• Join over 1.2 million students every month
• Accelerate your learning by 29%
• Unlimited access from just £6.99 per month
Page
1. 1
1
2. 2
2
3. 3
3
4. 4
4
5. 5
5
6. 6
6
7. 7
7
8. 8
8
9. 9
9
10. 10
10
11. 11
11
12. 12
12
• Level: GCSE
• Subject: Maths
• Word count: 5007

# Show that certain aspects of cars can determine the price of a second hand car.

Extracts from this document...

Introduction

Introduction

In this investigation, I am going to show that certain aspects of cars can determine the price of a second hand car.

In this investigation, I have made the following hypotheses:

• The price of a new car will decrease the most in the first few years
• There will be a positive correlation between the depreciation and the age
• The make will influence the price of the second hand car
• There will be a positive correlation between the engine size and the price of the second hand car
• There will be a negative correlation between the mileage and the price of the second hand car
• The colour will not influence the price of the second hand car
• The fuel type will not influence the price of the second hand car

The main variables in this investigation that could make a difference on my investigation are the following:

• Make
• Second hand price
• Age
• Engine size
• Mileage

To do this investigation properly, I will need to prove my hypotheses. This will be done by me collecting the data from the database that was issued to us at the beginning of this investigation. I have also looked at sources from websites and car magazines regarding the prices of second hand cars. Second hand car dealers, newspapers and the television also are very useful sources of information. These sources will be very useful as for example the car dealers, they would have a lot of knowledge regarding second hand car sales.

I will be selecting many pieces of data from the database in order for me to work out which aspects of a car will determine the second hand price. Using a vaster majority of cars will help me to see which aspects can change the prices of the second hand cars.

Middle

yes

1

65

Ford

Puma

13230

8250

3

silver

1.4

29-46

34000

yes

1

66

Peugot

206

9125

7500

1

silver

1.1

45-60

18000

yes

1

67

Peugot

406

17490

7500

1

silver

2

20-38

17500

yes

1

68

Honda

Civic

12895

7995

1

green

1.4

34-50

9500

yes

1

69

Rover

Club

19530

14999

1

grey

1.8

26-47

2000

yes

1

70

Fiat

Bravo

10810

4995

2

green

1.4

31-53

18500

yes

1

71

Landrover

Dis-covery

27855

13995

1

blue

2.5

diesel

25-34

40500

yes

1

72

Mercedes

Elgance

26425

17500

2

silver

2

25-44

22000

yes

1

73

Porsche

Sport

32995

19495

6

silver

3

19-38

46000

yes

1

74

Volks-wagen

Beetle

14950

13500

1

silver

2

24-41

6500

yes

1

75

Rover

623 GSi

24086

2975

6

blue

2.3

25-41

96000

yes

2

76

Suzuki

Vitara

10800

2995

8

red

1.6

26-35

50000

no

2

77

Mercedes

Avant-Garde

17915

11750

2

silver

1.6

28-50

17000

yes

1

78

Audi

80

17683

3995

7

purple

1.9

diesel

37-60

103000

no

2

79

Volks-wagen

Polo

9960

7550

1

blue

1.4

37-59

5000

yes

1

80

Ford

Escort

13183

3495

7

red

1.8

29-46

43000

yes

2

81

Ford

Mondeo

17780

7995

4

cuirass

2

24-44

30000

yes

1

82

Mazda

Pegasus

10420

2495

7

green

1.3

37-58

50000

no

3

83

Rover

416i

14486

3685

6

blue

1.6

30-55

64000

yes

1

84

Vauxhall

Corsa

7840

4976

4

red

1.4

31-52

21000

no

2

85

Vauxhall

Corsa

7440

3495

6

green

1.2

36-55

55000

no

2

86

Ford

Fiesta

6590

1664

10

red

1

45-60

37000

no

3

87

Nissan

Primera

13355

2574

9

grey

2

27-45

49000

yes

2

88

Citroen

Xantia

14065

2450

8

red

1

26-46

49000

yes

1

89

Peugot

7600

2497

8

red

1.4

diesel

55-70

71000

no

2

90

Peugot

306

12350

3995

6

white

1.9

diesel

40-61

71000

no

2

91

Fiat

Punto

7518

3769

4

blue

1.1

36-60

38000

no

2

92

Volks-wagen

Polo

8710

4693

5

red

1.4

37-59

50000

yes

2

93

Vauxhall

Calibra

18675

6995

6

blue

2

27-43

63000

no

2

94

Rover

Metro

5495

1995

7

blue

1.1

40-58

52000

no

2

95

Rolls Royce

Silver Spirit

94651

14735

9

silver

6.7

10-19

70000

yes

2

96

Ford

Escort

15405

3995

5

tormalin

1.8

diesel

29-46

57000

no

2

97

Vauxhall

Astra

9795

3191

6

red

1.4

31-50

43000

no

2

98

Renault

19

11695

2748

6

blue

1.9

diesel

39-60

52000

no

2

99

Ford

Escort

9995

2995

6

burgudy

1.3

39-54

64000

no

2

100

Vauxhall

Vectra

13435

4995

5

red

1.8

30-52

52000

no

2

My first hypothesis was that the price of a car would decrease the most in the first few years. I now intend to prove this hypothesis to be correct.

Firstly I will take the first 3 cars in the age group of 1 year old. I will then work out the depreciation. This will be done by using the formula:

Selling price (second/hand)

X 100 =         %        100 -                  =              %

Cost price (when new)

The first 3 cars that I have taken from the database that are in the age group of 1 year old are:

 1 Ford Orion 16000 7999 1 black 1.8 unleaded 25-47 7000 yes 1 2 Mercedes A140 Classic 14425 10999 1 red 1.4 unleaded 29-50 14000 yes 1 61 Fiat Bravo 10954 6795 1 red 1.2 unleaded 30-52 3000 yes 1

I will now work out the depreciation for each of these cars.

Car1.        7999        X 100 = 50%        100 – 50 = 50%

16000

Car2.        10999 X 100 = 76%        100 – 76 = 24%

14425

Car3.        6795  X 100 = 62%        100 – 62 = 38%

10954

After working out the depreciation for the first 3 cars in the 1 year old group, I have noticed that there is a quite high amount of depreciation for the 1st and 3rd cars. I have noticed that this does not apply to the 2nd car which is a Mercedes A140 Classic. I believe this as the make Mercedes is one that is one of the best known and respected around the car industry. It is also to be considered as one of the best branded cars on the market and therefore, with no disrespect Ford and Fiat their cars are also some of the most expensive on the market. I therefore believe that that is why there is a less depreciation in the Mercedes as opposed to the Ford and Fiat cars. Here is another example:

 41 BMW 316i 13650 6995 6 black 1.8 unleaded 26-49 71000 yes 2 19 Rover 416i 13586 3795 6 silver 1.6 unleaded 30-55 49000 yes 1

Car1.        6995        X 100 = 51%        100 – 51 = 49%

13650

Car2.        3795 X 100 = 28%        100 – 28 = 72%

13586

As you can see, after 6 years, these two cars have a different amount of depreciation. This is because of the difference in makes. The BMW cars are branded as a ‘higher class’ in comparison to the over cars. This is why, even though the BMW has done 22000 more miles in the same amount of time has a lower depreciation than the Rover.

I will now do the same as before, but with the first 3 cars in the 2 year old group.

 3 Vauxhall Vectra 18580 7999 2 white 2.5 unleaded 26-44 20000 yes 1 7 Mitsubishi Carisma GDI 14875 5999 2 black 1.8 unleaded 34-56 24000 yes 1 14 Vauxhall Corsa 8900 4995 2 silver 1.6 unleaded 34-56 24000 yes 1

Car1.        7999        X 100 = 43%        100 – 43 = 57%

18580

Car2.        5999 X 100 = 40%        100 – 40 = 60%

14875

Car3.        4995 X 100 = 56%        100 – 56 = 44%

8900

Here the first 3 cars are of what would be considered to be the ‘average’ brand. These cars would not immediately be put into the same category as the Mercedes or the Rolls Royce. Therefore as you can see there is a depreciation which is either side of 50%. I would expect the depreciation of cars to be round about 50% in these few years as I believe that the greatest amount of depreciation that I car has is within the first few years. Then I believe the amount of depreciation will slow down and rise at a steady rate.

Now I am going to work out the depreciation of the first 3 cars of the 3 year old group.

 5 Nissan Micra 7995 3999 3 blue 1 unleaded 40-55 37000 yes 1 9 Renault Megane 13175 6999 3 black 1.6 unleaded 30-50 41000 no 2 21 Daewoo Lanos 11225 5999 3 silver 1.6 unleaded 24-46 42000 yes 1

Car1.        3999        X 100 = 50%        100 – 50 = 50%

7995

Car2.        6999 X 100 = 53%        100 – 53 = 47%

13175

Car3.        5999  X 100 = 53%        100 – 53 = 47%

11225

Here are 3 more ‘average’ branded cars. They all have depreciation of 50% or just below. As you can see there is quite a high amount of depreciation. I will now expect this level of depreciation to slowly increase. I expect to see that there will not be a huge amount of difference of depreciation between cars that are for example, 4-5 years old.

I will now look at the depreciation of 3 cars from the 4 years, 5 years, 6 years, 7 years, 8 years, 9 years and 10 years old groups.

4 Years old:

 10 Vauxhall Tigra 13510 7499 4 marine 1.4 unleaded 33-57 27000 yes 2 6 Renault Megane 13610 4999 4 blue 1.6 unleaded 30-50 33000 yes 1 8 Rover 623 Gsi 22980 6999 4 green 2.3 unleaded 25-41 30000 yes 1

Car1.        4999        X 100 = 37%        100 – 37 = 73%

13610

Car2.        6999 X 100 = 30%        100 – 30 = 70%

22980

Car3.        7499 X 100 = 56%        100 – 56 = 44%

13510

5 Years old:

 11 Fiat Bravo 10351 3495 5 red 1.4 unleaded 31-53 51000 yes 2
 53 Ford Escort 11800 4700 5 red 1.8 unleaded 29-46 34000 yes 1 59 Rover 623GSi 24086 2975 5 blue 2.3 unleaded 25-41 96000 yes 1

Car1.        3495        X 100 = 34%        100 – 34 = 66%

10351

Car2.        4700 X 100 = 40%        100 – 40 = 60%

11800

Car3.        2975 X 100 = 12%        100 – 12 = 88%

24086

6 Years old:

 18 Fiat Cinquecento 6009 1995 6 white 0.9 unleaded 43-60 20000 yes 2 19 Rover 416i 13586 3795 6 silver 1.6 unleaded 30-55 49000 yes 1 16 Rover 820 SLi 21586 3795 6 red 2 unleaded 30-55 51000 yes 3

Conclusion

Another two hypotheses that I made were that the colour and fuel type would not have an effect on the price of a second hand car. I will prove this by comparing 2 cars and their second hand car prices and looking at the colour and fuel type too to see whether they have an effect or not.

 42 Citroen AX Diesel 7680 1295 6 grey 1.5 diesel 55-78 yes
 16 Rover 820 SLi 21586 3795 6 red 2 unleaded 30-55 51000 yes 3

As you can see, these two cars have different fuel types. I have noticed that the fuel type does not make a difference on the price of a second hand car. This is because the first car, the Citroen AX Diesel has a depreciation of 83% and the Rover 820 SLi has a depreciation of 82%. Both these cars are the same years old and have the difference between them in there depreciation is marginal. Although they both have different fuel types, it does not seem to affect their second hand prices.

Here I will compare two cars to prove that the colour of the cars do not determine the second hand prices.

 8 Rover 623 Gsi 22980 6999 4 green 2.3 unleaded 25-41 30000 yes 1
 6 Renault Megane 13610 4999 4 blue 1.6 unleaded 30-50 33000 yes 1

Here I have chosen to cars that are the same in age. The first car, the Rover 623 Gsi has a depreciation of  73%. The second car, the Renault Megane has a depreciation of 70%. As you can see, both have very much the same amount of depreciation give or take a percent or two. They both have different colours too. The first car is green and the second car is blue and yet this does not have the slightest effect on the price of the second hand car.

Evaluation

I have found out that these results all support my hypotheses because they are all from a reliable source and I have used the information well in order for me to support my hypotheses. I also doubt that there could be much I could change if I were to repeat this investigation.

This student written piece of work is one of many that can be found in our GCSE Gary's (and other) Car Sales section.

## Found what you're looking for?

• Start learning 29% faster today
• 150,000+ documents available
• Just £6.99 a month

Not the one? Search for your essay title...
• Join over 1.2 million students every month
• Accelerate your learning by 29%
• Unlimited access from just £6.99 per month

# Related GCSE Gary's (and other) Car Sales essays

1. ## What factors influence the price of a second hand car

7 43000 86.53 Vauxhall 5599 1000 10 75000 82.14 Toyota 13800 7495 2 25000 45.69 Vauxhall 10150 850 10 73000 91.63 Volkswagen 9524 3695 7 49000 61.20 Seat 5995 795 7 45000 86.74 Rover 9565 1700 8 55000 82.23 Ford 7310 1050 8 90000 85.64 Fiat 10423 1295 6 81000

2. ## I will research the cars by putting the data I have been given into ...

I will do this using pie-charts. I will use pie-charts because the right colours can be represented and is very visually and easily read. I will finish with a straight line graph showing the direct correlation between the largest factor I find and depreciation. Prediction I predict that regarding all factors on the cars, they will

1. ## Maths Coursework:Used Cars

Except for the graph showing Fiat engine sizes the graphs show positive correlation. The graphs (except for Fiat) show similar gradients to the population. Generally as the engine size increases so does the second hand price, this is a piece of very useful information if buying a new car because

2. ## Examine how the age of a second hand car affects its price. Also to ...

To make this further more accurate I would also use more variety of cars and use the same age. This would give me a more precise idea of which car is the most expensive and which is the cheapest. Investigation: To check for any relationship between the mileage on a second hand car and the price.

1. ## Statistic coursework-what has the most influence on the price of a second hand car?

64000 2000 15267 5570 53 Ford 71000 1995 20570 1055 54 Ford 12500 1998 13520 2330 55 Ford 10000 1998 19990 4470 56 Ford 60000 1995 17170 1035 57 Ford 10000 1995 18745 3885 58 Ford 60000 1996 26380 4560 59 Ford 10000 2000 25597 8990 60 Ford 10000 2002

2. ## Used Cards - find which factors will influence the price of a second hand ...

From this, I will draw the conclusions from the examination about how the price decreases and what affects this. As secondary data was easy to collect and access, I then began with a simple hypothesis for my pilot study which was 'the higher the mileage, the lower the price of the used car'.

1. ## Maths - statistical driving test

M 14 10 A F 15 11 A F 15 15 A F 15 12 A F 20 8 A F 20 14 A F 20 19 A M 20 11 A M 20 12 A M 20 19 A M 20 8 A F 8 10 A F 10

2. ## Handling data Used car prices

This graph is very similar to the one shown in the hypothesis above. It shows that there is a general increase in the value of depreciation when the mileage of the car increases. There is a relatively strong positive correlation between the value of depreciation and the mileage done by the car.

• Over 160,000 pieces
of student written work
• Annotated by
experienced teachers
• Ideas and feedback to