A software which helps in valuation of a vehicle depending upon the inspection of its condition of it.
This service involves the recording and careful documentation of all vehicle details. It is a subject involving high degree of knowledge and experience in financial matters. All factors relevant to the value are transparently documented and take into account aspects affecting the value such as
• General vehicle details (vehicle model, first registration, mileage etc.)
• Standard and special equipment
• Value-enhancing factors (AT systems, value-enhancing repairs etc.)
• Necessary repairs (damage, wear of non-safety relevant and other parts, inspections not conducted etc.)
• Missing parts (converted or removed standard accessories, incomplete onboard tools etc.)
• Reduction in value due to previous damage (repaired accident damage)
Vehicles are subjected to a critical examination of the vehicle interior, engine and trunk as well as bodywork, including a check of the vehicle underside and chassis. Moreover, we check the function of equipment parts and carry out a short test drive.
1. What is the correct meaning of the term “Valuation”?
The term value refers to an estimated worth (of an object, item, utility or whatever) expressed in prevailing monetary terms by the expert, experienced and prudent valuer, who is not directly or indirectly interested in or connected to that specific asset which is being valued for a particular purpose.
2.Valuation is done for What and for Whom? When is it done? (Required, Needed)
Valuation of varied type of assets either tangible or even intangible is required to be undertaken for different purposes. The valuation exercise is ordered by individual owner, by companies or firms, by Government departments, organizations, institutes etc. Valuation is an excellent tool in the hands of managing authorities to determine, from time to time or at a given specific time, the value of a specific asset owned by them. Again this value is determined in relation to particular / Specific purpose and is done in context of particular time period. Therefore the valuation exercise is described as an exercise which is time frame related and purpose oriented.
3.Is Valuation different from Costing & Pricing?
Valuation is quite different from pricing or costing, because, value is an assessed worth of an asset (expressed in prevailing monetary terms) in context of a specific purpose and particular time period. This purpose determines the variety of factors that influence an asset’s value and since number of these factors stem directly from a given state of economy prevailing at “that time” the valuation becomes purpose oriented and time frame related exercise. Pricing or costing is qualitatively different. First of all, costing to a great extent is an exact science where most of the parameters such as material costs, transport costs, processing, labour, administrating, marketing, promotion etc. are fairly well defined and methods of calculating are generally well known and accepted. Whereas in valuation the determination of assets’ worth in relation to given need and at given period of time are exercises which only a prudent, experienced and well exposed expert valuer can undertake.
4. What is Fair Market Value?
In fair market value the market forces play a predominant role. In a market there are alternative options available to both buyers and sellers. In such a situation, if there are no overriding reasons to force any decision for a buyer to buy (from particular seller) or for a seller to sale (to a specific buyer at a given price) where buying / selling both acts are not influenced by any uncommon market conditions such as hyper inflation or undue, uncommon depression, then the value at which an exchange takes place is termed to be a ‘Fair Market Value’.
5. What is Time Related Value?
Conditions in a given market or general economic conditions are normally subject to variety of changes. At times, these changes are volatile. The flux of ups and downs is constant. But during a given period of time the changes go through a sort of pattern (either up or down). These patterns for that period of time are termed as ‘market trends’. But when changes become volatile they become unpredictable. The valuer, when he is called upon to determine the worth of a given asset at a given period time has to know the market for the asset, during that period of time – This is one simplified example of ‘Time Related Value’!