#1  What Is An Automotive (Vehicle) Appraisal?

An appraisal, be it automotive (vehicle)or other, means that a professional appraiser, certified in their particular field, evaluates the item in question and assigns a dollar value to it. Real estate, fine jewelry, and art are among the more common items appraised. An automotive (vehicle) appraisal is just like any other type of appraisal. A professional certified automotive (vehicle)appraiser reviews the vehicle in question, determines its quality and soundness and then assigns a dollar value to it. It's important to remember that the appraised value is the educated opinion of one appraiser. Another professional-certified appraiser may derive a higher or lower value. This doesn't mean that one is correct, the other wrong. It's simply a difference of opinion. Depending upon the vehicle, and as long as the appraised values are within several hundred dollars of each other, there should be no appreciative concerns.

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#3  Do I Need An Appraisal?

YES!  An up-to-date appraisal is the best proof of your vehicle's true value.  No longer will an individual disputing a vehicle's value simply rely on the owner's opinion. They now require a professional-certified appraisal.

An appraisal is proof that a vehicle has undergone customization and/or upgraded work. It successfully illustrates what work was performed, the quality of materials used, as well as the degree of workmanship.

If you're acquiring or updating an insurance policy, using the vehicle as collateral, donating, or simply want to prove that work has been done, you need a professional-certified appraisal.

When terminating a lease, early or otherwise, an appraisal will solidify the vehicle's value. You'll have a better understanding of what to expect as the true residual value, assuring you a fair and equitable termination of the lease.

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#4  Can Any Vehicle Be Appraised?

YES!  No matter what type of vehicle you have, we can appraise it. Granted some are more difficult than others, that's a challenge we look forward to. No matter what your vehicle's year and manufacturer is (even home made kit or assembled models), we can appraise it. A successful appraisal can also be performed on accident damaged and un-recovered theft vehicles. Even if a vehicle is currently not in your possession, we can accurately appraise it. Our appraisal services will also perform a thorough appraisal on a vehicle undergoing varied stages of restoration, customization, and/or manufacture.

The automotive appraisal services group exclusive copyrighted Appraisal Information Report (AIR) was designed specifically to meet any of today's appraisal demands.

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#5  When Should A Vehicle Be Appraised?

Now!  It often depends upon the need and the party requesting the appraisal, but there is no better time than the present. Your vehicle has a specific current value, it should be appraised for that value in today's market.

If your vehicle is in various stages of restoration, DON'T wait until it's done to have it appraised. Say for example you've taken it to John's Upholstery Shop for interior work. John's shop accidentally burns to the ground, including your vehicle. Could you prove what restoration was done before it went to John's shop?  Don't count on John's insurance to cover it either. An up-to-date, current professional-certified appraisal will protect you.

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#6  In Terminating a Lease, When Should The Appraisal Be Performed?

Generally, most lease requirements state the vehicle should be appraised no more than one month before the lease expires. In so doing, you'll have a current accurate fair market value. Armed with this knowledge, you'll have a better understanding of what to expect as the vehicle's true residual value, assuring you a fair and equitable termination of the lease.

In the case of an early termination, it's best to have the appraisal performed when you decide to actually turn the vehicle in...terminate the lease.

#7  How Long Is An Appraisal Good For?

As there are no specific guidelines, the general rule of thumb is that an automotive (vehicle) appraisal is active for a period of 18-24 months.  Depending upon the need for the appraisal and the vehicle itself, values often change quarterly and/or yearly.  Whenever any major work has been performed or a serious turn in the economy occurs, it is suggested that a new up-to-date appraisal be obtained.

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#8  When Donating A Vehicle To Charity, Is An Appraisal Necessary?

YES!  The IRS requires that any vehicle donated to any charity with an estimated value over $5,000 must have a certified appraisal performed by a third party professional-certified appraiser. The certified appraisal must be accompanied by all IRS required documents signed by the appraiser clearly indicating their appraiser identifying number. No Ifs - Ands - Or Buts!

An automotive appraisal services group, professional-certified donation appraisal meets all IRS guidelines.

If the vehicle's estimated value is less than $5,000, an appraisal is not mandatory but it is suggested. Just because an appraisal is not required, that doesn't mean the IRS will not challenge the value. They often do. Donating a vehicle to charity often turns on a "RED LIGHT" that just might trigger an audit. If the vehicle's value was determined merely by a book value such a Blue Book, Edmunds, NADA guide or other similar publications,(which by the way the IRS will not accept), or a value randomly assigned by the receiving charity, the IRS will challenge it. You will then have to prove to the IRS the vehicle's value. Remember an IRS audit can happen several years after you've donated the vehicle making your task that much harder. A professional-certified appraisal will successfully demonstrate the vehicle's true value eliminating any IRS auditor's inquiry.

For Additional Charity Donation FAQs ... Go To APPRAISAL: Charity Donation Page

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#9  Will The IRS Accept Your Appraisal?

YES! We have successfully complied with all IRS requirements regarding certified appraisals. We're an approved, recognized IRS vehicle appraisal service, and in fact have been retained by the IRS to perform appraisals on their behalf. Every appraisal is accompanied by the appropriate IRS approval designations and required form(s).

The same affirmation is true for all individual states that have specific appraiser/appraisal requirements.

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#10  How Is The Appraisal 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 USPAP - Uniform Standards of Professional Appraisal Practice, and comply with accepted business practices as outlined by the BBB - Better Business Bureau.

Upon review of your submitted Appraisal Information Report (AIR), the vehicle's exterior, interior and all mechanical components are noted to determine its basic quality and soundness. Next, any aftermarket items as well as restoration and/or customization work is considered. All aspects of the vehicle are taken into consideration when establishing an appraised value.

Depending upon the vehicle, and the need for the appraisal, various "value" designation guides are used to establish a base value. Then factored in are all the items specific to your vehicle. 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 re-reviewed to insure that a thorough, in-depth appraisal was performed rendering a credible accurate appraised value.

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#11  What Is "Book" Value?

#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
• USPAP - Uniform Standards of Professional Appraisal Practice
• 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.

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#15  Will Everyone Accept The Appraisal?

YES!  In over 19 years of appraisal service, not once has our appraisal been refused.  Each automotive appraisal services group appraisal meets or exceeds the requirements of the party requesting the appraisal.

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#17  Don't You Need To See The Vehicle, To Appraise It?

NO!  That's a common misconception that is easily refuted.  The aasg 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 and USPAP - Uniform Standards of Professional Appraisal Practice have been satisfied to guarantee a professional-certified appraisal.  Ours is a most unique program that has passed every test in regards to accuracy and legality.

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#18  What Is Diminished Value?

Diminished value is a value assigned to a vehicle that has sustained some type of damage and subsequently received sub-standard or inadequate repairs, failing to meet industry repair standards. The incident could be an accident prior to or during current ownership, succumbed to theft, act of nature, or other means whereas the vehicle was in need of repairs to return it to a safe-solid-sound operating and cosmetically acceptable condition. Due to an inferior quality of repair, the vehicle will now have less of a value, or a diminishment in value, of a like vehicle that did not undergo repair. Said repairs can be of a cosmetic, structural and/or mechanical nature.

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#19  What is ACV Value?

ACV is an acronym for Actual Cash Value. That's the acceptable retail current market resale value of a vehicle if an insurance company or individual, where to purchase it for cash. ACV does not take into consideration any license fees and/or sales tax. It's a value assigned only to the vehicle. ACV is established with a professional-certified appraisal utilizing accepted and approved guidelines.

an aasg professional-certified appraisal meets those requirements.

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#20  What Is Fair Market Value?

Fair Market Value is quite similar to ACV - Actual Cash Value. (See question #19 for ACV.) It's what a specific vehicle would bring in a current fair market. Fair market is defined as selling a vehicle in a like market with like vehicles. A vehicle's fair market has varied guidelines that must be followed.

For example; the Fair Market Value of a restored 1965 Ford Mustang would be a market place where other restored 1965 Ford Mustang's are for sale. A fair market would not be a place, physical or publication, where only restored 1968 Chevrolet Camaros are for sale. The value of a restored 1965 Ford Mustang may be somewhat lower if grouped only within a "competitor" vehicle or where other restored 1965 Ford Mustangs are not listed.

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#21  Can An Appraisal Be Performed Solely Over The Internet?

NO!  A vehicle's "ball-park" or "general idea" type value...yes. But a professional-certified appraisal, one that satisfies a third party need...NO. There are specific industry accepted guidelines that must be maintained. These guidelines cannot be met by simply providing a vehicle's information only via Internet use. That's merely an acceptable way to establish a general idea of what a vehicle might be worth.

However, if you want to know a vehicle's true appraised value, one that's guaranteed to meet a third party's request for an appraisal, a properly documented...professional-certified appraisal consisting of specific information must be performed. This type of appraisal can only be obtained by use of industry accepted and approved, personally signed appraisal forms.

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