Fair market value estimation for used cars at leading car exchange
A leading auto exchange company wanted to develop a competitive pricing model to help stand out from the competition. The incorrect pricing significantly impacted the lead time (longer period to sell a unit), resulting in slowing down the entire sales process. The dealer wanted to show the fair price of a vehicle and the range of a good or bad deal.
Neal Analytics helped the customer create a prediction model that predicts car price for at least 80% of ads on a website. We leveraged a supervised learning algorithm to generate price projections for slower selling cars. We trained a second model using a combination of predicted and actual prices that helped the dealer know the fair price of the vehicle and profit earned through the deal.
Using Neal Analytics’ solution, the auto dealer was able to identify the fair market value based on specific car details. While the leveraged model helped them get output in terms of “fair price” for a vehicle, as well as a range of “good and bad deals“.