What does "wear and tear" represent in vehicle appraisal?

"Wear and tear" in vehicle appraisal refers to the expected depreciation due to regular use of the vehicle. This concept acknowledges that as a vehicle is driven and utilized over time, various components and systems will naturally experience deterioration. Such deterioration affects the overall condition and value of the vehicle, making it less valuable than a new or less-used counterpart.

Understanding this concept is crucial for appraisers as they evaluate a vehicle's value in a realistic manner, accounting for its age, mileage, and usage history. Rather than considering the vehicle's theoretical or ideal value, appraisers incorporate wear and tear to establish a more accurate, market-reflective value. This approach not only enhances the reliability of appraisals but also aligns with how buyers and sellers realistically perceive vehicle value.