COSTA MESA, Calif., June 5, 2019 /PRNewswire/ -- J.D. Power, the global leader in data analytics and consumer intelligence, today unveiled J.D. Power VIN Values, a unique product designed to significantly improve the vehicle valuation process and eliminate financial blind spots by using a Vehicle Identification Number (VIN) to precisely determine the correct trim level and factory-installed options.
J.D. Power leverages its multiple data assets and alliances to quickly gather trim, options and purchase history simply by inputting a 17-digit VIN.
The financial implications are significant. For example, a portfolio of 100,000 vehicles that uses a standard VIN decoding process could have a valuation margin error between 6% and 13%, resulting in an adjustment of $25-35 million. J.D. Power VIN Values product can eliminate this costly margin and provide users with an unmatched level of accuracy on any vehicle.
"The business of wholesaling and retailing vehicles demands transparency with speed and accuracy," said Jonathan Banks, Vice President and General Manager of Vehicle Valuations at J.D. Power. "Access to trim and option data derived from a VIN meets these needs for virtually every step in the process of a vehicle being bought or sold."
Benefits to Lenders
- Create loans for the exact amount for each vehicle portfolio or floorplan, and account for all the content of each specific vehicle.
- Consistently make more accurate loan-to-value decisions. Lenders will be able to ensure that a borrower is getting enough money to cover the purchase of the vehicle and related services.
- Improve the ability to set correct loan-to-value metrics; reduce the under- and over-valuing of vehicles; better comprehend the trim levels for high-margin vehicles.
Benefits to Dealers
- Create a specific strategy to know what option content is best suited for their region.
- Determine what vehicles to purchase at wholesale or auction through better integration with inventory optimization tools.
- Make decisions that more accurately reflect the vehicles in their inventory. Currently 30% of VINs that get decoded are unable to match to trim-specific data.
- API integration will enhance the accuracy and speed at which dealers can make critical decisions.
- Dealers can get option content on each individual vehicle and provide a trade-in value that's in line with what the vehicle is actually worth.
Benefits to Insurers
- Further accuracy for insurers can result in more appropriate premiums for customers, while offering rates that are in line with vehicle values.
- Provides unparalleled insight into a vehicle's content when evaluating total-loss scenarios.
Benefits to Rental Fleets
- Assess fleet inventory value and determine what individual models would be appropriate to wholesale.
- Determine which options are most suitable to meet customer needs and expectations within regional markets.
J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power has offices serving North America, South America, Asia Pacific and Europe.
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SOURCE J.D. Power