You’ve never had a car appraisal done in the past. Why would you want to have one done now? As it relates to vehicles that have recently been customized, the decision to arrange for an appraisal makes sense. This is especially true if the reasons behind the custom car appraisal will help with some decision that you need to make. Here are some of the ways that the appraisal results can make a significant difference.
Identifying Any Change in Value Due to the Customization
What did the customization do in terms of changing the value of the vehicle? Your hope is that the value increased, but that’s not always the case. You may find that the custom work had no real effect on the current value. In some instances, the custom work may actually decrease the demand for and the overall market value of the vehicle.
This is information you need to know if the plan is to sell the car within the next several months. Assuming that nothing else is changed and there’s not a significant increase in mileage, the appraisal can provide the basis for setting the asking price.
Determining if Your Insurance Coverage is Sufficient
Based on the outcome of the appraisal, you may need to make some changes to your insurance coverage. If the vehicle is now worth more, you may want to increase the scope of your coverage. If it’s decreased in value, it may be time to lower the coverage that you have in place.
This may be a good time to consider the idea of switching to guaranteed or agreed value auto insurance. This is especially true if the customization has added to the vehicle’s value. If it is severely damaged, the possibility of receiving enough compensation to make the repairs or even replace the car will be better.
Settling an Estate
If you’re named the executor of an estate, your job is to ensure the assets are divided in compliance with the last will and testament. Part of the task may involve selling certain assets and dividing the money between the heirs. Arranging for a custom car appraisal would aid in this process.
Using the appraisal results, you can set the asking price and hopefully get an offer close to it. That will help expedite the process of liquidating the designated assets, forwarding the funds to the heirs, and ultimately finishing the task of settling the estate.
Dividing Assets as Part of a Divorce Settlement
An appraisal on a custom vehicle can also be helpful as part of structuring a divorce settlement. This may work more than one way. Whatever approach is used, the outcome is that there’s more of a basis for dividing the assets fairly.
If the car is to be sold, the appraisal makes it easier to set the price. Once the car sells, the funds can be divided between the two parties. When the goal is to divide assets, it’s easier for one party to keep the car while the other party receives an asset of similar value.
There are plenty of reasons to seek an appraisal on a custom vehicle. Even if you plan on keeping it from now on, it helps to know the current worth. Call today and arrange for an appraiser to conduct a full inspection. You’ll find that knowing the results is helpful.
