Orange Book Value

Orange Book Value

India's First and Only Pricing Engine for Automobiles

Orange Book Value

OBV

Want to find out estimated market value of a used vehicle or how much you should be buying or selling at?

 

What is Orange Book Value?

Orange Book Value is an algorithmic pricing engine by Droom that suggests estimated market value for any used vehicle. Orange Book Value is built on Droom’s proprietary technologies and data science. It takes into account category, make, model, year, trim, kilometer driven, condition and many other factors to suggest estimated market value. Orange Book Value is category agnostic pricing engine and can suggest estimated market value for car, motorcycle, scooter, bicycle and planes. Unlike other sources that just report historical transaction data that is flawed, Orange Book Value uses data science and empirical evidences in terms of depreciation curves, margins and spreads with intermediaries as any vehicle changes hands, and dozens of factors that have impact on valuation.

How it works?

Select Purpose
Buy / Sell
Select Category
Car, Bike, Scooter, Bicycle, Plane
Select Parameters
Make, Model, Year, Trim & KMS Driven & Condition
Get OBV
Fair Market Value Of The Vehicle

How to Determine condition of your automobile?

Factors/Condition Excellent Very Good Good Fair
Tyres Flawless Minor Scratches Moderate Scratches, dents Moderate scratches, Chips, dents, Surface Rust
Flame or unibody Unaltered Unaltered Repaired Replaced
Windshield glass, lights, lenses No Defects Minor Scratches, Slight Discoloration Can be repaired Not repairable
Wheels Flawless Minor scratches or scrapes Repairable Repairable
Upholstery and carpet Clean/like New Minimal Wear Stained Faded/Worn
Odor (smoke/mold...) No Odor Mildew Mold Chemical Compunds
Electronics(windows, locks, radio, NAV,etc...) Fully Functional Functional With minor faults Functional With major faults Repairs Required
Engine/transmission Excellent | condition, fluids may require topping off Fully operable but require servicing Fully operable but require spare changes and servicing Repairs Required
Steering Trouble Free Operational hindrance Too heavy to operate Power steering failure
AC/heater Fully Functional Cooling/ Heating ineffective Fan only functional Full unit not functional
Brakes Less than 15% Wear & Tear 15% - 30% Wear & Tear 30% - 45% Wear & Tear 45% - 60% Wear & Tear
Tires 90% Treading Left 75% Treading Left 60% Treading Left 50% Treading Left
Maintenance/records Current, Complete  Current, incomplete  Current, incomplete  Overdue, no records
Emissions Test Cleared Cleared Not Cleared Not Cleared
Flood Damage No No Yes, Operable Yes, Vehicle not functional
Odometer tempering Not tampered Not tampered Not tampered Not tampered

OBV Methodology

Orange book value is the most advanced algorithmic and data science based pricing engine to fetch the fair price range of any used automobile in India. It is not limited only to cars and covers a wide variety of categories from cycles to airplanes.

We have seen many regression and past data based pricing engines both in India and the world. Unlike these pricing engine, OBV uses empirical evidences and Droom’s proprietary data science methodologies to evaluate the price of a used automobile.

The factors that goes into evaluation in OBV includes make, model, year and trim of the vehicle, Depreciation of a vehicle over the years of ownership, Odo meter reading, purpose of the transaction (buy/ sell), party at the other end of the transaction (private party/ dealer) and condition of the vehicle.

For calculating the depreciation, we have plotted thousands of depreciation curves and mapped each vehicle running on the Indian soil with these depreciation curves. We have ensured the most accurate depreciation for these vehicles depending upon the number of years of ownership.

Party and purpose of the transaction also plays a major role in determining the value of a vehicle. So, these factors actually increases or decreases the value of the vehicle obtained after depreciation depending upon the scenario.

Any automobile or for that matter any machinery, undergoes wear and tear depending upon the usage. When relating this to automobile terms, the kms the vehicle has run, captured through the odo meter reading gives the factor for capturing the value of the vehicle. The value obtained after step two will either increase or decrease based on the odometer reading.

Anything in this world when maintained well, deserves credit and has a higher value. This holds well in case of used automobiles too. An automobile that is in excellent condition will command a higher value compared to a vehicle not in a good shape. For more details on how to determine the condition of the vehicle, refer to the tab in the side menu.

FAQs

  1. How is Orange Book Value Different from other pricing engines in the world?
    Orange Book Value takes an entirely algorithmic and data science approach to determine the fair price range of any used automobile, rather than just basing the prices on past transactions. Also, Orange Book Value is the only pricing tool that can be used to determine the fair price range of any used automobile, not just cars.
  2. Why Orange Book Value is necessary?
    Estimating the true price for any used automobile is not an easy task. Often the buyer feels that he/ she has paid more than the actual worth of the vehicle and the seller feels that he/ she has sold the vehicle at a loss. So Orange Book Value is necessary to make sure both the buyer and seller leaves the table happy at the end of a transaction.
  3. How Orange Book Value benefits the seller?
    When a buyer is interested in a listing created by a seller, he/ she will check the seller’s quoted price on Orange Book Value. If the price matches, this will give confidence to the buyer and the buyer will not negotiate with the seller while pursuing the transaction. Overall, the seller will have a better throughput with the listings.
  4. How Orange Book Value benefits the buyer?
    When a buyer is interested in a vehicle on droom, he/ she will get pricing recommendations from OBV. So he/ she can select a vehicle that is listed well within the fair price range and pursue the transaction.
  5. What do I do after knowing the Orange Book Value of my vehicle?
    Knowing the Orange Book Value for a vehicle can help both during buying as well as selling. Knowledge of the true market price range helps a user on Droom Platform to make an informed decision.

Orange Book Value Glossary

OBV: Orange Book Value, (OBV) is India's first and only algorithmic pricing engine that suggests estimated market value for any used automobile. OBV is built on Droom's proprietary technologies and data science. Use OBV before you buy or sell an automobile.

Make: It define the manufacturer of the vehicle, like Maruti Suzuki, Honda, etc.

Model: It defines the specific model of the vehicle, like WagonR, City, Alto, etc.

Year: It defines the year of production of the vehicle, like in Maruti Suzuki Ciaz Vxi 2015; 2015 is the year of production of the vehicle.

Trim: It is defined as the designation of the features and standard equipment on a vehicle, like LX, SE, EX, GT, etc. Vehicles with base trim levels have minimal equipment and entry-level prices; a step up in trim level includes more options and standard features along with a price increase.

Purpose: It defines the purpose of using the OBV tool, which means you want to sell the specific vehicle or buy. The purpose can be Buy or Sell.

Kms Driven: This parameter defines how many kms the vehicle is driven for which you want to calculate the OBV.

Category: It defines the category of the vehicle, for example – car, motorcycle, scooter or more.

Party: Anyone who is on the other end of the transaction who is either buying a vehicle from you or selling it to you. Party can be of two types:

  1. Individual – An individual is a standalone entity who can be a seller or buyer
  2. Dealer- A dealer is a professional seller of automobile. He can also sell or buy using

Location: The value of a vehicle varies with different geographical locations. The factors that are responsible are – ex-showroom price in the area, the terrain and road surface, and more.

Condition: It defines the condition of the vehicle. It can excellent, very good, good, fair and poor. This is also a factor that determines the price of any used vehicle.

Depreciation: It is the rate which the value of the vehicle decreases year on year.

Benefits of OBV


Buyer

Leave the guesswork behind! OBV gives you benchmark market value of a used vehicle to give you confidence to buy

Seller

Stop pulling a number from the hat! Orange Book Value gives you a fair market value of any used automobile. This helps in gaining buyer's trust and reduce price negotiation, so that you can sell quickly at optimum price.

Bank and NBFCs

OBV is a comprehensive evaluation tool to write-off auto loan for used automobile. For more authentication, download used vehicle-pricing report for free.

Insurance Companies

21st century approach to evaluate the price of a used vehicle based on real-time data science instead of historical data. This helps to analyse the current market value of used automobile to calculate right Insured Declared Value (IDV).

Web Publisher

Anyone who has a website can earn more money by deploying OBV widget running on Javascript. Widgets are available in different dimensions. Send inquires on support@orangebookvalue.com