Determine manual actual cash value for commercial vehicle

How the claims representative can manually determine the actual cash value (ACV) for a commercial vehicle.

Procedure

1. Collect all specifications of the vehicle.
   Note: Online research such as Autotrader, Craigslist, local web sites, industry magazines, quotes from dealership Sales Managers, and other resources can be used to collect specifications on most vehicles and equipment.
2. Record visible specifications.
   1. Contact the local parts dealership to obtain original equipment specifications.
3. Obtain an accurate record of mileage.
   1. Record the odometer reading.
   2. If the odometer is unreadable, review trip logs and safety inspection reports.
   3. Contact the owner for documentation that supports mileage.
   4. Contact the local dealership service department for any records of repairs that record mileage.
   5. Download the engine computer (ECM).
      Note: Consider if the engine has additional run time due to stationary usage. Some will have hour meters. By multiplying the hours by 60 (60 kilometers per hour is an average speed for this purpose), engine kilometers can be estimated. Through research its been found that 60 kph gives an accurate representation of kilometers.
4. Obtain a minimum of two to four market advertisements on vehicles similar to the loss vehicle.
5. Save the advertisements individually to the claim, then
   • date the advertisements
   • identify the source of the ACV data, and
   • send the source (document) to the Document Capture Facility (DCF).
   Result:
   

   The DCF scans the document, and attaches it to the claim.

6. Determine the anticipated cash selling price by deducting a reasonable amount from the asking price.
   Note:

   • In most cases, the advertised price is different from the seller's anticipated cash selling price.
   • Always make an adjustment when an advertisement indicates the asking price is negotiable. The suggested reduction is 10 percent of the asking price, when the term OBO (or best offer) appears in the advertisement.
7. Ensure all advertisements are for the appropriate vehicle.
   The advertisements should be for vehicles that

   • are the same
     • year
     • make
     • model
     • edition
     • options (equipment), and
   • have mileage close to the vehicle being evaluated.

   Tip: When you cannot find advertisements for the same model year, consider advertisements for vehicles with similar year, model, options and body style.