LAWRENCEVILLE, Ga.—A new white paper details the growing importance of data analytics in used car valuation.
In the white paper, Black Book notes that since the recession used vehicle prices increased and stabilized at levels not seen in years, resulting in low depreciation rates. And while depreciation is finally beginning to accelerate, data analytics is needed to assess smaller differences in value based on region, seasonality, ride sharing and other factors.
“This closer look at the data is helping to make more insightful decisions on everything from remarketing and pricing, to incentives and inventory levels,” Black Book stated.
The Black Book white paper details how data analytics is having an impact on three areas of the automotive market today: gas prices and compact car values; the impact ride-sharing vehicles have on vehicle depreciation, and the role “channel stuffing” plays on vehicle retention. The white paper also goes into detail about various types of analytics employed today, such as prescriptive and predictive analytics, data mining, text analytics, business intelligence and data visualization.
“What’s impressive today about data analytics is that the technology behind data is allowing us to provide an immense amount of customization and proprietary interpretation around the data to meet the needs of specific organizational goals,” said Anil Goyal, senior vice president of automotive valuation and analytics. “Combined with our ability to capture data in real-time, the analytics process is truly helping to fast track intelligent decision-making environments in order to maximize profit potential and reduce losses.”