Reacting to industry change and understanding Big Data

Jun 27, 2018   written by Autorola
In June we hosted our bi-annual country managers’ conference in Denmark. It’s where all our country managers come together for a few days to discuss our group strategy, and for us to all understand the changing dynamics across the global automotive and asset management industries.

It’s clear that further change is taking place. Not just the fall in demand in diesels from some countries or the shortage of the right used cars in some markets, but the increased appetite for more insight and data to help vendors sell cars faster, help them improve efficiency within their used car operations and ultimately increase profitability.

Big Data leads to greater market insights
The term ‘Big Data’ has been used for some time but we believe that the automotive industry is starting to really get to grips with what it means and how access to more data leads to creating greater insights which help drive greater efficiency, revenues and profits.

Our INDICATA real time used vehicle management system started out by making insights available to dealers to help them manage their stock inventory more efficiently and to reduce stocking days.

INDICATA helps drive used cars down the right channels
The system is now being used by OEMs to understand the dynamics of its entire country used vehicle stock and to help them manage and support their retailers in selling more used cars. Leasing companies and banks are using INDICATA to understand the true value of a car at the end of a contract and which channel to put it through to speed up its sale – that includes export markets.

We have even seen a major OEM in Turkey use INDICATA as a lead management tool to enable consumers to generate their own used car evaluation online and to enable their dealers to start a conversation about buying their used car in exchange for a new car.

20 years of online experience
What this shows is that the Autorola family is constantly reacting with the times, and using its 20 years of working online to reinvent itself to provide customers with dynamic products and services that help and support the success of their businesses. Have a great summer.

Peter Groftehauge
Autorola Group CEO

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Big Data will power the future of the automotive industry according to Autorola’s group CEO Peter Groftehauge

Jun 27, 2018   written by Autorola
Insights into local, regional and national used car sales generated by INDICATA’s real time online used vehicle management system is helping car dealers run the perfect used car inventory.

Having access to data that can be used to sell more used cars more quickly, and importantly help them only stock cars that in high demand gives dealers an advantage over their competition.

INDICATA has micro and macro benefits
This works from both a micro perspective when a dealer is selling an individual car against its local rivals in its local market, and from a macro perspective when an OEM needs a proactive overview of its entire national used car stock.

“Companies are beginning to understand how big data can help make people become more efficient in the way they manage their used car inventories. Used car dealers and OEMs can manage their used car stock more efficiently and ultimately reduce stocking days and improve profitability.

Where new car sales are falling there is an increased focus on used car sales
“In countries where new car sales have started to fall then used cars are a major profit contributor, so INDICATA has arrived at a good time,” said Groftehauge.

INDICATA is live in 13 countries with Europe-wide contracts held with a number of OEMs. Over six million used cars are scanned every day with over 2,500 dealers worldwide using its powerful insights.

Autorola reported growth across the group in 2017
Its success has helped the Autorola group to report its second-best year by turnover in 2017 at the same time generating healthy profits that it can re-invest in the business.

The group has invested around 17m Euros in its 70-strong IT and software department over the last five to eight years, and investments of 3-4m Euros per year will continue as Autorola aims to keep its 19 subsidiaries at the top of their game.

Autorola continues investment in its products and services
This investment has also benefited the development of Autorola Solutions where its Fleet Monitor asset management portal manages vehicle fleets from pre-delivery inspection to auction for a number of OEMs, European banks, leasing companies and dealer groups. Big fleets generate big data and it’s important for an asset owner to be able to quickly check, analyse and respond to the information to make their operation more efficient.

Autorola’s online MarketPlace auction and INDICATA are working together in many countries. OEMs and their dealers can upload any over age stock or unwanted part exchanges onto the online platform for a quick sale to the trade. Dealers then use INDICATA to decide which stock is selling fast in their area and then access more of those used cars quickly and efficiently online.

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Autorola Netherlands is helping companies export used diesels to markets where demand is strong

Jun 27, 2018   written by Autorola
Autorola Netherlands is providing a vital export service to smaller leasing companies to help maximise prices for their ex-fleet diesel cars, many of which have fallen in value over the past six months.

Autorola is using its Europe-wide online remarketing portal to connect diesel cars with buyers in countries where demand is still strong.

Pan European marketing strategy
“The dramatic fall in demand for used diesels has opened asset owners’ eyes that unless they adopt a pan-European remarketing strategy they risk losing tens of thousands of Euros,” explained Zijad Halilovic, Autorola Netherlands, business development manager.

“Opening stock up to a Europe-wide buyer-base avoids the problem of dealing with potential residual losses or even having to stock pile cars. Our online remarketing platform is finding homes for thousands of used cars in strong diesel markets such as Portugal, Croatia and Romania,” he added.

40-55% of Autorola stock is exported
Between 40-55% of ex-lease stock sold on the Autorola portal is now being exported compared to an industry average of 20-25%. Average transaction prices are between 10-14,000 Euros and it takes around 7-10 days for cars to be delivered cross border. Vendors receive their money quickly and efficiently.

The INDICATA real time used vehicle management portal is also helping support the move to an international remarketing strategy, as live market insights enable vendors to quickly identify cars in stock that are struggling to meet reserves or where demand is non-existent.

Market insights support the export and import process
“Vendors can quickly identify which cars are struggling to sell and make a strategic decision to market their car online and get it sold quickly. Whether that is to a local or European buyer it shouldn’t matter if the car is sold for a market price,” said Zijad.

The Netherlands is a strong petrol market and increased used demand has meant dealers are now importing cars from Germany, Belgium, Denmark and France via the Autorola online portal to satisfy consumer demand.

Autorola’s online platform brings buyers and sellers together
This has pushed import volumes ahead of export, with petrol cars such as the VW Polo and Golf, Toyota Aygo and Opel Corsa very popular. Once again Autorola’s online portal is at the heart of putting buyers and sellers together on a Europe-wide basis.

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Autorola Portugal is at the heart of the digital transformation of the Portugese motor industry

Jun 27, 2018   written by Autorola
Around 68,000 used cars were imported in 2017 to help satisfy consumer demand. It has been the only way the industry has been able to balance the supply with demand.

Used car imports help satisfy consumer demand
Many of these used cars are imported via Autorola’s online remarketing portal with cars being purchased predominantly from France, Germany, Belgium and Holland. Within a few days of buying online the used cars can be on a dealer’s forecourt ready for sale.

New WLTP regulations could impact new car sales
One key spoiler in the new car market could be the new WLTP regulations set go live on 1 September. WLTP affects the global automotive sector and will put all OEMs on the same band width and the Portugese government is yet to announce the fiscal impact of the new legislation.

With new car taxes already very high in Portugal it could be very harmful for some brands, however they could choose to introduce a new transitional legal framework to control the taxes impact based on CO2 which would help support new car sales.

Autorola is at the heart of the digital transformation of the industry 
Autorola has been at the heart of the used car industry for many years and been a key contributor to the digital transformation of the motor industry. Portugal continues to grow its reputation as having a high technology infrastructure and used car vendors from dealers and leasing companies, to banks and rental companies have embraced online selling.
Over the past five to six years around 50% of business cars have been sold online. Companies such as leasing, rentals and dealer groups have had great results online across the Autorola group and in Portugal hold regular weekly online sales to dispose of their cars.

Traders market their used cars via social media
Trade buyers have been switched onto buying used cars online for many years. Many use their smart phone to bid online, while the smaller independents market many of their used cars via social media. The technology revolution is alive and well across all industries in Portugal which explains the country’s acceptance to adopt the INDICATA real time used vehicle management portal.

Agreements are already in place for our INDICATA real time used vehicle management with Renault, Toyota, Kia and the VW Group. Dealer groups value the real-time insights the system provides to enable them to run their used vehicle businesses as efficiently as possible.

Used market insights have been welcomed by dealers
Having access to detailed insights about their local used market and that of their close rivals has been welcomed by dealers. OEMs are also using it to create a country-wide picture of their entire used car stock, in particular average stocking times, both locally and nationally.

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Autorola Australia country manager Philip Browne on how online remarketing is helping change the used car landscape

Jun 27, 2018   written by Autorola
Personal leases have grown in popularity over the past 12-24 months with consumers looking to switch from owning to the flexibility of leasing a car. Currently these account for up to 90,000 new car sales each year with Toyota Finance one of the biggest players.

National leasing companies are offering competitive lease rates on new cars and when the consumer has equity in the car calling them with an offer to swap them into another new car.

Upstream selling
Lease companies are using Autorola to sell ex-lease cars upstream, whereby 3-6 months before the end of the contract the car is inspected and pre-sold to a buyer. Pre-selling the ex-lease car is proving an efficient disposal method for the leasing industry while the used market is buoyant. Used cars are sold within days of being de-fleeted and the customer gets to drive away in a new car keeping the market stimulated.

Another strong source of used cars into the market is via the fleet sector. Offering a company car as part of the recruitment package especially as competition to employ talent across the country is very high. Typically, fleets are keeping cars for between 3-4 years up to 140,000km and these are offering a different type of used stock proposition to dealer part exchanges and ex personal lease trade-ins.

Tourism is contributing to a growing hire car fleet
Tourism continues to grow in Australia and with it the rental market, particularly around Sydney and Melbourne. Nine million visitors were welcomed in the year ending March 2018, an increase of 7.7% and sufficient growth to see all the major rental companies extend their hire fleets. Hertz remains the number one rental company, with the majority of cars now being purchased on risk as opposed to manufacturer buy-backs.

The larger hire companies tend to keep cars for 18 months while the smaller independents usually replace their cars every 24 months. Ex-rental cars provide valuable used stock into the market as they fall between dealer part exchanges and ex-fleet cars.

Autorola runs two salvage auctions per day in Australia
A continued growth area for Autorola’s online remarketing proposition is the salvage market where cars are inspected, photographed and offered for sale in situ. On average Autorola runs two salvage auctions per day online and sells between 400-500 salvage cars online each month, a figure which continues to grow.

Selling the vehicle online is an efficient route to market due to the physical size of the country. The vehicle is marketed online but does not move until it has been purchased by the buyer thus reducing the need for insurance companies incurring expensive transport costs. Offering salvage vehicles for sale online to a wider range of buyers ensures the insurance company gets the best price.

Autorola has moved the used salvage market online
The Autorola proposition has transformed the market as previously salvage stock would just be offered to local trade buyers, or it would be taken to a regional storage yard incurring huge transport costs to be auctioned. Online remarketing not only speeds up the sale but also ensures it remains a highly cost-effective process.

Overall the Australian economy is looking forward to more years of stability, but with the advent of the growth in personal leases and the end of domestic car production the automotive sector continues to reinvent itself.

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Peugeot Turkey signs up to INDICATA Web Service

Jun 27, 2018   written by Autorola
Peugeot Turkey has signed an agreement with INDICATA Web Service in Turkey which empowers potential customers to value their own used cars online via the brand’s used car website

Drivers immediately receive a preliminary price for their used car and their details are handed over to the dealer to immediately follow up the potential customer.

Peugeot aims for 1,000 leads per month
Web Service is being used as a lead management tool by Peugeot Turkey to grow new and used car sales across its dealer network. 
Peugeot is aiming to achieve around 1,000 dealer leads per month through the initiative.

“Web Service provides OEMs with an online pricing tool for consumers which provides an immediate price for their car. This starts a valuable new relationship with a prospect online, which transfers over to the dealer whose aim is to turn the driver into a customer,” explained Oğuzhan Saygi, Autorola Turkey’s country manager.

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