Concerns regarding valuation of confiscated cars

According to the State Tax Inspectorate (STI), in 2018, nearly 3000 confiscated vehicles were sold. A year earlier - about 2500 units. However, companies responsible for the sale of confiscated cars say this year's trade has almost stopped, although they do not provide more accurate figures. Obviously, one cannot do any accurate conclusions based on just one month's data, but taking into account the reasons given in the article, it might already be assumed the sales level of 2018 is unlikely to be achieved.

The STI assumes that this may be a consequence of its tightened car valuation rules. These measures had to be taken because it was suspected that some of the companies responsible for the sale of confiscated cars misused their position and opportunities and set lower prices. It is stated in the rules that the market value of assets is used as a basis for assessing the value of the vehicle and STI might receive help from asset valuation specialists when needed. However, there are opinions that some cars are highly overestimated. There are specialized databases containing approximate values for certain cars, but those are average, statistical values ​​that do not necessarily accurately reflect the price of a particular confiscated car because it may be affected by its status, history and numerous individual features - for example, better rims or newer tires. Obviously, to assess each car individually for the STI would require too much effort and expense that would not necessarily pay off after the sale of the property. After all, statistically the average price of a confiscated vehicle is 500-800 €.

Journalists of LRT TV show "Keliai. Mašinos. Žmonės." have decided to inquire what cars are being sold at confiscated car outlets and whether their price is in line with reality.

As an example, UAB Sauda has shown the Volkswagen Sharan (year 1998) they currently have for selling. It is valued at 1220 €. In car sales advertisements, cars of similar years cost from 450  to 700 €. The most expensive - up to 1400 €. It is stated all of them have technical inspection passed and are ready to join the traffic right away, but it is known nothing about the confiscated car being sold - neither its technical condition, nor its engine will start-up or not. By the way, this is a pretty interesting statement, as this kind of information should be known to tax inspectorate and the company responsinble for selling the vehicle - otherwise the question arises as to how exactly the 1220 price was determined, why the STI product description does not indicate that certain technical data is not evaluated.

Another interesting example of confiscated property inspected by journalists was the skeleton of the Lexus RX400h. It is still expected to receive almost 48 for it, although this is just a bare body with a technical passport. As the representative of the company selling the car guesses, the vehicle was completely dismantled by its owner.

Another example of an inadequately valued confiscated car is the Audi A3 car, valued at 1000 €. The price  already exceeds the average cost of cars of this model for the same production year. However, this is not all - it is believed that the previous owner of the vehicle intentionally sprayed the mounting foam inside the engine, broke the front and rear lights, sprayed the interior with paint. Now anyone could ask a reasonable question in this case - how the STI and their "specialists" managed to evaluate this virtually worthless car.

Another surprising finding is the Volvo S60, which was taken away from the drunk driver, and has been valued by the STI over 1500 €. According to the seller, this could be a fair price for unbroken and adapted to the European market vehicle. However, this car has the steering wheel on the right side and the engine does not even start. Moreover, it was damaged in an accident, which, incidentally, is not mentioned again in the publicly available data provided by the STI. According to the seller, the real price of such a car could be around 300 €.

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