APPRAISAL TYPES
DIMINISHED VALUE APPRAISAL
A Diminished Value Appraisal is done when a later model or specialty vehicle has been wrecked and repaired. Most will agree that once a vehicle has been wrecked and repaired, it will be worth less than a similar vehicle that has not been damaged. When a vehicle has had substantial damage, the accident history is attached to the record of the vehicle. The insurance companies and other companies (such as CARFAX) track damaged vehicles and relay accident histories to people that are researching a vehicle prior to purchasing. Dealers can tell if you vehicle has been wrecked and will pay you less for your trade-in because of the accident history. Dealers are required by law to disclose any known vehicle damage to their customers as well. Actual repair work may be very good, and most vehicle owners will not be able to visually distinguish a repaired vehicle from one that has not been wrecked. Law requires you, as the owner of a repaired vehicle, to inform a prospective buyer of the accident history when asked.
Why do a Diminished Value Appraisal?
Once your vehicle is repaired, your vehicle still is not worth the same as it was prior to accident. This appraisal assigns a dollar value to the reduction in value because of the accident history. We also inspect your vehicle to critique the quality of work and give a detailed list of items that the repair shop should bring up to standards.
STATED VALUE APPRAISAL
A Stated Value appraisal is normally used to establish current retail market value for a vehicle.
Why do a Stated Value Appraisal?
- This type of appraisal is normally needed to get full coverage insurance on a vehicle that is over 10 years old.
- Lenders may require you to get appraisal to establish value of an older model vehicle that is over 5 years old.
- You are going to buy or sell a vehicle and are not sure of the current market value.
- You have an estate that needs to assign an unbiased value to a vehicle.
- You are going to donate a vehicle to a charity and need the IRS Form 8283 filled out by an appraisal company and a written appraisal.
To establish market value we research the current value thru auction publications, established market guides and daily, weekly or monthly publications relative to the type of vehicle being appraised. We also use Internet sites as well. Once condition of vehicle is established, we then assign a value using the research material and our experience in the market to establish the current market value.
ACTUAL CASH VALUE PRIOR TO LOSS
Appraisal is done to replicate the retail market value at the time of loss.
Why do an Actual Cash Value Appraisal?
When your vehicle is lost, stolen or totaled and you believe it was worth more than what the insurance company or other party is offering to pay.
BONDED TITLE
The state of Texas required that you have a bonded title appraisal done if you are trying to get a title to a vehicle that has no title or have lost the title.
When do I need a Bonded Title Appraisal?
When you do not have a title and DMV has told you that you must have 2 appraisals to finish your paperwork.
|