NEWS

2023 has started just as 2022 finished with all areas of our business very busy in supporting our customers around the globe face up to the constantly changing used car market.

Used EVs continue to be the major topic of conversation as they try and secure their place in the used market. INDICATA has been tracking used EV data for the past 2-3 years and we have shared with you our 2022 findings which shows how the market has changed for both the volume and premium brands.

Growing levels of used EV stock

The used EV market now has more cars in stock than ever before, but the recent price correction in many countries is already starting to breath life back into the sector. Our latest INDICATA Market Watch used car insights report shows how all the fuel types are performing in 13 European countries.

Prices have softened slightly in the majority of European countries but used car shortages are a common challenge as reduced new car production continues to impact the second hand market.

Cross border trends

Cross border sales via our MarketPlace online platform are helping balance the supply and demand for all used cars, including used EVs across Europe. MarketPlace global business unit director Morten Holmsten brings us the latest trends on all types of cars across Europe.

Meanwhile, our Autorola Solutions team is supporting dealers to manage their used car trade-ins more efficiently to help them sell more cars more often. Find out more in their short film which brings the Trade-In proposition to life.

Another busy year for Autorola Germany

We also talk to Autorola Germany’s new country manager Henrik Meissner. He discusses how the group’s products and services are supporting customers in a fast-moving used market and how our data is helping make a difference with both vendors and buyers. It looks like another busy year for our German colleagues in 2023.

And after attending the recent ENG remarketing conference it was so nice to meet so many customers, friends and colleagues on the two-day event in Spain. We look forward to seeing you all again soon.

Best regards
Peter Grøftehauge (LinkedIn)

Autorola Germany has reported business growth levels of 40% over the last 18 months as it continues to help and support dealer groups, fleets, OEMs and banks to manage its vehicle assets more efficiently. But the market is now changing and Germany’s customers are looking more to Henrik and his team to support them in a fast-changing used market.

“Over the past three months Germany has seen its used market move from demand exceeding supply to one that has slowed down caused by rising inflation. Supply now suddenly exceeds demand which has been a shock to many in the industry. Germany has not seen a surplus of used stock for 2-3 years since early 2020 before new car supply was compromised by the global shortage of semiconductors,” explained Henrik.

Export levels have begun to rise

Due to this dramatic market change and an increased acceptance by buyers and vendors to buying and selling online Autorola’s Marketplace remarketing portal is now playing its part in helping balance the country’s used car stock. Export levels have already begun to rise through the portal as leasing and dealer vendors dispose of unwanted or overage stock.

New EVs have become more popular helped by new car incentives and lower tax levels. Therefore, EVs are generally being purchased by larger companies as company cars on contract hire or lease as they aim to reduce their level of emissions.

The used EV market has softened

The rising cost of living however has made a big impact on the prices and demand for used EVs. The used market has softened with some EVs being exported to other countries where zero emission subsidies are much more generous for drivers. This trend has contributed to 27% of Autorola Germany’s used stock being exported via MarketPlace by the end of 2022.

Germany remains a predominantly diesel market due to the long distances between cities which means the market share of EVs remains small when compared with other fuel types.

“Like so many other countries there is a difference of opinion between manufacturers when new car production will return to its former level. Stellantis and VW both say its nearly back to normal while

many of the German brands and Ford believe it will be the end of 2023 and into 2024 before this happens,” said Henrik.

Using data to manage stock more efficiently

Whatever happens to production the current slowdown in consumer confidence means more dealers are looking to INDICATA’s used car and market supply insights data to help them manage their stock more efficiently.

INDICATA Germany has grown its sales team with many dealers looking to use its price and volume insights to help them make the decision of what stock to sell at auction and what to keep.

Helping make data powered business decisions

But while INDICATA continues to benefit from sales growth there is still work to do in educating the market about the power of making data-led remarketing decisions.

“Dealer groups need us to prove to them the power of making key business decisions by using our data. Right now being able to identify and buy fast-moving stock at auction and trade out of those models that are in low demand is critical to support continued profitable used car growth. That’s where our data can make a big difference,” explained Henrik.

Harmonising products and services

Henrik is already working hard with his team to harmonise the MarketPlace, INDICATA and Solutions teams so they work more closely together. No other German supplier can offer an established online used car platform, used car insights data and the Solutions platform which simplifies the digital processes of managing a vehicle through its life cycle all in one place.

“We have strengthened our Solutions sales team in recent months. Fleet Monitor is a very powerful system that can digitise a dealer’s processes from In-Fleet to De-Fleet. We are targeting larger dealer groups with this solution to provide a powerful interface bridge with their Dealer Management System. Dealers are beginning to understand that Fleet Monitor is a powerful addition to their DMS rather than a replacement or replica. This is another sales opportunity which will help us achieve our growth plans during 2023,” said Henrik.

At the heart of Autorola Solutions’ proposition is the Trade-In App which dealers use to take the customer through a step-by-step trade-in process for their car.

You simply input information with the customer in attendance about their car into the App and the App helps power a real time vehicle valuation which you share with the customer to seal the trade-in deal.

Watch the film to find out more:

Follow us on LinkedIn 

https://www.linkedin.com/company/autorolasolutions/

In 2022 Autorola saw the number of cross border used cars sales across Europe rise by 21.5% as used car stocks remained very transient to meet the changing needs of consumers.

The Autorola MarketPlace online wholesale platform continued to play its role in helping dealers source cars in countries with stock shortages while supporting other countries manage their stock surpluses.

Volumes are increasing

Not surprisingly volumes of cross border cars going through the MarketPlace platform increased during Q4 2022 as the demand for used EVs across Europe reduced dramatically. The Europe-wide rise in the cost of living left consumers unable to justify paying two or three times as much for a used EV as a used ICE car. 

The slowdown in demand for used EVs resulted in Market Days’ Supply rising to 103 days in early January which left many countries with surplus stock. This is three times as much EV stock that was in Europe earlier in 2022 which has raised the level of cross border activity managed by Autorola to up to 22% in 2023. This trend continued into February and the MarketPlace platform continues to help balance the supply and demand of used EVs across Europe.

All documentation is managed

Autorola’s cross border expertise doesn’t just include the provision of the online remarketing platform. The MarketPlace platform manages all the documentation, including the different Vat and tax elements of exporting and importing a used car from country to country.

Transportation is another key element of Autorola’s cross border proposition. It employs logistics managers in multiple countries in addition to an overall head of logistics in Denmark.

Cradle to grave cross border service

The ability to provide a cradle to grave cross border service is the reason this service continues to grow each year according to MarketPlace’s global business unit director Morten Holmsten.

He said: “Our cross-border proposition is the result of many years of work listening to customers in different countries and by developing our platform to manage all elements of their import and export transactions. It is a unique offering. 

“We have experienced people in multiple countries that work together to make the process of exporting and importing used cars as hassle-free as possible. We like to think we play a major part in helping European countries balance their used car shortages and surpluses,” said Holmsten.

Current cross border trends

• Sweden and Poland cross border activity depends on how the exchange rate develops. Currently the Swedish currency is very low against the Euro, which makes it very attractive to export cars. In 2022 85% of Sweden’s used cars sold via MarketPlace were exported
  
  

• For tax reasons, exporting cars from Portugal isn’t allowed, but Portuguese dealers imported more than half of their used cars during 2022
  
  

• The Netherlands has had very strong incentives to buy new PEHV and BEVs and lot of these cars are now being importer from Denmark, Germany and France to satisfy consumer demand
  
  
• Many of Italy’s used exports are luxury or sports cars, which incorporate a high share of the new car market
  
  
• Many Danish executive used car exports end up in Germany
  
  
• Generally neighbour countries tend to trade with one another to benefit from improved logistics and speed of delivery

Our INDICATA used car pricing platform has been keeping a close eye on the demand, supply and stock turn profile of Battery Electric Vehicles (BEVs) in Europe since the beginning of 2021.

Used BEVs still comprise a small percentage of the overall European used car parc but a focus by OEMs to push more new and used BEVs into key markets to avoid costly CAFÉ fines means they are constantly at the top of the automotive news agenda.

Used BEVs reported record prices until October 2022

Since used BEVs began to appear in higher numbers in Europe’s key used car markets from early 2021 demand for used BEVs has generally been healthy with INDICATA reporting record prices and falling stock levels.

Then in October the cost of living across Europe started to increase caused by high energy prices and rapidly rising inflation which stopped the healthy demand for used BEVs in their tracks.

Consumers had quickly moved their attention from high priced used BEVs – that were sometimes two or three times the price of an ICE car – back to cheaper petrol and diesel models.

Used BEV stock levels continue to rise

Between October 2022 and January 2023 stock levels rose to an all-time high with both value and premium brands both affected as our INDICATA graphs show. In December 2022 and January 2023 record levels of used BEVs in stock caused prices to crash some by several thousands of Euros.

Graph 1 shows how 12 volume brands’ stock supply changed between February 2021 and January 2023 across Europe. Used BEV stock practically doubled between August 2022 and January 2023, with manufacturers such as Peugeot, Nissan and Fiat holding records levels of stock. Ford, Kia and Hyundai stock levels meanwhile have remained very constant over the past two years.

Graph 2 Analysing the used BEV stock levels from the top five premium brands supply also began to quickly ramp up from October 2022 across Europe. VW supply nearly doubled during that period, with Tesla, Mercedes-Benz and BMW also boasting record levels of supply. Meanwhile, supply levels of used Audi BEVs have remained more constant despite the change in market conditions.

For a free copy of the latest INDICATA Market Watch report go to www.indicata.com

INDICATA used car insights report shares Europe’s used car market trends for 13 countries and we have shared some of the highlights from this month’s report.

Used petrol cars are now Europe’s most wanted as demand for Battery Electric Vehicles (BEVs) has dramatically fallen. Used EV stock is now double what it was six months ago. Market Days’ Supply for used BEVs has risen from 53 to 118 days during that period.

• Used BEV prices have fallen by an average of 9.5 percentage points according to our latest INDICATA Market Watch used car insights report.
  
  
• Some brands have had real challenges with an oversupply of used stock, particularly where their new BEV sales have relied heavily on just one model, such as Tesla with its Model 3. This saw stock levels rise sharply but some downward pricing action seems to have stabilised the situation and reignited sales.
  
  
• Portuguese used prices have increased the highest at 11.6% (outside of Turkey) while the UK market continues to be the only one in Europe to report a price fall (-2.6%).
  
  
• The cost of living crisis has contributed to 11 out of the 13 countries in our report experiencing falls in used car prices in January. Only Turkey and Poland reported monthly price increases.
  
  
• VW’s Golf has retained its position as Europe’s best selling used car followed by the Renault Clio and VW Tiguan while Opel/Vauxhall secured all three positions in the fastest-selling used car stakes with its Astra, Grandland X and Crossland X.
  
  
• The Tesla 3 remains Europe’s top selling used BEV while the Tesla Model Y is the fastest-selling BEV.
  
  

Read more about the used market trends in 13 European countries at  www.indicata.com