Since 1998, BF Forecasts has provided new and used vehicle portfolio analysis for major customers throughout Europe. Portfolio Analysis Products provide customers with a simple means to analyze risk and variables of risk, including return rates and historic trends for various portfolios. Listed below are several functions and capabilities offered by Portfolio Analysis Products.
Residual Risk Analysis
measures residual risk exposure in a lease portfolio. In essence, it is a re-projection of the residual values of vehicles in a specific portfolio based on current re-sale information and actual depreciation. Residual Risk Analysis matches Vehicle Identification Numbers from lease portfolios and projects a lease end value based upon the current BF Forecasts database. This new re-projection is compared to the original residual value to determine the current projection of loss or gain on each vehicle and of the portfolio as a whole. Residual Risk Analysis provides a detailed account of each lease, as well as a summarized report of the entire portfolio. Reports are summarized by portfolio, registration date, make, model, month, and can be customized to accommodate clients’ needs.
Return Rate Analysis
is the same concept as Residual Risk Analysis, but incorporates return rates found in various customers’ lease portfolios. BF Forecasts analyzes a client’s historic return rate and creates a new return rate probability model based upon historical and industry benchmark data. Return rate models are then applied to risk analysis, creating a report that predicts currently projected gain or loss based upon return rates.