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Financial model of the market value of the vehicle - a good investment

Financial mathematical modeling is capable of capturing dynamic and static economic processes, which are characterized by quantitative and qualitative indicators.

For example, the market value of a vehicle depends on the brand, model, year of manufacture (age), type of fuel (gasoline, diesel, gas, gas / gasoline, hybrid, electric), type of gearbox (mechanical, automatic, automatic, adaptive, variator), drive type (full, front, rear), engine size, engine power, mileage, color, condition. However, the main (basic) factors that characterize a vehicle, determine its market value and interdependence among themselves are: make, model, type of fuel, year of manufacture (age), mileage.

The example of the Financial model of the market value of the vehicle (hereinafter - the Financial Model) Toyota Land Cruiser Prado Elegance Diesel developed by InBridge Consulting:

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)

That is, for a specific type of transport, InBridge Consulting builds the dependence of market value on the year of manufacture (age) and mileage as an equation.

These interdependencies are mounted in a software module (the form for the sample is given in the text), which is the result of the Financial Model building service.

Ways to use the Financial Model:

  • the establishment of the recommended market value of the sale of the vehicle;
  • verification of the market value of the sale of the vehicle;
  • validation of the mileage of the vehicle submitted for sale;
  • calculation of the loss of value of the vehicle during the period of use;
  • the decision to purchase a vehicle with a lower loss of value for the period of use.

Calculations, as the consequences of using the Financial Model, show the correlation of the data of a specific vehicle with the current trend, and in case of significant discrepancies, they call for thinking.

The pleasure of owning and using a vehicle should also be a material effect.

Given that the vehicle is not only a means of transportation, but also an investment object - we invest effectively.

The procedure for providing services to build a Financial model