What is Orange Book Value?

Algorithmic
Engine
Provides Fair market value
of any used vehicle
Built on
Data Science

Orange Book Value is an algorithmic pricing engine by Droom that suggests Fair 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, and condition to suggest the fair market value. Orange Book Value is category agnostic pricing engine and suggests unbiased fair 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.

Why Orange Book Value?

Independent
Unbiased
Data Driven

How OBV 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

Benefits of OBV

Buyer

Get to know benchmark market value hence enhance confidence level to purchase

Seller

Less time consumption in negotiating with buyer, gain trust of buyer, sell quicker at optimum price

Bank and NBFCs

Evaluation tool to write-off auto loan for used automobile

Insurance Companies

Evaluation tool to analyse the current market value of used automobile to calculate Insured Declared Value (IDV)

Web Publisher

Anyone who has a website can earn money by deploying OBV widget running on Javascript. Widgets are available in different dimensions.

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
Frame or Unibody Unaltered Unaltered Repaired Replaced
Windshield glass, lights, lenses No Defects Minor Scratches, Slight Discolouration Can be repaired Not repairable
Wheels Flawless Minor scratches or Scrapes Repairable Repairable
Upholstery and carpet Clean/Like New Minimal Wear Stained Faded/Worn
Odour (smoke/mold...) Odourless Mildew Mold Chemical Compounds
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 requires servicing Fully operable but requires 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 tampering 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 pricing engines working on past transactional data both in India and the world. Unlike these pricing engines, OBV uses empirical evidence and Droom's proprietary data science methodologies to evaluate the price of a used automobile.

The factors that go into evaluation in OBV includes make, model, year and trim of the vehicle, depreciation of the vehicle over the years of ownership, Odometer 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 those 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 play a major role in determining the value of a vehicle. So, these factors increase or decrease 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 odometer reading gives the condition of the vehicle which can then be factored into the valuation of the vehicle. The value obtained after this step 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.

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 defines 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.

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 by which the value of the vehicle decreases year on year.

OBV Print Edition

About Book

The OBV Print edition consists of benchmark market prices of used cars, motorcycles and scooters for the span of last 15 years. With an easy to use format, the user is able to find the fair market value of any vehicle which provides them a fair idea of the price at which they can purchase the used vehicle from a dealer, thus reducing the time and efforts spent on negotiations required to complete a deal. The book consists of information about Orange Book Value, tutorial on how to use the book, how to determine the appropriate condition of a vehicle, benefits of Orange Book Value, testimonials of auto industry experts for OBV.

Videos of OBV

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