About our MX5 Valuation Service
Mead & McGrouther was, for many years, the “go-to” reference for vehicle valuations and served the trade well. It was however not that useful to the man in the street. Misuse and incorrect data often resulted in vehicles being underinsured and consumers being left short in the case of a write-off. This was frequently the case with cars older than ten years or cars that were in the category of exotics, replicas, and collectables.
Our mission is designed to ensure that, in the event of your car being written off, you will be sufficiently compensated to ensure that you will be able to procure an adequate replacement in a similar condition with the same or slightly better specifications, in the local marketplace.
The Vantage System is not designed for owners who use their vehicles every day and who are likely to exceed 8500 km per year. Indwe will have more appropriate products for this type of usage. It is also not designed to provide a recommended Selling Price which will commonly be a factor below that of the recommended Insurance Value.
Each certificate also contains an estimate of the average selling price( Market Guide) of up to 8 units adjusted for a negotiation factor. This is an indication of a potential selling price for similar vehicles.
In order to make use of this service, you will need to complete the details on My Account > My Vehicle and have posted at least 4 photographs of your car and recorded the Registration. One of the photographs must be of the vehicle's odometer indicating mileage. Your actual Mileage on a date must be entered.
The cost of the Service is R300.00, paid to the Club but free to paid-up affiliated Club Members of a Branch. Please provide proof of payment to kelvinr@mx5club.co.za if in the case of a non-member request.
Purpose
The Club has negotiated a preferential Insurance scheme for members, which is custom-designed for Classics and New Classics such as the MX5.
The challenge is, particularly for vehicles that are over 5 years old as well as exotics,replicas, collectibles, and special editions, that there are few reliable sources of market value. Values tend to be trade values and not replacement values. Owners are therefore frequently left under-insured and with little prospect of acquiring a similar replacement vehicle in the event of a total write-off.
It was therefore the Club’s wish to develop an in-house tool to bridge this gap and provide owners with a more realistic retail replacement value for a similar vehicle.
To this end, the Club has developed a semi-automated web-based process to determine a Fair Value and issue a certificate to this effect. This is for Insurance purposes only.
In partnership with Indwe, the Insurers have approved this process.
The Scheme provides participants with affordable insurance for our members’ vehicles.
The basis of this Insurance will be that of an Agreed Value underpinned by a Fair Market Value. Fair market value is the price of a vehicle in the current market that one would obtain between a willing buyer and a willing seller who have no relationship to each other
Ultimately the Agreed Value is a matter between yourself and the Insurer and finally at the discretion of the Insurer. The Insurer requires that the Club participate in the determination of a Fair Value as the basis of ultimately determining a reasonable Agreed Value. This process will eliminate the often-costly exercise of obtaining a Valuation Certificate from an accredited third-party Appraiser.
Club Valuations are subject to Terms and Conditions
Process
This benefit is available to paid-up members in good standing for free.
https://www.mx5club.co.za/index.php
Only cars that have full details and pictures uploaded on My Vehicles can be evaluated.
If you are not a Club Member.
The Service Costs R300.00 per Valuation per year but is free to Club Members.
Multiple downloads are permitted. .
MX5 Owners Club. Bank: FNB. Account: 62458457564 where to pay if you are not a member.
If you are a paid -up member of the Owners Club
Make sure you are Registered, Log in and go to My Account, then My Vehicles, then Add New
Complete full details including Mileage and estimated mileage for the forthcoming 12 months.
You will need to add 5 photographs
Then Request a Valuation
The Process is initiated by selecting and completing an online Owners Declaration questionnaire by the current registered owner. This input from the Owner will give an indication of the overall condition of the vehicle as well as any upgrades, accessories, or recent repairs. A false declaration could lead to the invalidation of the Valuation Certificate or insurance fraud.
Please also ensure that you have accurately recorded the current odometer reading at the date and have indicated your estimated km for the year ahead.
Tick the box confirming the validity of your declaration
Remember to SUBMIT or START AGAIN if you have made a Mistake.
This information will be used to determine the overall condition of the car and will be applied to a Market Average Database which will be determined by the retail sales values on an offer of up to eight cars of the same description, model, and year. The Club has already collected data on almost eighty such recent sales but is short on info on the older NA models. The database is updated daily. This computed value is further and finally adjusted by the information contained in the Owner Declaration which is a 50-point questionnaire covering details of the car's condition, operation, and history.
Aspects included:
Accident Damage
Service Records
Paint Condition
Clutch and Gearbox
Specifications
The Owners Declaration is a statement of fact and inaccuracies therein can invalidate the valuation and may constitute fraud in validating both the Valuation Certificate and any subsequent insurance,
This comparison and outcome will then be reviewed by up to two Club-appointed Assessors and adjusted, if necessary.
The Club reserves the right to call for the Physical inspection of a car or to refuse a Valuation request.
On completion, a Certificate of Valuation is made available for Downloading. You will be notified of this via email.
Please note that due to high levels of demand, Valuations can take up to 14 days to complete.
Valuation
Upon completion of the process, you will be able to download a Valuation Certificate. The certificate also contains an indication of the average price obtained for your year and model. This figure is usually lower than the actual assessed Valuation. If you want a quick sale, use the average market price.
The Assessed Club valuation is, however, what we suggest you use for Insurance purposes and is aimed at ensuring that, in the event of a total loss, you will be able to readily procure a vehicle in a similar condition to your well-kept MX5.
Finally, A Valuation Certificate similar to that below will be made available for Download.
Some Comments on our Valuation Tool
We acknowledge that any valuation methodology or tool (and there are many available), has an element of subjectivity. The older a car is, the greater that element becomes. Ultimately the value of a car is determined by Supply and Demand.
Insurance companies avoid trying to estimate the value of vehicles older than 7/8 years and generally call for an Independent Expert Appraisal and thereafter grant cover on an Agreed Value basis.
Valuations are generally of importance in two specific but different situations:
- When trying to determine a realistic asking price ahead of the sale of the vehicle.
- When attempting to set an Insurance Value that will ensure an equivalent replacement in the event of a total loss.
The Tool was internally developed in the Club and aims to address the Insurance Value aspect above only and whilst it provides pointers on a realistic market value, this is not its purpose. It is not an indication of Resale Value, and the Market Guide Number is a better indication of Resale Value.
The Club has worked closely with both Brokers and an Underwriter in developing a tool that has their support.
To be specific, the suggested insurance Value is aimed at assuring the owner in the event of a total loss, that he would be readily able to procure in the present market, an equivalent or marginally better vehicle as a Replacement.
All parties are of the view that the necessary expert knowledge within the Marque-specific club is appropriate in determining a fair value for those Club members' cars.
In the process of determining values, the club makes use of multiple sources of information, including:
- Cars advertised in the market and those offered privately adjusted for a negotiation factor
- Cars advertised or reported sold by the Clubs own members
- Recent documented sales where the purchase price is detailed.
- Inputs from a select number of Traders with whom the Club shares information
- Mathematical modelling, our Application is self-learning and becomes increasingly more accurate over time.
We have assessed more than 75 Mx5’s since the implementation of the valuation tool.
