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Residual value wars: Cap and Glass's square up
As part of its efforts to take on Cap at its own game, Glass's has been tracking the difference between the two firms' predictions and the actual prices of used vehicles at auction during 2013.
"We're comparing the accuracy of Glass's vs. Cap for vehicles sold each month to compare our values against those actual prices at sale and observing on a car-by-car basis which ones have been the closest," said managing director Ian Tilbrook.
Director of valuations and analysis, Richard Parkin, explains how the figures on the graph supplied by Glass's (right) were generated.
"We take the top 100 vehicles [by volume] that were traded at NAMA auctions and take the top 100 that appear in Cap's Black paper book. We then just put the numbers in and calculate from the guides [including Glass's own book] what that should have been priced at. And then we calculate on average, on an absolute basis, who was the closest for each one, then we just show that as a figure out of 100.
"On average, I would say the split was something like 60:40 or 65:35 in our favour. In April 2013, for example, Cap had 15% accuracy and Glass's was 85%. This is not a spot price. This is based on historical data."
Tilbrook adds: "We're challenging Cap to a degree because this is what our customers are telling us. Generally, we feel we value better. We've demonstrated that for seven months."
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