Vehicles
03.04.337 Computing Vehicle Fair Market Value
The Department will use an official used car valuations book, such as the NADA Official Used Car Guide, to compute the vehicle's fair market value. Do not add the value of low mileage or optional equipment. Do not add the value of special equipment for a handicapped person. If the household does not agree with the book value, it must provide proof of the vehicle's value from a reliable source such as a car dealer or a bank. (06-01-94)
Note: Get a complete description of the vehicle to find it in the NADA guide. The description can be found on the registration. The April and October issues of the NADA Official Used Car Guide give values for popular foreign and domestic cars and light trucks up to eight years old.
The Model Number listed in the NADA book will appear in the Vehicle Identification Number (VIN) for any 1981 or newer vehicle. The 5th digit is the car line letter. The 6th and 7th digits are the body type or the Model Number in the NADA book.
Example:
1MEBM6043JH662935. Use the average trade-in value in the most recent NADA guide as the automobile's current market value. This is the fair market value.
Note: If the vehicle is so new it is not listed in the NADA Official Used Car Guide, look up the same model vehicle for the prior year. Use additional proof to determine the vehicle value. The value from the other proof should exceed the NADA value for the prior year model
Note: In determining the value of four-wheel drive vehicles shown in the NADA Official Used Car Guide as models, use the total value. If the Guide lists the four-wheel drive feature as a separate option, do not add the value of this optional feature to the basic value of the vehicle.
Other NADA Guides.
NADA also publishes guides on mobile homes, recreational vehicles, boats, motorcycles, and mopeds.
Rebuttal of NADA Value.
If the NADA guide value affects eligibility and the participant disagrees, give him the opportunity to rebut the value. Proof can be NADA guides the Department does not get. The participant can get proof, at his own cost, from an impartial expert. The expert can be a used car or truck dealer or an automobile insurance company.
Do not use the NADA guide if:
The guide does not list the make and model of the vehicle.
The guide lists but does not show a value for the make and model of the vehicle.
The vehicle is a car or truck 25 or more years old.
The vehicle is not a motorized vehicle, such as an animal-drawn vehicle
Note: Several Internet web sites provide vehicle information similar to that contained in the NADA Blue Book. The acceptable free web sites that may be used to determine the fair market value of licensed vehicles are:
SITE NAME INTERNET ADDRESS
Car Prices.COM www.carprices.com
Auto Pricing www.autopricing.com/
Intellichoice www.intellichoice.com/
Edmunds www.edmunds.com/edweb/used/usedcars.html
Kelley Blue Book www.kbb.com
Note: The values of vehicles can vary widely depending upon many factors. If the source you choose causes the value of the vehicle to be an excess resource issue for the family, check the other sources. If another source reports a lower value, use that source to help the family.
Note: Do not increase the basic value of a vehicle by adding the value of low mileage or optional equipment. To ensure vehicles are not assigned a higher value based on unusually low mileage, use the vehicle’s actual mileage or 12,000 miles per year, whichever is greater.
Remember to use the trade-in value of the vehicle. The free NADA web site does not list the trade-in value, so do not use this web site for vehicle valuation.
01. Older Vehicles. If the vehicle is no longer listed in the NADA Official Used Car Guide, the Department will accept the household's estimate of the vehicle's value. If the Department has reason to question the estimate and if the value of the vehicle will affect eligibility, the household must get an appraisal from a car dealer or produce other evidence of its value. Accept a newspaper advertisement showing the selling price of similar vehicles. (06-01-94)
Note: NADA Official Older Used Car Guide. The quarterly issue of the NADA Official Older Used Car Guide gives values for popular cars and trucks from 8 to 18 years old. Use the average trade-in value in the most recent NADA guide.
02. New Vehicles. If a new vehicle is not listed, get the fair market value by other means. The client may contact a dealer selling that type of vehicle. The dealer's wholesale value is the fair market value. For licensed antique, custom made, or classic vehicles, the household must provide proof of the value from a reliable source. (06-01-94)
03. Multiple Vehicles. If the household owns more than one vehicle, assess each vehicle individually. Do not add the fair market value of two or more vehicles to reach a total fair market value over four thousand six hundred and fifty dollars ($4,650). (7-1-97)