J.D. Power says its new J.D. Power VIN Values product can help dealers follow a specific strategy so that they know what option content is best suited for their region.

The company describes the product as using a vehicle identification number to determine the correct trim level and factory-installed options. That, according to the company, can improve the vehicle valuation process and eliminate financial blind spots.

J.D. Power uses its many data assets and alliances to find trim, options and purchase history, and that is done by inputting a 17-digit VIN.

The company provided an example to show the financial benefits of the product: A portfolio of 100,000 vehicles using a standard VIN decoding process could show a 6% to 13% valuation margin error. That could result in a $25 million to $35 million adjustment, J.D. Power said in a news release.

J.D. Power said the VIN Values product can eliminate that margin and that it can bring “an unmatched level of accuracy on any vehicle” to users.

J.D. Power vice president and general manager of vehicle valuations Jonathan Banks said wholesaling and retailing vehicles demands “transparency with speed and accuracy.”

“Access to trim and option data derived from a VIN meets these needs for virtually every step in the process of a vehicle being bought or sold.,” Banks said.

The company provided a list of benefits the product brings to dealers, lenders, insurers, and rental fleets. In addition to the option content strategy mentioned earlier, the product benefits dealers through better integration with inventory optimization tools to determine which vehicles to purchase at wholesale or auction. Another dealer benefit is that their decisions can more accurately reflect the vehicles in their inventory. J.D. Power said 30% of VINs that get decoded are currently not able to match to trim-specific data.

Another benefit for dealers, according to the company: API integration will help dealers make crucial decisions faster and more accurately. Also, for each individual vehicle, dealers can get option content and provide a trade-in value that matches what the vehicle is actually worth.

The product also benefits lenders, according to the company. It helps them create loans for the exact amount for each vehicle portfolio or floorplan. It helps them account for all the content of each specific vehicle.

Lenders can consistently make more accurate loan-to-value decisions with the product. They will be able to ensure that a borrower is getting enough money to cover the purchase of the vehicle and related services.  The product also improves lenders’ ability to set correct loan-to-value metrics and reduce the under- and over-valuing of vehicles, and it improves their comprehension of the trim levels for high-margin vehicles. J.D. Power said the product helps lenders create loans for the exact amount for each vehicle portfolio or floorplan. Lenders can account for all the content of each specific vehicle.

For insurers, improved accuracy could mean more appropriate premiums for customers. Also, they can offer rates that line up with vehicle values. The product also provides insurers with increased insight into a vehicle's content during evaluation of total-loss scenarios, according to the company.

J.D. Power also says that the product helps rental fleets assess the inventory value of the fleet. The product also gives them more knowledge in determining which individual models would be appropriate to wholesale. Also, rental fleets can determine the options that are most suitable to meet customer needs and expectations within regional markets.