J.D. Power is expanding its business from a strict focus on multi-sector market and brand research, especially in automotive, to being a benchmark for used-car values for auto finance and insurance folks. The Westlake Village, Calif. market research giant has signed a deal with the National Automobile Dealers Association (NADA) to acquire NADA’s Used Car Guide. The firm says the transaction will close early in the third quarter of 2015.
NADA's Used Car Guide, which serves retailers, financial institutions, insurers and software platforms, does U.S. retail, loan, trade-in and auction used-vehicle values, and pretty much sets the watermark in that area. The guide won't change its address, but will stay at NADA's McLean, Virginia area.
J.D. Power says the deal mates its dealership-centric Power Information Network analytics for new and used car sales and pricing data with NADA's own data platforms and expertise. The NADA guide has an editorial team that, per the organization, collects and analyzes over a million combined automotive and truck wholesale and retail transactions per month.
“Our businesses are very complementary to one another; there are similarities from the standpoint that both offer unbiased opinions,” says Deirdre Borrego, VP of J.D. Power’s U.S. automotive operations. She tells Marketing Daily that while both PIN and the NADA guide are focused on the retail space, the Power Information Network is on new vehicles. “What’s attractive to us is NADA is also a standard. It fits very nicely with minimal overlap in product. The NADA Used Car Guide also has very strong presence with retailers, lenders and OEMs.”
The parties said the NADA Used Car Guide name will be used by J.D. Power for a period of time before transitioning to the J.D. Power brand.