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 extracts the mileage distribution range for the submitted mileage and calculates the matching price range which creates ‘0 Rank’. It then uses the limits of price and mileage in those ranges to statistically model the price at which price is in equilibrium with mileage.
- The ‘Linear’ model estimates a vehicle’s price as a function of mileage using the best fit of three statistical lines. It then uses advanced analytics to extract an initial pure mileage based market price, which is further adjusted for skewness to generate a final price estimate.
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 provides a unique multi-dimensional perspective by generating a price that should be expected from rational actors as a function of their consensus value of 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 provides a uni-dimensional perspective of the market by generating a price that should be expected from the pure market consensus of the value of mileage.
- 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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