J.D. Power unveiled J.D. Power VIN Values, “a 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 company noted.
The financial implications are significant, J.D. Power says. 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 million to $35 million. J.D. Power VIN Values “can eliminate this costly margin and provide users with an unmatched level of accuracy on any vehicle,” according to the company.
“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.”
The product provides benefits to lenders, dealers, insurers and rental fleets, according to J.D. Power.
VIN Values enables lenders to create loans for the exact amount for each vehicle portfolio or floorplan, and account for all the content of each specific vehicle, according to J.D. Power. It enables dealers to create a specific strategy to know what option content is best suited for their region, among other benefits.
For insurers, the product can help improve accuracy, resulting in more appropriate premiums for customers. The product enables rental fleets to assess fleet inventory value and determine what individual models would be appropriate to wholesale, according to J.D. Power.