Banks, credit unions, and other sources for loans won't write a loan without reassurance that the loan will be paid back. Collateral is their assurance; if you don't pay, you forfeit the item held as collateral. Cars, boats, motorcycles, RVs, etc. often serve as loan collateral.
When writing a vehicle loan, NADA is known as the industry source for vehicle values. But for older vehicles (20+ years), many credit unions and banks have started requiring appraisals to document the value of the vehicle being used for collateral.
Because of this, an appraisal may be necessary in order to aquire a loan to purchase an older or specialty vehicle. An appraisal may also be required if you already own a vehicle and wish to use it as collateral to borrow money for another purchase or investment.
A standard vehicle appraisal includes an assessment of condition and a determination of the fair market value of the vehicle. It provides the documentation required to justify using the vehicle as collateral for a loan for any purpose.
Standard Vehicle Appraisal
$175 plus travel* and tolls
A standard vehicle appraisal provides a value of the vehicle at the current time. We inspect and photograph the condition of the vehicle and collect any information from the owner that could affect its value. We then rate the vehicle on a universal scale of condition.
We research websites, auctions, “For Sale”, publications like “Old Cars”, “NADA” etc., and consult with experts to establish the fair market value range of the vehicle. With all this information, we assess the value of the vehicle and prepare a formal appraisal report.
The first hour (round-trip estimate) is free. Any travel exceeding one hour round-trip (door to door) is $75/hour by car. Travel time is $50/hour for any transportation other than driving. Parking, tolls, etc. are additional. Motels, meals, and other related overnight expenses are billed at actual cost.