Trustworthy Residual Vehicle Value Prediction for Auto Finance

The residual value (RV) of a vehicle refers to its estimated worth at some point in the future. It is core component every auto financial product, used determine credit lines and leasing rates. As such, an accurate prediction RV critical for finance industry, since it can pose risk revenue loss by over-prediction or make product incompetent under-prediction. Although there are number prior studies on training machine learning models large amount car sales data, we had cope with real-world operational requirements such as compliance regulations (i.e. monotonicity output respect subset features) generalization unseen input new rare models). In this paper, describe how coped these practical challenges created our business Hyundai Capital Services, top service provider Korea.