CAADE Estimating Repair Costs 2 — Questions and Answers
Question 1: When calculating the cost to repair a damaged quarter panel, which factor most significantly affects whether to repair versus replace?
- The vehicle's paint color
- The extent of metal deformation and crease depth (Correct answer)
- The age of the vehicle's tires
- The owner's deductible amount
Correct answer: The extent of metal deformation and crease depth
Severe deformation or deep creases beyond the metal's elastic limit make replacement more cost-effective than repair.
Question 2: Which database is most commonly used by appraisers to establish OEM parts prices in a damage estimate?
- CARFAX
- CCC ONE, Mitchell, or Audatex (Correct answer)
- NADA Guides
- AutoCheck
Correct answer: CCC ONE, Mitchell, or Audatex
CCC ONE, Mitchell (Snap-on), and Audatex are the major estimating platforms that provide current OEM parts pricing.
Question 3: A vehicle requires a new door skin. The estimator should include which additional operation in the estimate?
- Alignment check
- Hem flange repair and seam sealer application (Correct answer)
- Tire rotation
- Engine diagnostic scan
Correct answer: Hem flange repair and seam sealer application
Installing a door skin requires folding the hem flange and applying seam sealer to restore the factory seal and prevent corrosion.
Question 4: What does the term 'betterment' mean in the context of a damage estimate?
- An upgrade to a higher trim level part
- A deduction applied when new parts improve pre-loss condition of worn components (Correct answer)
- Additional labor charged for difficult access
- A surcharge for aftermarket parts
Correct answer: A deduction applied when new parts improve pre-loss condition of worn components
Betterment is a reduction in claim payment when new replacement parts (e.g., tires, battery) provide a condition improvement over worn pre-loss parts.
Question 5: In estimating, what is the standard unit used to measure labor time for repair operations?
- Hours and fractions of hours (tenths) (Correct answer)
- Minutes
- Full-day increments
- Half-hour blocks
Correct answer: Hours and fractions of hours (tenths)
Labor time is recorded in hours and tenths of hours (e.g., 2.5 hours) based on published labor time guides.
Question 6: Which type of damage typically warrants a 'total loss' determination?
- A cracked windshield
- When repair cost plus salvage value meets or exceeds the vehicle's ACV (Correct answer)
- Any damage requiring frame work
- Damage to more than two panels
Correct answer: When repair cost plus salvage value meets or exceeds the vehicle's ACV
A vehicle is deemed a total loss when the cost to repair plus salvage value equals or exceeds the actual cash value (ACV).
Question 7: When estimating refinishing costs, what does 'panel blending' refer to?
- Mixing two paint colors to create a custom shade
- Feathering new paint into adjacent panels to achieve a color match (Correct answer)
- Applying clear coat only to the repaired area
- Using a blend of OEM and aftermarket paints
Correct answer: Feathering new paint into adjacent panels to achieve a color match
Blending involves applying and fading new color into adjacent panels to minimize visible color variation between repaired and unrepaired areas.
CAADE Estimating Repair Costs 2
When calculating the cost to repair a damaged quarter panel, which factor most significantly affects whether to repair versus replace?