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by
Robert Hollenshead
Sep 11 2011 1:39PM
The Desirability Index of a vehicle is a predictive level of activity a vehicle will create when offered for sale. What activity to expect on a specific car in the market…today.
Is the demand great or is it limited? What characteristics of any given car make it more or less desirable and how does the combination of characteristics affect the salability the first time offered for sale. The lower the desirability the less likely it will bring a bid at a level to convert a sale. The higher the desirability the greater probability it will not only sell the first time offered but will sell at a higher price then expected .
Some of the factors that are used to calculate the index are the expected color, mileage, and options. Other considerations are proprietary. They include VIN confidential conditions such as existing and previous paint work, exportability, build date, color combinations, search engine activity, price related to miles, price related to options, new car availability in the same make and class, social acceptability related to aftermarket add-ons, mileage in relation to year (at what point does a dealer lose the inclination to bid based on his buying profile), and the combinations of all of the above. Obviously, availability is also in the index. The art of the desirability index becomes clear when the different combinations make different vehicles more desirable with no logical reason to a seller. This index reveals the art.
Who would buy it and at what level of interest. The higher the interest and the more buyers it attracts the higher the desirability and the greater the probability of bringing in more money.
The intangible is what we glean actively selling thousands of units on the trading floor. Not just one brand. Not just rental cars. Not just one section of the market. The index is based on volume selling and on the entire market. It includes the cheapest to the most expensive, the lowest miles to the highest, and volume. It is based on who buys what, where they are from, what their market is, what their specialty is. It also considers how deep the bidding is on any class or species of vehicles and variations of the conditions of those units.
Also, what affect a bad Car Fax has on what type of car. They entered a market that is void of competition with a product that is difficult to refute, regardless of the real facts and is above the fray in the sense that they have no skin in the game while being free to randomly diminish the value of others assets in a very drastic way. The product offers a near worthless guarantee that amounts to almost nothing when they give false information. Minor to no damage that is often falsely reported has massive repercussions when selling an effected unit. Who buys what kind of car for export and where it goes and if a Car Fax has any impact on those units. What options are needed to be exported is crucial.
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