| |
|
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
|
|
by
Robert Hollenshead
May 23 2011 10:42AM
Diminished Value is the amount a vehicle’s resale value decreases when it is involved in any material change from its original factory condition. When a vehicle has had any paint work it categorically has a diminutive amount related to the severity and quality of repair. This can only be realized when a vehicle is appraised in the process of being traded or re-sold. When the buyer has the skill set that allows him to identify the severity of the incident that triggered the repair and the quality of repair, the Actual Cash Value can be determined. It can only be validated when a willing buyer offers a price a to transact on and the owner accepts.
To determine diminished value the amount of paint work must be determined. The industry standard in a paint-meter. Elcometer is the most used and recognized as the top of the market. A car with more than one panel painted is without exception subject to diminished val
|
|
by
Robert Hollenshead
May 23 2011 10:38AM
In the market today there are two major players, CarFax and AutoCheck.
CarFax is by far the brand that is recognized by the retail public due to tremendous commitment of marketing on their part. Massive advertising and very tricky, marginally untruthful facts, have proven to be very successful in building their brands.
They originally came to the market by targeting the dealer body and were scornfully rejected. They turned to a ferocious very costly retail public advertising campaign. Employing extremely catchy, while marginally deceptive, catch phrases has proven to be very effective. By any account it is brilliant marketing model that should be taught at Wharton School of Business. It has forced the dealer body to rounded profess validation of the product even while dealers know the report’s patent invalidity.
They entered a market that is void of competition with a product that is difficult to refute, regar
|