InBridge Consulting analyzed the factors that determine the market value of the vehicle. So, the main (basic) are: make, model, year of manufacture (age) and mileage.

Using the methods of financial modeling, InBridge Consulting conducted a multivariate analysis on the basis of which the financial models of the market value of vehicles were built, have the following form:

Toyota Land Cruiser Prado Elegance Gasoline
Y=43,156.73-1,808.71*X1-0.0053*X2

Toyota Land Cruiser Prado Elegance Diesel
Y=48,483.35-1,724.37*X1-0.021*X2

where Y is the cost of the car (USD), X1-age (years), X2 mileage (km)

Examples of using the financial model of the market value of the vehicle.

Determination by the seller of the market value of the sale.

The seller plans to sell gasoline Toyota Land Cruiser Prado Elegance Gasoline 2015 release with mileage 120000km.

Calculation of the recommended selling price using the financial model:

Y=48,483.35-1,724.37*X1-0.021*X2
or

Y=48,483.35-1,724.37*5-0.021*120000
or
Y=37,342

So, the recommended price is 37342dol.USA.

Verification of the vehicle mileage.

The buyer of diesel Toyota Land Cruiser Prado Elegance Diesel 2012 release, using the Financial model, wants to check the authenticity of the mileage of the car that wants to purchase.

In the ad mileage declared 42000km, the cost of the car 44195dol.USA.

Y=48,483.5-1,724.37*X1-0.021*X2
or
X2=(48,483.35-1,724.37*X1-Y)/0.021
or
X2=39,981

So, mileage according to the financial model is 39981km or near the declared by the seller.

Calculation of loss of value during the period of use.

The buyer purchased a Toyota Land Cruiser Prado Elegance 2017 gasoline in 2017 at a price of 39300dol.USA. The United States with a mileage of 40000km and wants to calculate the cost loss after 5 years of use with the help of the financial model (annual mileage of 20000km).

Y=43,156.73-1,808.71*X1-0.0053*X2

Estimated mileage in 2024 will be 140000km.

The cost of the car in accordance with the financial model:

Y=43,156.73-1,808.71*X1-0.0053*X2
or
Y=43,156.73-1,808.71*7-0.0053*140000
or
Y=29,754

Loss of value:
9,546dol.USA=39,300-29,754

So, within 5 years of operation, a loss in value of 9546dol.USA can be possible.

The financial model reflects the ratio of indicators of a particular vehicle with the current trend and, in case of significant discrepancies, leads to further research.

The financial model is a reliable tool in making effective management decisions and gaining competitive advantages.

The procedure for providing services to build a Financial model