autobizInsights #17
VIN Decoding: Smarter data for higher value
Accurate vehicle identification is no longer just a technical requirement - it is a business necessity. In today’s automotive ecosystem, valuation processes must go far beyond a simple license plate or model lookup. To propose a reliable and contextualised valuation, each vehicle needs to be enriched with its exact options and specifications.
The reasons are clear:
- Competition is increasingly intense, with data quality and reliability now key differentiators.
- Vehicle identification is structurally strategic, impacting the entire automotive value chain, from product design and financing to insurance, remarketing, and resale.
This creates new challenges, but also new opportunities. Market players, OEMs, leasing companies, insurers, and remarketing platforms, all share the same needs:
- More accurate valuations, reflecting the true configuration of each vehicle.
- Improved used car pricing and analytics, to stay competitive in fast-moving markets.
- Tailored offers in insurance, financing, and trade-in, enabled by precise and trustworthy data.
VIN decoding is the answer: a powerful enabler of data-driven accuracy, transparency, and value creation across the automotive lifecycle.
VIN identification for optimal valuation
Accurate vehicle identification is the cornerstone of reliable valuation.
Whilst license plates or text inputs often lead to approximations, only a VIN-based decoding allows for:
- A perfect match with the official OEM nomenclature including options
- Precise identification of the exact version and trim
This granularity is what enables fair and optimised pricing, both at trade-in and remarketing stages.
Full VIN decoding: options matter
With integrated systems, entering just one piece of information provides complete identification. Options can significantly shift a vehicle’s market value. On average, the value of options in Europe is €2,000 with strong variations: from €250 for mainstream brands to over €10,000 for Premium brands.
Without VIN decoding, these options often remain invisible in valuation processes. By connecting directly to the OEM reference, VIN decoding ensures that all installed equipment is recognised and integrated, delivering:
- A more accurate appraisal,
- A better sales pitch with exhaustive product details,
- A finer pricing strategy in competitive used car markets.
A global, interconnected reference
VIN decoding gains real power when integrated into a pan-European used car reference system, enriched by external databases for:
- Precise OEM-level matching
- Cross-border compatibility and harmonization
- Direct integration into business tools (DMS, remarketing platforms, pricing engines)
This guarantees no loss of information across systems and ensures a single, reliable source of certainty for vehicle data.
A more accurate future value
Residual values are critical for OEMs, captives, leasing companies, and insurers.
A precise VIN-based vehicle identification allows for:
Better qualification
of today’s vehicles
More accurate
projections tomorrow, including country-specific impacts (equipment value differs by market)
Reduced risk
of RV miscalculation
For example: The difference between two trims of a 2-year-old Renault Austral E-Tech can be as much as €5.300. Only VIN decoding ensures you get the exact trim level and avoid valuation mistakes that can have a direct impact on profitability.
The smart balance between cost and precision
Not every business case requires full VIN decoding. If a complete commercial version is already available, automated valuation may suffice.
However, when information is incomplete or uncertain, VIN decoding is the only reliable solution to avoid pricing errors, and retrieve those details, even if it comes at a cost. , even if it comes at a cost.
The winning strategy is therefore to use the most cost-effective identification method and switching from license plate to the commercial version and then to VIN decoding depending on the level of detail required and provided.
Camille ORSINI, Manager for International Financial Accounts