J.D. Power's Used Vehicle Price Index Service Forecasts Prices Up to Two Years Into the Future

MCLEAN, Va., Aug. 14, 2017 /PRNewswire/ -- J.D. Power, a global leader in consumer insights and advisory services, has launched the Used Vehicle Price Index Service—a monthly index which tracks current and estimated future movement of wholesale used vehicle prices at both the industry and segment level.

Key service features:

• Insight into used vehicle price performance and how movement could impact business performance
• Index data underpinned by AuctionNet^® data, representing more than 80% of the nation's auction transactions from Manheim, ADESA, ServNet, ABC and key independent auction houses
• Historical index data since 1995 for models up to 8 years in age
• Forecast index data for the current year and two years ahead, providing insight into future opportunities and risks
• Industry- and segment-level indices

"Lenders, manufacturers, insurers, equity analysts and many others with an interest in the automotive industry depend on insights from J.D. Power to make better decisions affecting their bottom line," said Mike Stanton, vice president of valuation services at J.D. Power. "By offering this highly sought after service, customers will have a new analytical tool to improve profitability."

Jonathan Banks, vice president of vehicle analysis and analytics at J.D. Power Valuation Services, added to Mr. Stanton's statement, "Our new used vehicle price index service can help customers mitigate risk. With the service's forward-looking capability, the guesswork of what could potentially happen to a portfolio or proposed decision is almost taken out of the equation."

Methodology

J.D. Power's used vehicle price index and forecast data provide time-series price measurements of a fixed pool of vehicles (or the "same" vehicles), with changes based predominantly on contemporary and expected market conditions. This process eliminates nearly all bias that could come from fluctuations in vehicle age (e.g., an increase of younger vehicles entering the market) or vehicle mix (e.g., more expensive trucks entering the market). 

How the index is produced:

• Baseline data is derived from J.D, Power Valuation Services' proprietary database of auction transactions
• Non-representative sales are filtered out, including those for vehicles with abnormally high mileage and extreme prices
• Mileage is adjusted to represent the typical total for each vehicle's age
• Data is weighted from the vehicle level up to segment and industry levels to generate a monthly aggregated index value
• Vehicle-level indices are aggregated to produce industry and segment-specific depreciating series
• Controls for depreciation are made based on statistically derived depreciation estimates and seasonal adjustments

Service Levels and Pricing

The J.D. Power Used Vehicle Price Index Service is available to U.S. customers in a two-level subscription plan, which provides a monthly report. Service Level 1 provides industry-level and historical data for free through subscription. Service Level 2 provides everything included in Level 1, as well as segment-level and forecast data for the current year, plus two additional years (see segment list below for further details). Subscribers interested in Level 2 are encouraged to contact J.D. Power Valuation Services at 1-800-544-6232 or visit nada.com/priceindex for cost information.

Service Level 2: Included Segments

Custom Reports and Consulting Services

J.D. Power Valuation Services experts can customize reports for customers to address specific needs and discuss data opportunities.

To subscribe or learn more information about the all-new J.D. Power Used Vehicle Price Index Service, customers may visit nada.com/priceindex or call 1-800-544-6232.

About J.D. Power

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 is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific, and Europe. J.D. Power is a portfolio company of XIO Group, a global alternative investments firm headquartered in London, and is led by its four founders; Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

J.D. Power recently acquired NADA Used Car Guide (now J.D. Power Valuation Services), which is a leading provider of vehicle valuation products and services to businesses. The team collects and analyzes more than 1 million automotive and truck wholesale and retail transactions per month, and delivers a range of guidebooks, auction data, analysis, and data solutions.

Media Inquiries
Ryan Morris
Sr. Manager, Public Relations
J.D. Power Valuation Services
202-826-4029
[email protected]
www.nada.com/b2b

SOURCE J.D. Power