Black Book Values Vs. J.D. Power
J.D. Power has cemented a reputation for professionally accumulating and analyzing data in the best interest of consumers. For the automotive field, verifiable & unbiased information of real-world experiences endured by real vehicle owners is gathered through surveying the market from the third month to the third year of vehicle ownership.
The feedback generated from verified vehicle customers is used to segment the car market by price & size to create car ratings. Eventually, from these ratings, we derive the J.D. Power 100-Point Score (an overall rating per model per year) based on the following categories, weighted as indicated:
- Driving Experience (30%)
- Quality and Reliability (30%)
- Dealership Experience (30%)
- Resale Value (10%)
The 100-Point Score can be converted into four classifications for a high-level summary:
- Among the Best (90-100)
- Above Average (81-90)
- Average (70-80)
- Below Average (0-69)
On top of all that, serving consumers with a fuller understanding of car pricing and value, our J.D. Power Verified Fair Price is a dependable indicator that one is not overpaying for the desired vehicle. Using the purchasing information from over 12 million retail transactions each year, we keep close tabs on the average price and the price range paid by the majority of the people. Dealers who qualify will have the J.D. Power Verified Fair Price badge applied! Seeing that badge grants the assurance that the price is close to the average in that region.
Who Black Book Is
Black Book is both a print magazine and a subscription-only digital resource from Hearst Business Media Corporation that aids dealerships and financial institutions in making informed automobile purchasing, selling, and lending decisions.
Black Book uses a range of data points to refine its proprietary valuation process that measures the current value and predicts the future value of autos, placing significant weight on sales information sourced weekly from vehicle auctions across the United States.
Black Book Values
Black Book is an automobile valuation resource designed to help lenders and dealers learn how much a vehicle is worth. Using the data given by Black Book, lenders can evaluate their risk of offering an auto loan to a customer, and dealers can ensure they receive a fair profit from the sales of a vehicle based on its value.
A primary factor that sets Black Book apart from other valuation tools, like Kelley Blue Book, is that it not only delivers information about a vehicle’s current value, but it also predicts a vehicle’s future value. Black Book considers a range of historical data to make accurate predictions of value, like past and current economic trends, factors that affect depreciation, and manufacturer design changes. This information is crucial for lenders to determine their potential risks with financing options.
Black Book gives current values for vehicles through a proprietary process that includes financial information about the current auto market, industry trends, trim features and popularity, seasonality and its effects on the market, and recent sales from dealerships and private sellers.
Black Book also relies heavily on auction sales, collecting weekly data from some of the busiest vehicle auctions all over the country. Although similar valuation tools also use auction data as part of their final values, Black Book allows this data to carry more weight, which is why you may notice a significant difference in value estimates.
Black Book values both new and used vehicles. Traditional vehicles aren’t the only ones Black Book focuses on; dealers and lenders can also find information for personal watercraft, snowmobiles, and commercial trucks and vehicles. Wholesale, retail, and trade-in values are also available for dealers and lenders to make comprehensive lending and sales decisions.
Qualified industry users can also search for a specific vehicle using a vehicle identification number (VIN) search tool to get precise information about its value as determined by mileage, maintenance records, trim options, and more.
Unlike competitors, Black Book does not offer its valuation tools online. Instead, dealers and financial institutions receive the circulated magazine each week to access the most recent value data for each vehicle. Black Book also has various mobile and desktop apps that deliver benefits like auction lists, VIN scan tools, CARFAX™ reports, historical values, and more. Businesses can subscribe monthly or annually to have consistent and immediate access to these tools rather than waiting for the magazine to arrive.
Through its applications, Black Book also provides dealerships with an unique opportunity to reevaluate their inventory based on current and predicted values. Dealers can use Black Book tools to browse the local retail market for price comparisons, determine if a predicted value might make some autos too risky to continue to sell, and save information about vehicles they’re interested in adding to their inventory.
What Black Book doesn’t offer are car ratings and reviews. Because it caters to industry-qualified users rather than consumers, Black Book focuses only on vehicle pricing and valuation to aid dealers in setting prices and financial institutions in lowering risk.