Tuesday, November 27, 2018

A Good Auto Valuation Site Allows Users to Experiment with a Host of Factors Impacting Prices

Vehicle Trim


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All other factors remaining constant, vehicle's Trim alone makes a significant difference in comparable prices. While the 2012 LE (in the above example) would be priced at roughly $14K (orig. MSRP $22.6K+/-), the comparable XLE-V6 would fetch roughly $19K (orig. MSRP $30K+/-), nonetheless pointing to a fairly similar decay in prices (meaning Current Price to MSRP).


Vehicle Warranty



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Vehicle Warranty - even the remaining Powertrain - makes a significant difference in comparable prices. Let's compare the probable current prices of two identical 2014 Ford Explorer XLTs, in terms of features and add-on options. The only difference in this illustration is the actual mileage on the odometer: one with 65K miles while the other one with 55K. Since the Powertrain warranty back then used to cover 60 months or 60K miles, the former would be out of warranty today while the latter would still be covered.    

The 2014 Ford Explorer XLT without the Powertrain warranty would be priced at roughly $23K (orig. MSRP $34.9K+/-), while the other with the remaining Powertrain warranty would fetch over $26K, proving a difference of at least $3K in current value, resulting solely from the remaining warranty.


Vehicle Ownership



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Though the two vehicles are identical (2010 BMW 528i) here, one has one owner while the other has three. The latter faces a lower a market price by roughly $2K. 

The issue of one owner vs. multiple owners is more a psychometric hypothesis than a true econometric (market-derived) one. In other words, potential buyers tend to feel more at home with one-owner vehicles than multi-owner ones, under the impression that the former are better cared for than the latter. Likewise, the dealers of late model vehicles often price their inventory higher than their rental counterparts, making a similar case.


Other Factors



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The graphics above prove that the "Other" factors like ownership, service history, garage/parking type, routine maintenance and overall condition make a significant difference in prices, due primarily to the availability of the online data (CarFax, Vin History, etc.), comparative marketing sites (Cars.com, CarGuru.com, etc.), and emerging instant valuation sites like JustAutoValue.com.


Location Arbitrage



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When the current prices of two identical M-series Mercedes are compared across two geographic markets - West and South - an attractive location arbitrage emerges, due largely to the differences in cost of operations (e.g., the cost of operating a dealership in the Bay area is expected to be considerably higher than those in the competing South). Of course, for an average consumer, the cost of transportation and logistics vastly lessens the economic allure.

Those who are into data science or modeling can learn more about it from my recent book "Pricing Pre-owned Auto Market - A Hedonic Modeling Approach" available on Amazon (search 'Sid Som's Books').

I produced the above sample valuation graphics from JustAutoValue.com as I own and operate the site, to avoid having to deal with any copyright issues. The site produces these valuations in less than 30 seconds each. It's mobile-friendly so no additional Apps are needed. Moreover, It's totally FREE and NO login/registration of any sort is required. Nearly 90 Major Brands are currently covered.

Just click on the Brand of your choice on our homepage and follow the prompt. If you need help, use 'TRY IT' from the homepage. Here is the link to JustAutoValue.com:

Wednesday, November 21, 2018

JustAutoValue Shows If Location Arbitrage Exists between Competing Geographic Markets

(Click on the image to enlarge)

When the current prices of two identical M-series Mercedes are compared across two geographic markets - West and South - an attractive location arbitrage emerges, due largely to the differences in cost of operations (e.g., the cost of operating a dealership in the Bay area is expected to be considerably higher than those in the competing South). Of course, for an average consumer, the cost of transportation and logistics vastly lessens the economic allure.

Those who are into data science or modeling can learn more about it from my recent book "Pricing Pre-owned Auto Market - A Hedonic Modeling Approach" available on Amazon (search 'Sid Som's Books').

I produced these sample valuations at JustAutoValue.com as I own and operate it, to avoid having to deal with any copyright issues. The site produces these values in less than 60 seconds or less and is also mobile-friendly so no additional Apps are needed. Try out your own subject pre-owned Car, SUV or Pickup. It's totally FREE and NO login/registration of any sort is required. Nearly 90 Major Brands are currently covered.

Just click on the Brand of your choice on our homepage and follow the prompt. If you need help, use 'TRY IT' from the homepage. Here is the link to JustAutoValue.com:

Tuesday, November 20, 2018

JustAutoValue Shows how One-Owner Vehicles Narrow the Competition Down

(Click on the image to enlarge)

Though the two vehicles are identical (2010 BMW 528i) here, one has one owner while the other has three. The latter faces a lower market price by roughly $2K. 

The issue of one owner vs. multiple owners is more a psychometric hypothesis than a true econometric (market-derived) one. In other words, potential buyers tend to feel more at home with one-owner vehicles than multi-owner ones, under the impression that the former are better-cared-for than the latter. 

Likewise, the dealers of late model vehicles often price their inventory higher than their rental counterparts, making a similar case.

Those who are into data science or modeling can learn more about it from my recent book "Pricing Pre-owned Auto Market - A Hedonic Modeling Approach" available on Amazon (search "Sid Som's Books" or use the link below) or Payhip (PDF).

I produced the above sample valuations using JustAutoValue.com as I own and operate the site, to avoid having to deal with any copyright issues. The site produces these valuations in less than 30 seconds each. It's mobile-friendly so no additional Apps are needed. Moreover, It's totally FREE and NO login/registration of any sort is required. Nearly 90 Major Brands are currently covered.


Just click on the Brand of your choice on our homepage and follow the prompt. If you need help, use 'TRY IT' from the homepage. Here is the link to JustAutoValue.com:

Monday, November 19, 2018

JustAutoValue Shows how Remaining Warranty Impacts Vehicle Prices

(Click on the image to enlarge)
Ceteris paribus, vehicle Warranty - even the remaining Powertrain - makes a significant difference in comparable prices. Let's compare the probable current prices of two identical 2014 Ford Explorer XLTs, in terms of features and add-on options. The only difference in this illustration is the actual mileage on the odometer: one with 66K miles while the other one with 58K. Since the Powertrain warranty back then used to cover 60 months or 60K miles, the former would be out of warranty today while the latter would still be covered.    

The 2014 Ford Explorer XLT without the Powertrain warranty would be priced at roughly $21K (orig. MSRP $34.9K+/-), while the other with the remaining Powertrain warranty would fetch about $24K, proving a difference of $3K in current value, resulting solely from the remaining warranty.

I used JustAutoValue.com to create these sample valuations as I own and operate it, to avoid any copyright issues. It takes less than 30 seconds to generate a "quick look" valuation. The site is mobile-friendly so no additional Apps are needed. Try out your own subject pre-owned Car, SUV or Pickup. It's totally FREE and NO login/registrations of any sort is required. Nearly 90 Major Brands are currently covered.

Just click on the Brand of your choice on our homepage and follow the prompt. If you need help, use 'TRY IT' from the homepage. Here is the link to JustAutoValue.com:

http://www.justautovalue.com/
Owned and operated by Homequant, Inc.

Tuesday, November 13, 2018

JustAutoValue Shows how Vehicle's Trim Alone Makes a Significant Difference in Price

(Click on the image to enlarge)

All other factors remaining constant, vehicle's Trim alone makes a significant difference in comparable prices.

While the 2012 LE (in the above example) would be priced at roughly $13K (orig. MSRP $22.6K+/-), the comparable XLE-V6 would fetch roughly $17.8K (orig. MSRP $30K+/-), nonetheless pointing to a fairly similar decay in prices (meaning Current Price to MSRP).

JustAutoValue.com produced these sample valuations in less than 30 seconds each. The site is mobile-friendly so no additional Apps are needed. Try out your own Car, SUV or Pickup. It's totally FREE and NO login/registrations of any sort is required. Nearly 90 Major Brands are currently covered.

Just click on the Brand of your choice on our homepage and follow the prompt. If you need help, use 'TRY IT' from the homepage. 

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