Research On Used Car’s Value Assessment Methods Based On The Replacement Cost Method

In recent years, with the rapid development of the used car industry, but its variousweaknesses is being gradually revealed, especially in the appraisal and evaluation of used cars,the lack of uniform industry standards to follow, which make our used car industry’sdevelopment of being healthy and rapid extremely unfavorable.Therefore, under the premise of combining asset valuation theory: First of all, for thefour valuation methods applied to second-hand car, I research from its principles, advantages,disadvantages, the applicable conditions in four areas, drawing only the replacement costmethod is more suitable for the used car assessment, under the current valuation of the statusof China’s used car market; Secondly, from the theory of the three asset devaluation, factorsaffecting the value of used cars are being systematically studied. I for the first time combineconsumers purchase reference factors with the analytic hierarchy process AHP, rigorouslyscreening the factors of used cars value, finally, the19kinds of major factors are as the factorsof used cars’ value affected; The third, establish quantitative criteria of19kinds of factors;The fourth, improving replacement cost method is be systematically studied, putting forwarda new car’s purchase price plus surtax as a unified replacement cost, and in the calculation ofthe purchase surtax, that VAT should not be considered was first proposed. Meanwhile, thealgorithm of residue ratio is be boldly improved, put forward residue ratio base, on the criteriaof summation of years’ number, as well as three base residue ratio correction factor, namelythe performance correction factor, hedge rate correction factor, comprehensive correctionfactor, that the base residue rate has been revised is actually as the residue rate of used cars;The fifth, the improved model of replacement cost method is validated by instance,meanwhile, developing a standard error, assessment results are within the standard deviationrange, to achieve the desired goals. I hoping to play a positive role for the development ofChina’s used car industry, in the subsequent application stage into the market.