CAADE Estimating Repair Costs 5 — Questions and Answers
Question 1: When estimating paint material costs, which formula is most commonly applied in estimating software?
- A flat rate per panel regardless of size
- A refinish material cost based on the number of refinish labor hours at a fixed dollar-per-hour rate (Correct answer)
- The actual cost of paint purchased for the job
- A percentage markup on total parts cost
Correct answer: A refinish material cost based on the number of refinish labor hours at a fixed dollar-per-hour rate
Most estimating platforms calculate paint materials as a dollar amount per refinish labor hour (e.g., $35/hour), reflecting average material consumption.
Question 2: Which condition would most likely result in a 'diminished value' claim following a vehicle repair?
- The vehicle was repaired at a certified OEM facility
- The vehicle has a documented collision history that reduces its resale market value despite a proper repair (Correct answer)
- The vehicle received a factory warranty repair
- The vehicle's odometer was reset during repair
Correct answer: The vehicle has a documented collision history that reduces its resale market value despite a proper repair
Diminished value reflects the reduction in a vehicle's market value due to its accident history, even after a quality repair is completed.
Question 3: An estimator notes that a hood has 'stress cracks' radiating from an impact point. This most likely indicates damage to which underlying component?
- The battery
- The hood hinge or reinforcement structure beneath the outer skin (Correct answer)
- The windshield washer reservoir
- The radiator cap
Correct answer: The hood hinge or reinforcement structure beneath the outer skin
Stress cracks radiating from an impact point on a hood panel typically indicate force transfer to the underlying reinforcement or hinge area.
Question 4: When a vehicle requires color matching of a faded paint system, which technique should be included in the estimate?
- Complete full-vehicle repaint at no extra charge
- Tinting the basecoat and blending into adjacent panels (Correct answer)
- Using spot-repair clear coat only
- Applying a factory touch-up pen
Correct answer: Tinting the basecoat and blending into adjacent panels
Faded paint requires custom tinting adjustments and blending into surrounding panels to achieve an acceptable color match.
Question 5: Which document should an appraiser reference to determine whether a vehicle qualifies for OEM repair procedures during structural repairs?
- The vehicle's service history record
- The automaker's collision repair guidelines or body repair manual (Correct answer)
- The insurance policy declarations page
- The Kelley Blue Book valuation report
Correct answer: The automaker's collision repair guidelines or body repair manual
OEM body repair manuals specify required repair procedures, approved methods, and materials for restoring structural integrity.
Question 6: What is the difference between 'repair time' and 'replacement time' on a labor time guide?
- Replacement time is always higher because it includes painting
- Repair time covers restoring a damaged part while replacement time covers removing the old and installing a new part (Correct answer)
- Repair time includes parts cost while replacement time does not
- There is no practical difference; both are interchangeable
Correct answer: Repair time covers restoring a damaged part while replacement time covers removing the old and installing a new part
Repair time reflects the labor to restore the existing component, while replacement time reflects the labor to remove and install a new part.
Question 7: A vehicle sustains hail damage affecting the roof, hood, and all four fenders. Which estimating method is most appropriate for this scenario?
- Flat-rate per vehicle hail package
- Paintless dent repair (PDR) pricing based on dent count, size, and location per panel (Correct answer)
- Standard panel replacement pricing for all affected panels
- Hourly rate only with no parts
Correct answer: Paintless dent repair (PDR) pricing based on dent count, size, and location per panel
Hail damage is typically estimated using PDR pricing matrices that account for the number, size, and location of dents on each panel.
CAADE Estimating Repair Costs 5
When estimating paint material costs, which formula is most commonly applied in estimating software?