Inside CARS24’s AI Pricing Engine: How Data Science Brings Transparency to Used Car Pricing

The last decade saw a lot of uncertainties in the Indian used car market. No one could see the hidden issues and therefore cannot exactly tell how much a car is worth. The offline dealers were smart and used various tactics to reduce the prices of cars and buy them at lower market values. Sellers remained at a loss here. However, all this changed through the years with the rise of online used car calculators.

A few years back, the online car valuation tools worked on simple depreciation tables without actually factoring in anything that really matters in used car valuations. There was no use of real market insights either when calculating a used car’s resale value. All this changed when CARS24 held on to the reins of the used car valuation ecosystem and created a power industry-leading pricing engine, which was powered by Artificial Intelligence and backed by data science.

Creating a Foundation of Massive Data

A colossal repository of ten lakh historic transactions provides the bedrock for our market-leading intelligence. Every single sale recorded since 2015 feeds into a central nervous system of data that understands exactly what buyers want. Huge quantities of information allow our team to map out complex market dynamics across various states and cities.

Furthermore, the historical context ensures that no car is ever undervalued because we understand the heritage of every model. Patterns in consumer behaviour become clear when you look at millions of data points over a whole decade. Therefore, the depth of our knowledge base remains unmatched in the Indian automotive landscape. Such an enormous scale of information provides a level of security that offline dealers simply cannot replicate. Moreover, the constant influx of new transaction data keeps the pricing engine updated with the very latest market shifts.

Artificial Neural Network backed by Data Science

Sophisticated artificial neural networks ingest dozens of variables to produce a figure that reflects the true worth of a vehicle. Factors such as the age of the car and the specific engine variant play a crucial role in the final calculation. Fuel types and registration states also influence the desirability of a model because demand shifts based on local regulations.

Moreover, the odometer reading provides a transparent look at the mechanical health of the engine. Every algorithm is trained on over one crore previous inspections to identify even the smallest details that impact value. Our data science experts ensure that the pricing engine remains objective and free from human bias. Therefore, the user receives a quote that is both realistic and mathematically sound. Furthermore, the system calculates a range that accounts for the potential condition of the car before we even see it in person.

Real-World Resale Value From the Estimate

A digital estimation provides a helpful starting point, but the true market value emerges after a physical assessment. Certified technicians perform a thorough check to verify every aspect of the vehicle's condition. The resulting report then reaches a massive network of verified dealers who participate in a live competitive bidding process. Higher prices naturally come up when multiple verified dealers compete for the same car in real time.

Sellers benefit from this transparency because they are able to witness the actual market demand for their asset. Furthermore, the final offer represents the peak of what the market can provide at that specific moment. Every transaction becomes a win for the customer as they secure the highest possible return for their vehicle. Moreover, the live nature of the bid ensures that the price is never stagnant or outdated.

Conclusion

In the end, we can say that price transparency has become the new standard in a market that was once known for its lack of clarity. CARS24 continues to pioneer this shift by placing powerful technology in the hands of every car owner. The combination of massive data and live bidding creates an ecosystem where everyone can sell their cars with absolute confidence.

Moreover, the future of used car selling looks brighter because we have eliminated the guesswork related to the price. Sellers don’t have to worry about being cheated or losing out on the fair value of their cherished cars. Therefore, our AI pricing engine stands as a beacon of trust for millions of people across the country. Success in our mission means every customer leaves with a smile and the best price with pride.