Gainesville, GA – Black Book® revealed a new industry-advancing product today called Black Book Risk Score. The scores help to reliably predict the vehicle collateral risk associated with auto lending that can lead to volatile swings and great variability in lenders’ recovery rates and loss severity.
Black Book Risk Score helps companies evaluate collateral risk by helping them understand factors such as historical deprecation curves, recent and predicted reversion from these curves along with the expected condition and mileage and potential for fraud; all down to the vehicle trim level. The Scores also take into account a vehicle’s reaction, as it relates to vehicle values to macroeconomic factors and manufacturer changes.
Lender feedback has indicated applicability in marketing, loss forecasting, credit and collection models, dealer profitability strategies and more. As described by Tom Cross, Black Book’s president, “the product’s bottom line is that it helps to protect companies from crucial automotive value issues and surprises that lead to higher loss severity and lower recovery rates.”
VP of Lender Solutions, Lou Loquasto adds “With vehicle values at an all-time high and just three years away from all-time lows, auto finance companies face significant risk concerning a vehicle’s value over the life of a loan. The objective of Black Book Risk Score is to create a resource that rank-orders the degree of collateral risk all the way down to the year/make/model trim levels. We are particularly excited about how this new product will help our lenders and grateful to the partners that helped in its development”.
Cross concluded by saying “Black Book has always taken pride in being the industry leader in delivering the most timely, independent, and accurate vehicle values. Our financial and automotive customers can be assured that we will continue to be at their side providing needed information to enhance their ability to be successful, regardless of economic times.”
About Black Book
Best known in the Automotive Industry for providing timely, independent, and accurate vehicle pricing information, Black Book® data is published daily by National Auto Research, a division of Hearst Business Media, and is available to industry qualified users through subscriptions to the website (www.BlackBookUSA.com). Black Book data is also available to industry qualified companies for license and sublicense through proprietary web services, APIs, and data feeds. Whether a company is buying, selling, or lending, Black Book’s mission is to provide the Automotive Industry with timely, independent, and accurate information to help make the right decisions.