The prices of new cars in the industry is fixed by the manufacturer with some additional costs incurred by the Government in the form of taxes. So, customers buying a new car can be assured of the money they invest to be worthy. But due to the increased price of new cars and the incapability of customers to buy new cars due to the lack of funds, used cars sales are on a global increase (Pal, Arora and Palakurthy, 2018). There is a need for a used car price prediction system to effectively determine the worthiness of the car using a variety of features. Even though there are websites that offers this service, their prediction method may not be the best. Besides, different models and systems may contribute on predicting power for a used car’s actual market value. It is important to know their actual market value while both buying and selling.
To be able to predict used cars market value can help both buyers and sellers.
They are one of the biggest target group that can be interested in results of this study. If used car sellers better understand what makes a car desirable, what the important features are for a used car, then they may consider this knowledge and offer a better service.
There are websites that offers an estimate value of a car. They may have a good prediction model. However, having a second model may help them to give a better prediction to their users. Therefore, the model developed in this study may help online web services that tells a used car’s market value.
There are lots of individuals who are interested in the used car market at some points in their life because they wanted to sell their car or buy a used car. In this process, it’s a big corner to pay too much or sell less then it’s market value.