These are condition guidelines to help assess a vehicle's condition. Keep in mind that there are many factors that affect value. For example, a "barn find" may on the surface look like a #4 or #5 vehicle, but it's time capsule character often means it is worth far more than it's condition would normally warrant.
#1 Excellent: A close to perfect original or a very well restored vehicle. Generally a body-off restoration, but a well done body-on restoration that has been extensively detailed may qualify. The vehicle is stunning to look at and any flaws are trivial and not readily apparent. Everything works as new. All equipment is original, NOS, or excellent quality reproductions. Note: cost no object concours restorations should be considered 1+ condition.
#2 Very Good: An extremely presentable vehicle showing minimal wear, or a well restored vehicle. Runs and drives smooth and tight. Needs no mechanical or cosmetic work. All areas (chassis not required) have been fully detailed. Beautiful to look at but clearly below a #1 vehicle.
#3 Good: Presentable inside and out with some signs of wear. Not detailed but very clean. Body should be straight and solid with no apparent rust and absolutely no rust-through anywhere. Shiny, attractive paint but may have evidence of minor fading or checking or other imperfections. Runs and drives well. May need some minor mechanical or cosmetic work but is fully usable and enjoyable as is.
#4 Fair: Runs and drives OK but needs work throughout the vehicle. Body shows signs of wear or previous restoration work. Any rust should be minimal and not in any structural areas. Conversely, the vehicle may be fairly presentable, but needs moderate mechanical work to be roadworthy. Cosmetics, body, and mechanics all need work to some degree.
#5 Poor: In need of complete restoration, but is complete and not a rust bucket beyond repair. May or may not run. Not even close to roadworthy. Values for #5 cars are best estimated on a case by case basis, typically around 40-50% of the #4 condition. Rare models or models containg rare parts can be worth more. or forty years ago would likely fall short on the show field today. Regardless, now--as then--these vehicles have been treated to a very expensive concours quality, frame-off, no expensed spared, nut & bolt restoration and do not get driven. They can often command higher prices than CCMR's standard #1 value.
Parts or Salvage: Incomplete vehicle most useful for parts. Generally, take 50-60% of the #5 value