Automotive Industry Standards & Practices Flashcards
7 cards from real CAADE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Automotive Industry Standards & Practices flashcards as text
What is the primary purpose of a 'parts price adjustment' (also called a parts markup) on a collision repair estimate?
Answer: To cover the repair facility's overhead and profit on parts procurement
Parts markup allows the repair facility to recover overhead costs associated with ordering, receiving, storing, and managing parts inventory beyond the dealer or supplier invoice cost.
Under the Direct Repair Program (DRP) model, what obligation does a repair facility typically have to the insurer?
Answer: To meet specific cycle time, customer satisfaction, and cost benchmarks in exchange for referrals
DRP shops agree to meet the insurer's performance metrics — including cycle time, CSI scores, and cost controls — in exchange for receiving a steady stream of referred claims.
What does 'ACV' stand for in automotive appraisal, and how is it generally determined?
Answer: Actual Cash Value, the market value of the vehicle immediately before the loss
Actual Cash Value (ACV) is the fair market value of the vehicle in its pre-loss condition, typically determined using market data from comparable sales, valuation guides, and local market conditions.
Which type of vehicle title indicates that a vehicle has been declared a total loss and rebuilt?
Answer: Rebuilt/reconstructed title
A rebuilt or reconstructed title is issued after a salvage-titled vehicle has been repaired, inspected, and re-registered, indicating it was previously declared a total loss.
What is the significance of 'ANSI/ICAR' welding certification standards for collision repairers?
Answer: They establish performance and training requirements for welders performing structural collision repairs
ANSI/I-CAR welding standards establish the qualification requirements for welders performing structural repairs on vehicles, ensuring weld quality meets safety specifications.
What is the role of the 'appraisal clause' in an auto insurance policy?
Answer: It provides a dispute resolution process when the insurer and insured disagree on a loss value
The appraisal clause gives both parties the right to hire independent appraisers when they cannot agree on the amount of loss, with an umpire resolving any disagreement between the two appraisers.
Which term describes the estimated cost to repair a vehicle if no additional hidden damage is discovered during disassembly?
Answer: Preliminary or initial estimate
A preliminary or initial estimate is written based on visible damage before teardown, and may be supplemented later if additional damage is discovered during the repair process.