J.D. Power, the Troy-based consumer insights, advisory services and data and analytics firm, has formed an alliance with California fintech and insurtech vehicle subscription platform NXCR to bring J.D. Power’s proprietary data solutions, vehicle valuations, and consumer insights to NXCR’s service.
The intent of the alliance is to give consumers more flexible choices when making vehicle purchase decisions.
“As both new and used vehicle prices continue to rise, flexibility — including monthly payment options and contract length — will become increasingly important in how consumers shop for a vehicle,” says David Habiger, president and CEO of J.D. Power. “Bundling and amortizing vehicle ownership costs into one affordable monthly payment with shorter, more flexible terms is a compelling option for younger generations and value-oriented consumers.”
Subscriptions have quickly become the modern way consumers access and pay for all categories of products and services, according to the companies. Vehicle subscriptions provide consumers with simple and affordable access to mobility through a mobile app.
“J.D. Power, through its merger with Autodata Solutions and its acquisition of NADA Used Car Guides and ALG, has quickly become the world’s leading authority on vehicle valuations at wholesale and retail that auto finance and fleet companies rely upon,” says Scott Painter, founder and CEO of NXCR. “This collaboration provides NXCR with the richest, most accurate and most comprehensive dataset for vehicle valuations, residual value forecasts and insights on consumer preferences and experiences.
“The proprietary data solutions we’re developing are built on J.D. Power data and consumer insights and will help us ensure we are acquiring and reselling vehicles at optimal prices — key tenets to making vehicle subscriptions affordable and profitable at scale.”
Thomas King, president of J.D. Power Data and Analytics and chief product officer, says, “To offer vehicle shoppers the most affordable monthly payments, it is critical to be able to accurately define both the current and future value of a vehicle. J.D. Power will leverage its rich vehicle and valuation data, coupled with advanced analytics to ensure shoppers have access to affordable, flexible vehicle ownership.
“The same data and analytics suite will be used by NXCR to inform the acquisition of vehicles for the NXCR fleet from its dealer partners, and also to resell those vehicles at a fair price to dealers or through auctions when they leave the NXCR fleet.”