We've selected sales of Lamborghini Gallardo in the US and used machine learning to build these simple pricing models. Use the tool below to see when to buy:
|Fair Price||<%carPrediction.price%>||Fair High <%carPrediction.max_price%>||Fair Low <%carPrediction.min_price%>|
|At <%carAge.DispValue%> years old with <%carMileage.DispValue%> miles of mileage.|
Assume you buy a Lamborghini of 2013 with only five miles on it. [Set the sliders above to 2013 and 5 miles] The Fair price at this moment is $232,153.
If you drive to your three friends to boast and reach 5,000 miles - the fair price of your car will drop down to $185,970 ($4.6 per mile you drive).
The next 5,000 miles are better, since the car would only be losing $2.2 per mile of driving. What does this tell us?
It looks like when people decide to buy a new Lamborghini, they do it for other reasons than to invest their money well.
Now assume you are on a budget, but still want a used Lamborghini at the best price. When is the good time to buy it?
If price and mileage are equally important of you and you want them both to be was small as possible, then for a given year of the model the optimal moment to buy is where a straight line connecting equal amounts of dollars and miles touches the price graph. For the 2013 model this happens right at 65,000 miles.
Assume, you bought the car at that optimal moment at the fair price of $135,775. [Make sure the sliders above are set to 2013 Gallardo with 65,000 miles]
Look at the graph below to see how the price will chage depending on how much you drive:
If you drive very little per year, the price goes down super slowly!
At 5,000 mi per year, after six years your Lamborghini would still be worth $100,988. So, it would lose $135,775 - $100,988 = $34,787, or 25% of the value you paid when you bought it six years earlier!
What's even more interesting is that if you drive a whopping 50,000 miles per year, then over 6 years the predicted fair price is still at $78,000. How cool is that?