Q: Are there more forecast scenarios available for the level 2 subscription or is it just the one scenario. If so, on what is this forecast based (baseline or does it assume any given macroeconomic conditions)?
A: The Valuation Services’ used vehicle price index is the combination of sales weighted historic price movements and our proprietary forecast of used vehicle prices. The forecast portion of our index is the same forecast we use as the foundation for our Guidebook and Residual Value products, which is based on a combination of historic used vehicle price and volume patterns and multiple macroeconomic factors which we project into the future through various estimating models and algorithms. We do not currently produce the index under alternate scenarios, but are continually adjusting our forecast to account for various market shocks and changing expectations.
While we do not create alternate outlooks for our used vehicle price index, we have provided this type of multiple scenario analysis to other clients through consulting engagements. We will be happy to speak with you more about that if you would like. More background can be found at http://www.nada.com/b2b/GetValues/LenderAdvantage.aspx