Black Book unveils Brand Value Index to gain better understanding of nameplate pricing dynamics
On Thursday, Black Book rolled out its newest solution for automotive clients to gain information and insight, introducing the Black Book Brand Value Index (BVI).
Black Book highlighted BVI measures various aspects of a brand, including brand equity, market position and perception.
The company said BVI can be used by automakers and portfolio risk managers to drive strategic decisions, enhance brand management and communicate the brand’s value to stakeholders.
“For overall BVI, we identify the typical content, configuration and new vehicle pricing across each segment and compare the wholesale average condition price of 1- to 5-year-old vehicles for each model against the segment average price to capture an overall sales weighted brand score.,” said Eric Lyman, vice president of product for auto finance at Black Book.
Lyman explained BVI can examine how the essence of a brand impacts the used market value of a vehicle. The data reveals insights into which models enhance or detract from a brand’s BVI, the effects of redesigns on model performance, age-related performance trends and differential performance of brands across comparable powertrains like EVs and hybrids.
“The best example of BVI might be the Honda Prologue versus the Chevrolet Blazer EV or the Toyota GR86 versus Subaru BRZ. These vehicles are built alongside each other in the same production facility and have fundamentally identical vehicle characteristics,” Lyman said in a news release. “However, they have unique styling cues and are sold with distinct marketing campaigns into different dealer networks. They also will have varying overall sales volumes while sitting in a showroom alongside different stablemates on the dealer lot.
“All these factors contribute to variances in retail and wholesale transaction prices,” Lyman added. “These final variances in wholesale pricing are distilled into the final Brand Value Index score.”
Lyman offered more details about BVI in a special sponsored episode of the Auto Remarketing Podcast available in the window below.
For more information, visit https://www.blackbook.com/visual-analytics/ to speak to a product specialist.