Click here to get a quote on the value of your car from getWorth.<\/a><\/strong><\/li>\n<\/ul>\n\n\n\nThe 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.<\/p>\n\n\n\n
Colin Morgan, getWorth CFO, says you cannot think of the used-car market as a fully rational place.<\/p>\n\n\n\n
\u201cIt\u2019s 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,\u201d said Morgan.<\/p>\n\n\n\n
\u201cSome sellers are under- or overselling on purpose, while other dealers have had the car in play for a long time, and it\u2019s just not moving, so they are discounting it heavily. The quality of the car also plays a major role.\u201d<\/p>\n\n\n\n
To cut through these challenges, getWorth offers an AI-pricing solution that can help you find order and sense in a diverse market.<\/p>\n\n\n\n
What is AI pricing?<\/h3>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
At any one time, there can be upwards of 400 of these cars for sale second-hand.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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 \u2013 could have 95,000 km on the clock.<\/p>\n\n\n\n
These are outliers, whereas most of the Fortuners in this category would be priced at around R450,000.<\/p>\n\n\n\n
\u201cThe getWorth AI model predicts a rational price that is never a straight line but rather a curve,\u201d said Morgan.<\/p>\n\n\n\n
\u201cMileage 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,\u201d explains Morgan.<\/p>\n\n\n\n
By pushing all of the market data through its neural network model, getWorth produces an initial result.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
By its very nature, the machine is learning all the time and the results are constantly being refined.<\/p>\n\n\n\n
\u201cThe genius of the AI model is in how it works out subtle relationships between data over time to uphold what is relevant,\u201d said Morgan.<\/p>\n\n\n\n
\u201cIt 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 \u2026 for a car that doesn\u2019t even exist locally,\u201d explains Morgan.<\/p>\n\n\n\n
What is the benefit for consumers? <\/h3>\n\n\n\n
Knowledge is power, and from a consumer perspective, the getWorth AI model gives the most accurate insight into the market as a whole.<\/p>\n\n\n\n
\u201cThis 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,\u201d concludes Morgan.<\/p>\n\n\n\n
Take the first step towards selling your car at its true value.<\/p>\n\n\n\n
Get a quote from getWorth today and experience the future of car pricing.<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"getWorth offers an AI-pricing solution that can help you find order and sense in a diverse pre-loved car market.<\/p>\n","protected":false},"author":57,"featured_media":761929,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10459],"tags":[8556,19623,6537,12017],"class_list":["post-761927","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-news","tag-ai","tag-ai-pricing","tag-car","tag-getworth"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/761927","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=761927"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/761927\/revisions"}],"predecessor-version":[{"id":762047,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/761927\/revisions\/762047"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/761929"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=761927"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=761927"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=761927"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}