Pricing Prius legally (what's the value)...

[htmlspinnr]

I've got a situation possibly coming up where I may need to evaluate the value of both of my cars.

In a legal situation, how does one best determine the value of the vehicles when considering them as assets (in this case, a divorce scenario)?

The '02 is fairly easy - there are online sites to valuate the vehicle and establish a baseline value. However - which value would be used? Retail (high), private party value, or trade value (low)?

The '04 is a different story since it's a new vehicle - most people don't have valuations on it, and for those that have sold, they have gone for at or above sticker *used*. Thoughts on determining the value of this car? It's in excellent shape w/ 8300 miles.

Any lawyers care to comment with the understanding that you're not providing legal advice?

Thx,
-Rick

[tag]

PM'd you there, Rick

[Wolfman]

As for estimating the value of a used car, I would do what the insurance company does in case of a wreck. If your car was totalled in an accident, they would be giving you the retail value of the vehicle towards its replacement. With the 02, like you said, that's easy. Just use the retail numbers. What you may have to do, is get with your insurance agent, and have him research the value of the '04. They have to have some kind of formula to go by when they have limited information on brand new model releases. Do make sure though, that they understand why you need this information, so as not to set any flags on your policy.

[htmlspinnr]

Fortunately it's state farm and she's aware of my situation (one-on-one agents there, they're really cool about it).

I could ask her tomorrow on that.

I suggest that you go to two Toyota dealers and ask for a written offer to purchas your Prius, then average the two.

[htmlspinnr]

Wouldn't that provide a trade-value vs. a retail?

Granted, such a value could be in my favor... but it needs to be considered "fair" or it won't be "accepted".

[rdverb]

You could look at the first year depreciation for each of the last 3 years of Prius and use a prorated fraction of the average or the trend for the 04. It's not based in law, but it is objective, repeatable, and within the bounds of fairness. Any number of schemes might jump out once the data is in front of you.

[jasond]

Wouldn't that provide a trade-value vs. a retail?

Granted, such a value could be in my favor... but it needs to be considered "fair" or it won't be "accepted".

That seems fair to me. It's not a trade-in situation.. it's a sale situation. Trade-ins are a specific case where you get extra value because you're buying a replacement car at the same time. I can't see how someone could argue that a price quote from a real Toyota dealer wouldn't be fair, especially if you got more than one. If that's not a fair indication of what a car could be sold for in the market, what is?

Alternatively, I'll bet there's an insurace-industry-standard way to compute depreciation on a generic car.

What is the fair value of anything? It is what a willing buyer and seller agree on. To find out what your 2004 Prius is worth you would have to sell it. To sell it you would have expences such as advertising, you may have a trade in and you may have to get the buyer financed. If your Prius isn't perfect you may have some touch up and detailing to do. If you have two Toyota dealers bid on it, that is real money, not pie in the sky money.
That goes for your other Prius as well. What there cash value is and what you think it should be are two different things. I under stand you want to be fair and this would be fair.

[Wolfman]

That seems fair to me. It's not a trade-in situation.. it's a sale situation. Trade-ins are a specific case where you get extra value because you're buying a replacement car at the same time. I can't see how someone could argue that a price quote from a real Toyota dealer wouldn't be fair, especially if you got more than one. If that's not a fair indication of what a car could be sold for in the market, what is?

Alternatively, I'll bet there's an insurace-industry-standard way to compute depreciation on a generic car.

I think you're getting the terminologies backwards. Trade in value is FAR less than retail. Look at any of the automobile appraisal sites online. They wil give you two or three numbers, one being trade in, another being TMV (true market value) and the final being retail. TMV is a guide for those who are trying to sell a car privately to realize more of the cars value. Trade-in is more of a wholesale number that is assumed that the car in average condition would be worth if it were to be auctioned. Retail is of course, what you would hope to see on the used car window sticker, not that any used car stealership wouldn't inflate THAT number now, would they. :wink: