Abstract:
Car reselling is a timely, very popular heading in Sri Lanka and a large number of cars
are resold daily. A lot of people are in the practice of reselling their car every time based
on different reasons. Many different factors affect the reselling price of used cars. This
study aimed to identify the factors that influence the reselling price of used Suzuki cars
in Colombo, Sri Lanka, and to find the best multiple linear regression model. For this
study, the 90 reselling prices of Suzuki used cars in Colombo district were collected
from January 2019 to March 2019. In this study, Mileage of the car in km, Age of the
car in years, Model of the car (Swift, Alto, Wagon-R, A-star, and Spacia), Color of the
car (Light, Dark) and Number of past owners of the car were considered as independent
variables. In this research, a multiple linear regression model has been used to identify
the factors that affect the reselling price of the car. Furthermore, the forward selection,
backward elimination, and stepwise regression methods have been used to find the best
multiple linear regression model. According to the final results of this study, the
principal factors that affect the reselling price of used Suzuki cars in Colombo district
were mileage of the car, age of the car, the model of the car, and the number of past
owners of the car. Finally, the model obtained in this study will be useful for both buyers
and sellers.
Keywords: Reselling price, Colombo, Used car, Suzuki car, Multiple linear regression
