Frequently Asked Questions

How much does it cost for a motor vehicle appraisal?
Why might I need the help of a public insurance adjuster in addition to an appraiser?
When should a vehicle be appraised?
When should the appraisal be performed for a lease termination?
Is an appraisal necessary when donating a vehicle?
Will the IRS accept a Vehicle Value Experts appraisal?
What is “ACV”?
What is “Book Value”?
What is Comparable Or “Comp Value”?
What is “Fair Market Value” (FMV)?
What is “Replacement Cost” (RC)?
Is an inspection required for an accurate appraisal?

1. How much does it cost for a motor vehicle appraisal?

The cost of a motor vehicle appraisal depends upon a wide number of factors that are unique to each individual situation, matters such as:

The nature and severity of the property’s damages.
The location of the vehicle to be inspected.
The type, age, and condition of the vehicle.
The amount of research required to establish an accurate pre-loss market value for the subject vehicle.

These are just some of the factors that can affect the cost of your individual report. The best way to determine the cost for your particular report is to email us your Insurance Claim Information. Please provide us as much information as possible. Upon receipt, we will contact you to discuss your recommended service(s) and the anticipated cost.

2. Why might I need the help of a public insurance adjuster in addition to an appraiser?

Having a certified appraisal is necessary to resolve auto insurance claim disputes. However, it is not sufficient in itself. Insurance companies have a formidable and daunting toolbox of tactics to delay, evade and suppress challenges to their settlement offers. Many choose to obtain the aid of a profession licensed public adjuster who has experience overcoming all of the tricks and delaying tactics used by insurers within their particular state to save time and avoid the inevitable frustrations of fighting a battle with odds stacked high against them. Vehicle Value Experts can work closely with any knowledgeable Public Insurance Adjuster of your choosing to see that you are made whole for your loss in as smooth and trouble-free way possible.

Only a licensed Public Insurance Adjuster (PIA), not a licensed appraiser, is legally able to step into the shoes of the insured and represent the insured all the way up to the courthouse steps. Should legal action become necessary, the PIA may have an established battle plan to make the legal process also proceed as quickly and successfully as possible.

At this time, we know of only one Public Insurance Adjuster Agency that specializes only in auto claims – Auto Claim Specialists. Auto Claim Specialists is licensed in most states, and Vehicle Value Experts has worked in tandem with Auto Claim Specialists in thousands of insurance claim cases including total loss, diminished value and repair disputes.

3. When should a vehicle be appraised?

The timing for having an appraisal done depends upon the particular matter and any requirements. One should be cautious of wording pertaining to court orders, IRS mandates, insurance policies, etc., as well as any statutes of limitations. Requirements usually depend upon the need of the party requesting the appraisal. Should your particular issue involve a matter of the past, you may elect to seek a valuation for the property’s “pre-loss value” (as it was just prior to the time of the loss) which can be much greater than that at a later date.

If your vehicle is in various stages of customization or restoration, you may be wise to have it appraised during the restoration period in the event it is damaged or stolen before being completed. The value of the vehicle may change by tens of thousands of dollars prior to completion, and only an appraisal would adequately document value changes during the investment process from mechanical, interior, body repair and refinishing improvements. This would be especially true when transporting the vehicle to a service provider where the vehicle will be in the care, custody and control of another. Possessing a current valuation and having adequate coverage will protect your investment and give you the peace of mind insurance is intended to provide.

4. When should the appraisal be performed for a lease termination?

Generally, most lease contracts stipulate the vehicle to be appraised no more than one month (30 days) before expiration of the lease agreement. The intent is to determine the subject vehicle’s “Fair Market Value” so the consumer and the lesser are better prepared to negotiate lease termination issues (residual buy-out, miss-apportioned physical damages etc.) in obtaining a fair and equitable end of lease settlement without unwanted and unwarranted surprises for either party.

In the case of an early termination, it’s best to have the appraisal performed just prior to turning the vehicle in to ensure that all issues are recognized and resolved beforehand. There’s nothing worse than receiving notice weeks after turn-in advising hundreds or even thousands of dollars in damages/repairs are owed which can no longer be verified. Most all Vehicle Value Experts appraisals will have accompanying documenting photographs to avoid such hidden and unexpected surprises.

5. Is an appraisal necessary when donating a vehicle?

The need for an appraisal when donating a vehicle would depend upon the circumstances. Under current IRS guidelines (at the time of this writing), when a private party makes a donation of a vehicle valued at $5,000 or more, there are several requirements and limitations including but not limited to:

Obtaining a written appraisal by a qualified appraiser.
The appraisal be prepared no less than 60 days before the donation.
The maximum deduction allowed is the vehicle’s “Fair Market Value.”
The charity is a qualified organization.
Your deduction cannot exceed 50% of your gross income.
Note that “Fair Market Value” may be considerably less than “Book Value.”

While not mandatory, an appraisal of a donated vehicle valued at less than $5,000 is considered prudent. For additional information in this regard, you may wish to visit irs.gov.

IMPORTANT NOTICE: Vehicle Value Experts does not provide legal or financial advice and strongly recommends each user of this site seek a qualified professional familiar with any applicable legal and/or tax issues. For further clarification regarding the use of this site please visit our DISCLAIMER.

6. Will the IRS accept a Vehicle Value Experts appraisal?

Yes! Vehicle Value Experts has performed hundreds of appraisals, and because they meet all IRS certified appraisal requirements none have ever been questioned, declined or found to be unqualified. We adhere to and meet all Professional Automotive Appraisal Standards (e.g., USPAP-Uniform Standards of Professional Appraisal Practice) throughout the nation for local, state and national appraisal activities. Vehicle Value Experts doesn’t merely offer a multitude of services; we provide confidence and peace-of-mind!

7. What is “ACV”?

“ACV” is an acronym for the term Actual Cash Value. As the term suggests, the “Actual Cash Value” is the price an item could be bought for cash and is always associated with a specific timeframe (e.g., at date of loss, etc.). ACV is often computed by determining its “Replacement Cost” (RC) or the cash price required to buy an identical item and then adding for enhancements and/or subtracting for depreciation based on age and condition of the property to be replaced to render a fair and accurate value for settlement purposes.

In the property and casualty insurance industry, “Actual Cash Value” or ACV is a term for the method of valuing insured property by determining the cost of repairing or replacing damaged property with other of like kind and quality (LKQ); specifically, replacement cost less physical depreciation based on age, condition, time in use and obsolescence.

Example: Let’s say you bought a new television five years ago for $600. Could you sell it for the same $600 today? Of course not. Its actual worth might be more like $150. If your television were stolen or damaged, that $150 is all you would get from the insurance company with an actual cash value (ACV) policy.

8. What is “Book Value”?

“Book Value” in relation to automobiles is value guides from published listings (in print, data and/or Internet) and independently owned and operated auto valuation organizations such as the National Auto Dealers Association (NADA), Kelley Blue Book (KBB), Black Book, Cars of Particular Interest (CPI), etc. Such publications are generally well known, recognized and accepted by the automotive and financial sectors as guides and references for automobile pricing.

These reference guides normally offer several levels of pricing which may include manufactured suggested retail pricing (MSRP), retail, wholesale, loan, etc. Additionally, these value guides generally provide for methods in determining the economic impact (deductions or additions) of such factors as model packages (e.g., Limited, Touring etc.), condition, mileage, optional equipment, etc.

It’s important to note that relying merely on a “Book Value” may not provide the basis for a fair and reasonable valuation of a vehicle’s value, as market conditions often play a direct and significant role in determining a vehicle’s value at any given time or location. As an example, a richly equipped high performance and/or massive gas guzzler may be significantly devalued in the marketplace during a time when gasoline prices increase significantly, while at the same time a small gas miser with few amenities may command a price much greater than a guidebook’s listed retail value.

9. What is Comparable or “Comp Value”?

Simply stated, “Comparable Value” is a measurement of worth based on the selling price of a similar item. Oftentimes comparable or “Comp” values are sought to aid in determining the value of a vehicle. Comp values are attainable through various resources including but not limited to local, regional and national print, Internet searches and consultations with sales professionals.

10. What is “Fair Market Value” (FMV)?

“Fair Market Value” (FMV) is the price at which a property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts.

Fair Market Value is a term in both law and accounting that is based on the economic term of “market value.” It is also a common basis for assessing damages to be awarded for the loss of or damage to property, generally in a claim under tort or a contract of insurance.

Fair Market Value is a judgment established by market research of similar vehicles (a.k.a. “comp”) in a specific market region during a given time frame. The goal is to determine at what price the subject vehicle would have sold for at a specific time in a given geographical area.

Vehicle Value Experts employs various recognized and reliable resources in locating comparable vehicles to effectively ascertain a vehicle’s true Fair Market Value regardless of how unique the property may be.

Vehicle Value Experts offers decades of experience and commitment to excellence and provides its clients with the information they require when it is needed.

11. What is “Replacement Cost” (RC)?

“Replacement cost” or “Guaranteed Replacement Cost” is the current price of a like-kind vehicle if it were to be purchased new, as opposed to the depreciated value of the vehicle at the time of the loss.

“Replacement Cost” takes into consideration the increase in the pricing of a vehicle. It is conceivable that over time, a fully and properly restored classic vehicle would increase in value (providing it was maintained properly). Should a vehicle be insured under a “Replacement Cost” policy, and be stolen or destroyed, the owner would receive the cost to replace the vehicle at the time of the covered loss.

In the insurance industry, “replacement cost” is relative to an insurance policy provision which pays for the full cost of replacing damaged property without a deduction for depreciation and without a dollar limit. This policy is different from an Actual Cash Value policy, which takes into account depreciation for lost and damaged items, if the damage resulted from an insured peril.

Whereas depreciation is an anticipated loss in value based on age and condition, appreciation is an increase in the market value of a property due to changes in market conditions or other causes, especially over time.

Example: Suppose you bought a new television five years ago for $600 and it was stolen or destroyed in a fire. With a “Replacement policy, if your television was stolen or damaged beyond repair you would receive the amount necessary to buy a replacement of like, kind and quality at the current market price, which may be more or less than the original $600.00.

12. Is an inspection required for an accurate appraisal?

A physical inspection of the vehicle by a qualified expert is the most effective method by which to ascertain the true condition of a vehicle for assessing an accurate value which can be certified by an expert and accepted by a third-party. Assessing value without a physical inspection is like purchasing a vehicle from mere photos without inspecting it or securing a Pre-Purchase Inspection (PPI). Appraisals without physical inspection have a wider range of error than appraisals including physical inspection.