A valuation report is a written opinion by a qualified person of what a vehicle is worth, on a given date, for a given purpose. For a classic motorcycle, it is often the document that makes an insurance policy, a sale or a claim straightforward.
Types of value
- Market value. What the bike would sell for between a willing buyer and a willing seller.
- Replacement value. What it would cost to buy a comparable bike to replace this one. Insurers care about this one.
- Restoration value. What a bike would be worth after it has been restored, or what the restoration would cost.
A report should say clearly which kind of value it states. DEKRA, the German inspection organisation, says its classic experts prepare assessments for registration with an H or 07 plate and can determine market value, replacement value or restoration value, and that assessments are used for insurance classification, damage settlement, and buying and selling.
When you need one
- Insurance. To set an agreed value: see insuring a classic motorcycle.
- After damage or theft. To show what the bike was worth.
- Selling. To support an asking price or to give a buyer confidence.
- Buying. To check that a price is reasonable. See the pre-purchase inspection.
- Estates and finance. To fix a value for a division of assets or a loan.
Who can write one
- A marque specialist or expert dealer who knows the model and the market.
- A recognised valuer or an assessment organisation. In Germany, TÜV and DEKRA experts do this for classics: see the German rules.
- A club or federation that offers valuations to members. The Dutch federation FEHAC lists valuation and insurance information: see clubs and federations.
Choose someone independent of the buyer or the seller, with experience in your make, who will sign the report and be responsible for it.
What a good report contains
- The date, the purpose and the type of value.
- Identification: make, model, year, frame number, engine number, registration, mileage.
- Photographs of the whole bike, the numbers, and any damage or wear.
- A description of condition and originality, including what has been restored or replaced.
- A note on documents and history.
- Comparable sales or the basis for the figure.
- The valuer's name, qualifications and signature.
Limits
- A valuation is a snapshot. The market moves, so update it every few years, or after major work.
- It is an opinion, not a guarantee of what a buyer will pay.
- It is not an inspection of roadworthiness. A valuation does not tell you whether the brakes work.
For the factors behind a valuation, see how a classic motorcycle is valued.
