Sage Price™
About This App
- Mileage is the only objective and comparable quantitative market factor which can be applied to define the value of any vehicle. Extracting base mileage values allows for further price analysis to be made on other factors.
- The ‘0 Rank’ model uses Sage Rank logic to determine a price based upon the distribution of the market inventory. It extracts what the price should be at the stated mileage using the matching range values at ‘0 Rank’.
- The ‘Linear’ model applies linear regression to the market inventory’s price and mileage pairs to determine the impact of mileage on price. It is a traditional model which estimates the price without consideration of distribution.
How It Works
- Submit a VIN, the vehicle’s price and actual mileage.
- The ‘0 Rank’ model extrapolates a price based on what distribution range the mileage falls in. It ignores price and mileage combinations which are outside of this match up of distribution ranges. It is a more narrow view of the market, focused solely on that distribution range of the market which is representative of the subject vehicle’s mileage.
- The ‘Linear’ model extrapolates a price by examining every combination of price and mileage in the market inventory. It widens the view by ignoring the confinement of the distribution overlay and instead considers the entire market as the range, making it representative of the entire market.
How To Apply This App
- Understand what the price should be based upon Sage Rank logic as applied to the distributions of the market inventory. Get a base price, or ‘0 Rank’ price, that represents what the price should be when the price and mileage ranges which generate a ‘0 Rank’ are used to isolate the price, within the price range, that statistically matches the mileage within the mileage range.
- The ‘0 Rank’ model extrapolates a price at a given mileage based on what distribution range the mileage falls in. It ignores price and mileage combinations, which are outside of this logically derived match up of distribution ranges. It is a more narrow view of the market, focused solely on that range of the market which is representative of the subject vehicle’s mileage.
- Understand the market in terms of the impact of mileage on price based upon their statistical relationship without applying any specific logic related to market inventory distribution. Use the ‘Linear’ model to predict a price from mileage assuming that the patterns of price and mileage have been flattened so that their relationship follows a straight line pattern.
- The ‘Linear’ model extrapolates a price by examining every single combination of price and mileage in the market inventory. It widens the aperture by ignoring the logical confinement of the distribution overlay. In this case, the entire market is the range, making the result more representative of the market as a whole.
- Combine the two models to create a price range within which to set a mileage only based value before adding or subtracting additional value for vehicle specific factors.
- Both pricing models calculate the spread to a stated price. This unexplained price difference is the variance between the pricing model estimate of the consensus market value, and what the price setter believes the price should be. Unexplained value factors, might include qualitative and quantitative value components such as non-normal condition, ownership history, extraordinary build specifications, a seller profit target, strategic market positioning, etc.
- Click the button links to the Valuation Kit App to compare the estimates generated by the models to the current market.
- Not all models are available in this application. Some bodies are combined into ALL for the body parameter in order generate statistically valid results. View the covered models list..
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