Autorola Germany country manager Thomas Andresen looks at how his team is helping support the changing face of the remarketing sector
The revenues generated by the German used car market reached a record high in 2018 at roughly 84.7 billion euros. OEMs and the big leasing companies are investing more in technology to sell more used cars online, nearly 25 years after Autorola’s online vision first began.
“The market is changing, as well as the big players looking for technological answers to their remarketing challenges, they also now understand how an online remarketing portal like ours can help dissipate lots of same colour, same model, same engine cars into the market without distressing its residual values.
More vendors are using e-auction
“Vendors use our e-auction facility and buyers from around Europe will bid on the cars. It provides a different channel and when their dealer network has been first offered the cars putting them on general sale via e-auction is the next logical step.
“Such has been the uptake of online remarketing that the traditional used car auctions companies have been struggling as their business model no longer fits in with modern-day vendor needs.”
Estimating true fleet values is becoming critical
Used car values are becoming a higher priority to asset owners, particularly leasing companies and banks. Understanding the true value of thousands of used cars against their written down value on a monthly basis is at the heart of sound asset management practice, especially when the used market changes so rapidly. Get your valuation wrong and you could misinterpret the value of your fleet by millions of Euros.
INDICATA, Autorola’s real time vehicle pricing portal is being used to bulk value used cars. OEMs are using the INDICATA data warehouse to gain a second opinion about used values while banks want to reassure shareholders, they are managing its book valuation using real time values. Automating this process via a bespoke dashboard is saving vendors time and effort, and at the end of contracts is helping make a better qualified decision on what reserve to set to ensure a fast and profitable sale in the used marketplace.
Autorola is at the heart of Germany’s cross border sales
Germany is at the heart of a large increase in cross border sales, many of which are powered by Autorola’s online portal. Thousands of active buyers are always looking to buy cars for other markets and many vendor cars are leaving German shores to other European countries and Poland, Africa and the Middle East. Many diesel cars end up in eastern Europe, while there is a growing trend towards German dealers importing German built cars back into Germany.
Many high specification premium German and Italian cars registered in Italy for instance often struggle to sell to second hand buyers. German dealers will import them online back into Germany as they are well equipped and good value.
Export opens up used cars to more buyers
“Overall 150,000 used cars were either imported or exported via the Autorola online remarketing platform in 2018, accounting for 21% of total vehicles sold online. This growth is fuelled by vendors’ understanding that export can open up their stock to hundreds if not thousands more buyers.
“Prices are listed on the Autorola portal for each car net of local VAT and taxes so buyers always know the exact price they will have to pay for export vehicles,” said Andresen.
So, the German market continues to move with the times and looking towards adopting technology to help it improve efficiencies at all stages of the supply chain.
For more information, please contact Thomas Andresen, Country Manager Autorola Germany, Mobile: +45 20 11 42 49, Email: firstname.lastname@example.org