Moody’s Analytics Launches AutoCycle™ Solution for Car Price Forecasting
July 20 2015 - 8:30AM
Business Wire
Moody’s Analytics, a leader in risk measurement and management,
today announced the launch of its AutoCycle solution, which allows
banks, auto finance companies, insurers, auto dealers and other
professionals to accurately forecast car values under a range of
economic scenarios.
Built on Moody’s Analytics’ extensive forecasting and modeling
expertise, the AutoCycle solution uses a transparent econometric
model to help banks meet their regulatory requirements and
objectively assess the value of their auto portfolios. In addition,
auto finance companies can project the residual and repossession
values of their vehicles, insurers can forecast payouts on
replacement claims, and auto dealers and car rental networks are
able to determine resale values.
“The growth of auto lending and leasing means banks, captive
financiers and other auto professionals have a greater equity stake
in the value of their vehicles,” says Tony Hughes, Managing
Director at Moody’s Analytics. “To manage risk in their auto
portfolios effectively, these professionals must identify long-term
influences on car prices and fully account for cyclical economic
factors that could affect their businesses and investments.”
The AutoCycle solution forecasts car prices using Moody’s
Analytics’ full range of alternative macroeconomic scenarios,
including the adverse and severely adverse economic scenarios set
by the US Federal Reserve for stress-testing purposes. These
scenarios are updated monthly and include more than 1,800 economic
variables, taking into account the effects of gasoline prices,
economic supply and demand, seasonal conditions and other factors
on the automotive industry.
Forecasts are available for nearly 1,000 vehicles by make,
model, mileage and year, based on historical pricing data for more
than 81 million vehicle transactions. The forecasts project vehicle
values over a 10-year horizon, covering 16 segments, such as
compact or utility; 18 body types, such as wagon, hatchback or
coupe; and six fuel types, such as gas, hybrid or diesel. Banks,
captive auto finance lenders and other institutions can also
produce custom forecasts using their own loan, lease and pricing
data.
For more information on Moody’s Analytics’ AutoCycle solution,
please visit http://www.economy.com/autocycle or
http://www.moodysanalytics.com/autocycle.
About Moody’s Analytics
Moody’s Analytics helps capital markets and risk management
professionals worldwide respond to an evolving marketplace with
confidence. The company offers unique tools and best practices for
measuring and managing risk through expertise and experience in
credit analysis, economic research and financial risk management.
By providing leading-edge software, advisory services and research,
including proprietary analyses from Moody’s Investors Service,
Moody’s Analytics integrates and customizes its offerings to
address specific business challenges. Moody's Analytics is a
subsidiary of Moody's Corporation (NYSE:MCO), which reported
revenue of $3.3 billion in 2014, employs approximately 10,000
people worldwide and has a presence in 33 countries. Further
information is available at www.moodysanalytics.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20150720005110/en/
Moody’s AnalyticsPRANITA SOOKAI, 212-553-4181Associate
Communications Strategistpranita.sookai@moodys.com
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