: Diminished value