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A key factor in overall transportation cost is the re-sale value of your vehicle. But while many consumers research the prices of new vehicles to the nth degree, they often don’t even take a stab at finding out how that used vehicle’s value over time. But now a new online tool will make obtaining that information easier. The J.D. Power Consumer Center, a Web site that provides voice-of-the-customer ratings on a number of products and services, has introduced a new feature on its automotive site called PIN Retained Value.
The new system, developed by the Power Information Network (PIN), an affiliate of J.D. Power and Associates, offers ratings on the retained values of new vehicles after three years of ownership. The projected retained value ratings are depicted using from two to five Power Circles with five-circle vehicles offering the best re-sale value and two-circle vehicles offering the worst. The measure is based on new- and used-car retail sales transactions from more than 6,000 franchises nationwide.
The ratings incorporate the impact of vehicle design, performance, and long-term quality as reported in J.D. Power and Associates automotive studies. Additionally, brand image, product lifecycle age, new-vehicle pricing, and incentives at the time of used-vehicle resale, and rental and lease sales volumes are also factored into the projection of retained values. Finally, retained value ratings for each model are based on a comparison of similar models in the same vehicle segment.
“The PIN Retained Value rating is a closer reflection of a vehicle’s depreciation than the traditional industry standard calculations of residual value because it uses an average of actual prices paid for new vehicles rather than MSRP and is computed and updated on a monthly basis to reflect more accurately the constantly changing marketplace,” says Jie Cheng, vice president for solution development for PIN. “This information, in combination with several other quality ratings offered at the model level on the Consumer Center, will surely assist consumers in making more informed decisions in their evaluation and selection of new vehicles.”
Tagged with: re-sale value • right pricing
Filed under: Buy A Car