Wealth
Valuing Cars and Caravans: What You Need to Know for Centrelink
By Narelle Cooper, Capa Services co-owner
I was all set to follow up on last month’s article, but my mind took a detour – straight to the new aged care legislation currently progressing through parliament.
Let’s just say while it hasn’t officially crossed the finish line, the smart money is on it happening, and it would be wise to keep an eye on the outcome.
Right now, everyone is trying to decipher what it all means, and a picture is emerging. What we do know, is that the fees you’re likely to face for aged care are changing. Knowledge and pre-planning may be to everyone’s advantage, not today but certainly in the coming years.
But enough of that rabbit hole for now. This month, we’re staying with the theme of personal assets and moving from home contents to valuing cars and caravans.
Unlike that well-loved recliner you sold (which doesn’t really mess with your home contents value), selling a car or caravan means you need to update Centrelink – surprise! And if you’ve listed your asset at a bargain-bin price, a sale could shine an unflattering spotlight on the real value.
Case in point: during COVID, we saw prices skyrocket. People were selling caravans for double or more of their Centrelink-listed values. Thankfully, Centrelink seemed to shrug it off, but under-reporting assets in general? Not the best long-term strategy.
Cars are easier to value. Log onto redbook.com.au or carsguide.com.au, plug in your make, model and year, and you’ll get a range of prices. Caravans, though? That’s a trickier beast. But fear not – sites like caravancampingsales.com.au can still give you a decent ballpark figure. Just don’t fall into the trap of listing a suspiciously low value – it’ll save you from any future Centrelink conundrums.
Pro tip: jotting down how you came up with your car or caravan’s value is never wasted energy. In fact, it’s the kind of smart move that future-you will thank current-you for when it’s time to update Centrelink.
Call us and mention this article for a no-obligation discussion to answer your questions or any concerns you might have.
Call 1300 043 197 and visit capaservices.com.au.
