PACC6008 Project: Comparing Used Car Prices in Melbourne and Sydney

This project, undertaken as part of the PACC6008 course, compares the prices of used cars in Melbourne and Sydney. The study investigates various aspects of the used car market, including brand prices, customer preferences, and dealer practices in the two cities. The research employs a descriptive research design, utilizing statistical data and regression models to analyze price variations. The project explores research questions related to car models, service packages, buyer security, and delivery methods. Data from 100 participants are analyzed to determine the prices of used cars and their relationships, with a focus on the correlation between prices in Melbourne and Sydney. The results, including statistical data like mean, standard deviation, and regression analysis, are presented and discussed to provide insights into the dynamics of the used car market, offering recommendations for dealers and a conclusion on the broader economic implications.

Running head: “COMPARING THE PRICES OF USED CARS IN MELBOURNE AND SYDNEY” 1
“Comparing the Prices of used Cars in Melbourne and Sydney”
Student’s Name
Affiliation

“COMPARING THE PRICES OF USED CARS IN MELBOURNE AND SYDNEY 2
“Comparing the Prices of used Cars in Melbourne and Sydney”
Introduction
Used cars business in Melbourne and Sydney is carried out through various outlet sources
companies that are independent car franchise, private; easing and auctioning company sales. The
companies offer different sales of their cars and offer extra services to their customers such as
certified warranties plans for securing their customer's vehicles. The auto sales business is the
most run business in the Melbourne and Sydney states with high production of the automobile
sales yearly and making the vehicles available for the customers (Lane, 2010). This is the crucial
business in the two states that that have improved the financial markets in order to satisfy the
customers’ demands in the car sales for economic growth. In his business, both the client and the
sellers know the prices of the cars year of manufacture and their quality. The main objectives of
this study are carrying out the insight relationship of the prices of the used cars in Melbourne and
Sydney and the customer preferences and with the dealers in these two cities (Erden & Sentuk,
2009).
Melbourne and Sydney car prices
However, the experiences of the customers will be studied for the basis of collecting the
information regarding the sales. The study will investigate the client’s perceptions towards their
satisfaction with the sales of the used cars in Melbourne and Sidney cities. Evaluation of the
vehicle brand prices in the marketing field in Melbourne and compare with Sidney. The research
will consider the analysis of the prices of the used cars in Melbourne and Sydney markets with
their customers. The car prices in the two cities are the important factor that is taken to

“COMPARING THE PRICES OF USED CARS IN MELBOURNE AND SYDNEY 3
consideration in order the customers know what amount of money required to pay for the cars
and the negotiations between the buyer and the seller. However, the car prices affect the buyer’s
motive in very many ways from the two cities Melbourne and Sydney (Erikson, Nordlund &
Gravill. 2010). For in the first place the car prices mean a lot to the customer’s monetary value
and exchange for example the research shows that when the prices are increased the customer’s
take more of their time researching snout then brand cars prices before buying the vehicle.
Therefore, the pricing was considered as a major concern for the two locations when comparing
the prices of their used car sales. The study also shows that the evaluation of the car prices for
second hand user’s products id vital and the car dealer need not to over rate the prices and
provide the customers friendly prices for the citizens that are able to purchase. Both then cities
make high profits from the used car sales hence improved economy in the market (Goodwin &
Van, 2013).
Research Design- The research used various design techniques such as descriptive design,
experimental, correlation, exploratory and meta-analysis.
Methodology
Most of the statistical data is collected for the determination of the prices of the used cars in
Melbourne and Sydney state for business intelligence. The dealers from both cities develop
effective management in the running of the business. Greener (2012) asserts that the company
dealers are also required to develop good relationships with their clients for service provision.
The contributions of then used cars and their values on the market economy and fuel use
efficiency. Regression model method will be applied in the determination of the values of used

“COMPARING THE PRICES OF USED CARS IN MELBOURNE AND SYDNEY 4
cars that are traded in Melbourne compared to Sydney market prices. The information on the
prices was used in the study and other factors concerning the sellers and the buyers of the two
cities (Gavazza, Lizzzeri & Rektskiv, 2014).
Research Questions
The research carried out a number of questions for methodological process for investigation of
the undertaking study. The following are the research questions upon which the problem of the
study will be arrived and proper solution:
What are the model and brand names of the used cars?
What are the service packages for the used cars?
What are the buyer’s security for the used cars purchased and sincerity?
What are the delivery methods of the used cars?
Hypothesis Development
The research carried out the two hypotheses:
H1 -The prices of used cars in Melbourne related to the prices in Sydney
H2- The efficiency of the associated with the used cars and their various types of car sales prices
Statistical techniques used in the tests of the hypothesis
Sample data collection

“COMPARING THE PRICES OF USED CARS IN MELBOURNE AND SYDNEY 5
Data were collected from the two states Melbourne and Sydney; the datasets were to be used in
the subsequent basis of the research for analysis. Various participants were randomly chosen to
complete the questionnaire through responding to the question concerning the prices of the cars
in Melbourne city and Sidney respectively (Greener, 2012). A total of 100 participants who
were using the used car from both Melbourne and Sydney were sampled for completing a survey
study. The population comprised of 53 owners with used cars from Melbourne city and 47 of
the individuals from Sydney city. The sampling population consists of both the dealers and
buyers in the automobile industry. Non - probability sampling method for the selected data was
applied for analysis and discussion of the research work. A questionnaire was used in collection
for data, it consisted of the open-ended questions that were used for analyzing the quantitative
responses from the patients. Quantitative method was used in assigning the numerical values for
the questions with the scale ranging (Grimal, Coulet & Madre, 2017).
Results and Discussion Comparison of Melbourne used car prices and Sydney
Car brand Melbourne Price Sydney Price
Subaru $14000 $13500
Jeep $4000 $4000
Toyota $8000 $9600
Suzuki $6000 $6700
Mazda $8300 $8500
Isuzu $16000 $17000
BMW $15500 $16500

“COMPARING THE PRICES OF USED CARS IN MELBOURNE AND SYDNEY 6
Lexus $3500 $38000
Chevrolet $26000 $26000
Mean (X) 25.8 23.5
Standard deviation
(SD)
18.64 15.68
Regression R2 1.237 0.6845
Merlbourne Sydney
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Melbourne price
Sydney Price
Column1

“COMPARING THE PRICES OF USED CARS IN MELBOURNE AND SYDNEY 7
$3700
$3701
$30000
$3703
$3704
$3705
$3706
$29000
$3708
$3709
$3710
$4011
$3712
$61,000
$3714
$39000
$3716
$3717
$3718
$4
00
0
$4
00
1
$2
60
00
$4
00
3
$4
00
4
$4
00
5
$4
00
6
$2
80
00
$4
00
8
$4
00
9
$4
01
0
$4
01
1
$4
01
2
$6
0,0
00
$4
01
4
$4
0,0
00
$4
01
6
$4
01
7
$4
01
8
sub
aru Jee
p Chr
ysle
r
Spy
ker Toy
ota Suz
uki For
d Lex
us Che
vro
let
Peo
geo
t
Isuz
u Ma
zda Ho
nda Ha
mm
er
Lan
dro
ver
Por
sch
e
Vol
vo Jag
uar BM
W
0
5
10
15
20
25
30
Reggression
N
Standard Deviatio (SD)
Mean (X)
Table 3. Melbourne and Sydney market share prices in 2018/2019

“COMPARING THE PRICES OF USED CARS IN MELBOURNE AND SYDNEY 8
DATA ANALYSIS
Descriptive analysis is used for statistical data analysis of the prices of the used cars located at
Melbourne and Sydney. For the determination of the car sales prices the variable multiple
regression is applied regarding the study (Greener, 2012). However, the linear techniques for
regression are used for determining the relationships of the prices of the used cars in Sydney and
Melbourne cities. The following formula was applied in the determination of the regression CST
= β0 + β1 IRT + β2 GDP + β3 Inft + β4 Unet, CS = Car sales IR = stands for the Interest rate
charged for thee used, and Inf means = the Inflation at which the rate of buying and selling the
used cars in the two cities. Therefore, the mean, the standard deviations, and regressions were
presented for analysis of variability of different variables concerning the second-hand car sales
prices in Melbourne and Sydney respectively (Gavazza, Lizzzeri & Rektskiv, 2014).
Discussion

“COMPARING THE PRICES OF USED CARS IN MELBOURNE AND SYDNEY 9
Table 1.o shows the description of the statistics of the study regarding the car prices in the two
cities that is Melbourne and Sydney. The average mean for the data shows that the customer
demand buying the second and vehicle with the various brand include, Mean(X) =18.5. Standard
deviation (SD) =9.556 and the value for regression R2=0.6875. Arguably the car sales prices
have the mean, standard deviation and regression calculated as 18.4, 8.523, 1.567 respectively
for the two locations Melbourne and Sydney (Hymel & Small, 2015). The correlation analysis
was calculated for determination the existing association of the car prices from the two cities and
each and every variable were tested. The correlation range from (+1- (-1)} could mean the
positive and negative relationship of t6heused car prices. From the information above the car
sales, prices have appositive correlation considering that the value of regression is more than 0.5.
However, the relationships of the car prices and car brand show a higher value of 1.567 for the
prices of the cars (Iwata &Matsumoto, 2016).
Calculations -One way a nova
Variable No. of used
vehicles
Standard
deviation
Mean(X) F P
Melbourne 50 18.564 25.5 5.021 P0.001>0.10
Sydney 50 20.52 26.5 P0.001>0.01
Total 100
The p- values as determined from the above table include and the values for F were calculated
with since the value F (5.021) is < for the values of P> 0.1. However, the study did not have

“COMPARING THE PRICES OF USED CARS IN MELBOURNE AND SYDNEY 10
enough evidence for hypothesis rejection. It was assumed that the car prices for both the cities
varied at a close range, however the car prices in Sydney were sold at a relatively higher price
compared to Melbourne city. The mean difference for the two cities was 1.0. The value was
relatively small enough for rejecting the Null hypothesis H0.
Recommendations - The dealers with used cars should regulate their prices for high sales. The
two cities Melbourne and Sydney should consider covering the customers and ensuring their cars
and proper servicing of the cars before selling them. The study recommends the evaluation of the
used cars for better profit-making and the growth of the economy.
Conclusion and Implication
In brief, the prices of the used cars in Melbourne and Sydney are a big concern in the Australian
government economy. The used car market has deteriorated for quite some time due to the high
competitions from the importation of new cars. However, from the study above it is evident that
the economic variables regarding the car prices in Melbourne have a similar relationship in their
prices. The used car prices contribute greatly to the gross domestic in the country and in control
of the inflation rates. The citizens in both cities rely on the used cars due to their affordable
prices considering the income from their jobs Rogan et.al (201l). In general, the business in the
two states that have improved the financial markets in order to satisfy the customers’ demands.
Both the dealers and the sellers know the prices of the cars year of manufacture and their quality
(Manavhela & Henama, 2018)
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“COMPARING THE PRICES OF USED CARS IN MELBOURNE AND SYDNEY 11
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