What does "fair market value" mean?

What does "fair market value" mean?

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Fair market value is a reference to what the market in that particular area is carrying for that particular vehicle. Fair market value on a convertible in California or Arizona is going to be more than it is in Maine or Minnesota. The fair market value is based on the market itself and what sort of ability or value the vehicle has in that particular area. The way to identify fair market value is through research. There are several different websites which are going to assign their ideal fair market value. As an example, intellichoice.com, does a target price which is considered to be a fair price for that vehicle given the market conditions. Also, look in used vehicle classifieds to see what the vehicle carries in the market as a used vehicle, and what sort of depreciation rates there are. The other thing to do is to consider geography. A convertible in California or Arizona is obviously going to be worth more than it is in Minnesota. Fair market value is not a real tangible item. Ultimately the value of a vehicle is whatever the person who's buying the vehicle is willing to part with. That's the value of the vehicle, but you can get some rough guidelines with enough research.