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  Estimated Market Price Computation  
 

Please find hereunder the factors considered when computing a figure for Inspections;

ACTUAL CURRENT RETAIL PRICE  ( A.C.R.P)
This is the current listed price of a motor vehicle being inspected. It changes from time to time depending on market factors such as demand, exchange rates, competition, model change etc.

ESTIMATED CURRENT RETAIL PRICE (E.C.R.P)
Sometimes the vehicle being inspected is no longer in the market. An estimate of its current retail price becomes necessary. This is done with the assistance of the A.C.R.P. above or comparing with an equivalent model and allowing for the differences such as engine capacity, extras, shape and style etc.

E.g. comparing a Nissan Sunny B12 Saloon to a Toyota Starlet hatchback.

MODEL CHANGE
Sometimes the vehicle model currently in the market will have undergone several model changes, compared with the vehicle being inspected. The vehicle name may or may not have changed but there is a  change in model.
E.g. Nissan sunny B13 when being compared to Nissan Sunny B14, or Peugeot 504 Gr and Peugeot 504 SR

N.B. Most motor manufacturers change models on average after every two to three years;

NON-PRODUCTION
If  a model is no longer in production i.e. phased out, it will affect the current market price. This is irrespective of when production ceased.
Non production should not be confused with model change

EXTRAS
Extras for the purpose of inspection mean those items or equipment that have been fitted to the vehicle as value added.

ECONOMICAL LIFE
This is determined from an industry  graph for motor vehicles up to five years old.
When using the graph, it is very important to confirm whether or not the mileage is genuine. If the mileage is not genuine, then another method of estimating the economical life must be used.
One way is to estimate the average mileage for an average motorist who is approximated at 30,000 Km per year or 2,500 Km per month, depending on the use of the vehicle i.e. private or company use.

EX-IMPORT
This is a factor especially for motor vehicles that are imported into Kenya from overseas as second hand motor vehicles. The condition of the import is evaluated.

MILEAGE
A vehicle will clock mileage depending on usage by the user. Depending on the usage, the mileage may be regarded as low, medium or high when compared with industry statistics.

DEFECTS
Defects will result from normal wear and tear as well as negligence and abuse.
Body defects are easier to detect as they are generally visual in nature.   
Mechanical defects on the other hand are not easily detectable. They might require actual testing, observation and even measurement to detect.

COMPANY USE
Company vehicles have a tendency of being misused by staff/drivers in the course of their work. This affects the mileage and overall condition of the vehicle.

NON-KENYA SPECIFICATIONS
Since most imported vehicles were not built for this market, they come with specifications not suitable for the market. These specifications are such as:

  • Low rate suspension
  • Engine computer management system for their home markets
  • Less robust body structure and reinforcement

UNPOPULAR VEHICLES
Some makes of vehicles have not received wide acceptance in the market. These vehicles have low resale value due to their unpopularity. They include some expensive models e.g. Volvo, Mercedes, Isuzu Troopers, newly or recently launched models such as Hyundai, Daewoo, Ssang Yong Musso, Kia, etc. Others are LHD vehicles of whichever make. Other vehicles like Peugeot 405, Opel , Renault, Fiat, etc also fall into this category.

NEGLIGENCE
This will be detected by physical examination. A neglected vehicle will be dirty and poorly repaired. If any repairs are done it is with many loose items falling off. Some parts though functional, will be abused and therefore bear evidence of abuse, e.g. scratched lens, headlights, dirty or stained interior. Etc.

PUBLIC DOUBTS
This is mainly on a vehicle that has been grounded and therefore the public has genuine doubts about its condition.
How much to penalise for public doubts will depend on  facts e.g. when the vehicle was last on the road, information variable about the reason for its grounding etc.
This factor should be considered with all the other visual and physical observations being taken into account.

NON-TEST
It may not be possible to test a motor vehicle for many reasons. These could be:-

  • Defects
  • Missing essential item
  • Restricted space or area etc

If the non-test is because of missing parts and defects, it may not be possible to determine accurately the extent of defects on the other items.
In case of a vehicle in a restricted area, but the vehicle is in running condition, all test and observations will be done.  This factor will affect the final estimated market price.

ACCIDENT DAMAGE
When a vehicle suffers an accident and is repaired in a way that leaves behind evidence of that accident, then there is an intrinsic loss of value due to the accident.
Secondly, there is a loss of value due to the need to rectify the accident damage to restore the vehicle to its original status. This second loss is consistent with the extent of damage and items damaged and needing repair/replacement.

An accident vehicle can therefore be penalised twice

  • For the accident noticeable perse.
  • For repairs due to restore the vehicle to its original state.

Kindly note that the inspection report is not valid without 2 Official Signatures and dully  sealed.

 
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