Reduce automotive portfolio risk with accurate valuations


Car key on pile of US dollar bills. Business concept. Selective focus, close-up.

Automotive is one of the world’s largest industries, generating economic power since the early twentieth century. As one of the largest manufacturing industries, it’s no wonder that accurate valuations and pricing is a matter of critical importance for almost all market participants. Banks, insurance carriers, asset managers and dealers all have a horse in the race when it comes to the security of this sometimes-volatile market, and a robust portfolio is the responsibility of every mature investor and business person.

It all starts with accurate valuations.

Financial institutions, dealers and remarketers need reliable vehicle valuations that consider more than just the base value of the vehicle. A complete picture of a vehicle’s overall worth ensures higher and more accurate price margins throughout the entire financial lifecycle, and a robust portfolio of assets is only as good as the valuations those assets are built on.

Financial institutions often build their lease and loan portfolio reports from the base value of their used inventory, trusting a generic VIN decode or an appraisal that neglects a comprehensive picture of the VIN. Without knowing the value adjustments that add or deduct value for each VIN, these groups end up with portfolios that over or under report the value of the assets.

A more accurate valuation of your portfolio that considers trends, value-add features and custom add-ins will maximize profit potential, reduce losses and mitigate risk at every step of the automotive value chain. Despite this, many financial institutions simply leave it at a bare-bones VIN decode that leaves money on the table.

Frequent monitoring prevents unpleasant surprises.

Regularly monitoring a portfolio, it perhaps goes without saying, can help lenders stay on top of their assets and ensure they’re on track to meet their objectives. Regular monitoring staves off the dreaded moment a lender looks at their loan-to-values, terms and rates eighteen months into the loan and realizes they’re not on track. Catching risks in a portfolio early on can be key to differentiating between loans likely to default and those that are likely to be profitable, and good data supports these decisions throughout the entire loan lifecycle. In an industry that changes as rapidly as automotive, some modern investors are analyzing their data quarterly, or even monthly, to stay current with their investments.

As-Built Valuation Service does the job.

By partnering with premiere guide and book companies, such as Black Book, we’re able to provide the industry’s first valuation platform that adjusts the value of each vehicle with key features and equipment impacting the overall value—for a single VIN or an entire batch. Get a precise vehicle valuation for nearly every VIN in an instant!

As-Built Valuation Service supports lending, third-party vendors in loan origination, portfolio risk analysis, repossession/remarketing, insurance/total loss, consumer trade-in websites and more.

Learn more about our As-Built Valuation Service or call 800-936-8906 (option 2) today!