What’s the Difference Between AAG’s Pre-purchase Inspection and a Certified Appraisal?

What’s the Difference Between AAG’s Pre-purchase Inspection and a Certified Appraisal?A pre-purchase inspection’s purpose is to document the condition and features of a vehicle for a potential buyer who does not want to travel to the vehicle or who may not have the knowledge necessary to accurately assess its condition.  AAG agents are our client’s eyes and ears as they gather information during their inspection.  75-150 photographs are taken to document the details and condition of each automobile, inside and out.  A paint meter is used to determine areas where body filler has been used or repairs have been made.  Over 125 individual items of the auto are given a condition rating.  Additional information includes identifying numbers, copies of documentation, descriptions of options, aftermarket items, wheelbase measurements, drivetrain particulars, comments regarding the condition of components, operational and performance verification of features, as well as a test ride in the automobile to assess its roadworthiness.

AAG agents have a strong background of experience and knowledge and are tested and certified by the company before they start working with AAG.  They are available to speak with clients before and after the inspection.  Since we are appraising the condition of the auto we provide a condition report instead of an appraisal report.  However, the appraised value of the automobile is included in the verbal consultation that is part of every pre-purchase inspection that AAG provides.

A certified appraisal is a document that is created to establish the value of a vehicle for a specific purpose and is completed according to recognized standards within the industry.  Personal property appraisers are not regulated to the extent that real estate appraisers are. However, professional certified appraisers adhere to similar standards as applied to automobiles.  Certified appraisals are often requested by lenders, insurance companies, probate courts, families who are distributing property from estates, the IRS, individuals involved in claim settlements and a variety of other clients.  While an inspection should always be a part of the appraisal process, the appraiser’s report is the required outcome.

If a buyer is purchasing an automobile and needs an appraisal to secure funding or insurance, then both a pre-purchase inspection and a certified appraisal are required.  The pre-purchase inspection allows the buyer to make an informed decision and negotiate the best deal.  The certified appraisal allows the buyer to provide proof to their lender that they are funding a vehicle worthy of the loan amount. It can also provide insurers with documentation so they can arrange for the proper coverage to protect the buyer’s investment as it is being transported to its new home.

Central Virginia Welcomes New Concours Event

VA Festival of the WheelWhen we were first approached about sponsoring the Virginia Festival of the Wheel car show in Charlottesville Virginia, we thought “It’s about time!”  While there are a number of local car shows in the area and many of them support local non-profits, this event’s mission was to raise awareness and support for the UVA Cancer Center, which has made a difference in the lives of many people in Virginia and beyond.  While raising awareness and financial support for the Cancer Center, this show provided participants with a concours level event in a world-class venue with a program comprised of many local enthusiasts and supporters of the old car hobby.

The show made it possible for our office staff to meet fellow car lovers in person and combine their forces to make the event a success.  We were honored to have a 1936 Rolls Royce Phantom III Drophead Coupe as the featured automobile in our tent.  We have had the privilege of appraising this memorable automobile several times as time has passed.  It is owned by a local family who has been involved in local and national car clubs for many years.  Just one of the collectible autos in his stable, this one was purchased by his father in the early 1960’s and won Best in its Class at the Amelia Island Concours d ’Elegance a few years ago.

Other notable autos at the event included the following winners:

The Virginia National Bank Best in Show Trophy – Brant Halterman for his 1965 Shelby GT350 Mustang.

The Albemarle Co. Rotary Club People’s Choice Trophy was a tie – Louise McConnell for her 1964 Ferrari 250 Berlinetta Lusso and Allan Becker for his 1930 Packard 745 Roadster.

The Chairman’s Choice Trophy ­- William Alley, 1955 Jaguar D-Type Roadster

The Packards, Featured Marque of the 2019 VFOTW – 1st Place Allan Becker,1930 Packard 745 Roadster; 2nd Place, Allen Richards,1931 Packard 845 Convertible Coupe

Vintage Race Cars – 1st Place, Eric Anderson, 1932 Hudson-Martz Indy Car; 2nd Place, Phil Williams, 1960 MGA Racer Convertible

The Cadillacs – 1st Place, Frank Nave, 1959 Cadillac Coupe DeVille; 2nd Place, Joel Loving, 1975 Cadillac Eldorado Convertible

Brass Era Cars – 1st Place, Paul Wilson, 1899 Marot-Gardon Open Car

Post-War American Production Cars – 1st Place, Doug Caton, 1955 Chrysler New Yorker Convertible; 2nd Place, Zach Straits, 1961 Ford Starliner Fastback

Exotic Sports Cars – 1st Place, Brian Fox, 2004 Acura NSX Targa; 2nd Place, Tom Farley, 1999 Ferrari 550 Maranello 2 Dr. Coupe

German Sports Cars – 1st Place, Michael Copperthite, 1953 Porsche Type 356 Coupe; 2nd Place, Robert Guenther, 2016 Porsche 911 GTS Club Coupe

American Sports Cars – 1st Place, Daniel Miller, 1962 Chevrolet Corvette;                2nd Place, Edward Szeliga, 1964 Chevrolet Corvette

Pre-War Classic Cars – 1st Place, Jim Elliott, 1928 Auburn Convertible Sedan;

Post-War Foreign Production Cars – 1st Place, David Lowen, 1959 BMW 600 Sedan; 2nd Place, Christopher Thompson, 1959 Alfa Romeo Guilietta Sprint Coupe

Preservation Class Cars – 1st Place, Louise McConnell, 1964 Ferrari 250 Berlinetta Lusso;  Tie for 2nd Place, Chris Overcash,1946 Packard Sedan – 2nd Place, Michael Chiavetta, 1965 Chevrolet Chevelle Convertible

American Hot Rods – 1st Place, Don Cullen, 1935 Ford Cabriolet Roadster; 2nd Place, Bobby Hilton, 1931 Ford Roadster

British Sports Cars – 1st Place. Jim Ellis, 1956 Austin Healey 100M; 2nd Place, Jim Cheatham, 1957 MGA Coupe

Fundraising totals have yet to be finalized, but the result is expected to be very close to this year’s goal of $30,000.  The success of the event is a testimony to the dedication and efforts of the event’s organizers under the leadership of Mike Baldauf. His vision of combining an interesting and informative program with a nice venue to create a positive experience for all participants was superbly realized. We are looking forward to next year’s event during Labor Day weekend 2020. Great job Mike!

VA Festival of the Wheel

1969 Corvette Value Trends Seminar – Hosted by AAG

1969 Corvette Value Trends Seminar – hosted by Auto Appraisal GroupHaving just celebrated the 50th anniversary of Woodstock, many of us have turned to someone and said “Can you believe it has been 50 years since 1969?”  This weekend at Corvettes at Carlisle, we will be celebrating the 50th anniversary of the 1969 Corvette.  This Stingray was well-received with its new larger 350 CID 300-hp engine as standard with a 350-hp version available.

AAG will be hosting two seminars at the show this weekend on Friday & Saturday mornings at 9:00 AM.  Play along with our Trivia and Fact or Fiction review of recent 1969 Corvette sales to see how current your value trend skills are.  Stop by the booth on the Midway to check on our show specials.  We look forward to seeing you at one of the largest Corvette events in the country!

Paint Color Price Inflation

Paint Color Price InflationAs an appraiser I am constantly looking at options, values and the many variables that make each auto we appraise unique.  Most people probably think that color does not affect the value.  What do you think?  Would you rather have a red sports car or a brown sports car?  Do you prefer white cars with red, blue or beige interiors?  What color is the last car to sell? Over the years, the cost of special colors has definitely increased.  Check out this short article written by one of our Oklahoma agents, Joe Smith.

Optional Paint Color Price Inflation

When we visited the STUDEBAKER Museum about 20 years ago they had a mid-1930’s rumble seat roadster in a yellow color on display and it stated the yellow color was a $10.00 option.   When we were researching 1948 to 1953 CHEVROLET pick-ups we discovered they had only one standard color, Forest Green.   The other six colors were a $10.00 option.   I was doing research on a 1970 DODGE Challenger to do an appraisal.   They had 13 standard colors and 8 High Impact colors that cost an extra $14.05 such as Plum Crazy, Panther Pink, etc.    Inflation from the 1950’s to 1970 about 40%.   In 2019 a CADILLAC Escalade has two standard colors and six optional colors.   The optional colors range from $695.00 to $1,225.00.   The same colors on a 2019 CHEVROLET Suburban are about $200-300 less than the Cadillac.     In 1950 the optional color on a CHEVROLET was $10.00 and in 2019 $995.00, about 100 times more.

Forest Green Chevy PickupWhen completing an auto appraisal report, the color is considered because popularity affects the value.  You’ve heard the phrase “that car has eyes” meaning it’s a really good looking car.  Buyers want the colors they like.  You’ll find a lot of collector cars have been repainted Red, White or Blue whether that was the original color or not. Car salesman refer to some of these repaints as “resale red”.  Few are repainted green or brown unless that was the correct color and type for the period.  The 1958 Corvette’s most popular color was Snowcrest White but by 1968 the most popular Corvette color was British Green. In 1978 the most popular Corvette color was a custom two-tone Silver Anniversary paint scheme. If you look ahead one more decade by 1988 the most popular Corvette color was Bright Red.  So yes, an auto appraiser does consider color but it’s not always measurable and typically has a minimal effect.  When completing the appraisal report, the condition of the paint and the body underneath will have a greater effect on the value than the color.

Vehicle Color ChartWhat auto colors are trending now? Sources say that the most universally useful and popular color for 2019 is DuPont’s “Saharan Bronze”, a color that does nicely on a Ford F150 or Chevy Suburban, while still looking polished and sophisticated on a BMW or a Fiat. Gunmetal grey and “Gunmetal Pearl” are equally universal favorites and can be seen on a wide variety of makes and models. The new “power” colors have shifted from primarily red, white or blue color to dynamic yellows and greens. The Chevrolet Corvette has found a new generation of “wow” in Racing Yellow, while sports standbys like Dodge and Lamborghini are showing off nearly neon greens. The once iconic red or silver Porsche 911 can now be seen in brilliant Lava Orange, a “power” color that has maintained its appeal for nearly 5 years. When it comes to “cars with eyes”, the key factor in current trends seems to be bright, bold, non-traditional color, with Jeeps, Fiats, and sports cars appearing in bright teal, brilliant blues, and dramatic, vivid purples.

Happy Motoring!
Larry

Too Good to be True

It is something that occurs all too frequently.  You see that ad for your dream car.  You know the one – you and your pals always talked about it, but it was always just out of reach.  Now, one shows up that meets all of the criteria and look at the price!  Woohoo!  You’ve got this; you can make it work!  Better hurry up and contact the seller before someone else snags it up.

Okay, you have contacted the seller and want to get some more information.  What’s that?  Lots of people calling and wanting it?  You’ll need to make a deposit and they will hold it for you until you can arrange full payment.  And they will arrange for transportation also?  Great, because you live out of state (or country).  Also, you will need to arrange for someone to come check it out, give it an in-person inspection.

They know all of the right words to use, how to use your emotions against you.  They want to keep you talking and telling them all about what it means to you and how you have always wanted one.  It is a great way to keep the stars in your eyes that don’t let you see the true condition of the vehicle until after you have bought it, gotten it home, and started really looking at it.

About that deposit – they do have a lot of people wanting this car, but you are the first to contact them so they will give you first dibs – they just need a little money down to hold it.  Everything is in order and – oh, did they tell you it is a matching numbers car? Very hard to come by.  Did you see all of the pictures they put on the ad? They show every angle and any imperfections.  This car is going quick and they are not sure there is enough time to have someone come look at it, but you are welcome to do so.

They are always accommodating and agree with you about everything.  They will even tell you that someone else had just bought it, but their financing fell through.

These are just a few of the many scenarios that occur on a regular basis in the collector and used car markets.  Sometimes you’ll end up paying more than you had planned, and sometimes there is no actual car for sale.  It was just a trick to get your deposit money.

Go ahead and keep looking for that dream classic you have always wanted.  Just slow down a little, take your time and think it through.  Most of the time if it sounds too good to be true, it probably is.  If there is a sense that you need to hurry to get this vehicle, it should set up a caution flag for you.  Sure it will cost you a few extra dollars to arrange for an independent pre-purchase inspection.  That inspection can save you large sums of money and root out some dishonest sellers, some of whom do not have a car to sell.  Another thing it can do is show you through someone else’s independent and unemotional eyes and ears the true condition of that vehicle that may have been overlooked through your starry eyes.

There are people out there that only want to separate you from your money.  There is no car, the ad was made from taking stock photos off of the internet, and all of the popular catch phrases have been used to grab and keep your attention. That does not mean that there are not some very decent cars and sellers out there.  It just goes to show you that you need to be vigilant in the search and those you are dealing with – especially through the internet.  A pre-purchase inspection from a professional is well worth the cost.

Happy hunting!

Written by AAG Agent, Gary Goldsberry, Parker, Colorado

AAG at Spring Carlisle

AAG Carlise Auction AprilCome and see AAG at Spring Carlisle and let us help you check out your next great buy! Spring Carlisle Auction takes place April 25th and 26th in Carlisle, PA which offers something for everyone. Reasonable cars at reasonable prices. Attend the show and stop by the auction to find your first collector car or one more to add to your collection. The Carlisle Auctions provide a great opportunity to get into the hobby at an affordable level.

AAG will be in Spaces P18- P21 and can provide prepurchase inspection on vehicles in the auction or car coral.

Let the season begin!

More Information…

Virginia Festival of the Wheel

AAG will be sponsoring the UVA Cancer Center at the First Annual Virginia Festival of the Wheel, October 7th at the Sprint Pavilion.

VA Festival of the Wheel The Virginia Festival of the Wheel will showcase a collection of 80 of the finest vintage and collectors cars in the region and will exhibit vehicles including a retired NASCAR vehicle and an award-winning dragster. The event will also include food trucks and other vendors to make the day complete.

In addition, military, first responder’s and cancer survivors, as well as kids 12 and under, will be admitted free! Come down and enjoy some remarkable vehicles, all while benefiting the UVA Cancer Center!

Learn More

Do I Need a Pre-Purchase Inspection?

Pre-Purchase Inspection - Close up of chrome and paint at trunk and rear lightsMisaligned ChromeModern car purchasing has changed dramatically from the traditional methods. Online purchasing and a shift towards buying classic cars as investment pieces has made the process both more convenient and more open to misuse.

The FBI and the US Attorney for the Southern District of New York recently uncovered a $4.5 million fraud ring that involved classic cars, indicting 25 defendants for running a nationwide scheme posting fake classic cars for sale online. Victims of the ring would respond to ads online and then be directed to shell corporations to pay for a car they would never receive. In most cases, the money lost was never recovered, and some victims were left with no choice but to continue to pay auto loans without ever receiving a car.

Pre-Purchase Vehicle Inspection - Note tear at bottom edge of door panelDoor Panel WearAAG’s professional inspection process has exposed fraudulent sellers in the past. Dishonest sellers won’t return calls when they discover we’ve been asked to complete an inspection. Or, agents have arrived at the address given by the seller to find empty lots and no cars for sale.

With the convenience of one-click shopping and online auctions comes the need to do your homework: the best way to protect yourself when buying a car is a pre-purchase inspection from a trusted and certified professional.

Pre-Purchase Car Inspection - 1959 Cadillac Fins1959 Cadillac FinsYou may be asking yourself “Do I need a pre-purchase inspection? I can probably go look at the car myself.” An experienced inspector can be your eyes and ears and will provide a detailed report that documents the vehicle’s condition. A professional pre-purchase inspection should include a market value consultation based upon the vehicle’s condition and documented history. An inspection can save you the cost and time of travel should you decide this vehicle is not the one that you want to purchase.

Make sure your pre-purchase inspection agent has been certified, and check to make sure they also provide the following:

    • • The opportunity to speak with your inspection agent before and after the inspection in case you have questions.

• A copy of the title or registration, pertinent receipts and information should be provided to the inspector by the seller.

• Documentation of all parts of the inspection, including notes on condition, originality, test ride results and paint gauge readings.

• Detailed photographs that provide first-hand evidence of the car’s complete condition, inside and out. Don’t rely on the seller’s photos alone.

• Data tag and vehicle identification numbers should be documented and decoded.

• Ask if your pre-purchase inspection company can provide a certified appraisal for insurance or bank loan purposes if you decide to purchase the vehicle.

• A value consultation with the master appraiser should be included. AAG utilizes its centralized database along with 30 years of experience to determine an accurate market value for the vehicle.

Pre-Buy Car Inspection - Photo of rust under mat in trunk
Under trunk mat
Pre-purchase inspections often uncover areas of concerns that may give you room to negotiate with the seller’s asking price.

Find an agent who is located near the vehicle in need of a pre-purchase inspection. AAG agents are located nationwide, allowing you to get a pre-purchase inspection promptly.

Before Buying Car Inspection - 1969 Lola T70 ReplicaLola CockpitIt is best to hire an inspector from an independent service, not one affiliated with selling or brokering cars. Pre-purchase inspection agents should work for you, rather than working to their own or the seller’s benefit.

Before you buy your next classic car, antique car or any other type of vehicle, have an independent pre-purchase inspection completed by an experienced, tested and certified AAG agent. AAG’s pre-purchase auto inspection service gives you the confidence to buy or walk away.

Read more about the case behind this article here.

Car Appraisal Process – How it Works

The Car Appraisal ProcessSo you’ve decided to get your car appraised. Understanding how the car appraisal process works can help you to find the right appraiser and get the most out of your appraisal.

A vehicle appraisal is a written estimate of the current value of the car based on the experience and training of the appraiser and current market trends. Appraisals are usually performed when a vehicle is bought, sold, or insured, and by collectors and hobbyists. An appraisal is also useful for determining the tax value of a donation, in estate cases, or in legal disputes after an accident.

Auto Appraisal ProcessAn appraisal will generally cost between $75 – $500. It may be tempting to choose the least expensive appraiser available, but the cheapest appraisals may be performed by inexperienced appraisers and produce inaccurate results. A standard appraisal should include:

– Date and location of the inspection
– Date the valuation is established
– A full, detailed description of the vehicle
– Methods used to establish a value
– Purpose of the appraisal
– Description of the appraiser’s qualifications including certifications
– Appraiser’s signature and physical address

Process of Car AppraisalsIf your car or vehicle is involved in a legal dispute or insurance claim, you may want the appraiser to provide expert testimony. This will incur additional charges.

Before your vehicle is appraised, it’s best to clean, wash and wax the vehicle and be sure that all basic maintenance has been completed (oil changes, fill all fluids, new filters). Be sure there is enough gas to take the appraiser on a test ride.

A certified value appraisal should include an onsite inspection of each auto by a certified agent. This inspection should include photographs of the vehicle and the agent should also gather pertinent historical information as available from the owner. A master appraiser should review all research and valuations, preferably with a centralized database at hand to ensure consistency.

Best Car Appraisal ProcessA properly performed appraisal done by a certified, experienced agent is always your best choice. An accurate estimate from a trained professional allows you and others to get the best value from your vehicle.

Interested in a Car Appraisal for your vehicle, or for a potential buy? Check out AAG’s Vehicle Appraisals and call us to schedule!

Classic Values: Determine the Value of Your Classic Car

Classic Values: How to Determine the Value of Your Classic CarClassic car collectors know that one of the most rewarding things about collecting vintage vehicles is how these cars tend to retain their value with proper maintenance and care. More importantly, they are aware that to protect the value of their investments, it is vital to know the value of their classic car, and to document it properly with a professional appraisal.

Determining the value of a classic car is very important, but it is not always a straightforward process. Restoration work (or the lack thereof), condition, rarity, connection to famous people, and region can all have an impact on the value of your classic car. Most collectors prefer to allow a professional appraiser to prepare an appraisal report for them because vintage vehicle appraisals can be very difficult for novices in the field. Classic car appraisals require an understanding of the required procedures used to determine a fair value in this specialty marketplace.

Condition and Restoration
In the classic car market, condition plays a major role in the determination of the value of the vehicle. Restored vehicles usually command higher prices than similar unrestored vehicles, but the quality of restorations and even the origin of the restorations can create a wide variance in value. This makes a professional appraisal a must for most collectors, some of whom may restore their own vehicles, or work with famous garages and custom shops.

Faithful record keeping of all maintenance and restoration work can be a great way to document the quality of work and to ensure that materials are original or correct. Restoration records should show materials and work done as well as how often the vehicle receives basic maintenance. Furthermore, maintenance records can show that there were no accidents, and that the vehicle was not left unattended for long periods of time.

Running vehicles will always fetch higher prices than those that are non-functional. It is equally obvious that dings, scratches and other defects in the exterior of the vehicle will cause the car’s value to drop. Decals, hood ornaments, and other trim can also have an effect on the valuation of a classic car.
Comparable Pricing
Location and region can have a surprising effect on the range of classic car values in the market. Professional appraisers study fair market values of comparable vehicles within the same regional market, which may or may not include online and auction prices, depending on the availability of these services to regional buyers.

Determining Classic ValuesOnline auction sites sometimes provide additional details that help to create an accurate picture of comparable prices for the same make and model of vehicle in the regional marketplace. It is important to understand comprehensively how regional markets change – the same convertible might fetch a high price in Southern California while in Boston it attracts relatively few buyers.

Rarity
When demand is greater than supply, values increase. Obviously classic cars are generally rarer than other vehicles on the market. Among these, there are even more unique cars that are more sought after and harder to find. Basic economics will lead you to the probability that the fewer produced and the harder it is to find a car, the more its price will inflate to reflect its rarity.

Certain limited edition vehicles are also in high demand in spite of their more recent vintage. A car can be highly prized and sell for an extremely high price at auction or in a private sale. In this case, rarity is actually the selling point for the car. In such cases, it is extremely useful to have a professional appraiser help to determine the value of these one-of-a-kind vehicles.

Provenance
Sometimes a car is more valuable because it belonged to or was used by a famous person or celebrity. Vehicles associated with famous people have been known to capture as much as 10 times their fair market value. Celebrity cars are often auctioned for charities and selling prices can often be much higher. This can make it very difficult to determine your classic car’s value without professional assistance and experience.

Celebrity ownership is just one way that provenance can affect value. Restoration garages with a reputation for high standards of quality can demand a higher value range than cars restored to similar standards by an unknown mechanic. Cars customized by famous names are often more sought after and can get a higher price.

Since the classic and vintage car market tends to retain value, it is fundamentally important to document your repairs and restorations and to have professional classic car appraisals done to protect your collector cars.