1. What is Fair Market Value (FMV)?

Fair Market Value (FMV) is the price a willing buyer would pay a willing seller for a vehicle, with neither being under pressure to buy or sell, and both having reasonable knowledge of relevant facts. It's commonly used for insurance, taxation, and sales purposes.

2. How Does the Calculator Work?

The calculator uses the comparable sales method:

Where:

• \( Sale_1, Sale_2, Sale_3 \) — Prices of comparable vehicles sold recently

Explanation: The calculator averages the prices of three similar vehicles sold recently in your area to estimate the fair market value of your vehicle.

3. Importance of FMV Calculation

Details: Accurate FMV estimation is crucial for insurance purposes, fair trade-ins, private sales, and tax assessments. It helps prevent overpaying or underselling a vehicle.

4. Using the Calculator

Tips: Enter prices of three similar vehicles (same make, model, year, and similar mileage/condition) sold recently in your area. All values must be valid (greater than 0).

5. Frequently Asked Questions (FAQ)

Q1: Where can I find comparable sales data?
A: Check online marketplaces, dealer listings, auction results, or valuation guides like Kelley Blue Book.

Q2: How recent should comparable sales be?
A: Ideally within the last 3-6 months to reflect current market conditions.

Q3: What makes a good comparable vehicle?
A: Same make/model/year, similar mileage (±10%), comparable condition, and same geographic region.

Q4: Should I adjust for differences?
A: Yes. If comparables differ in features/condition, adjust values up or down accordingly before averaging.

Q5: Is this method accurate for rare/classic cars?
A: Less accurate for rare vehicles where comparables are hard to find. Specialist appraisals may be needed.