Jon Bulloch INDICATA’s European Business Development Director discusses how big data will help dealers, fleets and OEMs deal with a rapidly changing used market

Written by Autorola in category 
May 4, 2023

The European motor industry continues to change at breakneck speed with each new development set to have a massive impact on the used car market.

The new agency model for instance will see franchised dealer groups focus more time on used vehicles as they create their own used vehicle brands and move away from the reliance on OEMs and new car sales.

The agency model could extend to used cars in the future when the OEM sells cars directly to the customer, which will further change the remarketing landscape.

Online purchase journeys

We’re working with traditional dealer network OEMs and newer agency model brands to offer Trade-In solutions to enable online purchase journeys and provide a solution to absorb trade-in volumes not covered by the traditional dealer model.

“We work in partnership with the OEMs to offer the best solution to match their circumstances. For OEMs with a traditional dealer network, we can supply fully underwritten valuations to enable the dealers to keep the trade-in vehicles they want and give us the ones they don’t want; for agency model OEMs we can provide a fully managed service to take all trade-in vehicles.”

New brands are joining the market

In the last 12 months there have been a multitude of new Chinese car brands launching in Europe. The success of these brands will depend very heavily on their cars being accepted in the used market.

“The extent of the changes in the industry over the next five years is massive and the thirst for used vehicle data will grow as the different stakeholders utilise it to make strategic decisions to optimise sales and profitability by country or across Europe.

“With no historical used vehicle data to refer to in Europe, brands will be looking for new insights into how their vehicles are performing in the used market. INDICATA is set up to help and support new and established brands as they change the way they interact with customers and their dealers.

Cross border sales are increasing profitability

“Our data is already helping pan European customers and their dealers identify where their used cars are making the most money. This cross-border strategy powered by big data is helping generate an additional 2,700 Euros per vehicle. It has given them the ability to leverage price and demand in a market where used cars are in short supply, whilst maximising the proportion of their brand cars sold through their franchised dealer network,” said Jon.

The USP of the Autorola Group is that we can supply complete remarketing solutions including the best live data and valuations from INDICATA, together with industry-leading back-end systems through Autorola Solutions. It provides full remarketing capabilities in terms of buying, selling and logistics of used vehicle sales across all of Europe and beyond, including all cross-border administration. The opportunities we can bring to OEMs, leasing and rental companies are huge.

Whilst used ICE cars comprise the majority of all of Europe’s used cars, the topic of conversation among most dealers and OEMs currently is used EVs which currently comprise just 5% of the market.

Dealers are split currently in that some are confident in stocking EVs and then selling them to targeted buyers while other dealers are sitting on the sideline and waiting for the right time to dip their toe in the water.

Helping support dealers

“Dealers are going to need more help as they transition towards their new future. We are all set to help and support them with our data and insights. We are working to partner with more systems providers to integrate our data into dealer software. We do not want them to have to move away from their systems of choice, instead we can integrate our data into the software they are already using via APIs,” explained Jon.

“INDICATA can provide powerful used car reporting and analytics via a dashboard that is quick and easy to use. Proactively informing dealers when cars are over age or are priced too low or too high with the competitors comes as standard with INDICATA. It is intuitive and constantly keeps a close eye on market prices and supply to become an extra member of the remarketing team. ”We can support OEMs, leasing and rental companies with a regular portfolio of valuations to help them manage risk in their fleets and maximise remarketing valuations. We’re launching forecast values this year across Europe to enable full revaluation and forecasted contract end-date valuation.”

Tracking the used market

INDICATA’s Market Watch report has been supporting dealers for over three years in tracking used sales, prices, and stock levels across 13 European countries.

EVs have created the most headlines in the report in recent months by reporting record prices and then as stock increased and the European economies started to experience inflation record falls. The reduction in prices has certainly helped generate demand and clear ageing stock but the power train is still yet to find its level within the European market.

INDICATA’s reports are also helping OEMs track the performance of their dealer networks on used cars. It enables them to identify opportunities to improve processes and maximise use car profitability.

Buying and selling at the right price

For dealers it is all about buying and selling at the right price and gradually mixing in stock with traditional ICE cars. Petrol is the favoured power train type in the majority of Europe while diesel continues to fall from grace, except for the eastern European countries where it remains in high demand.

“Countries providing incentives to buy and run new EVs are helping increase sales but often the challenge comes when these cars reach the used market. Each country must work out how to transition EVs into the used market over the next couple of years otherwise new sales will stall. As we get closer to 2030 the market will have to change and new and used prices will have to come down. INDICATA is keeping a close eye on all elements of the market to help buyers and sellers,” said Jon.


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