NEWS

February introduction from Peter

Feb 22, 2021   written by Autorola

The first few weeks of 2021 have seen the used markets further affected by the Covid-19 pandemic with sales down by more than 16% year-on-year in January.

At the same time, the type of used car being sold by dealers is beginning to change. Used hybrid and electric cars are coming into the market in high volumes but the speed of supply is ahead of where consumers are currently.

Dealers have lots of stocking decisions to make
Consumers are still coming to terms with owning and living with an electric car which means dealers are having lots of decisions to make on how many new low or zero emission cars they stock blended with petrol and diesel cars which drivers are still more familiar with.

This speed of change across each country is amazing, which is where our INDICATA used car insights come into play helping dealers balance buying the right stock and selling it at the right price, to improve stock turn.

INDICATA demonstrates the power of Big Data
As we share the power of INDICATA with more OEMs, dealers, banks and leasing companies in webinars, online conferences and via our monthly Market Insights report so they can understand the power of Big Data when it is brought to life at a local level.

INDICATA can help dealers to decide what stock to buy while MarketPlace provides the online platform which provides the actual metal to bid on and somewhere to dispose quickly of unwanted or repeat stock to the trade. INDICATA and MarketPlace make a powerful combination.

Getting the industry together is very valuable
It has been good to see our teams get together as part of the latest ENG Remarketing conference this week. It is still not the same as meeting up in person, but it is very valuable for the industry to get together and discuss key issues and challenges. I know my colleagues Andy Shields and Morten Holmsten found it very useful when they presented at the conference focusing on how electric vehicles are performing in the used market.

Mobility Solutions is another growing trend where companies are offering people the chance to have access to a vehicle to fit in with their ever-changing transport requirements. These services are definitely shaping the future of vehicle use but of course you need a platform to power the often-complex range of services.

Fleet Monitor – our dynamic Mobility Solutions platform
Fleet Monitor is our platform that enables the company to have an overview in real time of the status of all of its vehicles, while giving the customer access to a range of services. Our colleague Maria Winther shows how our systems can add value to this dynamic new area of the car market.

We hope you enjoy our newsletter. Stay safe and we hope to see you all soon.

Best regards
Peter (LinkedIn)

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New INDICATA equipment launch

Feb 23, 2021   written by Autorola
Different equipment options impact used values by different levels depending on the segment of car and its vital to consider options in the premium segment differently to superminis. 

INDICATA provides true worth of car options
Based on the millions of vehicles INDICATA assesses every day the new functionality gives dealers the true worth of an option which compares with competitor platforms that adopt the same fixed percentage without considering changing market conditions.

Dealers now have the power to compare their used cars with similar stock options in their local area to ensure their part exchange valuations and retail pricing is competitive.

Dealer inventory pricing includes equipment and options
Each dealer’s used car inventory is automatically recorded inclusive of equipment levels and options which ensures values are always based on the latest market price movement. That way dealers have a real time value of used cars they have in stock, a major benefit for larger dealer groups with a mix of franchises and for car supermarkets where pricing is competitive and profit margins are slim.

Generally, the higher value the car, the more optional equipment it is likely to have fitted which means dealer appraisals risk being inaccurate which compromises valuing the part exchange and a potential sale. Alternatively, if the dealer under values the car when selling it in the retail market it risks potentially losing thousands of Euros.

INDICATA judges each car’s value in isolation
“Today’s trend is for drivers to want to drive cars that are bespoke to them. Historically this trend only occurred on premium cars but now many value brands differentiate their models with numerous equipment options,” said Andy Shields, INDICATA’s global business unit director.

“This has made the valuation process more difficult for dealers, which is where our new functionality takes used valuations to the next level. We are not working with averages but judging the value of each equipment level and option in the market now,” he added.

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Autorola Solutions’ Maria Winther says mobility solutions need a strong platform to power their innovative new products

Feb 23, 2021   written by Autorola

Mobility Solutions in terms of more enterprise focused collaborative platforms to support subscription models in the car industry have created a growing demand for flexible and convenient solutions.

Today’s market offers a variety of mobility solutions ranging from mobility-as-a-service and car sharing concepts, to subscription models. These models all have one thing in common: In order to succeed, the platform from which the models are managed needs to be flexible, transparent and accessible.

All this to address the needs of today’s mobility customers, which are characterised by less attachment to their car as a material possession and more focused on the immaterial values that mobility as a service provides – freedom and convenience.

The choice of platform is key
When looking at the subscription and short-term leasing industry, the market is growing. This means that for an organisation to constantly be on top of the service they must have a platform to oversee all vital parameters is the most efficient way to create a value-adding chain both for customers and their organisation.

This also means incorporating all data you need at a car level as well as user data, to centrally control all aspects of this user-centric service model. It requires a centrally controlled, structured process management tool, to oversee these new service models.

One platform needs to manage everything
In short: Fleet owners need one platform to tie all processes and data together to deliver a service that is competitive in the mobility market. This enables providers to offer their customers a ready stock to choose from, at any given time. This also means that how they manage their stock is key, to succeed with this business model.

“Now how do I equip my business to accommodate these needs if I want to be a significant player in this market ?” will be the question on most fleet owners’ agenda. The answer is simple: make it simple.

Workflow management tool
Autorola Solutions has many years of experience within enterprise mobility solutions and its software is a result of this. The team knows the market and is dedicated to always meeting the needs of its clients with a fully customisable and integrable workflow management tool – specifically designed to keep on top of your business.

“We do this by connecting your business into one digital landscape. In this process we work with you, reinvent your business processes, giving access to information, which is relevant and important at any given point in time. This is designed to increase productivity at a decreasing cost. We call this Fleet Monitor.

“Fleet Monitor is a modular-based software system that allows you to freely configure the flows, interaction points, gateways, actions and total stock overview into one platform.

“In short: Integrate your entire value-chain from acquisition and in fleet, to communication to customers, logistic and supplier companies, to active use and multiple subscription periods to de-fleet and disposal, in an easy-to-use and real-time platform, for making your business as transparent and efficient as possible,” said Maria.

Unlocking value in data
Autorola’s main focus is a major transformation to unlock values in data. Then deliver user-centric data that ‘transforms a system of data to a system of engagement.’

The Fleet Monitor platform is designed around a well-planned structure comprising of the solutions to the existing problems in this model. Typically, each project starts with a Business Value Assessment workshop to shape a clear idea about what the strategy should be.

    1. To structure and deliver information where it is required and when it is required
    2. To integrate technology, people and processes for efficient and effective delivery of the core business functions within the organisation around a product offering
    3. To aim to offer solutions to the focus areas of an organisation and to develop efficient processes for users of the system and end-customers.

Autorola Solutions offer a customised platform to integrate the modules that you need to succeed in your business. It will always reflect the way YOU do business and support your operations.

“The whole idea is to simply put people, processes, and technology together in one platform, which facilitates managing operations and services within the context of a business. Our solutions aim at getting the work done in a digital context and is based on technology, which offers a powerful platform in terms of collaboration and productivity said Maria.”

Especially in the short-term leasing industry, the need for instant overview, efficient stock management and collaboration is key to succeed where availability and convenience are main drivers for customers.

For more information go to: https://www.autorolagroup.com/about/solutions/

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Used battery electric vehicle prices fall as supply continues to grow

Feb 22, 2021   written by Autorola

Our INDICATA system has identified that towards the end of 2020 supply exceeded demand which in turn has slowed down stock turn.

Petrol and diesel stock turn is faster
BEV and hybrid stock turn in January across Europe was on average 3.4 and 3.8 respectively, while petrol and diesels were selling much faster at 4.9 and 5.6.

One of the main reasons for oversupply is the OEMs gain a €26,000 reduction in Corporate Average Fuel Economy (CAFÉ) penalties for every new BEV sold. This has become a massive incentive to supply cars into the new market, which is in turn is quickly feeding BEVs into the used market.

BEV residuals come under pressure
CAFE standards are calculated by a production-weighted average of mileage ratings across a manufacturer’s fleet; they are not based on data from actual on-road performance.

BEV residual values are also under pressure from a number of fronts:
   • Unrealistic price premiums versus petrol and diesel equivalent models
   • Consumer fear factor on remaining life left in the batteries
   • Slow charging infrastructure growth

Talking to the recent European Networking Group conference INDICATA and MarketPlace’s business unit directors Andy Shields and Morten Holmsten represented Autorola Group’s views alongside other senior executives from the remarketing industry.

BEV pricing pressure extends across Europe
They said: “There is price pressure on BEVs in all European markets. Dealers have increased their stocks of used BEVs in response to strong consumer demand, but until prices move closer into line with equivalent petrol and diesel cars then sales will be compromised.

“Used supplies of BEVs are going to continue and we may see some cars being sold cross border as countries balance supply and demand. Meanwhile, dealers have to operate a pricing policy to accelerate demand and balance BEV stock with petrols and diesels to satisfy consumer demand.”

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INDICATA report sees European used car sales fall in January as dealers face pricing volatility

Feb 22, 2021   written by Autorola

Our INDICATA Market Watch insights report identified used car sales in Europe had fallen by 16.4% in January 2021 compared with January 2020.

Many of the 13 countries featured in the INDICATA report suffered Covid-19 lockdowns of some kind which compromised used sales, with the UK, Germany, Denmark, and Turkey the worse hit with sales down by 40.4%, 17.5%, 22.7% and 25.1% respectively.

BEVs are now in oversupply with prices starting to fall
The buying habits of consumers meanwhile continue to move towards low or zero emission used cars. Year-on-year sales of Battery Electric Vehicles (BEVs) and hybrids continued to grow, although BEVs are now in oversupply and stock turn has been struggling and prices have started to fall.

A strong end to 2020 helped dealers and traders clear out some stock, but weak January sales resulted in markets entering February 2021 with 10% or more cars in stock than a year earlier.

Supply shortages were most severe in Poland with used car sales eating into dealer stock resulting in a 11.1% drop at the start of February compared with a month earlier and a 15.8% decline compared to a year earlier.

Dealers are facing pricing challenges
With some country’s lockdown restrictions likely to be in place until at least May or until vaccination levels increase, dealers are having to balance reducing prices on stock for a quick sale with keeping their in-demand cars back until the market returns to some form of normality. For many dealers that job will be easier with INDICATA helping decide which cars to keep and which ones to sell.

“Andy Shields, INDICATA global business unit director said: “While we have seen sales fall in January, many countries are still busy selling used cars online to accommodate lockdown restrictions. It shows just how resilient the used car industry is.

“There is a growing volatility in the market pricing with some models rising and others falling. Dealers and remarketers need to keep a close eye model-by-model on market conditions to ensure their stock is priced correctly to avoid losing sales,” he added.

To download the full 20-page 13 country report go to www.indicata.com/corona 

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