How Does Trustee Typically Value A Car?

[ryan]

I'm trying to better understand how a BK Trustee comes up with a current value for a used car. Example: I've seen many comments searched in Google that say most trustees use NADA's Yellow book for values.

I found the online NADA yellow.

So I look up a 10 year mitsubishi for example. Model, options and mileage specified....it gives me 4 different values?

One is rough condition (trade or wholesale) $2200

One is average condition (trade or wholesale) $3000
one is clean condition (trade or wholesale) $3600

and one is Clean RETAIL $5,500

how does one forecast what they will use?

[Dst1]

There have been threads about this in the past. Search is your friend.

The trustee can use any means to value the car they see fit. The value assigned by the trustee can be challenged in court. Normally if the debtor comes up with something that is close to fair market value the trustee will accept it. But, again, this varies.

Valuing cars is an art, not a science.

[tigergem]

I used the average of the NADA rough condition and wholesale value, which was SO conveniently provided to me by the State of Texas. The trustee accepted that, and my Motion to Value Collateral was also approved by the judge.

[BobMango]

I used NADA trade-in value, which was the lowest valuation available. That was on my attorney's advice and since he handles a dozen or so cases a month I figured he'd know what the trustee would accept. No challenge from the trustee at all.

[pcn]

Our atty said that the trustee ONLY used NADA. When I compared NADA to Edmund's, the NADA value was 4k more. I told our atty's this, they said it was possible to challenge the value. I didn't have the extra $ to buy our vehicle back if trustee stuck to the NADA value, so I printed out the Edmund's value and w submitted it with our paperwork. Our paperwork listed the vehicle values as "per Edmund's". We had our "No distribution" Monday morning, so it appears to have worked. Bottom line is don't accept anything as gospel if you have supporting documentation and want to fight for it.

[backtoschool]

Most trustees use the NADA value for the car in "average" condition, that you are selling, or the dealer is reselling. Many trustees will accept bluebook value as well. Trustees do not like to see trade-in values used as they are significantly lower for most cars. Of course individual trustees may have individual preferences and ymmv. If the car is valued too low for it's make and year, then that is a red flag that may cause the trustee to object to the exemption.

[OhioFiler]

If it's a Toyota the value is now nearly zero regardless of NADA.

The federal government owns 2 of the 3 domestic automakers and appears to be trying to put Toyota out of business.

[flyinbroke]

If it's a Toyota the value is now nearly zero regardless of NADA.

The federal government owns 2 of the 3 domestic automakers and appears to be trying to put Toyota out of business.

Unfortunately, news of the one exec flapping his gums about saving the company millions by not broadcasting the acceleration issues early on is a nail in the coffin. You know the govt is taking that and running a marathon with it.

[optimistic1]

No NADA here, KBB private party.