Orange Book Value (OBV) is a precise and advanced method that provides accurate data for defining the real price of a used car dealership. It uses complex algorithms and up-to-the-minute data to help determine the market worth of used cars, bikes, and scooters.
In this post, we will discuss in detail how you can use OBV to check used car valuation or the valuation of any used vehicles. So, if you want to learn more, keep reading!
What is Orange Book Value?
Orange Book Value is an analytical tool that uses an algorithm to provide a fair market price for a used car. It employs its proprietary technology and advanced big data analysis to evaluate depreciation and current market prices for both the buyer and seller.
Why Use OBV?
OBV offers objective third-party valuations derived from scientific assessments. It is very helpful to prospects in the used car industry market. To buyers, it assists in protecting them from overpriced autos and for sellers, it allows them to offer competitively priced automobiles.
Steps to Check the Value of Used Vehicles with OBV
- Select Your Purpose
Start the description by informing whether it is a car for sale or a car you want to buy. It makes the valuation process more specific and then delivers useful information.
- Choose the Vehicle Category
Then, you should choose the exact category of the vehicle – is it a car, bike, or scooter? The OBV’s database is large and captures most cars within various classes and brands.
- Enter Vehicle Details
Enter particulars of the vehicle like make, model, year of manufacture, trim, etc. or any other parameters that can contribute to the valuation of the automobile. The physical appearance of the vehicle and the number of kilometers you have traveled in it are also considerable points while assessing the value. The more elaborate the points given for the assessment, the more refined the estimation will be.
- Obtain the Valuation
Finally, after the entry of the relevant information, OBV determines the FMCV of the vehicle in question. The result will take into account the car’s condition, age or the number of miles it has traveled, among other aspects that cause the vehicle to depreciate. The above-given valuation is categorized into several conditions, for instance, Excellent, Very Good, Good, and Fair, offering a wider understanding of where your vehicle should stand in the market .
Benefits of Using OBV
For Buyers
- Transparency: Aim to ensure that you pay the right price for the vehicle, depending on its condition and other market factors.
- Confidence: Ensures the buyer gets a fair value for the item by giving them an unbiased valuation.
For Sellers
- Competitive Pricing: It assists in targeting the right used vehicle price that would help it be sold quite easily
- Fair Market Value: It enables you to obtain a fair value from your vehicle’s worth.
For Financial Institutions
- Loan Approvals: Helps banks and NBFCs accurately decide the right loan amount for used vehicles.
- Insurance: Assists insurers in determining suitable rates and amounts for compensation.
OBV Methodology
- Data-Driven Valuation
OBV employs Droom’s unique data analytics systems, which factor in the make, model, trim, number of kilometers, age, and overall car condition. This scientific aspect ensures that the assessments are as current and correct as possible.
- Condition Assessment
A rating system is used to determine the condition of the vehicles, a factor that determines their market value. Categories include;
- Excellent: Clean without many signs of usage, and the item is in very good condition with little to no abrasions.
- Very Good: Slight usage signs but no significant mechanical damages.
- Good: Noticeable wear with some minor issues.
- Fair: More significant wear and potential mechanical problems.
Wrapping Up!
As a comprehensive resource for the used automobile industry, Orange Book Value is useful for collectors, dealers, and private individuals for used vehicle valuation. Giving a precise and credible quantitative indication of a property’s current value and potential adds efficiency to the trading process. It also benefits all who are involved in the process, from the buyers and sellers to the financial institutions that facilitate such transactions.
Through OBV, it becomes easy to find out that the used vehicle market offers many opportunities for buying, selling, and financing used cars. Thanks to OBV, it is easy to make sound decisions based on reliable data.
