J.D. Power will begin offering its monthly Used Vehicle Price Index that tracks current and estimated future movement of wholesale used vehicle prices at the industry and segment level, the consultant and data provider announced.
The index will include insight into used vehicle price performance, historical index data from 1995 for models up to eight years old, and forecast index data for the current year and two years ahead.
The index's initial data is sourced from the firm’s proprietary database of auction transactions. From there, vehicles with abnormally high mileage or extreme pricing are singled out, according to the company.
Mileage is adjusted to represent the typical total for each vehicle’s age, and then data is weighted from the vehicle level up to segment and industry levels to generate a monthly aggregated index value. Vehicle-level indices are aggregated to produce industry and segment-specific depreciating series and controls for depreciation are made on statically derived depreciation estimates and seasonal adjustments, according to J.D. Power.
J.D. Power will offer its Used Vehicle Price Index service to U.S. customers through a two-level subscription plan, including a no-cost option.