Orange Book Value 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.