Sell your car for the right price with this AI-powered pricing
You can define value in many different ways, but what does true worth look like to you?
In light of the complex economic times, many consumers are turning to quality used vehicles as a cost-effective alternative to buying new.
However, figuring out a fair, market-related price is a complicated task for both buyers and sellers.
The risk for dealers is greater still. Unlike new cars, most used vehicles depreciate, and their value drops every day they sit on the showroom floor.
Colin Morgan, getWorth CFO, says you cannot think of the used-car market as a fully rational place.
“It’s an irrational environment. The truth is there is no exact right price; there is merely a range of prices and a position in the market,” said Morgan.
“Some sellers are under- or overselling on purpose, while other dealers have had the car in play for a long time, and it’s just not moving, so they are discounting it heavily. The quality of the car also plays a major role.”
To cut through these challenges, getWorth offers an AI-pricing solution that can help you find order and sense in a diverse market.
What is AI pricing?
AI pricing uses extensive market data to make used-car pricing more accurate and transparent for both buyers and sellers, adding worth throughout the value chain.
The Toyota Fortuner 2.4GD-6 can be used as a good example, as it is popular in the second-hand market thanks to its quality, reliability and relative absence of costly options.
At any one time, there can be upwards of 400 of these cars for sale second-hand.
If we analyze 2019 4×2 Automatic models under 100,000km specifically, one would expect, all other things being equal, that the higher mileage cars would have lower asking prices, and vice versa.
However, in reality, the most expensive Fortuner at a reputable dealer could sit at R374,900 with 83,000 km, while the most affordable – at R429,900 – could have 95,000 km on the clock.
These are outliers, whereas most of the Fortuners in this category would be priced at around R450,000.
“The getWorth AI model predicts a rational price that is never a straight line but rather a curve,” said Morgan.
“Mileage is one of the most important factors, and in our view higher mileage even plays a bigger role in mechanical risk and wear on a car than age,” explains Morgan.
By pushing all of the market data through its neural network model, getWorth produces an initial result.
It then uses additional algorithms to analyze and subtly change its weightings based on a variety of variables, such as brand, vehicle age, mileage, drivetrain, fuel economy, power, weight, and components.
These algorithmic tweaks happen millions of times over to ensure the getWorth system is happy that it has discovered an optimal balance of factors across the whole market.
By its very nature, the machine is learning all the time and the results are constantly being refined.
“The genius of the AI model is in how it works out subtle relationships between data over time to uphold what is relevant,” said Morgan.
“It is so powerful that I could input a car or a derivate which never sold in South Africa and it would be able to predict a price for me … for a car that doesn’t even exist locally,” explains Morgan.
What is the benefit for consumers?
Knowledge is power, and from a consumer perspective, the getWorth AI model gives the most accurate insight into the market as a whole.
“This is not to say we will be the highest offer, but ours are generally the most accurate and fairly priced, especially for low-mileage, high-quality cars,” concludes Morgan.
Take the first step towards selling your car at its true value.
Get a quote from getWorth today and experience the future of car pricing.
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