What does AVS do?
AVS provides a quick and easy way to forecast and re-forecast vehicle values as at the current or any future date. It is data supplier independent and has the potential to be deployed in any country where valuation data is available. Customers can apply multiple adjustment factors to valuations to reflect their own view of the market (which can be used for such things as economic, seasonal or customer taste/demand changes etc and be varied by specified vehicle characteristics like Make, Model, Body, Fuel etc), and so analyse the impact of different market scenarios.
Suitable for any business with significant exposure to changing vehicle values, AVS can accept user vehicle data (cars, LCVs etc) to be valued in virtually any format/layout and produce valuations based on contracted miles/kms, actual meter readings, or a standard mileage/kms per period. AVS automates, controls and audits the whole process of forecasting and re-forecasting vehicle values and provides extensive MIS / analysis facilities.
AVS was developed in collaboration with major motor manufacturer finance companies.
Who might use AVS?
- Fleet, contract hire and retail finance companies.
- Vehicle rental and short-term hire companies.
- Vehicle retail outlets or companies running their own sizable vehicle fleets.
Why use AVS?
- FINANCE / RV MODELLING - Forecast new vehicle RVs at different terms and mileages/kms as input to finance pricing models or to cross-compare / validate quoted RVs.
- RISK MANAGEMENT - Monitor previously forecast RVs, guaranteed RVs, buybacks etc against the latest re-forecast.
- PROVISIONING – Regularly re-forecast the anticipated end of finance term RV surplus / loss position.
- REMARKETING – Value vehicles coming towards end of term as input to disposal / de-fleet activities.
- CAPITAL REPORTING – Re-value the whole vehicle fleet whenever required.
- FLEET ACQUISITIONS - Quickly value potential vehicle portfolio acquisitions.
- CUSTOMER RETENTION – Forecast customer equity to support retention / loyalty programmes.
How does AVS work?
- Uses market valuation data (e.g. CAP, EurotaxGlass, RedBook etc) as required (and sourced) by the customer.
- Accepts customer vehicle data in virtually any format (using customer-controlled settings).
- If customer data is not already encoded with standard vehicle codes, AVS has a powerful matching facility.
- Mileage/kms calculations can be based on contractual miles/kms, actual speedometer data or input averages.
- Future valuation dates can be varied to cater for different end of contract arrangements.
- Multiple adjustment factors can be combined and applied to model different market scenarios.
- Includes a powerful analyser tool with user-driven cut/slice, drill-down features and graphical output.
- AVS is a fully hosted cloud based platform (using Microsoft Azure).
- Access is via any standard web browser
- Central to AVS is the handling of multiple different sets of ‘market valuation data’ (i.e. CAP, EurotaxGlass, RedBook etc), each including current used values and/or future forecast values. This gives the potential to compare/contrast different companies’ views on vehicle values quickly and easily.
- Both current used valuations and future forecast valuations can be optionally ‘adjusted’ by user-defined factor tables (based on vehicle characteristics, i.e. model/fuel/body etc). Factors can also be grouped together, easily allowing different scenarios (e.g. market crash/boom, a manufacturer crisis, etc) to be processed and analysed.
- AVS also supports building your own forecast values starting from a current used value BUT not as the car is today, rather the same car but at the age/mileage/kms it will be at the end of the contract. This is quite straightforward where a model/derivative has been around a long time and the used valuation data is available for that target plate/year. Where it has not we build a ‘basket’ of similar vehicles (and the user controls the definition of ‘similar’), and use the basket average depreciation percentages over the missing plate/year periods to move from the last available data for the actual car to the valuation target plate/year. Then using the user-defined adjustment tables you can model different scenarios of the time between now and the date in the future you want a forecast valuation. So you can develop your own forecasting models, independent of any 3rd party’s view of what might happen in the future.
- AVS has its own ad hoc analysis capability allowing you to cut/slice/drill down in pretty much any way you want and instantly see graphical results (which can be exported / saved).
- AVS is already proven with portfolios of several hundred thousand vehicles.