NADA Used Car Guide Introduces Auction Values, Enhances Editorial Processes and Methodology
NEW VALUES STRENGTHEN NADA’S POSITION AS THE COMPLETE SOURCE FOR VEHICLE VALUATIONS – WHOLESALE AND RETAIL
MCLEAN, Va. (Feb. 2, 2010) - NADA Used Car Guide (NADA) has introduced auction values to its electronic product line. These new values are updated weekly to help customers better understand pricing activity for the disposal or purchase of a vehicle in the dynamic auction remarketing channel.
“Thanks to AuctionNet, NADA's partnership with the National Auto Auction Association (NAAA), our analysts are reviewing approximately 80% of total auction sales volume on a weekly basis to produce the new auction benchmarks,” said Mike Stanton, vice president and chief operating officer, NADA Used Car Guide.
Auction values complement NADA's traditional value offerings in two important ways for lenders and dealers:
- Lenders rely on NADA values for loan origination based on NADA's review of a number of data inputs and other factors, not the auction market alone, to help mitigate risk. Lenders are now able to easily access NADA's auction values to help with remarketing needs and give credit risk managers additional insight.
- Dealers have traditionally used NADA values at auction to help determine what a lender would advance on a particular vehicle. NADA now also provides the most accurate auction benchmarks to help dealers determine pricing activity in the auction lanes.
Auction values are available at no additional cost to subscribers to NADA's electronic products, including NADA Online, NADA e-valuator, NADA e-valuator for Dealers and NADA Web Service.
In addition to providing weekly auction values, NADA has enhanced its editorial process and methodology through data warehousing innovations and increased analytics capabilities, and advancement of editorial staff skill sets and tools. NADA reviews economic data, market trend information, auction and retail sales transactions, asking price data, manufacturer incentives, new- and-used vehicle supply, regional differences and sales forecasts to produce its trusted trade-in, loan and retail values.
“We have all seen unprecedented swings in the used-car market over the past 18 to 24 months and NADA has responded with significant investments in key areas to provide the most complete and accurate set of vehicle valuations from auction to trade-in to loan to retail,” said Bill Willis, NADA board of director member from Delaware. “Our suite of pricing information will help the industry monitor potential fluctuations in the auction lanes, and show longer-term movement in the market, to provide the complete picture.”