CVA Specialty & Collector Vehicle Appraisal 1 — Questions and Answers
Question 1: Which appraisal method is most appropriate for a one-of-a-kind custom-built vehicle with no market comparables?
- Sales comparison approach using similar production vehicles
- Cost approach based on components, labor, and builder reputation (Correct answer)
- Income approach based on rental revenue potential
- Automated Valuation Model (AVM) from a database
Correct answer: Cost approach based on components, labor, and builder reputation
When no comparable sales exist, the cost approach values a custom vehicle based on the documented cost of materials, labor, and the builder's market reputation.
Question 2: When appraising a classic car, which document most significantly increases the vehicle's appraised value?
- A current smog certificate
- Documented provenance including original title chain and factory build sheet (Correct answer)
- An extended service contract
- A current AAA membership card
Correct answer: Documented provenance including original title chain and factory build sheet
Documented provenance—including the original title chain, factory build sheet, and ownership history—is the single most value-enhancing factor for classic vehicles.
Question 3: What does 'numbers matching' mean in the context of classic car appraisal?
- The VIN matches the registration in the state database
- The engine, transmission, and major components bear their original factory-stamped numbers matching the VIN (Correct answer)
- The mileage on the odometer matches the service records
- The paint code matches the original window sticker
Correct answer: The engine, transmission, and major components bear their original factory-stamped numbers matching the VIN
Numbers matching means the vehicle's major components carry their original factory-stamped identification numbers that correspond to the VIN, proving authenticity.
Question 4: A CVA is appraising a vehicle for agreed value insurance coverage. How does this differ from actual cash value coverage?
- Agreed value pays ACV minus depreciation at time of loss
- Agreed value pays a pre-agreed fixed amount in the event of a total loss, with no depreciation deduction (Correct answer)
- Agreed value only covers theft, not collision damage
- Agreed value policies do not require a formal appraisal
Correct answer: Agreed value pays a pre-agreed fixed amount in the event of a total loss, with no depreciation deduction
Agreed value policies pay a pre-established amount without depreciation, making a CVA's formal appraisal critical to setting an accurate agreed value.
Question 5: Which organization provides the most widely accepted valuation guides for collector and antique vehicles in the U.S.?
- NADA Classic Car Guide and Hagerty Valuation Tools (Correct answer)
- Kelley Blue Book and Edmunds
- J.D. Power and Consumer Reports
- Black Book and ALG
Correct answer: NADA Classic Car Guide and Hagerty Valuation Tools
NADA Classic Car Guide and Hagerty are the most widely referenced valuation tools for collector, antique, and specialty vehicles in the U.S. market.
Question 6: A vehicle is described as 'frame-off restored.' What does this mean for its appraised value?
- The frame was replaced with a modern aftermarket unit, reducing value
- The vehicle was completely disassembled to the bare frame and rebuilt, typically commanding a premium (Correct answer)
- The frame rails were cut and shortened for custom use, reducing value
- The vehicle was restored using digital factory records only, no physical work
Correct answer: The vehicle was completely disassembled to the bare frame and rebuilt, typically commanding a premium
Frame-off restoration involves complete disassembly and rebuild to high standards, typically commanding a significant value premium over driver-quality or partial restorations.
CVA Specialty & Collector Vehicle Appraisal 1
Which appraisal method is most appropriate for a one-of-a-kind custom-built vehicle with no market comparables?