Vendors are making more money by selling used cars cross border according to Frank Tanke, The Netherlands country manager
The quest for data from remarketing decision makers in The Netherlands continues to grow as they use it make strategic decisions as to what they sell, where and for what price.
The Netherlands has multiple customers now buying bulk data over the past two years including banks, leasing companies and dealer groups.
Leasing companies are constantly looking for the most profitable country to sell used cars that are coming off lease. There are a large number of leasing companies based in the country and they have switched onto the fact that selling their used cars coming off lease in other countries may be more profitable for them.
Exporting used cars
Between 70-80% of the country’s used cars are now exported by Autorola Netherlands. More Dutch used cars from leasing companies are exported to other European countries than to home-based dealers which makes The Netherlands one of the most transient remarketing nations within the group. Germany is its biggest customer taking around 70% of the total followed by Hungary, Belgium, and Portugal.
“With INDICATA we have the used car insights data in real time to help vendors decide where best to sell their used car and amazingly there is a big difference depending on the make and model in question.”
Export can increase disposal profits
“We have seen vendors generate an extra 3,000 Euros per car by using our data to locate the perfect country to sell their car in. Once the country has been identified our cross-border expertise goes to work in engaging with buyers in that country to team up cars with buyers,” said Frank.
“Buyers have confidence to bid on cross border used cars via the Autorola platform as they trust our process. We have an excellent reputation in looking after both the vendor and buyer,” he added.
Frank’s team employs three experts who fill in the 20 pages of paperwork needed to export each car. It aims to make it easy for vendors and buyers and why Autorola has become a leader in the field of cross border sales. They can also manage all the logistics involved in getting each car delivered completing the cradle to grave export approach. This helps fuel a profitable and proactive export service.
EV new car incentives
Since 2012 the Dutch Government has been one of the most eager in Europe to introduce incentives for companies and drivers to reduce their CO2 by getting them out of ICE cars and into EVs.
Drivers now base their new car decision on the reduced tax they must pay rather than the brand they aspire to. This has reduced brand loyalty in the new car sales market, but that doesn’t always carry over to the used market.
Tesla is a very popular in The Netherlands and tax incentives, which last five years, helped the brand sell 20,000 Model 3s in December 2019. It means vendors will be seeing these cars coming back into the market in December 2024 which will provide significant challenges for vendors.
Used EV stock levels continue to rise
Much of the time the best option is to export the car into another market but when the used EV sector is still in its infancy that does not provide an immediate and quick answer. Stock levels have continued to rise over the last six months in the country and there could be greater incentives needed to speed up the sale of cars.
“It is great to see incentives being offered to buy new and used electric cars, but it does not take account of the substantial number of ICE cars that are already in the market as used cars. Diesel has fallen from grace which means that cross border sales are often the only answer to shift stock out of the country as they have been devalued in the home market by these Government incentives.
Diesel popularity continues to fall
“In our latest INDICATA Market Watch report diesel has become the third most popular powertrain as hybrids start to take over its position. Petrol used cars continue to be the most popular accounting for nearly two thirds of all used cars sold. The market continues to change, and we are helping vendors and buyers to come to terms with these changes with our online MarketPlace platform and INDICATA used car insights working together,” said Frank.
“Our business continues to be at the heart of the modernisation of the used car industry and we look forward to growing our volumes as new car supply starts to help feed more used cars into our market,” he added.