Which factors influence the price of a second hand car?

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Ricky Winborn

Maths Coursework 2002

Which factors influence the price of a second hand car?

By Ricky Winborn Collinson 1199

Objective:

The aim of this project is to investigate which factors influence the price of a second hand car. For example, one may investigate to see if mileage, MPG, Price of MOT, make, model, colour, engine size, fuel, service history, number of owners etc. I will now investigate the following factors to see if they affect the difference in price when new and when resold.

Predictions:

First of all, I predict that the age of the car will highly influence the amount of depreciation in value. This is not relevant for all cars as some are considered valuable for being ‘vintage’ and rare. This is probably relevant for cars that are between 30 and 5 years old. I also think that the amount of mileage done will affect the car in most cases. Again, this will not affect all cars, as some cars are purchased purely for their rarity and are never used. I do not think that the colour will affect the depreciation in price greatly as it is something that can quite cheaply and easily be modified. These are my main predictions but I do have other opinions on what will affect the price but there are too many contributing factors.

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Coursework

First of all, I added another column to the table that showed the ‘Depreciation in value’ so I could refer to it in the project and make comparisons between it and other factors such as mileage, engine size, age etc. For the purposes of this project, ‘depreciation’ will refer to the current value as a percentage of the original price, rather than showing how much the price has fallen. I used the formula: D = C/O * 100. Where ‘D’ is ...

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