PRESS RELEASE

13^thOCTOBER 2015

Vehicle valuation "becoming more and more difficult"

However, accuracy of data is improving despite increasing complexity

Valuing cars and vans is becoming more and more difficult thanks to factors such as a greater diversity of models, increased number of sales channels and larger macroeconomic influence, says Glass's.

However, despite this increasing complexity, overall levels of accuracy are improving, even if some less robust players are being driven out of the market for valuation data as a result of these pressures.

Rupert Pontin, head of valuations at Glass's, said: "Being able to access accurate valuations data is essential for anyone involved in buying and selling used vehicles of any kind but the process of producing this information is, we believe, becoming ever more difficult.

"Look back a few years and there was much less model diversity. Also, the number of disposal routes was a fraction of what can be found today and the impact of macroeconomic trends on values tended to be less. The picture was really a lot simpler.

"Now, the situation has changed completely and, while we are able to use much improved technology in order to handle this increased complexity, the core task of valuations is getting ever more complicated."

Rupert said that this was the reason that some smaller and less committed companies were being slowly driven out of the sector and also why some quite large disparities on valuations could be found.

"Every year we analyse over 1.4 million trade observations and around 8 million retail observations. We carry out in the region of 2,000 telephone market surveys, 500 manufacturer visits and 500 auction visits. In addition to this, our valuations team, who spend at least half of each month talking to contacts in the market; have more than 200 years of experience between them.

"Simply to collect the raw data needed to make valuations today means that you have to be a sizeable operation and to know how to process that information requires a very specialised skillset. However, despite this, we are actually becoming increasingly accurate."

Rupert said that Glass's had an overall residual value accuracy of 98.8%, much better than any competitor.

He said: "We are proud of our record in this area and are making strides forward all of the time. However, our view is that the job of vehicle valuation is only going to get more difficult over time, and we are continually looking at new techniques and sources of information in order to enhance our accuracy."

About Glass's

Glass's is the largest vehicle data provider in Europe, offering products and solutions that are invaluable at every stage of a vehicle's lifecycle. These include key valuation, technical and fleet management data, estimating, bodyshop and dealer management systems and web-based services. Founded in 1933 by William Glass, the first Glass's Guide to Car Values - widely referred to as the used car dealer's bible - was published in July of that year.

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