System, method and computer program for improved forecasting residual values of a durable good over time

A system for generating forecasts of residual values of an item of interest in an industry, the system operating in an enterprise computing environment and comprising:

• a processor;
• a non-transitory computer-readable medium;
• and
• stored instructions translatable by the processor for:
• programmatically receiving or obtaining, from disparate data sources, used market data, non-industry-specific data, and industry-specific data;
• applying the used market data, the non-industry-specific data, and the industry-specific data to a residual value forecasting model, the residual value forecasting model having:
• a first computational component driven by a baseline value for the item of interest, the first computational component having a baseline value variable for representing the baseline value for the item of interest with a base configuration at an initial time point;
• a second computational component driven by macroeconomic factors not specific to the industry, the second computational component having a macroeconomic factor represented by a linear combination of macroeconomic variables that represent macroeconomic features under consideration for the item of interest in future time periods after the initial time point;
• and
• a third computational component driven by microeconomic factors specific to the industry, the third computational component having a microeconomic factor represented by a linear combination of microeconomic variables that represent microeconomic features specific to the industry in future time periods after the initial time point, wherein the microeconomic features specific to the industry include a brand value that corresponds to a level of a brand trending in the used market data;
• wherein the applying produces a forecasted residual value for the item of interest at a future time point;
• and
• providing, from the system to a computing device, the forecasted residual value for the item of interest at the future time point.

A computer program product for generating forecasts of residual values of an item of interest in an industry, the computer program product having a non-transitory computer-readable medium storing instructions translatable by a system having a processor and operating in an enterprise computing environment, the instructions when translated by the processor perform:

• programmatically receiving or obtaining, from disparate data sources, used market data, non-industry-specific data, and industry-specific data;
• applying the used market data, the non-industry-specific data, and the industry-specific data to a residual value forecasting model, the residual value forecasting model having:
• a first computational component driven by a baseline value for the item of interest, the first computational component having a baseline value variable for representing the baseline value for the item of interest with a base configuration at an initial time point;
• a second computational component driven by macroeconomic factors not specific to the industry, the second computational component having a macroeconomic factor represented by a linear combination of macroeconomic variables that represent macroeconomic features under consideration for the item of interest in future time periods after the initial time point;
• and
• a third computational component driven by microeconomic factors specific to the industry, the third computational component having a microeconomic factor represented by a linear combination of microeconomic variables that represent microeconomic features specific to the industry in future time periods after the initial time point, wherein the microeconomic features specific to the industry include a brand value that corresponds to a level of a brand trending in the used market data;
• wherein the applying produces a forecasted residual value for the item of interest at a future time point;
• and
• providing, from the system to a computing device, the forecasted residual value for the item of interest at the future time point.