Used Car Price Estimation: Moving from Linear Regression towards a New S-Curve Model

  • Fadzilah Salim Faculty of Electrical and Electronics Engineering Technology, Universiti Teknikal Malaysia Melaka
  • Nur Azman Abu Faculty of Information and Communications Technology, Universiti Teknikal Malaysia Melaka
Keywords: S-shaped curve, S-curve model, used car prices, price modelling


A simple linear regression is commonly used as a practical predictive model on a used car price. It is a useful model which carry smaller prediction errors around its central mean. Practically, real data will hardly produce a linear relationship. A non-linear model has been observed to better forecast any price appreciation and manage prediction errors in real-life phenomena. In this paper, an S-curve model shall be proposed as an alternative non-linear model in estimating the price of used cars. A dynamic S-shaped Membership Function (SMF) is used as a basis to build an S-curve pricing model in this research study. Real used car price data has been collected from a popular website. Comparisons against linear regression and cubic regression are made. An S-curve model has produced smaller error than linear regression while its residual is closer to a cubic regression. Overall, an S-curve model is anticipated to provide a better and more practical estimate on used car prices in Malaysia.


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How to Cite
Fadzilah Salim, & Nur Azman Abu. (2021). Used Car Price Estimation: Moving from Linear Regression towards a New S-Curve Model. International Journal of Business and Society, 22(3), 1174-1187.