METHODOLOGY OF ANALYSIS

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This appraisal is based on published market value guides (nada book value), and the damage to value ratio serves as a base line for loss of market value computations. Mileage, severity of damage and public disclosure of vehicle life history report are also considered factors for determination of the loss of market value amount.

 

Diminution in value is "inherent"; This means that every vehicle loses value after an accident, even if the repairs are good and the vehicle has been returned to its appearance, function and within the manufacturer's specifications. It is our professional opinion, if the owner chooses to disclose at the time of resale that this unit has been involved in a collision, depending on the severity and workmanship, it will affect the wholesale value in our professional opinion. There are certain occurrences where a vehicle will receive an impact and there are no body parts replaced or repaired that requires repainting and limited to exterior trim (such as grilles, bumper covers, wheels, mirrors, body cladding, luggage racks, spoilers, running boards and roof racks, lamps, head lights, emblems, antennas, wheel covers and all outside moldings.) These items are typical replacement items from normal wear and tear and would not affect value, if replaced with like kind and quality. It is our professional opinion that diminished value is determined by the percentage of loss to the trade-in/wholesale value, not retail value since the licensed dealer is allowed to make a reasonable profit. The margin of profit depending on the brand of vehicle, condition and public demand has a spread of 10-25% between trade-in/wholesale and retail book value.

 

Definition of collision impact

• minor collision-deformation of sheet metal that requires (1) sheet metal part replaced and requires repainting or a combination of (1-2) sheet metal parts that requires up to 4 hours repair time and repainting required, including detrimming and blending adjacent sheet metal panels/parts.

 

• moderate collision-(2- 3) body sheet metal body panels/parts replaced and repainting required in a combination of (3-4) sheet metal body panels requiring 4 or more hours to repair and require painting including detrimming blending adjacent sheet metal panels, repair/replace cooling system (radiator, ac condenser and supporting lines and hoses, radiator support replacement) including a minimum of (2) suspension parts replacement, minimum of (2) steering parts replacement.

 

• major collision-(4- 7) body sheet metal panels/parts replacement and requires repainting or a combination of (5-8) sheet metal body parts and requires more than (4) hours repair and repainting air bag deployment, (3) or more suspension or steering parts replacement, cooling system replacement.

 

• severe collision-minimum of (8) sheet metal parts replacement that requires repainting or a combination of (8-10) sheet metal body parts that requires more than (4) hours to repair and repainting. Air bag deployment, steering replacement, more than (4) suspension parts replacement.

 

Definition of structural impact

• minor structural-(1- 3) hours to repair high strength steel (hhs) or high strength low-alloy (hsla) including a combination of radiator support repair that requires (1-3) hours to repair moderate structural-(4- 8) hours to repair high strength steel (hhs) or high strength low-alloy (hsla) and/or a combination of (1) hhs, hsla structural part replacement, including radiator support

 

• major structural-replacement (2-4) high strength steel (hhs) or high strength low-alloy (hsla) structural parts or combination of rear body panel replacement, (8) hours hhs, hsla repair, floor pan repair or sectioning of conventional frame or section of more than (2) hhs, hsla structural parts

 

• severe structural-replacement of minimum (5) high strength steel (hhs) or high strength low-alloy (hsla) structural parts, complete floor replacement, cowl/firewall replacement, conventional frame replacement

 

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The application of a fixed guideline for a determination of the true loss of market value, absent any consideration of the market value issues outlined below, is not commensurate with the proper and professional evaluation of a loss of market value claim. It is assumed that repairs were completed in the best possible, returned to its appearance and function to comply with automotive industry standards. Additional consideration for market value loss may reside in the following contributing factors:

• Voidance of factory warranty

• Loss of qualification for being a manufacturer's Certified Pre-Owned Vehicle

• Possible hidden damages

 

Guidelines used to determine evaluation

The percentages of the loss based on the NADA wholesale book value for the month of inspection/review. While the guideline provides a good figure on which to base a loss of value claim, there are many circumstances that will require additional consideration in determining the loss of value, if any. Any prior damages will need to be reviewed independently of the current damages. This guideline can be used for this review. Any increase in the loss of value from the prior damage to the current damage will be considered as the loss of value due to the current accident. Another situation which may arise involves a new car still owned by the dealer. This may be a new car which has never been moved on the dealer's lot, to a demonstrator, to a program car. The common element here is that the vehicle has never been titled other than to the new car dealer. In such a situation, our guideline will still work with one alteration, the NADA retail book value price should be considered or dealer's cost.

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• 0% minor-no structural, no body panel requiring painting, includes trim and glass only

• 1% minor-no structural, (1) body part that requires repainting

• 2% minor-no structural, (2-3) panels requiring repainting

• 3% minor-no structural, (4-5) panels requiring

• 4% minor-minor structural

• 5% minor-moderate structural

• 6% moderate-no structural

• 7% moderate-minor structural

• 8% moderate-moderate structural

• 9% moderate-major structural

• 10% major-no structural

• 11% major-minor structural

• 12% major-moderate structural

• 13% major-major structural

• 14% major-severe structural

• 15% severe-minor structural

• 20% severe-moderate structural

• 25% severe-major structural

 

Appraiser experience:

• President Metro Appraisal & Adjustment Company 1983 til Present

• 50% Partner Ford Lincoln Mercury Dealership/Laurel, MD 1995-1999

• 35 years Appraising and Setting Value as an Independent

• Appraiser Representing Clients Throughout the USA

• Member of Independent Automobile Damage Appraiser (IADA)

• Tennessee & Georgia Claims Association

• Expert Representative in Court Cases regarding Diminished Value and Market Value

• Appraised and Set Value over more than 250,000 Vehicles