[Vtr-tac] Standard Presumptive Value (SPV) Price Issues
Electronic Distribution of VTR Information to Texas Counties
vtr-tac at extlists.dmv.state.tx.us
Thu Nov 12 16:40:16 CST 2009
Please review and distribute as appropriate.
Over the past few months we have received several inquiries regarding the SPV values being returned through the Registration and Title System.
One of these concerned the return of *no value* on a vehicle when one should have been available. Several VINs were provided by the counties as examples for us to use in working the issue with the SPV vendor (Price Digests).
Price Digests, has researched the VIN*s provided on these and has advised that *no values* are most often due to either:
- the manufacturer providing incomplete VIN data to the vendors (e.g. the manufacturer will use a different engine in a vehicle but not provide an updated VIN pattern for this to the vendors), or
- incorrect VIN reflected on the supporting title documentation, or
- input errors at the point of sale.
Other SPV issues reviewed were:
- Adding Additional vehicle types: The current contract provides for additional vehicle types (commercial and horse trailers, RVs, and classic/collectable). However, the Comptroller and TxDMV have not yet defined the data requirements to allow Price Digests to return these values. We will meet soon with the Comptroller to discuss which of the additional vehicle types will be added.
- Expanding the Vehicle Sales Market: The SPV values provided are based only on Texas vehicle sales. There has been concern expressed about value *spikes* that may be driven by issues specific to Texas or due to limited sales of certain vehicles in Texas. We asked Price Digests if including vehicle sales data from other states would help balance these values. Price Digests advised that Texas* vehicle sales market mirrors the national market. Therefore, expanding the sales collection
criteria to try to balance the week-to-week sales values would have little to no impact. Also, the sales values presented are averages of 6 weeks of vehicle sales, not just a single sales week in which a vehicle*s sales value may have been very high.
- Addition of Fleet Values: Values are now being provided for fleet vehicles (e.g. law enforcement vehicles). This should substantially reduce the number of "no values" returned. However, due to their use, the SPV for these will likely be lower than for non-fleet vehicles of the same make/model.
- Cash for Clunkers program impact: It was thought that this program might cause the values of used vehicles to increase since many vehicles were being taken off the market. Price Digests advised that the program has had little to no impact on the used car market.
In those situations where the applicant is not eligible for the gift tax exemption and SPV returns *no value*, the counties should:
- Verify the VIN was entered correctly and proceed with the transaction if a value is returned; if not,
- Contact the VTR Regional Office to report that SPV returns a *no value* and request an NADA value appraisal to use for the vehicle sales price.
When obtaining a NADA value from your regional office, please indicate the two letter Region abbreviation next to the reported value on the Form 130-U:
AB (Abilene) HO (Houston)
AM (Amarillo) LV (Longview)
AU (Austin) LB (Lubbock)
BT (Beaumont) MO (Midland/Odessa)
CC (Corpus Christi) PH (Pharr)
DL (Dallas) SA (San Antonio)
EP (El Paso) WA (Waco)
FW (Fort Worth) WF (Wichita Falls)
Please do not use some other source to obtain a vehicle value in these situations as we want to be consistent with the values statewide.
Price Digests has requested that we notify them whenever a *no value* is returned but a value should reasonably be available. We are currently developing procedures on:
- how to report a *no value* transaction where you feel a value should have been available, and
- are working with the Comptroller to determine how to handle values on antique/collectible vehicles given as a *gift*, but the customer does not qualify for the *gift exemption* and the vehicle is not in good condition.
Once we finalize these procedures, we will provide them to you via a Listserv.
Lastly, we have asked Price Digests to notify us when they see market changes occur that significantly impact vehicle values. We feel that this will assist you in understanding why there may be value changes if questioned by your customers. We will notify you immediately as we receive this type of information from Price Digests.
If you have any questions, please contact your local Vehicle Titles and Registration Regional Office.
If you have any comments or suggestions concerning this VTR communication process, please contact your local VTR Regional Office.
If you would like to see previous postings from the "VTR Electronic Archives," please visit http://extlists.dot.state.tx.us/pipermail/vtr-tac/ .
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