NEWS

Global Marketplace Director, Morten Holmsten, updates us on Autorola’s pan-European remarketing contract with BMW Group

Nov 14, 2023   written by Autorola

 

In the summer of 2022 Autorola’s B2B online remarketing platform was onboarded by BMW Group, opening up an additional remarketing channel for their national sales companies, Alphabet Fleet Management and BMW Group Financial Services to sell used stock cross-border. The aim is to optimise used car values by selling vehicles in countries where there is known to be the highest demand.

Currently BMW and MINI dealers in 16 countries can buy used cars on the platform. Recently added countries include Switzerland, Czech Republic and Romania.   

BMW’s national sales companies, Alphabet Fleet Management and BMW Financial Services can upload their ex-lease, rental, and company cars onto the closed Marketplace European platform to provide franchised BMW and MINI dealers with access to their used car stock. Everything is focussed on keeping used cars within the BMW Group network.

Vehicle inspection

In addition, the platform manages the vehicle inspection process and displays vehicle descriptions and imagery in a consistent style, standardising the presentation of vehicles inspected by multiple companies and different types of inspection software. Autorola Marketplace’s platform is also multi-lingual, ensuring a user-friendly interface, to make it easy for as many dealers as possible to engage in cross-border buying.

VAT and luxury taxes are another challenge that Autorola manages efficiently, having been at the forefront of cross-border used vehicle trading for two decades. The VAT and tax element of each transaction is managed in the individual Autorola countries with colleagues assigned to manage the paperwork fast and efficiently.

Centralised vehicle logistics

Vehicle logistics is another area where Autorola’s experience comes into its own for the fast and efficient collection and delivery of vehicles.

All vehicle logistics are managed centrally by a team in Denmark, who plan the fast and efficient vehicle collection and delivery, from country to country. By centralising this key role, the logistics team are continually focussed on filling trucks with used cars to make the cross-border deliveries as cost efficient as possible.

INDICATA powers all the data insights such as the export index, which values individual cars in individual countries, while Autorola Solutions Fleet Monitor workflow management system pulls all aspects of the service together in a single place.

Export index launched

“Our platform has been very well received. We have developed an export index for sellers to make it easier for them to decide which used cars to export to receive better prices outside their home market.

“If you have a lot of similar cars coming back from a lease contract, then export is a strong option. It enables vendors to spread the risk across different markets to avoid saturation, at the same time optimising values model by model.

“It enables unwanted, repeat, or overage stock to be made available within the confines of the BMW family, thus matching up supply and demand.

“The majority of stock coming onto the platform is between three and 12 months of age. Franchised dealer networks want younger used cars as there has been a shortage over the past three years due to Covid-induced vehicle production challenges. The same concept will also work well for older used cars,” said Morten.

One in three used cars are exported

Typically, Autorola is seeing 30% of all used cars it sells in Europe as cross-border transactions and that figure has remained consistent for a long period of time. It has been the main driver for helping companies adopt an efficient cross border used car policy as a seamless part of their overall remarketing strategy.

Seamlessly working together 

“For the Autorola Group it has been very exciting to see the power of our three business units working seamlessly together – the online Marketplace remarketing platform, INDICATA’s real time used car pricing data and Autorola Solution’s Fleet Monitor asset management platform.

“It has shown how powerful the three units are when they are brought together and is how we aim to sell our business proposition in the future. A modern remarketing strategy involves used vehicles being sold online, while asset owners need access to data insights to ensure they make strong strategic decisions both at a micro and macro level.

“The power of Fleet Monitor means everything is managed in real-time from a vehicle order to disposal. The workflow technology remains a unique proposition for our group,” he added.

 

“The first 12 months of the BMW contract has been very productive and has put the group in good shape just as used volumes show signs of increasing across Europe. BMW Group is in a great position to manage those used cars, which aren’t going to stay in their individual countries, more effectively. Over the next three years of the contract, we will constantly develop the platform based on BMW feedback, to further optimise its cross-border remarketing.

 

Welcome to Autorola Group newsletter

Nov 14, 2023   written by Autorola



As we move from autumn to winter the used market is becoming more seasonal following three and a half years where everything was impacted by restricted new car supply. In the winter that normally means the market slows down pre-Xmas and then speeds up again in January.

We are seeing more used cars entering the market and our country manager Miguel Vassalo reckons new and used car supplies have returned to normal in Portugal.

In his interview he also also tells us how the Portuguese use car market has become more sophisticated and how multiple buyers and sellers are now using our INDICATA used car data to help them make more strategic buying and selling decisions.

Growth in online remarketing

Our MarketPlace online wholesale platform is also reporting a 30% + growth in 2023 as we are selling more cars that come into the market from dealers, fleets and even for the first time in a while rental companies.

In this newsletter we are also celebrating being presented with the EY Entrepreneur of the Year™ Regional prize for Funen 2023. This is the third year in a row that the award has gone to Autorola which celebrates individuals and companies that demonstrate vision, leadership and success. We look forward to attending the Danish national finals later in November.

Meanwhile, INDICATA keeps going from strength to strength as more remarketing professionals follow those in Portugal by using data to help them make the best decisions regarding used car prices and stock levels.

Tracking used BEV trends

We focus on the different used car trends across Europe, which includes an all-important update on used BEVs. Although they still only account for a small market share 99% of the conversations with our customers are around BEVs and their performance in the used market. Let’s keep the discussion going as we track more than 10m used BEV prices across Europe each day so can share the very latest trends with you all.

Our activity in the Middle Eastern countries goes from strength to strength following our partnership agreement with Al-Futtaim Automotive signed in January. Our Autorola Solutions team have reported back on their recent visit to Automechanika Dubai – the world’s largest automotive aftermarket trade show where we had some great conversations with remarketing professionals in the region. We look forward to continuing to grow our presence in the Middle East.

We hope you enjoy our newsletter.

Best regards
Peter Grøftehauge (LinkedIn)

Autorola awarded Regional EY Entrepreneur of the Year prize

Nov 16, 2023   written by Autorola

 

We are celebrating that our group CEO Peter Grøftehauge was awarded the EY Entrepreneur of the Year™ Regional prize for Funen 2023. This is the third year in a row that the award has gone to Autorola.

The EY Entrepreneur of The Year™ award is a globally renowned program and the most prestigious recognition for entrepreneurial excellence and a forward-thinking business mindset.

Vision, leadership and success

It recognises entrepreneurial achievement among individuals and companies that demonstrate vision, leadership and success — and work to improve the quality of life in their communities, countries and around the world.

EY has been presenting this unique award since 1986, consistently and proudly acknowledging the extraordinary accomplishments of entrepreneurs in more than 60 countries.

Peter and Autorola are in good company with Nordic Bioscience, Minerva Imaging, Liftra, AVK and Sports Connection ApS | SKECHERS the other companies receiving regional awards.

Denmark’s best growth creator

They are all now in play for the award as Denmark’s best growth creator, which will be presented at the national final of EY Entrepreneur of The Year on 23 November.

The judges said: “Autorola Group continues to demonstrate impressive growth in both top and bottom lines and is increasing its number of employees – well done, very impressive.”


Read more here: https://lnkd.in/dpPTWjk

Autorola Solutions exhibits at Automechanika Dubai

Nov 14, 2023   written by Autorola

 

In October a small team from Autorola Solutions visited Automechanika Dubai – the world’s largest automotive aftermarket trade show

At the beginning of October, a small team from Autorola Solutions travelled to Dubai to attend Automechanika, the largest international trade fair for the automotive aftermarket industry. More than 52,000 people visit the trade fair from 161 different countries over a three-day period.

The Autorola team comprising Ib Kimose, Maria Winther, Anders Færgemann Jensen, Ilias Ghiyati and Taisir Sabih were the group’s first presence at an exhibition in the United Arab Emirates (UAE) following the joint venture with Al-Futtaim Automotive announced in January 2023.

Autorola Middle East & North Africa (MENA) Holding Limited exhibited alongside 2,000 exhibitors, representing 61 countries to bring our new proposition to life of reinventing the region’s B2B used-car market.

End-to-end digital platform

Our joint-venture introduces an integrated and end-to-end digital platform for the industry, which will digitise and simplify every step of the remarketing process, with consistent, transparent pricing, seamless automated workflows, and 24/7 auctions. This will allow better trade-in ratios, faster stock movements, and an improved better customer experience.

Automechanika provided plenty of opportunities to meet with many interesting people and establish good connections over these few days as Autorola continues to build awareness of its new proposition within the UAE region.

Keynote speech at Innovation 4 Mobility

On the second day of the fair, Solutions’ business unit director Ib Kimose, gave a keynote speech at Innovation 4 Mobility. where he presented the values and ideas of Autorola Solutions and the single digital remarketing platform concept.

“Bringing people, processes and technology together”, was the message of the presentation, and with Ib Kimose explaining the value that Solutions can bring to a business via its Fleet Monitor used vehicle workflow monitoring platform.

Ib Kimose emphasised the streamlined process of Fleet Monitor, and Autorola’s goal of creating an end-to-end digital and transparent landscape for automotive businesses in the Middle East who are striving to optimise used car supply chain efficiencies through digitalisation.

 

Miguel Vassalo, Autorola Portugal’s country manager tells us how the used market is becoming more sophisticated through the greater use of data insights

Nov 14, 2023   written by Autorola

 

 “The used market in Portugal is becoming more sophisticated as more decisions are being made by using our INDICATA data insights. And with used car volumes increasing as new car supplies improve it will also help make data-led decisions an edge in a fast-moving used market.

“Dealer groups, OEMs, leasing companies and banks also appreciate that INDICATA provides used data in real time which helps them manage their stock more efficiently. Fleets use the data to set accurate reserves when selling at auction while dealers use it to help them invest in the fast-moving stock to add to their forecourts.

“In addition to our Appraisal/Stock Management tool, there is a growing demand for automation capabilities through INDICATA’s Web Service, the sophisticated reports based on Power BI, and our powerful Lead Generator. We are excited to share that soon we will bring even more advancements to the automotive market with the launch of a sophisticated forecasting system.

Back to pre-Covid levels

“From the fourth quarter of 2022, we have observed an uptick in the volume of used cars entering the market in Portugal, which has provided the used car market with more stock. We are more or less back to pre-Covid levels now with OEMs supplying new cars again to rental providers who in turn are feeding the market with younger sub-12-month-old used cars.

“Portuguese new passenger car sales are up by 34% for the first nine months of 2023, with Peugeot, Renault, and Dacia currently the three best-selling brands.

“Inflation is on a downward trajectory plus our country’s national debt continues to fall. Mortgage rates and house rental prices continue to rise but consumers are still buying new and used cars which is providing stability to the remarketing sector.

Reliant on used car imports

“In the last couple of years Portugal has been very reliant on used car imports to help balance supply with demand. Our cross border used car service is at the heart of these transactions and we are seeing an increased number of dealers buying cross border cars from us online. Local buyers continue to embrace online buying and we are now seeing more activity on our wholesale MarketPlace online platform than ever before across all our timed auctions.

“In fact, on the Autorola Marketplace platform in Portugal, dealers find daily the largest national offering of both local and European cars from all segments. The range spans from nearly new cars from rent-a-car fleets to older vehicles sourced from trade-ins or credit recovery, covering everything in between.

“Buyers have also had to change their stocking strategies over the past two years with used petrol cars continuing to be much more popular. Previously Portugal was a very strong diesel market but as the market moves to reducing emissions this fuel type has fallen in popularity.

“Many dealers seek to partner with Autorola as we uniquely integrate technology that aids them in their digital transition. A prime example of this is our Trade-In app, which helps streamline the trade-in management process, from the moment of evaluation to the sale at auction.

Real-time Asset Insight

“Banks and financial institutions are increasingly recognizing the value of complete transparency throughout each phase of the vehicle asset management process. Our Fleet Monitor workflow and management system, embodying the evolving synergy between technology and automotive asset management, has found significant favour among banks, aligning with this emerging preference for continuous insight into asset statuses.

Slow to embrace used EVs and hybrids

“However, consumers have been slow to embrace hybrid and electric used cars as our latest sales data shows. They account for 10.4% and 9.6% of used sales at four years old respectively, rising to 13.2% and 13.0% at less than two years of age according to the latest INDICATA Market Watch insights report.

“When looking at Market Days’ Supply BEVs and hybrids are also struggling when compared with petrol and diesel. In September they were at 104 and 108 days which has come down considerably in line with a fall in prices. This compares with 96 days for diesel and 88 days for petrol.

Things will have to change

“We are working hard to share this data with the industry as things will have to change at the used car end of the market to cope with the growing number of EVs and hybrids now being sold in the new car market. Nearly 50% of new car sales are alternative fuels and this is likely to continue to grow, but with it the market will need greater education about low and zero emission cars.

“Autorola will make sure it continues to play its part in this information dissemination as a new EV and hybrid car market will be restricted from growing over the coming years unless demand in the used car market improves.”

INDICATA tracks the highs and lows of used BEVS in Europe

Nov 14, 2023   written by Autorola


INDICATA continues to keep a close eye on used BEV trends by analyzing its data generated across 13 European countries. And in September there were lots of twists and turns for used BEV values, stock levels and demand.

European used BEV sales increased to 5.0% in September compared with petrol at 34.1% and diesel which slipped to 34.1%, but those figures changed when looking at the age of used BEVs being disposed of.

Up to four years old, petrol remained the best-seller with a 45.8% market share as diesel slipped to just 24.0% with BEVs continuing to struggle taking just 7.8% of sales.

That compared with used cars up to two years old where diesel slipped to just 16.3%, while BEVs accounted for 11.0% with petrol losing 3.2% market share month on month by falling to 42.71%.

At a powertrain level, there was no respite for used BEV prices, which saw a 1.5% month-on-month decline in average prices while used diesels fell by 0.6% fall in prices over the same period, as did petrol prices.

We use Market Days’ Supply to measure the number of selling days there is enough stock to cover, and the higher the number of days, the slower the stock is selling or, the more stock there is to meet current needs.

In September BEVs had an MDS of 91.63 days which is 20.2% improvement in a month and considerably behind diesel at 65.04 days. This made BEVs the slowest-selling powertrain on average.

However, according to our top sellers’ table covering the fastest-selling car models under four years old, the third fastest-selling model amongst all powertrains was the Tesla Model Y, and if you only look at the electric version of the Volkswagen Golf, it became the second fastest-selling model.

Here are some high-level trends for each of the countries in our monthly Market Watch report:

Country

September’s used BEV trends in Europe

Austria

Prices fell by 1.3% which helped them account for 12.3% of sales at under two years of age.

Belgium

BEVS accounted for 8.9% of used sales under two years of age and 13.0% of total stock. Prices fell by 1.3%.

Denmark

BEVS accounted for 35.1% of online B2C used sales of cars under four years’ old

and rose to 47.2% for cars under two years old. Tesla’s Model 3 was the market’s top-selling used car.

France

BEV prices fell by 1.5% and are the slowest-selling powertrain. Market Days’ Supply (MDS) was at 130 days and BEVs were selling 76.6% slower than traditional powertrains.

Germany

Germany is one of the few markets where average BEV prices are higher than January 2022. Market Days’ Supply was 92.3 days with prices falling 3.2%. VW’s ID.3 was the fastest-selling used car.

Italy

BEVs remained the slowest selling powertrain with an MDS of 125.8 days. Prices fell by 1.7% with BEVs accounting for a market share at under two years of age of 4.6%.

The Netherlands

BEVs accounted for 19.5% of used cars under 24 months of age. BEVs are now selling much quicker and have an MDS of 108 days. The Cupra Born and Audi Q4 e-tron were the country’s two fastest-selling used cars.

Poland

BEVs are still a hard sell with an MDS of 117.5 days. BEVs account for just 2.5% of sales at four years old and 4.3% at under 24 months of age.

Portugal

BEVs were the third best-selling fuel type up to four years of age at 10.4% and 13.2% at 24 months of age. BEVs along with hybrids experienced the largest price drops in the month.

Spain

BEV prices collapsed by 5.2% which helped reduce the MDS from 184 to 126 days. Most of these sales have happened in the sub-12-month category with BEVs accounting for 5.0% of sales.

Sweden

BEV prices continue to fall, but with sales increasing and MDS improving to 68.7 days, the market could be reaching the point at which prices start to stabilize.

Turkey

The MDS for BEVs was 73.7 days and remains the country’s slowest-selling fuel type. Turkey is one of the slowest nations to embrace BEVs.

UK

Demand is improving with younger used cars, where BEVs accounted for 10.5% of used car sales under two years old. The MDS of just 47.0 days was currently the lowest in Europe. Tesla’s Model Y was the fastest-selling used car.

 

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