Using the methods of financial modeling InBridge Consulting conducted a multivariate analysis of the market value of the vehicle on the basis of which the financial models of cars were built
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)
An example of using the financial model of the market value of the vehicle.
Calculation of the comparison of the loss of the cost of a car with a gasoline and diesel engine.
The buyer wants to decide which car to buy a Toyota Land Cruiser Prado Elegance Gasoline or Diesel, which will have less cost loss for 10 years of operation.
Imprint: the buyer has two alternative purchase options:
Toyota Land Cruiser Prado Elegance Gasoline 2014, mileage 150000km cost 33300dol.USA
Toyota Land Cruiser Prado Elegance Diesel 2014, mileage 150000km cost 36200dol.USA
For 10 years of operation, the estimated mileage will be 350000km = 20000km*10years+150000km.
The cost of Toyota Land Cruiser Prado Elegance Gasoline is calculated according to the financial model is:
Y=43,156.73-1,808.71*X1-0.0053*X2
or
Y=14,171
The loss of cost of Toyota Land Cruiser Prado Elegance Gasoline for 10 years of operation will be 19129dol.USA
33,300-14,171=19,129dol.USA.
The cost of Toyota Land Cruiser Prado Elegance Diesel is calculated according to the financial model is:
Y=48,483.35-1,724.37*X1-0.021*X2
or
Y=15,268
The loss of cost of Toyota Land Cruiser Prado Elegance Diesel diesel version for 10 years of operation will amount to 20,932dol.USA
36,200-15,268 = 20,932dol.USA.
So, Toyota Land Cruiser Prado Elegance Gasoline will lose cost for 10 years equal to the operating conditions for 1803dol.USA less than diesel
20,932-19,129 = 1,803
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