8:23 pm, March 9, 2011
A NEW valuation tool offering real time short-term used car trade price forecasts has been launched by CAP.
Called Black Book+, the valuation tool reveals short term used car pricing risk by providing a one – three month forecast to assist traders buying or selling used cars.
CAP says dealers using Black Book+ will be reducing the risk of valuing cars for part-exchange before deals can be finally completed. It will be valuable with long lead times on new cars creating the risk of additional depreciation for the part-exchange vehicle.
Pilots have shown that the most recent one-month outturn revealed an average Black Book+ under-forecast of 0.8 per cent – or £14 per unit – at the three year/70,000 benchmark.
Black Book+ forecast valuations apply to vehicles over 12 months old, at mileage points from 1,000 to 250,000 miles and up to five years old. Forecasts are produced on a constant basis in real time, providing the most up to date intelligence possible, together with a brief narrative explanation of each forecast rationale.
CAP product development director, Anthony Doherty, said: ‘With Black Book+ we are answering our customers’ demand for more comprehensive used car valuation tools.
‘By introducing short term forecasts, published in real time instead of once a month, Black Book+ will help operators in car retail and fleet disposals to be more nimble and effective in maximising profit and residual values.’
