Introduction from Peter Grøftehauge

Aug 24, 2021   written by Autorola

This month we have interviewed Philip Browne, country manager at Autorola Australia who are leading the way with upstream selling used vehicles online in response to vendors looking to speed up the sale of its vehicles to trade buyers.

Selling used cars upstream
Vendors are being paid for vehicles before they have been de-fleeted and two out of every three cars Autorola Australia is now selling through the upstream process. At the heart of the success is our Fleet Monitor asset management system which manages a vehicle fleet from the time a car is ordered and delivered to the time it is sold as a used vehicle.

Autorola Brazil is also experiencing record levels of growth with a recent new contract being signed with VW Financial Services Brazil. Our MarketPlace online remarketing platform in partnership with Fleet Monitor has built up a reputation with banks and leasing companies for its reliability and transparency across all elements of the vehicle management process.

Autorola Brazil sells record number of used cars
It recently sold 2,203 vehicles in a single day which is a record across our group. Another country breaking records is Autorola UK, which recently celebrated its 15th birthday. As more vendors and buyers have moved to the efficiency, trust, and speed of online remarketing during the pandemic so the number of cars being purchased by major franchised dealer groups and independents online continues to grow.

Our UK group operations director Neil Frost believes the Covid-19 pandemic has sped up the move to online remarketing in the UK by two decades.
As well as running regular online sales in the UK for Arval, Sixt and Porsche the UK hosts European and global online sales for the likes of Lamborghini, McLaren, and Aston Martin from our MarketPlace online platform.

New INDICATA functionality launched
INDICATA’s new 0km/pre-registered and options and equipment functionality are also now live across Europe which is another example of us responding to the changing needs of our customers.
In an ever-changing remarketing environment where used demand exceeds supply it is even more important that dealers value their part exchanges and retail stock accurately which is where INDICATA can help. Watch our two short films that bring these new INDICATA features to life.

We look forward to continuing to share exciting news and views from around our 19 countries over the coming months.

Best regards
Peter Grøftehauge (LinkedIn)

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Autorola Australia leads the way with upstream selling

Aug 24, 2021   written by Autorola

In some cases, vendors are being paid for vehicles before they have been de-fleeted, such is the competition for 2-4-year ex-lease cars between dealers. Two out of every three cars Autorola is now selling have gone through the upstream process.

Upstream selling is a win-win for all concerned
In the current climate where demand exceeds supply upstream selling is a win-win for all parties concerned. The vendor sells the used car quickly, the buyer has access to new stock before it hits the used market, and the fleet operator reduces costs in the form of reduced de-fleet charges being charged by the leasing provider.

Like many countries the used market in Australia is very strong as buyers switch their attentions to used cars as new car availability is being compromised by the global semiconductor shortage.

More vendors are switching to online remarketing
Many physical auctions have also been shut during large periods of the Covid-19 lockdown, while Autorola’s MarketPlace online platform has been trading throughout. Many more vendors have begun to appreciate the speed, convenience, and cost efficiency of online selling.

Autorola’s upstream selling process starts at between 25 and 90 days before a leasing vehicle comes to the end of its contract. Its nationwide network of inspectors contact the driver to inspect their vehicle to gauge its condition in relation to the leasing company’s de-fleet standards and cost matrix.

Each vendor runs the Autorola Fleet Monitor asset management system which manages all aspects of a vehicle fleet from the time a car is ordered and delivered to the time it is sold as a used vehicle. The system automatically informs the client of key timings within the vehicle’s life cycle such as when a vehicle reaches 90 days from the end of its lease.

Fleets take more of a strategic view
“Fleets are holding these inspections in very high regard as they are able to take a strategic view on the level of costs they are in for when they hand back a car to the leasing company. They can decide to spend money on repairing a vehicle prior to de-fleeting or whether they hand it back and get hit with the charges,” explained Philip Browne Autorola Australia’s country manager.
“In some cases, accident damage is being identified which is then being properly managed via an insurance claim. In the current climate dealers will pay more for used cars in great condition as they know that the car will be ready to retail when it arrives on site,” he added.

Used cars are sold 7-10 days before being de-fleeted
Once inspected and any damage is repaired then Autorola uploads the used car onto its online remarketing portal 7-10 days before it is de-fleeted. On receipt of cleared funds, the vehicle is de-fleeted and transported directly to its new owner.

As the focus by companies to reduce their impact on the environment upstream selling has a major part to play. Each vehicle on average is transported 141kms less by not being transported to a physical auction location. According to Impact Sustainability that equates to a saving of 92.08 CO2-e (tonnes) per 1,000 vehicles.

Online auctions reduce cost and CO2 emissions
“The distances between towns and cities in Australia is enormous and by not having to transport vehicles into physical auctions vendors are protecting the environment as well as saving money. The tide has finally turned towards online auctions and Autorola is well placed to serve the changing needs of the remarketing industry,” said Browne.

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Autorola UK is celebrating 15 years

Aug 24, 2021   written by Autorola

Autorola UK is celebrating 15 years of selling used cars online this week as the Covid-19 pandemic has speeded up the acceptance by trade vendors and buyers to selling vehicles digitally.

Group operations director Neil Frost believes the three lockdowns have accelerated the industry’s move to online buying and selling by at least two decades.

Changing behaviours
“As tough as the pandemic has been for the motor industry it has changed behaviours dramatically as for many months since March 2020 dealers and leasing companies have had no choice but to sell and sell used cars online.

“Dealers, leasing companies and vendors have also begun to appreciate the convenience of selling online as well as the reduction in transportation costs. They now realise the importance of providing quality imagery and descriptions on each car as these give the buyer confidence to buy a car without seeing it in the metal.

Auctions not returning to physical
“Some physical auction companies have also got to grips with selling online and haven’t returned back to driving cars through the halls since the pandemic began,” he added.

Frost has been at Autorola since the beginning and the business has gone from selling hundreds of used vehicles each month in 2005 to 2021 where they are selling several thousand a month.

Blue chip online clients
As well as running regular online sales in the UK for the likes of Arval, Sixt and Porsche it hosts European and global online sales for the likes of Lamborghini, McLaren, and Aston Martin from its MarketPlace online platform.

But despite Autorola’s commitment to online remarketing Autorola employs a large customer service team to engage with dealer buyers and follow up on any questions or issues. A seller’s money is also held in an escrow account until the buyer is 100% happy with the vehicle, which is another element to instil confidence and trust with buyers in the online trading process.

Increased trust
“The customer service team has given buyers increased trust in the online buying process. It also spells good news for human beings as there are no signs that robots are set to take over selling used cars just yet,” said Frost.

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INDICATA’s new functionality helps dealers’ price up used car options and pre-reg cars more effectively

Aug 24, 2021   written by Autorola

As OEMs constantly look to bolster market shares with tactical dealer registrations, it is vital dealers can price 0Km/pre-registrations correctly but continue to monitor the market to ensure remains competitive against rival dealer pricing.

Three types of used car category
The INDICATA dashboard now identifies three types of used car category, they are:
• 0km/pre-registered vehicles that sit on a dealer forecourt but have never been driven
• Demonstrator stock with a few hundred kilometers on the clock that are a few months old
• General dealer used car stock
Meanwhile, INDICATA’s new equipment and options functionality help dealers improve the accuracy of their part exchange valuations and appropriately price their stock to be competitive.

True worth of an option on a used car
Different equipment options impact used values by different levels depending on the segment of car and need to be priced accordingly. INDICATA gives dealers the true worth of an option based on the millions of vehicles Indicata assesses every day and compare stock in their local area to ensure their part exchange valuations and retail pricing is competitive.

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 in stock, a major benefit for multi-franchise dealer groups and for car supermarkets where pricing is competitive and profit margins are slim.

Don’t risk compromising or losing money on a sale
Generally, the higher value the car, the more optional equipment it has fitted which means a dealer appraisal could be inaccurate and risk under valuing the part exchange and compromising a sale. Alternatively, if the dealer under values the retail car market it risks potentially losing money.

“We are pleased to add this increased functionality to our INDICATA used car insights portal as it offers dealers the power to value part exchange and retail stock more accurately against the local competition,” said Andy Shields, INDICATA’s global business unit director.

“We have had some fantastic feedback from dealers prior to launch and ultimately it will help dealers sell more used cars more profitably.”
For further information go to or contact your local INDICATA country manager.

Click here to go back to the August news

Record Year for Autorola Brazil

Aug 24, 2021   written by Autorola

2020 was a turbulent year for the global economy, but its huge effects on the Brazilian economy cannot be underestimated. With vehicle production lines in the country paralyzed for several months, the trickle-down effects of this paralysis continue to affect the country’s economy and Autorola’s results today. The continued shortage of new vehicles in the market has, as a knock-on effect led to a shortage of used vehicles across Brazil, which has ultimately slowed business growth.

Autorola Brazil grew in 2020
However, despite the economic and physical constraints placed upon our operations, Autorola Brazil managed a year of growth, and remains in a good position to make the most of potential growth in the coming months.

Driven in part by the strength and expansion of the rental market in the preceding years, 2020’s results were buoyed by a strong mix of major new business wins. Toyota Bank, Hyundai, BMW, Porsche, Lease Plan, and other leasing companies, all joined the client roster of Autorola Brazil, which meant that while growth may have slowed, the company was well-placed to weather the financial turbulence of the year, maintaining the continued period of overall growth which it has enjoyed since 2018.

Marketplace and Solutions working hand in hand
The Marketplace online platform has continued to perform well in Brazil, and the underlying support that this success brings to the business cannot be underestimated. The symbiotic nature of Autorola Marketplace working hand in hand with Autorola Solutions makes for a very strong business proposition for our clients. The strength of these two together continues to underpin Autorola’s core business success.

A further big business win came in April, when a year’s pilot scheme was concluded with great feedback and a successfully won tender process with Volkswagen Bank Brazil. Representing a major contract win for Autorola Brazil, VW Financial Services and its leasing/rental company have onboarded the Fleet Monitor package.

A perfect fit for VWFS
Prior to beginning the pilot scheme with Autorola, VWFS had been unsatisfied with previous attempts at fleet monitoring with other providers. In a country as large and as geographically diverse as Brazil, the accountability and traceability of assets is a key concern for lenders, and so the need for a reliable, diligent and technologically advanced solution is key, which made the Fleet Monitor package a perfect fit for the bank.

A well-known feature of the used-car market in Brazil has historically been the lack of consumer confidence in pre-owned vehicles, owing to a lack of reliable quality controls in place across the country. However, for VWFS, the potential for added transparency around vehicle condition aided by Autorola is hoped to be the first step towards strengthening the used car market and encouraging a long-term increase in used car values as consumer confidence builds.

The on-boarding process for the pilot scheme was carried out entirely remotely via a series of tutorials, and over the course of the trial, the financial arm of VWFS and Its leasing/rental company were highly impressed with the service offered by Fleet Monitor, as it allowed them to fully track its fleet assets at once, in real-time.

Fleet Monitor impresses clients
Importantly for Autorola going forwards, its main financial client is expanding in Brazil and is looking to expand the use of Autorola throughout its dealership network as a result.
Currently, a good percentage of their dealerships are using the Market Place (white label) package for internet auction sales, which allows every dealer in the country, no matter their location, to bid for any vehicle in the same condition as all the others, with the confidence and transparency that Autorola processes bring to the business. Inspection reports add value and trust to the buyers.

Sustained growth
The potential for sustained growth is huge as Autorola’s main client plans to increase its fleet in a serious manner with projection to expand gradually from over 10,000 to over three or four times within a decade.

Alongside this core business expansion will come an increase in the size of other fleet clients, a process from which Autorola has already begun to benefit. A fast-growing Brazilian mobility start-up decided to buy its entire fleet off a financial institution, and it did so via Autorola – leading to the sale of 2,203 vehicles in a single day – a record result for the entire Autorola Group.

Launching a de-fleet function is next on the priority list
With the uplift in clients, the next step for Autorola Brazil to deepen its market penetration will be introducing a de-fleet function, allowing for more of an end-to-end service for its corporate clients than is currently achievable.

Overall, however, while the situation surrounding the Covid-19 pandemic in Brazil continues to impact the economy, leading to several large economic sectors predicting a slow bounce back over the coming years, Autorola Brazil is proving that exceptional sales figures can still be achieved, and that strong growth is still possible in tough economic climates.

Marcelo Barros (Country Manager).

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