APPENDIX 2: VEHICLE VALUATION CHECKLIST

2.1. General:
The car is depreciating all the time whether it is running or stopped, and probably the Owner has
little idea of its Fair Value. According to choice, the vehicle can depreciate (on average) 15%
each year for the first three years. That means, a car that costs birr 750,000 can have worth less
than 500,000 in just three years.
How to determine what your car is worth:

The best way to determine what your vehicle is worth is to use basic data such as designed use,
seat capacity, country of origin, make, model and year of manufacture, accumulated fuel
consumption rate (lt/100Km), accumulated maintenance cost, etc ...
For example, 4×4 may be more sought after in rural areas than in urban centers, which could
affect its value.

Some of the fact sheets in the Vehicle Valuation process are discussed below and you can
modify as required.

2.2. Terminology & Units

Specification: Basic features & performance as indicated separately. 4WD Double Cab 040515.pdf

 Engine power: (Kw/Hp)

 Engine Torque: (Nm/Kgf)
 Current Odometer reading (Km):
 Slip ratio:
 Useful economic life (Year /Month): Useful economic life (Km):
 Fuel Consumption rate ( lt /100km) :
 Fuel Consumption rate (g /Kwh) :
 Engine oil Consumption Rate (lt/5000km) :
 Maintenance cost (%):

2.3. Ownership book Data Fact:

 Ownership Libra No.
 Use :
 Power (Horsepower):
 Seat capacity:
 Make
 Model
 Model year:
 Original Engine No: Current Engine No:
  Chassis No:
 Other :

2.4. Visual & Drive Inspection Checklist

Interior: unworn seat, freely moving doors, free trunk movement, Gauges & odometer, No
Dashboard lights when stopped, AC , windshield wiper & fluid dispenser, Seat belts, power
windows, sunroof, Alarm, Ignition key & door/trunk lock, Hazard & headlight

Engine: Free of fluid & oil leakages, Oil filler necks & Oil dip stick, Battery terminals
corrosion, Smooth Engine idle run , Exhaust pipe emissions ( blue: engine burns oil & Black
excess oil consumption), etc..

Transmission: Smooth without slip or delay , Gear shift smoothly, No grinding noise when in
reverse, etc..

Exterior: Windshield free of cracks , Body panel color match, Magnet adheres to all steel body,
Body scratches & dents, Windshield wipers &blades, Headlights & directional lights

Frame: Chassis neither bent nor Cracked, No signs of crumpling or straightening inside trunk,

Brake: Vehicle steers straight, and doesn’t pull to one side when applying brakes, parking
brakes smoothly function, No noises when apply brake,

Steering: Smooth & no resistance, No clicking & clunking when turning,

Manuals: Service manual, Part catalogues

2.5. FACT DATA SUMMARY SHEET (History Jacket or Logbook)

Accumulated Accumulated Accumulated Accumulated oil

No Utilization Maintenance fuel Cost Consumption
Year cost
Kilometer % Birr % liter lt/100km liter lt/5000Km
00 01 02 03 04 05 06 07 08 09
1 First 30000 = 10
2 Second 60000 =20
3 Third 90000
4 Fourth 120000
5 Fifth
6 Six
7 Seven
8 Eighth
9 Ninth
10 Tenth
2.6. Comparison of Subject Vehicle with similar Modern Vehicles

Note:
i. It’s important to understand, however, how the indicated value is affected by the little things.
With that in mind, please try to list those features and extras that affect the final value of your
car
ii. The weight given under column (02) of table below can be modified.

No Particulars Weight Subject Comparable Comparable Comparable

(%) Vehicle Vehicle -1 Vehicle-2 Vehicle-3
00 01 02 03 05 06 07
0. Availability of Ownership Basic
book reference No.
1. Horse power 4
2. Vehicle use & type 3
3. Wheel Drive 3
4. Seat capacity 5
5. Current Odometer reading 5
(Kilometer)
6. Make/brand 5 Toyota
7. Model 5
8. Country of origin 5 Japan
9. Model year 5
10. Non functional Gauges (%) 5
11. Safety belt & fire 5
extinguisher Availability
12. Availability of Spare parts 8
& Reputable Maintenance
Service in Ethiopia
13. Fuel consumption rate 8
(lt/100Km)
14. Oil consumption rate 6
(lt/5000Km)
15. Accumulated maintenance 5
cost in percentage of
original Price (%)
16. Overall technical opinion 10
( New, moderate , very old)
17. Local Market Acceptability 13
(Excellent, Very Good,
Good, Low)
Subtotal 100
Indicated Fair Value (Birr)
Inspection Date
Valuation Date
3. 1. CONCLUDING REMARKS
It’s important to remember that a variety of factors contribute to Vehicle’s value. To be on the
proper track during fair valuation, consider important things.

AGE:

The age of vehicle makes a big difference to the vehicle’s value. Typically, vehicle age (counted
from model year) decreases vehicle’s value. However, some vintage cars can increase in value
over time.

MAKE & MODEL:

According to practical Fact, popular & reputable Make/brands & Models tend to hold their value.
These vehicles have stronger market in the second-hand market.

MILEAGE

It may seem obvious, but generally the more mileage vehicles, the lower its value. Greater
mileage means greater wear and tear on vehicle’s main parts. For example, Average vehicle
travels 14,000 to 33,000 kilometers per year.

TRANSMISSION

Generally, automatic transmissions are more expensive to buy new, which helps stave off
depreciation. However, for off-road application & maintainability, a manual transmission may be
worth more.

COLOUR

The Vehicle color can say a lot and it makes a difference to Vehicle’s value. According to
Motoring.com.au, standard colors can lead to quick sales due to higher demand. Furthermore,
bolder colors may attract higher prices, but it may take longer to find a buyer.

CONDITION (Interior, Exterior and Mechanical)

 The interior condition of the vehicle is critical. Things like claw marks from pets and
other fades degrade the inside parts .These unwanted interior conditions decrease vehicle
value.

 Dents, scratches, rust spots and more on the Vehicle’s exterior are also likely to decrease
the Vehicle value.

 Finally, make sure the availability of periodic service and maintain logbook. This
historical record paints a clear picture to future buyers that the vehicle was well-looked
after.
NON-STANDARD FEATURES

Does vehicle have heated seats, automatic headlights, inbuilt GPS, or extra safety features?
These features may increase the value of the vehicle. Thus, please keep them in mind when
assessing Vehicle status, especially if these features are not offered as standard features.

VEHICLE PAST LIFE

If the vehicle has bad record before, or if it’s had serious panel repairs or accident, the value will
decrease dramatically.

AFTERMARKET ITEMS:

Buyers enjoy extras like: chrome wheels, superchargers, aftermarket spoilers, bull bars, snorkels
and snap winches

LOCALLY AVAILABLE AFTERSALE SERVICES

The after sale services including original spare parts and maintenance support capacity are
crucial to the vehicle value. Fore example: Toyota is everyone’s choice due to sufficient after
sale service in Ethiopia.

3.2. RECOMMENDATION:

A combination of all the above factors will have a dramatic impact on the vehicle’s resale value.
(ብዙ ተጠቃሚ ያለው መኪና ዋጋው ክፍተኛ ይሆናል፡፡)