I have a database of second hand cars. It contains (among other things) the asking price, the mileage, the fuel consumption and the year it was built.
I would like to know how much the value depreciates due to time (only), and due to mileage (only).
So for car model X, I'd like to know: - how much value the car loses with each year - how much value the car loses with each mile
My dated statistical knowledge from college tells me that I can do an OLS regression with price as dependent variable and year as independent variable, controlling for mileage. And a regression analysis with price as dependent variable and mileage as independent variable, controlling for year.
Would this work? How much observations would I need per car model? Year seems to have an exponential effect on value, and is it an ordinal variable that creates problems in such a model? Are there any other solutions?
Any help would be greatly appreciated.