Fair Market Value
You must use the countable fair market value to help determine the value of licensed vehicles. Document both steps in FACS.
- You must first determine the vehicle's fair market value. Do not consider whether there any encumbrances.
- Subtract $4,650 from the market value. This is the countable market value.
Use the average trade-in value listed in the National Automobile Dealers Association, other blue books, or a website that provides market values free of charge.
Potential websites are
Kelley Blue Book (www.kbb.com), and
When valuing a vehicle, do not increase a vehicle's value by adding the value of low mileage or optional equipment.
The above webpages require you to enter the mileage or assume an average mileage. To avoid increasing the value, compare the vehicle's actual mileage to 12,000 for each year of use. Use whichever is greater.
if a vehicle is worth, $6,000, $1,350 is the countable market value ($6,000-$4,650=$1,350).
if it is worth $4,650 or less, the countable market value is zero.