How to determine the true value of your car
Whether you want to trade your car or sell it out of hand, knowing the value beforehand will give you the edge.
The depreciation of cars and various market conditions complicate a correct price validation for both buyers and sellers. getWorth is using artificial intelligence to calculate the true price of your car.
Colin Morgan, CFO of getWorth, said, “It’s an irrational environment. The truth is there is no exactly right price, there is merely a range of prices, a position in the market. Some sellers are under or overselling on purpose, and some dealers have had the car in play for a long time and for whatever reason, it’s just not moving, so they are discounting it heavily. To cut through all this, getWorth’s AI-pricing model is a way of finding order and sense in a hugely diverse market.”
He explained how AI works. “The Toyota Fortuner 2.4GD-6 can be regarded as one of the gold standards of preloved cars because of its quality, reliability, and the relative absence of costly options. At any one time on SA’s online selling platforms, there can be upwards of 365 Fortuners for sale.
“If we look at 2019 4×2 automatic models specifically, all things being equal, lower mileage should hold sway. They have the same warranty to run, but there’s less mechanical wear, which means less risk, which should provide better value. Correct? But that’s not reflective of the actual prices in the market. The most expensive (at the time of writing) might sit at R539 950 with 61 000km, the most affordable at R415 000 with 71 000km on the clock. These are the outliers, but the core of the market retails around the R500 000 mark.
“The getWorth AI model predicts a rational price that is never a straight line, but rather a curve. When we take a look at a vehicle’s mileage versus age, mileage is one of the most important factors. In our view, higher mileage plays a bigger role in mechanical risk and wear on the car versus age,” said Morgan.
Market data is fed into the system. Algorithms then repeatedly analyse the brand, vehicle age, mileage, drivetrain, fuel economy, power, weight, components, and many other elements until it “discovers an optimum balance of factors across the whole market”.
“It is very complex, and the algorithms are working out subtle relationships between data over time to uphold what is relevant to give an accurate price. It’s so powerful, I could input a car/derivate that never sold in South Africa, and it would be able to predict a price for me … for a car that doesn’t even exist,” said Morgan.
How does this benefit you? You will receive the most accurate, objective, and fair price offer.
Want to know more? Go to www.getworth.co.za/sell-my-car
Source: MotorPress
