Our colleagues at J.D. Power write today after its purchase of ALG from TrueCar that it will increase its “vision” of automotive residual value forecasting. This is important to Power, automakers and dealers as the industry prepares to launch many new electric vehicles. Along with this comes increased vehicle automation and other emerging technologies – all with uncertain levels of consumer acceptance, as well as variables caused by increasing government regulations and incentives along with resulting market dynamics.
The money involved right now is breathtaking. Determining an accurate residual value – the value of a vehicle at the end of a lease term is the underpinning of auto leasing because it allows dealers and manufacturers to set the most competitive lease terms today, while protecting their profits tomorrow. About one-third of new vehicles sold each year are leased, typically for a three-year term. At any point in time, the value of vehicles in outstanding lease portfolios is estimated at $500 billion by Power.
“The industry is about to experience a product shift unlike anything it’s ever seen before with new EV models and other new technologies quickly gaining adoption over the next several years and beyond,” said Dave Habiger, president and CEO, J.D. Power, not without self-interest.
J.D. Power claims to be a global leader in data analytics and consumer intelligence, while ALG is the industry specialist on automotive residual value projections in both the United States and Canada. ALG is being integrated into the data & analytics division of J.D. Power.
Power is betting its existing market performance-based values and individual vehicle configurations will become an increasingly esteemed or necessary business tool as the electric vehicle segment grows. The focus on new vehicle technologies and retail channels provides an opportunity for significant evolution.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
J.D. Power Completes ALG Acquisition
Our colleagues at J.D. Power write today after its purchase of ALG from TrueCar that it will increase its “vision” of automotive residual value forecasting. This is important to Power, automakers and dealers as the industry prepares to launch many new electric vehicles. Along with this comes increased vehicle automation and other emerging technologies – all with uncertain levels of consumer acceptance, as well as variables caused by increasing government regulations and incentives along with resulting market dynamics.
The money involved right now is breathtaking. Determining an accurate residual value – the value of a vehicle at the end of a lease term is the underpinning of auto leasing because it allows dealers and manufacturers to set the most competitive lease terms today, while protecting their profits tomorrow. About one-third of new vehicles sold each year are leased, typically for a three-year term. At any point in time, the value of vehicles in outstanding lease portfolios is estimated at $500 billion by Power.
“The industry is about to experience a product shift unlike anything it’s ever seen before with new EV models and other new technologies quickly gaining adoption over the next several years and beyond,” said Dave Habiger, president and CEO, J.D. Power, not without self-interest.
J.D. Power claims to be a global leader in data analytics and consumer intelligence, while ALG is the industry specialist on automotive residual value projections in both the United States and Canada. ALG is being integrated into the data & analytics division of J.D. Power.
Power is betting its existing market performance-based values and individual vehicle configurations will become an increasingly esteemed or necessary business tool as the electric vehicle segment grows. The focus on new vehicle technologies and retail channels provides an opportunity for significant evolution.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.