Blog
 
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.

9 Readers' Comments

1
Miles Matsumura
Jersey City
NJ 07302
7 years ago
Great article Bob!

Thank you.

2
Kartec Inc.
Winnetka
CA 91306
7 years ago
Well said Bob! Bob what % you would say Car fax can affect on a $25000 SUV? Thanks!

3
miatasportscar
Geneva
NY 14456
7 years ago
In the Northeast, remember that climate changes, especially harsh winters ALSO has a stake on buying.bviously SUV's do very well, while sports cars are all but dead after Labor Day in the North East. Upstate New Yorkers also worry about "rust" which has LOTS to do with desireability. Some cars are known to get rusty quicker than others, most upstate NY dealers know what cars these are and stay far from them at auction. Great article, Bob, but don't forget the "rust" factor both in buying and selling, and which cars are more prone to it.

4
Robert Hollenshead
MANHEIM
PA 17545
7 years ago
A Car Fax hurts any unit about 20%. It doesnt matter for what . Buyers don't care. They simply walk away. The only time the effect is less is when a bottom feeder is looking for an edge. That is rare, but it happens. There used to be buyers that specialize in units with bad VHRs because the type of buyers they have don't care. They just want cheap cars and really don't intend on making the second payment.

Thanks for the question. It's good to know some people are paying attention. Sell Well.

5
Robert Hollenshead
MANHEIM
PA 17545
7 years ago
Believe me, I won't forget the rust. When we get a car that is traded by someone that has moved here from Detroit, it is rare that the guy we sell to doesn't call me back to complain. This is also a concern of guys from out west that buy from us. They don't know that a Philadelphia car is not a Buffalo car. Thet asume that "East Coast" cars are all the same. They aren't. Thanks for the thought and we got your Miata title. Sorry for the wait.

6
Hampden Auto Center
Hampden
ME 04444
7 years ago
What would a Uni-body announcement, on average, affect the vehicles value? Thanks!

7
Hampden Auto Center
Hampden
ME 04444
7 years ago
And airbags.

8
TheBuyer
Brooklyn
NY 11234
4 years ago
Desirability is everything in a unit (desirability the way Bob put it), but if I may, I'd like to take it one step further. The factors that are included as part of the vehicle valuation process can be many, bottom line the vehicles with no rust, a clean carfax, good history, no prior paint and no damage are fairly simple to put a price on. Question is like this... What are the deductions for a unit with the following: Overall paint, frame, dirty fax, tmu and $2000 in recon to boot?
Well it's like Bob says... If it's something like a 2014 Lexus GX460 (desirable), and it's black/black (desirable), has DVD and cool box (desirable) and exportable (desirable) then a unit like that might find a bottom feeder (the way Bob put it) and probably more than one, furthermore you'll see that the desirability has offset the deductions by a fairly good amount. So the idea here is to understand the desirability index you're trading in a car so that you don't let money walk out the door.
Buy everyt

9
TheBuyer
Brooklyn
NY 11234
4 years ago
Buy everything that makes sense. Purify the market.