Glass’s will launch the most significant changes to its valuations system for at least a generation, resulting it says in dramatic improvements to accuracy, granularity and timeliness.
This year Glass’s will analyse over 1 million wholesale transactions and over twice the number of retail observations, but the implementation of a new Statistical Analytics Engine (SAE) is a step change in approach.
The technology became available to Glass’s when EurotaxGlass, its parent company, acquired Grey Hen-Autovista earlier this year. The new technology will also enable Glass’s to become more transparent with its customers and show the correlation between transaction data and Glass’s valuations.
One example of the power of this approach is that mileage adjustments will be customised for each model and demonstrate significantly improved linkage to observed data across all segments.
In another significant change, Glass’s will also move from having one trade value for any vehicle to a new system of three condition-based wholesale values, which will directly reflect the recently introduced condition grades used by auction houses. The decision on the precise grading system to be used will be taken in the coming months.
“Rather than a fixed and essentially arbitrary set of condition grades, Glass’s three wholesale values will be directly linked to the prices of vehicles with specific conditions and so will mirror the transaction data we receive from auctions,” said Andy Carroll, managing director of Glass’s.
“This will mean that any price differences between the condition grades will be captured and reported to accurately reflect ‘real world’ market conditions.”
Developments for 2012 also will include the ability to provide customers with updates more frequently than once a month.
By improving timeliness, there is the opportunity to reflect price changes in a near ‘real time’ situation. The 2012 plan also includes the identification and valuation of vehicle options through direct access to manufacturer databases.
Glass’s currently values options separately, especially vital for premium brands, and it says this new development will further improve accuracy.
The new SAE will be applied across Glass’s product range for passenger cars, commercial vehicles, motorcycles and caravans – although the lower volume of transaction data for the latter three will mean the changes will be brought in at a slower pace.
Work has been underway for several months already and the first changes will be launched later this year, following close consultation with customers.
All changes will be available through GlassNet, Glass’s online valuation tool, and all other digital products including Evaluator.
However, given the considerable increase in information that Glass’s will be providing to customers and the effect that introducing these values would have on the physical size of the printed Guide, a final decision has yet to be made on how to include them in the printed Guide.
Glass’s will be consulting with over 12,000 customers for their views on the impact of such a major change before taking a final decision.