Find solid ground

Capital efficient asset risk management solutions

Future-proof your asset exposure

Automotive manufacturers are at the forefront of the transportation revolution and will benefit from technological innovation — if they can effectively navigate the increasingly complex risk management landscape.

Managing asset risk is no new concept for automakers, but existing solutions are proving less effective in today's environment. Increasing wholesale price volatility and its impact on depreciation modeling is impacting all areas of their business, leading to higher levels of asset exposure and risk.

The automotive revolution is just beginning. There are more technological advancements on the horizon, from autonomous vehicles to fleet electrification to subscription models. And with any new technology, comes volatility.

Find the right balance

Consumers are well aware of the price volatility of electric vehicles, which has led to an industry-wide lease penetration nearly double that of internal combustion engines — leaving the auto manufacturer and their captive finance company with high risk concentration.

And that's not a place anyone wants to be.

Defining a path through this uncertain landscape, which balances corporate risk appetites with increasing consumer demand — and legislative changes — creates major challenges. Especially when alternative risk-mitigation solutions like residual value insurance aren’t economically or operationally feasible for many companies. Doing nothing is not a viable option either, as it could lead to negative cash flow and profitability implications.

The emergence of autonomous vehicles and the increasing market penetration of alternative powertrains such as fully electric vehicles add further uncertainty and increase the complexity of residual value forecasting.

Deloitte, Future of Captives Study

Take back control

With over 100 years of experience in the automotive and finance industries, we have a deep understanding of the risks and their implications. We’ve created a solution that not only helps manage the complex risk of this transitional time period, but brings opportunities.

Our products offer stability in this new world of uncertainty. We offer you a solution where used vehicle price volatility does not have to translate to business instability. We put you back in control.

Exponential Markets Used Vehicle Derivatives allow companies to lock-in wholesale vehicle prices and transfer the risk to market participants. We enable large automotive fleets to hedge residual value risk, reducing their asset exposure.

Protection

Eliminate an existential threat to your business

Efficiency

Improve capital efficiency with banks and asset backed securitizations

Stability

Mitigating earnings volatility

Cost effective

More economical than existing risk management alternatives

Why derivatives?

Derivatives have been used for decades in industries as diverse as energy, finance, agriculture and manufacturing. And used vehicle derivatives are already being used to successfully manage interest rate risks and currency exposure.

Used vehicle price volatility is also a critical risk - and opportunity.

Interested in learning more about derivatives?

How it works

01

Get in touch

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We collaborate with you to optimize your risk management goals

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Balance your organization's risk management appetite with your company's asset exposure

Ready to take back control?