Deepview True Cost

Frequently Asked Questions

Basics

Calculations and Metrics

Use

Audience

Awards

Results

BASICS

What is Deepview True Cost?

Deepview True Cost is a report from We Predict that ranks 2021 vehicle makes and models by the actual dollars spent by customers and manufacturers – to keep vehicles in top working condition – in the first three months of service.

Deepview True Cost is the first industrywide view of the actual dollars spent on service, parts and labor. The report enables manufacturers, suppliers and consumers to compare the service costs of competitive models.

How often will it be released?

The inaugural Deepview True Cost report ranks 2021 vehicles by the service cost per vehicle during the first three months of ownership. We Predict plans to issue this report on the first three months of new-model-year vehicles annually.

Later this year, We Predict plans to release subsequent reports, covering different ownership periods and model years. Those who subscribe to We Predict’s Deepview platform can obtain updates more regularly, as data refreshes monthly.

Is this new information? Why is it important?

Auto manufacturers don’t typically have access to industrywide competitive cost information. With We Predict’s data, companies can compare various makes and models based on the actual dollars spent to keep them in top working order.

Companies can determine which vehicles cost the most to maintain, which incur the lowest costs, labor time imbalances, and whether electric vehicle service costs are actually lower than those of traditional vehicles. With the millions of service records in the We Predict database, manufacturers can clearly identify serviceability opportunities.

Deepview True Cost empowers consumers to make vehicle purchase decisions based on average service costs in a specified period. Whether the cost is paid by the manufacturer or the customer, Deepview True Cost provides consumers with information about which vehicles require the most service to keep vehicles safe and operational.

Ultimately, the amount consumers and manufacturers spend to keep vehicles on the road affects residual value. High repair costs can detract from residual values, while lower service costs can boost them. Service cost per vehicle affects pricing for Certified Used programs and can put consumers at risk once manufacturer warranties run out. By using Deepview True Cost, companies can identify cost drivers, make and model advantages and disadvantages, and which levers deliver competitive benefits.

What time period does it cover?

The 2021 Deepview True Cost report, released May 18, 2021, measures the service costs of 2021 models at three months of service after sale. Repair orders through April 12, 2021, were included in the analysis.

The Deepview True Cost platform includes a wider view of the industry, covering 2016 through 2021 model year vehicles at all exposure times available (0-day, 30-day, 90-day, 1 year, 2 years, 3 years, and more).

What vehicles does it cover?

The 2021 Deepview True Cost report includes over 461 models covering near all major brands sold in the U.S. We Predict’s Deepview platform contains information on over 500 models.

Where does the data come from?

We Predict’s Deepview data is compiled from millions of repair orders of vehicles serviced at franchise and independent repair facilities. When a vehicle is serviced, repair facilities record the work completed in a dealer management system (DMS), capturing all information relevant to the work (mileage, parts replaced, part costs, labor time, customer complaints, cause as recorded by the technician, correction, and other key aspects). We Predict worked with strategic partners in the industry to create the legal framework necessary, bring together this vast and previously unseen information, and share these insights for the first time.

What costs are Included in The Report?

The cost per vehicle metric used in Deepview True Cost includes: Unplanned repairs, warranty, service campaigns, diagnostics, maintenance, software updates (except over-the-air), and recalls.

What costs are Excluded in The Report?

The report excludes costs incurred as part of selling all vehicles, elective costs, and estimated costs that are not reported through the DMS (such as pre-delivery inspection (PDI), insurance, gas, transportation damage, state and local inspections, accessories, collision damage, car washes, and seasonal tire changes).

CALCULATIONS AND METRICS

How is the data calculated?

The metric is simple. The total costs spent in the first three months for the items included in the report are divided by the number of vehicles that have at least three months in service. That provides the total cost per vehicle for three months in service. Other timeframes are available and can be calculated similarly.

Deepview True Cost is the first industrywide view of the actual dollars spent on service, parts and labor. The report enables manufacturers, suppliers and consumers to compare the service costs of competitive models.

What metrics are used?

The main metric in the report is total cost per vehicle (CPV). A multitude of other metrics can be calculated with the underlying data, including: Labor CPV, Part CPV, Warranty Labor CPV, Warranty Part CPV, Cumulative Total Cost, Cumulative Total Labor Cost, Cumulative Total Part Cost, Maintenance CPV, Repair CPV, Recall CPV, Repair Orders per Vehicle, % of vehicles with repairs.

Is it an estimate or actual value?

Deepview True Cost uses actual values to calculate cost per vehicle (CPV).

How is this different from other Total Cost of Ownership metrics?

Most cost of ownership metrics are based on industry estimates using average gas prices, average insurance pricing, estimated maintenance costs based on manufacturer-provided schedules, and estimated depreciation based on current resale values. All of these count on the validity of their estimates and assumptions.

Deepview True Cost is not an estimate. It simply shows what the actual costs are. Period.

USE

Is Deepview True Cost for manufacturers or consumers?

Deepview True Cost benefits both.

What benefits can consumers derive from Deepview True Cost?

For consumers, the report can highlight models with higher-than-average costs that may affect a propensity for out-of-pocket repairs in the future. Conversely, it can also point to models with a lower cost per vehicle (CPV), signaling greater uptime and lower expenses.

What benefits can manufacturers derive from Deepview True Cost?

For manufacturers, We Predict’s Deepview True Cost measures how vehicles compare in warranty, recall, service campaigns, and maintenance expenses, identifying opportunities to improve serviceability, labor, and part costs that are now more evident with the transparency of We Predict’s industrywide database.

Can a company purchase the results?

Yes! A company can gain access to the complete Deepview True Cost report along with supplemental studies they may be interested in.

What other information is available in Deepview True Cost?

In addition to the metrics described earlier, We Predict can deliver studies conducted across a multitude of fields. For example, metrics can be split by segment, carlines, model years, categories, sub-categories, components, exposure times, states, fuel types, and more.

AUDIENCE

Who is the target audience?

The target audience at manufacturers are those involved in service organizations, parts, engineering, quality, finance, purchasing and aftermarket.

Do automakers pay to have access to Deepview True Cost?

Automakers can purchase the full results and reports, but don’t have to pay to be included in the reported results.

How is the research funded?

The research is funded entirely by We Predict and its strategic partners.

AWARDS

How does a model qualify to win a 2021 Deepview True Cost award?

A vehicle must have a minimum of three months on the road (after sale) to be included in the report and eligible for an award. To qualify for a segment or brand award, the model or brand would need to have a minimum of 200 vehicles with three months in service.

For electric vehicle awards, a model needs to have at least 100 vehicles through three months in service to qualify. We Predict only makes awards in segments with at least three qualifying models. The model or brand in each category with the lowest cost per vehicle (CPV) wins.

How many award segments are there?

There are 27 award segments. Potential segment awards include: Commercial, Compact Car, Compact MPV, Compact Premium Car, Compact Premium Sporty Car, Compact Sporty Car, Compact SUV, Large Car, Large Heavy-Duty Pickup, Large Pickup, Large Premium Car, Large Premium SUV, Large SUV, Midsize Car, Midsize Pickup, Midsize Premium Car, Midsize Premium Sporty Car, Midsize Premium SUV, Midsize Sporty Car, Midsize SUV, Midsize Van, Small Car.

Brand awards include: Non-Premium Brand and Premium Brand

Electric vehicle award segments: Electric Vehicle – Non-Premium and Electric Vehicle – Premium

Can a company use Deepview True Cost for advertising?

Yes, a company may purchase the rights to advertise. Any public use of Deepview True Cost must be approved by We Predict.

How can a company or individual learn more about Deepview True Cost?

Contact us at www.wepredict.com/contact to learn more and schedule your deep dive today!