About Vehicle Appraisals
A vehicle appraisal (or valuation) is the result of a thorough analysis of a vehicle’s condition, market value and other factors. It is used in many day-to-day applications such as:
- A classic vehicle is being sold and the buyer or seller would like to verify the value of the vehicle by a third party
- A government department (such as the Ministry of Transpotation) requires a professional appraisal for PST tax calculation when a claasic car or truck is bought
- A valuation is required when a student (who owns a vehicle) is applying for OSAP
What Goes Into an Appraisal?
A professional appraiser has a lot of experience when it comes to knowing what goes into the value of a vehicle. The appraiser knows where to look or comparable values and also knows what to look for under the hood.
The end result of this experience and expertise is a professional appraisal report.
Why Do I need a Professional
In most cases, the reason an appraisal is required is that a third party needs an unbiased and technical valuation of the vehicle in question.
What is a Classic Vehicle?
Many owners ask us for the definition of a “classic” or “vintage” vehicle. Many people use the 25 or 30-year markers as a definition. The only ramifications in real life that we can see for these markers are as follows:
- The Federal Customs Department does not charge import duties on parts and vehicles over 25 years of age.
- Insurance companies offer classic or special interest policies for vehicles over 25 or 30 years of age. Lant and Company offer a special interest policy for vehicles 15 years and older.
- Does a vehicle become more valuable when it reaches 25 years or 30 years of age? No! Market forces are the greatest factor in setting values.
- A rare vehicle is valuable because it is rare. Not true! Our standard example to illustrate these two misunderstandings is as follows; a 1965 Mustang is not a rare car., it was mass-produced (680,989 built) . A new one was $ 2,320.96 base, $4,000.00, loaded. Today any rust free example trade at 3-times these values and more, for vehicles with rare options or convertibles.
How is a Vehicle Valued?
In essence, a vehicle is valued on the following factors:
- The quality of its overall condition and the workmanship, if it has been restored
- Is it a rare car that has enhanced market value because it is rare
- If it is rare and desirable is there documentation to support its originality (sometimes referred to as provenance)
- Market value, is it desirable and are there buyers, whether a small or large group