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LEASE TERMINATION APPRAISAL PROGRAM - FAQs
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- What Is The Lease Termination Appraisal Service?
- How Is The Lease Termination Appraisal Service Used?
- When Leasing From A Nationally Recognized Leasing Company...Is An Appraisal Necessary?
- Can I Return The Vehicle Without An Appraisal?
- Why Can't I Simply Submit A Book/Guide Value As Proof?
- When Should The Leased Vehicle Be Appraised?
- I've Already Returned The Vehicle...Can It Still Be Appraised?
- Will The Leasing Company Accept Your Appraisal?
- How Is The Appraised Value Determined?
- What Is Residual Value?
- What Is "Book" Value?
- What Is Comparable Or "Comp" Value?
- Is The Appraisal Certified?
- Is The Appraisal Guaranteed?
- Are Photographs Required?
- Don't You Need To See The Vehicle...To Appraise It?
- Can A Lease Termination Appraisal Be Performed By Sending Information Via The Internet?
- What Is Considered Excessive Wear And Tear?
- Can Excessive Wear And Tear Claims Be Disputed?
#1 What Is The Lease Termination Appraisal Service?
The automotive appraisal services group Lease Termination Appraisal Service
is all that's needed to successfully prove to a leasing company (lessor) the value of a leased vehicle
upon termination of a lease.
The termination of the lease can be early or scheduled.
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#2 How Is The Lease Termination Appraisal Used?
The automotive appraisal services group Lease Termination appraisal
is used as a support document to substantiate to the leasing company (lessor) the end-of-lease or residual value of
the vehicle at the termination of the lease. The termination can be early or scheduled. Often a leasing
company (lessor) requires a professional-certified appraised value be established when terminating the
lease. The aasg lease termination appraisal meets that requirement.
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#3 When Leasing From A Nationally Recognized Leasing Company...Is An Appraisal Necessary?
YES! The size, name, origin, or geographical location of the leasing company has no bearing
on the end-of-lease or residual value of your vehicle. In fact, the larger the leasing company, the more an appraisal
will assist you. A larger, non-personal company, may only looks at numbers, not individual lessors and their personal
situations.
An aasg professional-certified appraisal will successfully demonstrate
to any leasing company, no matter what size they may be, your vehicle's true value and eliminate many questions.
#4 Can I Return The Vehicle Without An Appraisal?
Most instances ...Yes! However, if a dispute arises, you'll limit your opportunities to
prove it's true value. The leasing company (lessor) may charge you hundreds of dollars for a minor infraction and
you won't be able to prove otherwise.
In circumstances where an early termination is desired, the leasing company (lessor) will require an appraisal
prior to returning the vehicle. An aasg professional-certified appraisal
will meet their demand.
#5 Why Can't I Simply Submit A Book/Guide Value As Proof?
Leasing companies rarely accept a generic guide book for your vehicle's actual fair market value. The reason is that
those publications are guides only. Your vehicle will most likely have a unique feature or two making it somewhat different.
Plus, consideration must be given to your local current market conditions and the overall quality of your vehicle. With the
rise in popularity of leasing, most guide book publications will have a dedicated edition addressing only residual values.
These editions are not readily available to the general public. When the vehicle's end-of-lease or residual value
is established using a professional-certified appraisal, the correct book value is used as well as an in depth analysis of
your particular vehicle and its local current market demand.
For example, if your vehicle is in perfect condition, having received excellent care and service, it might easily sell
for more than the "book/guide" value, due to its low mileage and basic overall condition. An aasg
appraisal will successfully demonstrate that rendering a higher residual value.
#6 When Should The Leased Vehicle Be Appraised?
Now! There's no better time than the present. Your vehicle has the highest value now, it
should be appraised for that value in today's market. Depending upon the vehicle, its end-of-lease or residual value
can change quarterly, semi-annually or annually. Having the vehicle appraised now will guarantee that you will
receive the highest possible value.
Leasing companies will also often have strict guidelines as to when the appraisal must be performed in relation
to the vehicle's actual return date. Check with your lessor for their specific requirements.
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#7 I've Already Returned The Vehicle...Can It Still Be Appraised?
Yes! Even though you aren't in possession of it, we can successfully appraise it. You will
need some basic information about it, such as the VIN#...mileage...any after market items installed...service history...overall
basic condition, etcetera. Most of the information that's needed can be found on the various lease
forms. The other pertinent information you likely already know.
Our exclusive, copyrighted Appraisal Information Report (AIR) is specifically designed for this purpose.
It will guide you step-by-step in providing all the required information to successfully achieve an accurate appraised
value.
#8 Will The Leasing Company Accept Your Appraisal?
YES! We meet or exceed all requirements regarding certified appraisals. We're a recognized professional
appraisal service performing each appraisal under the strict guidelines as outlined by NAVA - National
Association of Vehicle Appraisers.
Plus! A 100% money back guarantee acceptance accompanies each appraisal.
(Some Restrictions Apply.....Details Accompany The Written Guarantee.....Consult Additional Information In: TERMS & CONDITIONS - Guarantee)
#9 How Is The Appraised Value Determined?
All appraisal values are determined by a professional-licensed-certified appraiser, strictly adhering to the guidelines
as established by NAVA - National Association of Vehicle Appraisers
and business practices within the BBB - Better Business Bureau.
Upon review of your submitted Appraisal Information Report (AIR), the vehicle's exterior, interior and all
mechanical components are evaluated to determine its basic quality and soundness. Next, all aftermarket or upgraded
items are considered. Every aspect of the vehicle is taken into consideration when establishing an appraised
value.
Depending upon the vehicle, various "value" designation guides are used to establish a base value. Next, all
the specifics of your vehicle are factored in. Then, current, local to you, wholesale market comparable
values are determined. Your opinion is also considered. After all the information is carefully reviewed,
the final appraised value is established.
To maintain the highest quality possible, the appraisal is reviewed a second time to insure that a proper, in-depth appraisal
was performed rendering the highest possible appraised value to best suit your needs.
#10 What Is Residual Value?
Residual value is an educated opinion, established by the lessor, as to what the vehicle will be worth
at the end of the lease. Its based on the percentage of projected depreciation the vehicle will sustain during the lease
period. The residual value can be different each lease year. It might be 70% after one year, 60% after two, 50%
after three, and so on. The theory is that you only pay for what you use.
For example: A leased $10,000 vehicle for three years is worth $5,000 at the end of the lease.
You've essentially used $5,000 worth of the its value, or 50% of the its original price. Your payments would be $5,000
divided into 36 monthly payments plus interest and applicable tax and related fees.
$5,000 is therefore the vehicles residual value...what it's worth at the end of the lease.
#11 What Is "Book" Value?
Book value is a pre-assigned value of a vehicle by an independent firm involved in the research of vehicles and their
respective selling prices. There are several specific firms providing such information. These "books" may
offer several editions defining specific geographical locations throughout the country. Which book is utilized to determine
your vehicle's book value depends upon your vehicle as well as your location. The varied "books/guides" available can
be of a general practice type or one specific to a type of vehicle. Similar to the law and medical professions, there
are general practitioners as well as those specializing in a specific field.
In regards to leasing, there are specific books addressing vehicle residual values at their projected
end-of-the lease. It's important to remember, as is the case of any book value, these are guides only.
Each vehicle needs to be treated individually rather than simply lumped together.
When performing the aasg Lease Termination Appraisal Service, we
use the most applicable "book" for your vehicle, the one that offers the highest most accurate values.
#12 What Is Comparable Or "Comp" Value?
Comparable values, often referred to by its slang term "comps" are values of similar vehicles.
If many 1999 Widgetmobiles are selling for $1,000, than the "comp" value of a 1999 Widgetmobile is $1,000.
Once a solid comparable value is established, consideration is then given for your vehicle's particulars that will add or
subtract to its final appraised value. There are many factors that need to be considered in establishing a solid comparable
value. It's more than simply looking in a local newspaper. It's often quite difficult to establish a comparable
value for a custom, specific, or altered vehicle, but aasg can do it.
Leasing company requirements usually state that several solid and accurate comparable values must be considered
in establishing any appraised value. These comps must be "wholesale" vehicle values...what licensed dealers
pay for similar vehicles. These values derive from wholesale..licensed dealers only auction houses. aasg has access to, and utilizes these specific values.
#13 Is The Appraisal Certified?
YES! Every automotive appraisal services group appraisal
meets or exceeds the strict guidelines of certification and professional business practices as outlined by:
- NAVA - National Association of Vehicle Appraisers
- BBB - Better Business Bureau
- ABA - American Bar Association
- IRS - Internal Revenue Service
Appropriate designations, licenses, and applicable information are stated on the appraisal, announcing its certification
and acceptance.
#14 Is The Appraisal Guaranteed?
YES! A 100% money back guarantee acceptance accompanies each appraisal.
(Some Restrictions Apply.....Details Accompany The Written Guarantee.....Consult Additional Information In: TERMS & CONDITIONS - Guarantee)
#15 Are Photographs Required?
Not necessarily. They help demonstrate what your words say, but they are not mandatory. An accurate appraisal
can still be performed without them. Our exclusive copyrighted Appraisal Information Report (AIR)
is designed for use with or without photographs.
#16 Don't You Need To See The Vehicle...To Appraise It?
NO! That's a common misconception that is easily refuted. Our exclusive, copyrighted Appraisal
Information Report (AIR) was specifically designed for this purpose. All that's required
is your information. All appraisal guidelines as established by NAVA - National Association of Vehicle Appraisers - to guarantee a professional certified appraisal can be met without
a physical inspection. aasg Lease Termination Appraisal Service has
passed every test for accuracy and legality, and is readily accepted by leasing companies.
#17 Can A Lease Termination Appraisal Be Performed By Sending Information Via The
Internet?
NO! A vehicle's "ball-park" or "general idea" type value is possible, but
a professional-certified appraisal, one that satisfies a leasing companies specific requirements, is not possible.
Your particular vehicle has unique and specific concerns that must be addressed. These concerns cannot
be understood simply by providing a vehicle's core information and then receiving a "book" or "guide" value solely over
the Internet.
The lease company will also require that industry accepted guidelines be adhered to. If not, they will
reject your submitted value. An appraised value gained solely via the Internet will not satisfy these requirements.
If you need to know a vehicle's true appraised value, such as is the case with a lease termination, a professional-certified
appraisal, consisting of specific information, must be performed.
#18 What Is Considered Excessive Wear And Tear?
Excessive wear and tear on any vehicle is a "gray" area of definition. It's
highly subject to interpretation. A basic definition is any concern, be it cosmetic or mechanical, that falls under
the category of beyond normal as compared to other like vehicles. What's considered normal, everyday wear and
tear to one, is excessive to another. The question now becomes; what is normal? Again, a "gray"
area of definition.
There are many factors that need to be addressed. The vehicle's age, its mileage, availability of service/repair/maintenance
receipts, how it was utilized, even where it's parked, just to mention a few. Each lease is different,
each vehicle is different. The same is true for excessive wear and tear definitions. The lessor's standard for
excessive wear and tear is found in your lease agreement.
A good way to determine excessive wear and tear is if the specific concern would occur within the normal, day-to-day use
and operation of the vehicle.
Typical examples include:
- Broken, Damaged, Or Missing Items
- Dented Or Damaged Body Panels/Components
- Cracked, Chipped, Heavily Pitted Or Broken Glass
- Cuts, Tears, Burns Or Stains In Seating Or Carpet
- Excessively Worn Brakes Or Tires
- Poor Quality Repairs
For example:
A car has minor surface swirl marks on the left front fender from repeated car wash visits. That
would be considered normal wear and tear. However, if the same vehicle would show deep scratches or scrapes
from parking to close to Johnny's bicycle, that would be considered excessive wear and tear.
OR:
A 3 year old vehicle with 35,000 miles has a "wear" spot on the carpeting directly below the accelerator pedal.
That's considered normal as what vehicle wouldn't? On the other hand, the same vehicle shows damage to the
driver's seat were a belt clip type key chain has torn the fabric in several locations. That's excessive wear and
tear.
A professional-certified appraisal, obtained from accurate supplied information, will be able to discern the difference
between what is normal and what is excessive. An aasg appraisal does just
that.
#19 Can Excessive Wear And Tear Claims Be Disputed?
YES! Determining and/or proving excessive wear and tear is a highly subjective process
open to interpretation. An aasg professional-certified appraisal can
successfully dispute questionable claims as to what is normal or excessive. Once challenged, an excessive wear and tear
claim is often reviewed and subsequently the values readjusted.
Effective/Revised Dates: September 1999 ... May 2000 ... February
2001 ... June 2002 ... October 2002 ... April 2003 ... July 2004 ... October
2007 Copyright by: automotive
appraisal services group 1996-2009
All Rights Reserved
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