Over the years I have received several requests asking, “so what is my car worth?” which is typically accompanied by a single photo of the car. Unfortunately, a classic car value via the car appraisal process is simply not that easy to assess as there is more to the whole what is my car worth question.
Understanding how the car appraisal process works can help you to find the right appraiser and get the most out of your appraisal. A vehicle appraisal is a documented estimate of the current value of the car based on condition, history, and current market trends. Appraisals are usually performed when a vehicle is bought, sold, or insured, and by collectors and hobbyists. A car appraisal is also useful for determining the tax value of a donation, in estate cases, or in legal disputes after an accident.
Here is Why You Should Get Your Classic Car Appraised
If you have been around the classic car world for any amount of time, you have likely heard the term “appraisal” brought up before. Getting your car appraised is a great thing to do for any classic, vintage, modified, or limited production vehicle.
What does getting a car appraised mean?
The definition of the word “Appraisal” means “an expert estimate of the value of something”. For classic cars, this means hiring a 3rd party to research and analyze what a specific car is worth in current market conditions. Appraisals are often used by insurance companies to determine replacement value.
Hiring a vehicle appraiser is not just a matter of getting some stranger to take a guess of what your car might be worth. It is a much more involved process, and most appraisers are actually licensed in their field.
A good car appraiser will put the time and effort into researching all your vehicle’s details. Once they have a good understanding of its condition, rarity, and history, they’ll take a deep dive into the market for that specific model.
This goes further in depth than what a car dealership might use to put a value on your used classic car. They will go through previous auction sales, current listings, as well as examine the state of the market at that time.
What Do They Look for In the Car Appraisal Process?
Aside from your usual personal info, your appraiser is going to need detailed information about your car. They will want general stats of your car – things like the VIN number, year/make/model/trim, and mileage.
One of the biggest things your appraiser will be focused on is the condition of your car. This plays a huge role in its potential value. Some of the things they’ll be noting the condition of are:
- Tires
- Brakes
- Wheels
- Paint
- Glass
- Chrome
- Scratches/dings/dents
- Seats
- Dash
- Upholstery
- Radio
- Headliner
- Weatherstripping
- Lights
- Gauges
- Floors
- Carpets
- Door Panels
- Rust
A certified value appraisal should include an onsite inspection of the vehicle by a certified agent. This inspection should include photographs of the vehicle and the agent should also gather pertinent historical information as available from the owner. A master appraiser should review all research and valuations, preferably with a centralized database at hand to ensure consistency. Appraisals completed online, without an in-person inspection, cannot properly value your individual vehicle and can undervalue your vehicle. This can result in a loss of money if the vehicle is sold under value or potential loss of insurance reimbursement.
Why You Need to Get Your Classic Car Appraised
There are a few reasons why it is important to have your classic car appraised. For the most part, it is a matter of protecting yourself. Having a 3rd party come up with a value for it eliminates any arguing between yourself and the insurance company, bank, or government office. The appraiser is respected on both sides and can be trusted to provide an accurate value for the car.
Insurance
This is the most common reason for getting your car appraised. If you have your car insured as a classic (and you should!) one of their requirements is to have a 3rd party appraisal done. They ask for this so they have a good idea of what the replacement cost is but it also gives them an idea of how the car is used and if it’s modified. Remember, insurance companies are all about assessing their risk.
The beauty of a classic car insurance policy is the ability to have a replacement value that both you and the company agree on. If the worst case were to happen and the car needed to be replaced, you would not be starting negotiations at zero.
Everyone agreed what the car was worth when you insured it so there should not be a need to argue. If they do, you have a document you can use to prove your case. Having this done in advance can be a life saver – how else would you have your car appraised after it has been stolen?
Financing
If you are taking a loan out to purchase a classic car, the bank or lender might want you to have an appraisal done to know the value of the car. If you default on your payments, they want to make sure you did not pay more than the car is worth. They need to be able to sell it to recover most of their money.
Tax
Sometimes the government will want to know what your car is worth so they can charge you the appropriate amount of tax when you buy it. They usually estimate the value themselves for regular cars but if yours is unique, rare, or old, they might want some help with figuring out its value.
Insurance Payout Disputes
If your classic car needs to be replaced due to theft or damage, it is quite possible that your insurance company is going to attempt to get out of paying you the full amount. If you still have access to the car, you might be able to hire an appraiser to prove your side of the argument.
This can be a stressful situation with a lot of back and forth between yourself and the company. A 3rd party appraiser can act as a mediator between the 2 sides.
Try not to wait until something bad happens to have your vehicle appraised though. It is best to have all of this taken care of ahead of time, so you aren’t stuck scrambling at the last minute to protect yourself.
What Does It Cost For the Classic Car Appraisal Process?
Appraising a car properly takes time, experience, and an eye for detail. In most cases, an appraiser’s report will be thorough and full of relevant information. This is not something that happens in a matter of minutes. They need to do their research so this process might cost you a bit of money.
An appraisal will generally cost between $75 – $500 for a detailed report that insurance companies will accept. These people are well known locally with good reputations. It might be possible to find someone to do it cheaper, but you can risk ending up with an inaccurate value or something that insurance companies are not willing to accept.
While it may be tempting to choose the least expensive appraiser available, the cheapest appraisals may be performed by inexperienced appraisers and produce inaccurate results. A standard vehicle appraisal should include:
-Date and location of the inspection
– Date the valuation is established
– A full, detailed description of the vehicle
– Methods used to establish a value
– Purpose of the appraisal
– Description of the appraiser’s qualifications including certifications
– Appraiser’s signature and physical address
The cost of an appraisal can climb quickly depending on how in depth the report needs to be and whether they will need to travel to you. Appraising a car with significant history and value will cost more than the average classic.
Does mileage matter on a classic car?
Mileage doesn’t matter as much as classic cars. Due to their age, it is likely that they have been restored in the past – essentially resetting the clock. The time since the restoration was completed as well as the quality of the work is far more important in terms of value.
An appraiser will certainly make note of the mileage on your car, but it will not weigh as heavily on their valuation as you might think. The exception to this is if your car has low mileage or is all original. Otherwise, it is almost expected to have undergone some work to be alive and well for all these years.
A car that has been restored by a skilled expert can easily be worth more money than one with low mileage. A lack of mileage does not automatically mean it is in good condition. Many classic car owners will take the time to restore every nut and bolt on their cars, essentially making them new again. In that case, the car’s value will increase regardless of the mileage on the odometer.
Getting a Classic Car Value
If you are feeling over-whelmed, then do not worry as car value may not be as complicated as it seems. If you are looking for a true and accurate value of your classic car then the car appraisal process is the way to go, but if you are just looking for a generic value of a certain model of car then there are web sites that do provide a range of car values by model like Hagerty.
Finally
If your car or vehicle is involved in a legal dispute or insurance claim, you may want the appraiser to provide expert testimony. This will incur additional charges.
Before your vehicle is appraised, it is best to clean, wash and wax the vehicle and be sure that all basic maintenance has been completed (oil changes, fill all fluids, new filters). Be sure there is enough gas for the appraiser to take a test ride.
A properly performed appraisal done by a certified, experienced agent is always your best choice. An accurate estimate from a trained professional allows you and others to get the best value from your vehicle.
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