Auto Insights Newsletter | April 2023
The future value of a vehicle means different things to different people
Understanding the future value of a vehicle is critically important to both businesses and consumers.
At Lightstone we refer to this as the residual value and our robust method of forecasting provides insight into the future value of a new or used vehicle.
Some of the features that can be used in our Residual Value Forecasting (RVF) model include:
This model is currently being used in various ways by the banking and insurance sectors, and by OEMs and dealerships.
The banking sector uses it to refine loss given default models, support guaranteed buyback programmes and manage floorplan risk, while OEM’s use it to understand how new derivatives would retain their value, de-fleet value forecasting and determine if specs matter in value retention, for example an automatic vs a manual gearbox.
Our dealer partners use it to see how a vehicle’s days in stock affect value and our insurance partners use it to forecast risk.
The RVF does not just benefit those selling, financing and insuring vehicles. Any business with a fleet can benefit greatly from understanding the future value of the vehicles it owns.
How can RVF help your business?
AutoRVF gives real time month-to-month context to the value of your current assets and their respective future values. Decision makers have the capability at their disposal to enable sound risk management of their assets to mitigate over and/or undervalued assets - resulting in a positive impact on balance sheets and future cash flow. Users have access to sound and secure data, serving as a cornerstone for the strategic and management decision making processes, such as when to de-fleet/replace assets to minimise depreciation loss compared to acquiring/replacing the assets.
Please contact: Iavanie Rossouw at iavanier@lightstone.co.za
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