Residual Value Prediction System
The buying and selling of used automobiles mainly involves automobile companies, car hire companies and used-car dealers. Managing this fleet of cars by these companies entails the determination of its value over time from the “on the road” moment. This requires the use of a system that can generate residual value predictions of a vehicle for months or years. It must therefore process an enormous amount of information, continuously adapting the estimates generating model on which it is based.
The method which allows assigning weight calibration to factors, on which the residual value of used cars depend, consists of statistical interpolation of the historical series of the quotes, which are generated over many years by experts in the automotive sector. The height and slope of these interpolating curves are then compared to the characteristics of the vehicles themselves.
The advantage deriving from the use of such a calculation system is based on being able to avail oneself of an objective, timely, consistent and permanently updated estimate of the value that a series of cars of different makes, models, equipment and mileage can have in months or years, from the time that the assessment is carried out.