Investigate what influences the price of a second hand car

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Marcus Wright

Aim

Use the information to investigate what influences the price of a second hand car.

Introduction

I’m going to find out what it is that affects the price of a second hand car.

Hypothesis

I think that the main factors in the drop of car prices are the age and mileage; this is because they give us a good indication as to what the cars price and other information could be.

Plan

I am going to prove this by making scatter graphs which compare the age and mileage with the second hand price. I have decided to only use 3 car makes, this is because there is 100 different cars with lots of irrelevant information. Therefore I will use Ford, Vauxhall and Rover because these are the most popular makes in the database. The data I am goin to use is the price when new, second hand price, age, mileage and finally I am going to work out the difference between the price when new and second hand price.

Scatter Graphs

I have decided to do scatter graphs instead of different graphs because of the line of best fit. Using line of best fit means I can predict other information on cars where I havent been given all the information.

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This is a table showing what data I used to create my scatter graphs for Ford Cars.

As I was creating these graphs I realised that I would have more accurate results if I found the % depreciation and used this to compare with the age and mileage instead of the second hand price.

I found the % Depreciation by finding the new price and dividing it with the second hand price, then dividing this by the new price, and finally multiplying this by 100.

Price when ...

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