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Fair market value is the price at which the vehicle would change hands between a willing buyer and a willing seller. Neither the buyer nor the seller is under compulsion to buy or sell and both should have reasonable knowledge of relevant facts, taking into consideration the vehicle’s age, condition, mileage, and other history.
It is not necessarily the sales price or the amount you have spent on the vehicle during its lifetime. It is not necessarily the amount of money you must spend on a new vehicle. When it comes to determining the fair market value of a total loss, property damage adjusters use the phrase “like kind and quality” (LKQ) to describe equivalent vehicles.
Continue reading to learn more about how LKQ is used to determine the fair market value of your car, what you can do if you don’t agree with the insurer’s assessment of the vehicle’s fair market value, and how a Spokane car accident lawyer could help you.
To establish the value of your vehicle at the time of a loss, the adjuster will find local, purportedly equivalent cars for sale. However, the adjuster’s list of LKQ cars and their selling prices – based on their supposed contact with numerous used-car lots – may include vehicles at the low end of the price scale that actually does not exist.
These prices pull down the average fair market value on which the adjuster bases a settlement offer. Don’t be taken in by this deception. Demand to see a copy of the adjuster’s valuation report. This report will include details about the exact model of your vehicle and how it was equipped, including the engine and any extras.
Make sure that the adjuster’s information is accurate. Then call each of the comparable vehicles listed on the adjuster’s LKQ list. Sometimes you will discover that the lot doesn’t even exist or that the salesperson does not have a car of the same LKQ as your damaged vehicle.
When your car is involved in an accident, its fair market value can be significantly affected.
Here are the key types of damage that impact the fair market value of cars:
To determine the fair market value of a car after an accident, assess the extent of these damages. To establish or contest the fair market price of your car, consulting with automotive experts and Spokane car accident lawyers specializing in vehicle valuation and accident claims is recommended.
Disagreeing with an insurer’s assessment of the fair market value of your vehicle can be challenging yet essential if you believe the valuation is inaccurate. Once you can find errors in the valuation report, you can introduce your own evidence of other comparable vehicles to determine the fair market value of your vehicle.
What about the value of recent work performed on the vehicle prior to the loss? It’s important to recognize that routine maintenance and mechanical repairs often serve to maintain, rather than increase, a vehicle’s value. This typically includes replacing standard components like batteries and tires. However, specific improvements, such as high-performance upgrades or recent high-cost repairs, can indeed enhance a vehicle’s valuation. These additions should be highlighted, especially if they directly contribute to the vehicle’s operational performance or aesthetic appeal.
Nevertheless, each situation should be evaluated individually. The impact of any recent investments in your vehicle should be assessed based on how these contribute to the current fair market value, considering both the timing and nature of the expenditures.
When discussing fair market price adjustments with your insurer, it is crucial to prepare a well-documented case that includes receipts and before-and-after comparisons to substantiate your claims. This approach can potentially adjust the assessed fair market value of your car to a more favorable figure.
If you’ve been in a car accident in Spokane, securing the right car accident lawyer is key to getting the compensation you deserve. At Craig Swapp & Associates, our team specializes in car accident cases in Washington, ensuring that every client receives top-notch legal guidance.
Understanding the true worth of your car after an accident is crucial. Its fair market value is essential because it affects how much you’ll be compensated for repairs or a replacement.
Our Spokane car accident lawyers work with respected local evaluators and stay updated on the latest market trends to make sure your car’s value is assessed fairly and accurately after the accident. This careful evaluation helps us fight for a compensation package that covers all your losses.
Call us today or fill out our online form to schedule your free consultation. We’re here to ensure you get a fair assessment of your car’s value and the compensation needed to move forward.
Written By: Ryan Swapp Legal Review By: Craig Swapp