Determining Fair Market Value 430-05-45-10-25

(Revised 01/01/04 ML2893)

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If a vehicle is not an excluded vehicle, the worker must then determine the fair market value. The fair market value of licensed vehicles is the average trade-in value without using any listed add-ons or deductions. All vehicles receive the $4,650 exclusion.

 

The portion of the fair market value exceeding $4,650 or the equity value is counted toward the household asset limit. When the excess fair market value is applied, the amount owing on the vehicle is not considered. In this instance, the equity value is not used.

 

One of the following is used to determine the fair market value:

• NADA Official Used Car Guide not older than six months - the NADA web site cannot be used because it does not contain the average trade-in value.
• www.edmunds.com
• www.kbb.com (Kelly Blue Book)

 

The worker must print out a hard copy of the information from the web site for case file documentation.

 

A household may indicate that for some reason, such as body damage or in- operability, a vehicle is in less than average condition. In this instance, the household should be given an opportunity to obtain verification of the trade-in value from a reliable source. Households must provide verification of the value of antique, custom made, or classic vehicles. Special equipment for the handicapped will not increase the value of a vehicle.

 

If a vehicle is no longer listed in the NADA Official Used Car Guide, or on the above listed web sites, the household's estimate of vehicle value should be accepted unless the worker has reason to believe that the estimate is incorrect. If it appears that the vehicle's value will result in ineligibility, the household may obtain an appraisal or produce other evidence of value.

 

If a vehicle is not yet listed in the NADA Official Used Car Guide, or on the above listed web sites, the household must obtain verification of the trade-in value by contacting a car dealer who sells that make of vehicle.

 

The fair market value of two or more vehicles must not be added together to reach a total fair market value in excess of $4,650.

 

Example:

The household consists of a single individual who owns one vehicle with a fair market value of $5,400 and a second vehicle with a fair market value of $4,800. The equity value of the second vehicle is $100. The amount applied to the household asset limit is $750 ($5,400 – 4,650) plus $150 ($4,800 – 4,650).