Data Precision Emerges as Critical Success Factor for Automotive Lenders
* A lack of precision and data analysis has created blind spots that have a negative effect on automotive lenders.
* New technology and evolving relationships offer effective avenues for lenders to access and take advantage of very precise and granular vehicle data.
* The ability to capture and analyze granular data provides lenders an opportunity to run their business with a much higher level of confidence and profitability.
By: J.D. Power
Moving deeper into 2021, we expect to see continued challenges in the automotive industry including inventory shortages in both new and used vehicles, as well as supply chain disruptions. Lenders will have to access the best, most accurate and current information to achieve important business objectives. Analyzing the changing risk landscape to make smart decisions about loan portfolios will emerge as an important competitive factor among lenders in the months and years to come.
Higher Quality Data Available
For many years, lenders relied on standard VIN decoders which offer partial—and sometimes incorrect—data about vehicle features and packages. In many cases, these limitations led to imprecise valuations for specific vehicles and resulted in costly oversights and missed opportunities. In the salad days leading up to March of 2020, a highly profitable market could absorb these inefficiencies. The situation today, however, is different.
Today, two major developments are unfolding: 1) a significant evolution in industry relationships across the value chain is making more data available to the automotive community of interest; and 2) dramatic developments in technologies—
These two trends inspired J.D. Power to make significant investments in its data-gathering and analytical capabilities, which have manifested themselves with the addition of ALG and ChromeData to the J.D. Power family. The increased amount of data and advanced analytical tools leveraging AI technologies have resulted in a new J.D. Power offering called VIN Precision+.
Vin Precision+ unlocks the full 17-digit VIN code and erases blind spots associated with traditional VIN decoding. This solution is a robust and intelligent resource that vastly improves lenders' ability to engage in:
VIN Precision+ is having a significant—
Find out More
This J.D. Power Automotive Briefing Report was authored by Leland Brewer, director of vehicle valuations. Please contact us at the numbers below to schedule an interview and/or to learn more about the underlying research.
Wendi Sheridan; East Coast; 424-903-3644;
Geno Effler, J.D. Power; West Coast; 714-621-6224;