Vehicle Valuation Techniques Flashcards
7 cards from real CAA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Vehicle Valuation Techniques flashcards as text
In collector car valuation, a vehicle rated 'Condition #1' typically means:
Answer: Concours-quality, among the best in the world
Condition #1 vehicles are top concours examples, the best existing in the world.
An 'agreed value' collector car insurance policy pays in the event of a total loss:
Answer: The value agreed upon by insurer and owner when the policy was written
Agreed value policies pay the pre-agreed amount without depreciation in a total loss.
A 'stated value' policy usually pays:
Answer: The lesser of the stated value or actual cash value
Stated value policies cap payment at the stated amount but may pay less if ACV is lower.
Which documentation most increases value for a classic muscle car claimed to be numbers-matching?
Answer: Build sheet or factory documentation confirming original drivetrain codes
Factory documentation verifying original engine and drivetrain numbers supports authenticity and premium pricing.
Over-restoring a vintage vehicle with non-original modern components most commonly:
Answer: Reduces value to purist collectors
Collectors usually pay premiums for originality, so non-original upgrades can reduce value.
Restoration cost exceeding the finished vehicle's market value is referred to as:
Answer: Being 'upside down' on the restoration (over-improvement)
Spending more than the market will pay results in an over-improvement where cost exceeds value.
For an IRS charitable vehicle donation, a qualified appraisal is generally required when the claimed deduction exceeds:
Answer: $5,000
Non-cash property claimed over $5,000 generally requires a qualified appraisal and Form 8283 Section B.