Jonathan Banks of J.D. Power Describes How VIN Enhanced Vehicle Description Data Delivers Precision and Insight to the U.S. Used Vehicle Market
"One of the big limitations for the industry revolves around how to gather, correlate and interpret data from disparate sources. While different players in the value chain use vehicle identification number (VIN) data to capture information, it really doesn't give you as much information as you'd like to get." – Jonathan Banks, J.D. Power
No two motor vehicles are identical. There are so many options available that even two vehicles that share a make, model and trim level from the same year are likely to have different features that might make one more sought after than the other. This creates a challenge for used car dealers, financial institutions, insurance companies and consumers in the automotive market seeking to leverage data to make better decisions, according to Jonathan Banks, VP and General Manager of Vehicle Valuations with J.D. Power, in a podcast interview for journalists.
"One of the big limitations for the industry revolves around how to gather, correlate and interpret data from disparate sources. While different players in the value chain use vehicle identification number (VIN) data to capture information, it really doesn't give you as much information as you'd like to get," Banks explains.
To better serve dealers and financial institutions who require accurate vehicle information, J.D. Power is enhancing our extensive vehicle database with enhanced vehicle description information that associates build data and vehicle content details from key business partners to a specific VIN to create a more comprehensive and precise vehicle valuation perspective for key stakeholders in the automotive industry.
Precision Insights from AI/ML-based Insights
J.D. Power plans to apply artificial intelligence and machine learning in order to create very sophisticated analytical models that will take a lot of guesswork out of many decision-making processes.
"It's kind of like ordering a diamond online. You're not just going to order a diamond online because it looks good; you're going to order it if it has a certain grade. That grade is based on an expert evaluating the diamond, so you can trust that you're going to get a product that's in line with what the photos tell you," describes Banks.
"J.D. Power's VIN enhanced vehicle description data will provide this precision. With our extensive vehicle data, a lender or dealer can have a much better understanding of a specific vehicle and the content that is available on the vehicle," he says
Changing the Game
This has the potential to be a game-changer for the industry.
"As it stands today, when a consumer goes to get a loan for a used car a lender does not look at the actual used car. Lenders will look at a piece of paper that includes VIN data that specifies the options on the vehicle. As a result, they or may not arrive at a correct valuation," Banks explains.
"Now, with the J.D. Power VIN enhanced database, they'll be able to know more precise information about the vehicle and lend the right amount to the consumer," he says.
Having more accurate and precise information -- based on real insight on different features that are actually present on specific vehicles -- will help dealers make better decisions in different regions, while supporting manufacturers plan their operations more effectively and financial institutions make better loans.
To listen to the entire podcast interview with J.D. Power's Jonathan Banks, visit:
https://soundcloud.com/jdpowerpod/jd-powers-jonathan-banks-describes-how-vin-enhanced-vehicle-description-data-delivers-precision-and-insight
