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:

  1. The quality of its overall condition and the workmanship, if it has been restored
  2. Is it a rare car that has enhanced market value because it is rare
  3. If it is rare and desirable is there documentation to support its originality (sometimes referred to as provenance)
  4. Market value, is it desirable and are there buyers, whether a small or large group