Study On The Evaluation Method Of Used Car In Nanjing

The recent years have witnessed the further advancement of the reform and opening-up policy and the constant development of national economy,giving rise to the vigorous development of the automobile industry.By the end of 2017,the inventory of car in our country was over 217 million,the used car being an important part of automobile industry.Meanwhile,the concept of Nanjing consumer gradually changed into that the car is just a tool instead of walk.The new car is no longer the solution to their family car demand.More and more Nanjing residents turned their eyes to the used car market which is developing by leaps and bounds.However,many problems came into being with the development of the market,especially in the link of the value evaluation.There is no method shared by two experts,impeding the formation of a scientific and reasonable method of valuation.It's no doubt that this situation hinders the further development of Nanjing's used car market in a great degree.With the rapid development of China's economy,the value evaluation of the used car is involved in the relevant enterprises' acquisition,lease and substitution,the financial industry's mortgage loan and insurance services,related departments' vehicle mortgage and liquidation,the judiciary's handling of the case concerning it and enterprises or individuals' registration,establishment,joint venture cooperation,mergers and acquisitions,leaving the market badly in need of a scientific and reasonable method of value evaluation.Therefore,on the basis of perspective of the replacement cost method from theory of asset valuation,this paper takes used cars in Nanjing as an example to study how to evaluate used car in an objective and reasonable way.At first,this paper analyzes the problems occurred during the value evaluation of Nanjing's used cars,mainly in the quantization of specific numerical values,by investigating the objective situation of the used car market in Nanjing.Secondly,on the basis of Nanjing used-car value evaluation data in the market,we use multiple linear regression model to identify the most important factors that impact the new rate of the used cars,and then determine the basic new rate.And with help of relevant literature,we comprehensively analyze the influence factors of the new rate of used cars according to the internal and external factors of the vehicle.Thirdly,we improve the replacement cost method,which only considers price of the new car and the vehicle purchase tax as the replacement cost of a used car.Then we take advantage of analytic hierarchy process and Matlab's software to quantify the weights of influence factors on the used car's new rate and the adjustment coefficient,to determine the integrated adjustment coefficient of the new rate.Finally,we use the improved replacement cost method to evaluate the used car in Nanjing's used car market and verify the feasibility of this method.