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How Our Market Value Algorithm Works

Pricing a used car is more art than science—or it used to be. Our Market Value API replaces "gut feeling" with millions of data points trained on a neural network.

The Multi-Factor Model

We don't just look at the average listing price. Our algorithm assigns weights to over 40 distinct variables.

1. Local Inventory Scarcity

Scarcity drives price. If there are only 5 Honda Civics for sale in a 50-mile radius, the price goes up. If there are 500, it drops. Our system creates a "supply density score" for every zip code.

2. Seasonality and Trends

Convertibles demand a premium in April. 4x4 trucks peak in November. Our model adjusts for these seasonal waves automatically. Furthermore, it detects macro-economic trends (like gas price spikes) and adjusts relationships accordingly.

3. Trim & Option Normalization

A "Sunroof" or "Navigation Package" isn't just a feature; it's a value multiplier. We NLP (Natural Language Processing) to parse dealer descriptions and identify high-value options that might be missing from the structured VIN data.

"Our tests show that failing to account for 'Optional Equipment' results in an valuation error margin of ±12%. With NLP parsing, we reduced this to ±3%."

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