Market-based appraisal
A market-based approach studies how accident history affects the subject vehicle in its relevant market. It evaluates comparable vehicles, dealer and consumer behavior, repair severity, vehicle configuration, mileage, condition, and geography.
- Identify the vehicle’s credible pre-loss market position
- Analyze the final repair scope and accident severity
- Research relevant clean-history and accident-history market evidence
- Explain vehicle-specific adjustments
- Reconcile the evidence into a supportable conclusion
Formula-based approaches
Some claim evaluations apply a formula to a starting vehicle value and then use damage and mileage modifiers. Formulas can be fast and consistent, but a generic cap or modifier may not reflect the actual buyer response to a particular vehicle, repair, or local market.
Why repair cost alone is not the answer
Repair cost is relevant evidence of scope and severity, but it is not a direct measure of resale loss. Two vehicles with similar repair totals can experience different market effects because of age, brand, mileage, options, history, damage location, and buyer expectations.
What a credible report should show
The reader should be able to trace the conclusion from source data to final opinion.
- Vehicle identification, equipment, mileage, and condition
- Complete repair-scope and severity summary
- Comparable selection criteria and source dates
- Transparent adjustments and reconciliation
- Photographs, VIN details, and source records when available
- Appraiser qualifications and limiting conditions
Questions to ask before buying an appraisal
Ask whether the method is vehicle-specific, whether the report cites real market evidence, whether adjustments are explained, and what support is included after delivery. Be cautious of guaranteed recoveries or reports that provide only a number without supporting logic.