Four valuation calculation methods for used cars
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- Issue Time
- Oct 12,2024
Summary
When adopting the valuation method, the appropriate valuation calculation method should be selected based on the nature of the vehicle, the purpose of the valuation, etc.
Used car valuation belongs to the category of national asset valuation, and there are four main valuation calculation methods:
The steps are as follows:
1. Take the day of used car appraisal and evaluation as the base date, and select two or more reference cars that are closest to the condition of the evaluated car in the local used car market.
2. Compare the quantitative difference between the reference car and the evaluated car respectively. Difference value = reference car market price X (the age of the evaluated vehicle - the age of the reference car) Age of newness = (1 - the number of months used / 180) X 100%.
3. The valuation of the evaluated car based on reference car 1 = the market price of reference car 1 + the difference value.
4. The valuation of the evaluated car based on reference car 2 = the market price of reference car 2 + the difference value.
5. The average of the valuations of the evaluated car corresponding to the above two reference cars is the final valuation of the evaluated car.
Valuation using the replacement cost method.
The replacement cost method is a method of calculating the valuation of a used car based on the cost of purchasing a new car with the same model and configuration as the car being evaluated.
The steps are as follows:
1. Determination of replacement cost, including: merchant discounts, purchase taxes, license fees, etc. Purchase tax = tax rate 10% X new car sales bare car price / (1 + 13%)
2. Calculation of comprehensive newness rate Comprehensive newness rate = annual newness rate X comprehensive adjustment coefficient Annual newness rate = (1 - number of months used / 180) X 100% Comprehensive adjustment coefficient K = K1*30% + K2*25% + K3*20% + K4*15% + K5*10% In the formula, the comprehensive adjustment coefficient is a coefficient value obtained by weighting the comprehensive condition of the assessed vehicle;
3. Determination of the valuation of the assessed vehicle The valuation of the assessed vehicle = replacement cost X comprehensive newness rate.
Use the present value of income method to calculate the valuation
The present value of income method is a valuation calculation method that discounts the expected net income of the assessed vehicle during the investment cycle to the current value.
The liquidation price method is used to calculate the valuation. The liquidation price method refers to a method that requires the rapid realization of assets in the event of corporate bankruptcy, asset auction, etc. The general discount rate is 20%.
The above four methods of second-hand car valuation calculation have usage requirements and scope of application. Therefore, when adopting the valuation method, the appropriate valuation calculation method should be selected according to the nature of the vehicle and the purpose of the valuation.