Sample market value report

Market value only, before any deductions (such as the excess).

1Vehicle details

Year

2018

Make

Toyota

Model

Hilux

Variant

SR5

Body

Dual cab utility

Engine

2.8L turbo diesel

Transmission

Automatic

Colour

White

Odometer at date of loss

80,000 km

Vehicle details as confirmed by the owner.

2Kilometre adjustment

The comparable vehicles' average kilometres are compared with this vehicle's odometer, at $100 per 10,000 km. If the comparables have done more kilometres, the price is adjusted up; if fewer, down.

3Accessories

Invoice cost (or, where the invoice is lost, the current price of the same item new) less depreciation of 10% a year (straight line) from the date fitted to the date of loss.

• Bull bar

  Fitted 2 March 2024 · Invoice $2,400 · Depreciation −$600

  +$1,800

• Tow bar

  Fitted 1 September 2020 · Current price $900 (invoice lost) · Depreciation −$540

  https://www.example.com.au/tow-bar-and-wiring-kit

  +$360

Accessories included (2)+$2,160.20

4Comparable vehicles for sale

3 vehicles for sale in New South Wales, the same year, make, model and variant. Prices are advertised prices.

• 

  1. 2018 Toyota Hilux SR5

  70,000 km

  Blacktown NSW · Dealer · Carsales · Listed 12 September 2026

  https://www.example.com.au/sample-listing-1

  $30,000

  Advertised

• 

  2. 2018 Toyota Hilux SR5

  95,000 km

  Liverpool NSW · Dealer · Gumtree · Listed 13 September 2026

  https://www.example.com.au/sample-listing-2

  $31,500

  Advertised

• 

  3. 2018 Toyota Hilux SR5

  60,000 km

  Gosford NSW · Private seller · Facebook Marketplace · Listed 14 September 2026

  https://www.example.com.au/sample-listing-3

  $29,000

  Advertised

Average advertised price$30,166.67

Average odometer75,000 km

5Valuation calculation

Comparable cars come from the same state

Car prices differ between states, so the comparable cars are listings for sale in the same state or territory as the insured car.

The average of three comparable cars

Market value is estimated from the average advertised price of three comparable cars for sale, rather than a single listing. If only one or two matching cars are for sale in the same state, those are used and the report says so, rather than using cars from another state.

Adjusting for kilometres

The comparable cars' average kilometres are compared with the insured car's kilometres at the date of loss, and the average price is adjusted for the difference at a set rate per 10,000 km.

Matching the exact variant

Comparable cars should be the same year, make, model and variant (or badge) as the insured car, because different variants are priced differently.

Depreciating accessories

Accessories are valued at their invoice cost less depreciation for the time since they were fitted, not at their full purchase price. If the invoice is lost, the current advertised price of the same item new is used instead, with the same depreciation.

Using advertised prices of comparable cars

Comparable cars are current listings in similar condition. Listings for cars that are damaged now or have write-off history, and old listings, aren't comparable.

6AFCA's approach to market value

How AFCA defines market value

“The average value of vehicles of a similar make and model, taking into account the age and condition of the vehicle. Can fluctuate, depending on individual factors such as lower usage and the way in which the vehicle has been looked after. The term is usually specifically defined in an insurer's policy.”

How this valuation follows it

The average value

The average advertised price of three comparable vehicles

Similar make and model

Same make, model and variant

Age

Same year of manufacture

Lower usage

Adjusted for the difference in kilometres

Condition

No listings with damage or write-off history

Evidence AFCA asks a complainant for

“What they consider the pre-accident value of their vehicle was, with any supporting information (this may include assessor reports, valuations or sale advertisements)”

Valuation guides and listings (case study 853601)

AFCA's adjudicator disagreed with an insurer's pre-accident market value. The valuation guide the insurer relied on "did not fairly reflect the insured vehicle's pre-accident market value. It was $10,900 lower than the Redbook average retail figure and significantly lower than other car sales listings."

Source: The AFCA Approach to motor vehicle total loss complaints (April 2023). AFCA says each complaint is unique, its approach documents are a guide only, and no determination is a precedent for future cases. DisputeX isn't affiliated with AFCA.

Appendix: accessory invoices and listings