Determining Car Value for Redemption?

[daedalus]

So, I'm considering redeeming my vehicle, but I'm getting some conflicting information on what "fair market value" is. My attorney says it should be retail value, but she's also never done a vehicle redemption before. I've checked kbb and edmunds, and of course, there's a big difference between trade-in, private party, and dealer retail.

Does anyone know which value is the accepted standard, if there is one?

[AngelinaCatHub]

ALWAYS, the value on anything is what can it be sold for. Better is, what could you actually get for it? That being said, what could you purchase a like car in the newspaper? Do you need THAT car? There is a glut of used cars out there. We purchased an auction car. Four years, runs like a top. Looks like stit.

We purchased a very nice Chrysler New Yorker, 1989 one owner, non smoker, 95K everything worked and cold air, for $1500.00. Purchased it on the spot. Gave it to one of our project god-daughters, in six months she destroyed it in her drinking and stuff. (another long story) We took it back and scrapped it.

Point is, cars are cheap now and dealers are starving. It is a buyers market. Don't jump to getting your same car back unless you do it very cheaply. 'Hub

[StartingOver08]

So, I'm considering redeeming my vehicle, but I'm getting some conflicting information on what "fair market value" is. My attorney says it should be retail value, but she's also never done a vehicle redemption before. I've checked kbb and edmunds, and of course, there's a big difference between trade-in, private party, and dealer retail.

Does anyone know which value is the accepted standard, if there is one?

This varies by district. Our district in South Florida uses NADA Retail. If you are going to fight the value with the Trustee you need an independant appraisal. (BTW, as you know, no one gets retail value for a used car!)

At one time during my BK I was going to try a redemption. So I called USBank after checking their website http://www.722redemption.com/ and the value they gave me was within $500 of my actual loan balance (which was about $7000 higher than the car was worth at the time based on actual 'sales of similar used vehicles'). However the rate would have been 3 x's the rate I was paying. So they must use the retail value. For me, that was insane. I then tried to negotiate a better payment with the lender I had already - no go. So I surrended the vehicle.