Linking Automotive Resale To Quality Scores? JD Power To Buy ALG From Truecar

JD Powers analytical horsepower is about to get much stronger.

Late Thursday afternoon, TrueCar announced that it has entered into an agreement with J.D. Power to sell its ALG subsidiary for $135 million. According to TrueCar’s news release, the total consideration includes an upfront cash payment of $112.5 million at closing and total deferred payments of up to $22.5 million based on certain financial results.

ALG is an industry authority on automotive residual value projections in both the United States and Canada, and the acquisition is expected to augment offerings from the data & analytics division of J.D. Power.

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MDarringer - 8/7/2020 10:17:50 AM

-1 Boost

You'd think the correlation would be direct, but it sometimes isn't.

Agent009 - 8/7/2020 10:40:36 AM

+2 Boost

This is correct, but will ALG tie JD Power scores to leasing residuals? That provides tremendous leverage against the automakers.

MDarringer - 8/7/2020 11:21:40 AM

-1 Boost

Incorrect. JD Power will do what it always has done. They will produce conflicting false data and then sell their recommendation to manufacturers to use in advertising. JD Power tells you NOTHING about the quality of a vehicle because selling endorsements is their game NOT tracking quality.

CANADIANCOMMENTS - 8/7/2020 10:46:40 AM

+3 Boost

Depends on what metrics they use. 90 day quality or impression scores mean little if a transmission dies at 3 years of age. Hopefully repair history will be in the mix. If you take the emotion out of your vehicles purchase, this information could be a helpful guide for anyone shopping.

Agent009 - 8/7/2020 11:20:14 AM

+1 Boost

I think repair history is out after 3 years, because dealership data would diminish greatly out of warranty. However several attempts are being made at that.

USNA1999 - 8/7/2020 2:50:20 PM

+2 Boost

Hmmm? So Tesla has one or the highest resale value out there but many reliability issues. How will they rank with this ideology?

TomM - 8/8/2020 10:06:19 AM

+2 Boost

THere is NO WAY to tie REsale Value to Quality - directly
Yes - it could be one factor - but it ignores that most vehicles are not directly comparable based solely on OPTIONS in the car. Size of the Vehicle.

THe question is - are you going to compare ACTUAL QUALITY - or statements made by people who have already paid for their cars who don't want to admit they got a lemon!. And how are you going to get THE REAL QUALITY DATA. How are you going to compare cars with different levels of equipment - and cars that do not have that equipment available.

Sorry - it really isn't a possibility to do this.

TomM - 8/8/2020 10:06:20 AM

+2 Boost