Research On The Depreciation Rate Of The Second-hand Automotive Vehicle Based On Analytic Hierarchy Process

With the increasing development of capital markets and people's living standards,Second-hand automotive vehicle are becoming an indispensable current assets in modern life.Now the Second-hand automotive vehicle numbers are growing rapidly.Needs of consumers are greatly excited that lead to replacement of vehicles actively.The trading volume gap between the new car with the old automotive vehicle reduced further.More and more vehicles transactions involved to assess,which requires an accurate and reasonable assessment of the vehicle's value by professional appraisers and evaluation agency.For the current value evaluation system of the automotive vehicle,Countries have not to draw scientific and comprehensive assessment criteria and theoretical research.Few scholars practice to determine the vehicle depreciation rate into a new unified model.The level and quality of automotive vehicle assessment needs to be improved.The paper firstly concernes about the research status about vehicle assessment at home and abroad,meanwhile understanding the findings of the vehicle assessment in China.Secondly,The paper summarizes the automotive vehicle appraisal theory and AHP theory carefully and compares to three methods about evaluation theory while computing the appraised value of vehicles based on replacement cost method.The paper proposes an improved method about depreciation rate of the second-hand automotive vehicle based on Analytic Hierarchy Process.Professionals play score for technical condition of vehicles,while building Analytic hierarchy model based on various factors of the automotive vehicle to determining the basis depreciation rate and synthesized depreciation rate.Then the paper uses three methods to calculate the weight of judgment matrix as comprehensive adjustment coefficient.That is the maximum eigenvalue and characteristic vector.By way of example demonstrate the model of the depreciation rate of the second-hand automotive vehicle and provide practical solutions to the automotive vehicle assessment practices.Finally in order to propose practical solutions about the depreciation rate of the second-hand automotive vehicle,A popular example of the second-hand car is presented to get conclusion.The results improved are very close to the original assessment results by comparison models and improved algorithm.Then the paper proposes appropriate conclusions and recommendations about the calculation of the depreciation rate of the Second-hand Automotive Vehicle.