Declining residual value Buying a car is losing money? Car 300 teaches you the best shot timing for used cars

Some people say that when a new car lands at a 20% discount, the residual value of the vehicle that arrives will continue to decline, and buying a car is a matter of losing money. When we buy a new car, almost no one will think of driving the car to scrap, then the final face is to sell the old car, sell the car when hoping to sell a good price, but the second-hand car market is very picky, the brand, configuration, color, etc. of the vehicle will affect the second-hand residual value of the car. How should consumption rationally deal with the decline in vehicle residual value? What happens to affect the residual value of the vehicle?

The first thing to understand is, what is the residual value of the vehicle? That is, the surplus value of the vehicle, in layman's terms, is "how much can my car sell now", according to the age, maintenance degree, performance of the vehicle after comprehensive scoring and evaluation of the price. There are many factors that affect the decline in vehicle residual value. Including the new car is more favorable, the use of the vehicle itself is longer, the mileage is more, whether the vehicle has had a major accident, etc., these are important factors that can affect the assessment of vehicle residual value.

The prediction of the residual value of vehicles is one of the conditions of financial leasing, and this business has long been explored in the industry. As an authoritative and professional independent third-party vehicle data information inquiry platform in China, Che 300 focuses on automotive asset management services, and has launched the residual value prediction business after many years of operation of its own used car valuation service, and has analyzed and predicted the residual value of future vehicles by accumulating a large number of used car price changes and various influencing factors to do data support. Using artificial intelligence and machine deep learning technology, we can explore the correlation between each feature and the price trend, and use feature sorting, time series analysis and other technologies to predict the value of vehicles in the next 1 to 3 years.

For each vehicle, vehicle residual value estimation plays a very important role in the entire life cycle of the vehicle, for individuals, not only in the purchase of second-hand cars need to consider the vehicle residual value, consumers in the purchase of new cars, should also take into account the retention rate of the vehicle, pay attention to the vehicle residual value in order to more effectively avoid larger economic losses.

After learning the importance of vehicle residual value, if consumers want to sell the car, when is the best time to sell? The answer is that the third or sixth year sells best.

The industry is accustomed to using the "ten-year depreciation method" to calculate the value of used cars, which is calculated by a 15% reduction in value per year for the first three years, a 10% reduction in value per year for the middle four years, and a 5% reduction in value per year for the last three years. At the same time, used car experts have suggested that it is most cost-effective to sell a car in the third year or the sixth year to sell a car based on changes in the price of new cars, depreciation rates and changes in car conditions. Because of the third year of selling cars, the price of new cars has not changed much. At that time, the car price had not fallen too low. And if it is more than three years later, it is better to drive for a few more years, and when the car is driven to the sixth year, the vehicle begins to be out of condition, and it is not too late to sell.

Vehicle valuation and residual value management have a great impact on the used car industry. Vehicle appraisal is the basis of used car trading, while residual value management paves the way for used car trading. Che300 will also continue to rely on its many years of rich experience in the field of vehicle valuation to provide high-quality services for used car upstream and downstream enterprises in terms of detection and evaluation, residual value management, asset disposal and so on.