J.D. Power to Offer Residual Value Benchmarking Product

J.D. Power has released a benchmarking product that was designed as an informational resource for vehicle manufacturers, captive finance companies and lenders that it's calling J.D. Power Residual Values.

The product will leverage data gathered from J.D. Power’s Power Information Network, the J.D. Power / National Auto Auction Association AuctionNet service, and from proprietary J.D. Power Voice of Customer data. Respectively, the Power Information Network represents more than 40% of franchised dealer retail sales transactions in America and AuctionNet service accounts for more than 80% of automotive auction transactions.

Data gathered from J.D. Power’s Initial Quality Study; Vehicle Dependability Study, Automotive Performance, Execution and Layout Study; and Auto Avoider Study will also complement the product.

“We are launching this capability at a particularly important time for the industry as it deals with record levels of lease origination in an environment of declining used vehicle prices.  Automakers — and their lenders — are looking for ways to accurately forecast and enhance the residual value of their vehicles because of its direct impact on both sales and profitability,” said Deirdre Borrego, senior vice president of data and analytics at J.D. Power.

Under Borrego’s leadership, the newly created Data and Analytics Division of J.D. Power will also include J.D. Power Valuation Services, a service which was formerly known as NADA Used Car Guide. Under the new name, J.D. Power Valuation Services will produce, manage and distribute residuals and related services, according to the company.

“Manufacturers rely on J.D. Power insights in so many other areas of their business, so it makes a lot of sense to support them in such a critically important function that has long-term financial implications,” said Jonathan Banks, vice president of vehicle valuation and analytics at J.D. Power. “What OEMs and captives will find unique is the transparency of the valuation. Our product will provide clients with a viable third-party source as a challenger model to current processes, with an opportunity to expand into more predictive and prescriptive analytical solutions.”

Mike Stanton, vice president of valuation services, will lead the team in McLean, Va., as it continues to market NADA Values until it fully transitions to the J.D. Power brand.