PLEASE NOTE: We are currently developing a new way of reporting our accuracy to provide greater insight and transparency into our valuations, giving you more confidence in the numbers you rely on. This will be live in January 2017.
Giving you the full picture
We will always compare ourselves to the market on EVERY vehicle we can. This usually means 60,000 to 80,000 a month.
We will never cherry pick a small section of observations to make us look more favourable; we’d be lying to ourselves and more importantly, you. We have customers specialising in every area of the market so we need to be just as accurate on late plate, low mileage cars as we are on ten year old, high mileage vehicles.
Accuracy matters to us, but it matters more to you.
How do we measure accuracy?
- 1. Trade observations are received from NAMA and matched to the relevant Glass Code
- 2. Our standard mileage Glass Trade figure is identified from the same month as the observation
- 3. The Glass Trade figure is adjusted to the exact mileage figure of the observation
- 4. Auction hammer price is compared to the mileage adjusted Glass Trade value
We repeat the process with our rivals' equivalent valuations, mileage adjusted using their own methodology, before comparing the two.
We then look at the average overall accuracy figure, which is the trade value as a percentage of the observed auction price – the closer to 100%, the more accurate we are. For example, if we are at 103.8% it means on average we are valuing at 3.8% over the hammer price.
We also compare the trade valuations to the hammer price for each matched observation, to see who was closest to the hammer price for every observation.
On occasion we may be more accurate overall but our rivals will be closer to the hammer price on the same or slightly more observations. What this means is that on the observations where we are not the closest, we are closer to the hammer price than our rivals are when they are not the closest.
Why are we not more accurate?
Our variance in accuracy is affected by ‘surprise’ market movements that cannot be foreseen when producing the data. These can range from a period of exceptionally good weather that keeps buyers away from the forecourt, to a leasing or contract hire company dropping a large number of the same car into the market unexpectedly, impacting desirability, availability and therefore values. In the case of low volume models such as prestige cars, two or three extra cars in the market can make all the difference.
It should always be remembered that our ‘static’ Trade valuations are a guide only and are a UK wide valuation, so there will be regional variations that are not considered in this data set (we have a product called Radar that offers region specific Live Retail Pricing).
Why are we more accurate now than 12-18 months ago?
Because of on-going improvements in the way we analyse data and the way we work with the Editorial team. Our new reporting allows us to clearly identify areas in which the team have drifted from the observations at a level of detail we were unable to previously.
Equally, improvements in data structure and better application of recently revised depreciation curves have also facilitated an improvement in accuracy. A shift to percentage based mileage adjustment across all products has also made an impact.
In addition we have increased the size of the team and they are now spending more time in the market talking to our customers and building an even higher level of understanding of the current and ever shifting market.
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