5 Good Reasons To Carry Out A Car Appraisal
With the automobile market being what it is, always changing and all in terms of price, it is never a bad idea to have your car appraised. Whether you are looking to buy or sell, a car appraisal is your first step toward ensuring that you are making the right decision.
There are several reasons why a car appraisal can be carried out. This article explains five (5) of these reasons:
1. In Cases of Accidents: a car appraisal is deemed necessary if your car has just been in an accident. An appraisal of your car, in this case, is carried out to ascertain the value of the car before and after the accident occurred. As such, you have a good knowledge of how much your assets has been devalued due to the loss it has suffered – be it partial or total. In the event that it is a partial loss, the appraisal also gives you a value for your car, putting into consideration the repairs it must have undergone.
2. For Insurance Purposes: there are many cases where an insurance company will demand that an appraisal be carried out on a car. One of such is before a policy is issued to a car owner. In this case, the appraisal is meant to determine the value of the car so that a fitting policy could be offered for it.
Another case is during an indemnification process with their clients. The appraisal would be meant to provide the insurance agency with the amount of compensation they would be making for the loss you have suffered, with regards to your car.
3. Financial Purposes: If you intend to buy a classic car which might require a loan from any financial institution, such financial institution might ask for an appraisal to be carried out on the intended car just to ensure that they are not financing an unworthy investment.
4. Pre-Purchase and Pre-Sale Purposes: there is no better way to find out if the price you intend to pay for a car is justified than having the car appraised first. A pre-purchase car appraisal can provide you with a bargaining edge to buying the car at a price way lower than your budget.
The same stands for pre-sale appraisals, only this time, rather than seeking the lowest price, you would be finding out the highest possible amount you can get from selling your asset.
This is especially important in the case of classic/collector vehicles as their prices are affected by several factors.
5. Legal Reasons: if a car happens to be part of an estate that needs to be settled amongst inheritors, then a court might order that an appraisal be carried out so as to determine the worth of the said car.
Car appraisals are also deemed necessary for tax purposes so that the correct amount of tax due can be remitted to the appropriate body so as to avoid any trouble.