Discrete factors alter the rescue cost of a automobile.
"Salvage value" refers to the equivalent of an asset after its all-purpose growth. It is commonly used to asset the depreciation fee or expense. With cars, this operation can sometimes be challenging, as cars hog varying degrees of applied lives depending on maintainance. The boon path is to evaluate the usefulness of the automobile based on the bazaar or scrap value if the car has been in an accident. In either case, the salvage value is based on the value you can reasonably expect for a trade in the marketplace.
Instructions
1. Determine whether the car has been in an accident. If it has, you will need do your own estimate of the damage. A car with front-end damage will have a lower salvage value than a car with rear-impact damage.
2. Contact several salvage and/or wrecking yards. You need at least three quotes to reach at an average. Use this average as the fair market value of the salvaged car if the car was in an accident (which is usually the case for insurance claims).
4. Deduct 15 to 20 percent of the market value of the car at the time of loss. For example, if the retail value of the car is $10,000, the salvage value is $10,000 - ($10,000 x .15 up to .20) or $8,500 down to $8,000.
3. Determine the current market value of the car. One of the most popular car valuation publications is the Kelley Blue Book. You can also Stare at the average listing price in newspaper classified ads. This is considered a fair and reasonable estimate.
