NEWS

Introduction from CEO Peter Grøftehauge

Nov 24, 2020   written by Autorola

At the yearly Fleet Europe event it was a great chance to see colleagues, friends and customers albeit online and it was a reminder what a vibrant industry we are all part of. The used car industry in particular is very resilient as our monthly INDICATA Market Watch reports show.

10 Covid-19 used car reports published
We have published 10 reports this year following the effects of Covid-19 on used car markets in 13 countries and just as the industry was getting back on its feet lockdown 2.0 has impacted sales and prices once again.

Our INDICATA global director Andy Shields presented to the Fleet Europe audience some of the statistics where one moment a country’s sales were down 80% year-on-year and then the following months sales are up by a few percentage points. Andy shares some of those valuable insights in this newsletter and reinforces the importance of using a portal such as INDICATA to proactively manage used car stock and pricing during these difficult times. It brings to the fore the power of big data down to dealer level.

Autorola Turkey launches car buying service
Turkey is one of the most buoyant used car markets in Europe and our team have been piloting a new C2B car buying service over the past few months under the Autocom brand. It has set up three vehicle handover centers in Istanbul and purchased 100 used cars from motorists.

Autocom is launched in January and it aims to buy 1,000 used cars a month and expand to other cities in Turkey. Powered by INDICATA used car data is provides a true online pricing proposition backed up by the peace of mind of having the trusted brand of Autorola behind the transaction. We wish Oğuzhan and his team well with the new project.

I am sure the used markets around the world will have some more surprises for us before we end 2020. Stay safe.

Best regards
Peter (LinkedIn)


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European used car dealers increase stock levels as lockdown 2.0 market slowdown begins

Nov 24, 2020   written by Autorola

Our October Market Watch insights report reported an average 12.4% year-on-year sales growth across 13 European countries. 11 out of 13 countries saw dealer stock levels increase, with supply now appearing to be coming back into the market. Key movers were Spain, France and the UK, increasing stock levels by 9.0%, 7.9% and 7.4% from the 1 October to the 1 November respectively.

However, just as supply and dealer stock levels start improving Covid levels have increased and tighter lockdowns have been imposed in a number of countries. This means the current used car bull market of short supply and rising prices is coming to an end.

Dealers need to manage their used car stock pricing
The challenge is for dealers to manage their used car stock pricing and stock turn using real time data from INDICATA as demand starts to soften in many countries.
During October countries such as Portugal, Turkey, France, Italy and Germany reported year-on-year sales growth by as much as 31.1%. This was balanced by countries such as Sweden, Austria, Poland and The Netherlands which experienced a year-on-year fall in used car sales.

Petrol and diesel stock turn is strong compared with EVs
Dealer stock turn for diesels and petrols at 7.4 and 6.7 eased back marginally from September but both fuels remain in short supply. That compares with EVs and hybrids which delivered a 4.5 and 5.3 stock turn during the month where supply is freer and prices less stable.

There has been a consistent demand for used cars of all ages with the five-year old car comprising the consumer sweet spot. Meanwhile, sales of sub-12-month old cars continues to struggle due to poor stock levels (illustrated by a 23% year-on-year increase in stock turn).

OEMs show little interest in tactical pre-reg and 0km activity
With EU27, EFTA3 and UK new car sales down by a total of 38.7% in Q3, OEMs are demonstrating little interest in supporting tactical pre-reg and 0km sales campaigns so sub-12-month old car stock levels are not likely to improve any time soon.

“During October we saw dealer stock levels increase as further part exchanges and ex-lease vehicles came into the market. This follows many months where supply has been restricted and dealers scrambled to find stock,” explained Andy Shields, INDICATA’s global business unit director.

Dealers need to balance their used car books carefully
“With the risk that Lockdown 2.0 impacts consumer demand in many countries, some dealers may have overstocked for November. December is traditionally when demand softens so those dealers are going to have balance their used vehicle books very carefully to the end of the year.

“We are already seeing some price adjustment to keep sales ticking over and as we move into 2021 and delayed lease returns start coming on to the market, dealers and remarketers should be revisiting their pricing strategies on a regular basis.

“With specific models showing real signs of oversupply, each vehicle now needs individual pricing based on trade or retail benchmarks and by reviewing saleability in the market.” he added.

Find the Market Watch report on www.indicata.com/corona


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Autorola Turkey launches C2B Autocom car buying service

Nov 24, 2020   written by Autorola

Autorola Turkey is launching an exciting new car buying service in January through its new Autocom brand, which will see it buying used cars off the public for the very first time.
With a used car quoting engine powered by INDICATA pricing data consumers visit www.autocom.com.tr to work out the value of their own car online. Once they are happy with the price, they visit one of three drop off points which Autorola has set up in Istanbul to hand over their car.

Final inspection
Each drop off centre carries out a final inspection of the car against the information given by the driver and then a final price is agreed and payment is transferred within 3 hours.
Autorola has completed a successful trial over the past few months which has seen it buy 100 used cars off motorists and the feedback has been very good. These cars are immediately uploaded to Autorola Marketplace’s online used car portal to sell to the wholesale motor trade.

Targeting professional people
“We are targeting those professional people who are time poor who want a reliable and hassle-free car selling service from a corporate partner they can trust,” explained Sencer Alagöz, Autocom Turkey’s Sales Director.

“Those 100 drivers who have used the service have been very happy and we look forward to rolling out Autocom in January. We hope to be buying 1,000 used cars per month from drivers by the end of 2021,” he added.

Extending Autocom to other Turkish cities
Once the service is launched in Istanbul, Autorola will be looking to extend the Autocom car buying service into other major cities in Turkey such as Ankara and İzmir which will include setting up new handover centers.

The power of INDICATA lead generator has also seen Autorola sell this pricing engine to other car buying services who then bespoke the prices according to their own business strategies.
Companies who would like to find out more about buying INDICATA lead generator should email Aslı Göker on asl@indicata.com.tr.


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Stay efficient – stay ahead

Nov 24, 2020   written by Autorola

 

The World has changed and 2020 has presented us with a new reality. One we never saw coming and one that has brought much disruption. Now we need to understand how to cope with this new reality.

Just like every other industry, fleet and automotive have faced these sudden changes and experienced a workplace that had to immediately adapt to social distancing and workplaces moving from the physical space to an online setting. This increases the need for more efficient and structured digital platforms for managing and selling cars in a time that requires you to rethink your business: Strategically, tactically, and operationally.

Due to several disconnected internal systems that are poorly consolidated, organizations have lacked a total overview over their assets. The big task is now to tool up and make sure that your employees are best equipped to succeed in the online workplace.

Autorola Solutions provide you with a 100 % browser-based online tool to continue working efficiently, even in remote settings. Gain access to all your assets online and interact real-time with your co-workers, suppliers and network, across countries, branches and distances.


With the Fleet Monitor at the center, you continue your day-to-day business uninterrupted and with everything you need right at hand. Just access our web-based tool from any device, from anywhere at any time and you have full access to work with your cars and continue doing business – as usual.

Interactive asset overview
With Autorola Solutions Fleet Monitor, you, as a fleet owner, instantly access your entire car park with detailed descriptions and commercial photos and start work. No matter where you are, you have instant access to all cars and know exactly what the state of the car is and what it is worth. That is transparency and trust in one flexible solution that can be customized to your needs. Design your perfect way of working and roll out across your organization. Scalable, secure, safe and simple.


Digitalization is an investment in the future and a natural way to ensure business continuity in unexpected and unprecedented realities. Keep moving forward when the world changes overnight with our online, practical, adaptable and mobile solutions.

Learn more about our solutions
Autorola Solutions Fleet Monitor is proven to help businesses streamline processes, improve efficiency and performance, as well as making sure all activities are compliant. Our collaborative platform provides you with a powerful tool to reduce your operational costs and mitigate both operational and financial risks and our communication module is an integral part of creating a service-minded platform.

We simplify every part of your fleet and resource management.


For more information, please contact Ib Kimose, Director AUTOROLA Solutions, mobile: +4561629916, e-mail: iki@autorola.com
Read more on Autorola Solutions


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Autorola Group shares lockdown used car insights with Fleet Europe audience

Nov 24, 2020   written by Autorola

The Market Watch used car insights report was launched by INDICATA in February 2020 to give remarketing professionals an idea of how the Covid-19 virus was impacting the market in 13 countries. The insights have given companies valuable insight which has helped companies develop strategic decisions about their used car and remarketing programs.

INDICATA’s global director Andy Shields was asked to present some of the report’s findings at the magazine’s first ever virtual summit.

Despite Covid-19 Europe’s used car industry has been resilient
The Market Watch report powered by INDICATA data was able to show how the severity of lockdown dramatically impacted 13 used car markets in Europe. Each country’s used car sales, supply, prices and dealer stocking levels were all impacted at various levels, but ultimately as we move into the end of 2020 the market has been very resilient.

At its lowest point average sales in April were 52.75% down year-on-year from the same month in 2019. However, sales were only down for March, April and May, while the remaining seven months to the end of October sales actually rose with September the peak month rising by 17.33%.

Market performance varies country by country
Andy also shared slides on how the depth and speed of market recovery was based on how severe the lockdown was by country using The Netherlands, the UK and Poland as country examples.

The Netherlands which suffered more of a relaxed lockdown with dealers still trading saw the largest sales fall of 15.7% in March and from there on the market has grown year-on-year to a July high which saw a 21.6% growth in the month.

The UK saw the largest market fall in April of 89.7% as dealers closed while the market came back quite quickly during June and July post lockdown. The Polish recovery meanwhile was remarkable in that it fell during March, reached rock bottom (down 71%) in April and then in May moved 79 percentage points to sales being 2.1% up year-on-year. Performance has stayed in line pretty much the same as 2019 ever since.

What the future brings
• But as 2021 looms demand remains outside of new lockdowns while stock is becoming more available
• Prices are firm on traditional powertrains, but EV prices are less stable despite volume growth
• BEVs remain in very free supply but how will prices shape up in the future?
• Prices are weakening in some markets as supply catches up with demand, but what will the impact on prices be?

To receive your free monthly Market Watch used car report go to www.indicata.com/corona.




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Introduction from CEO Peter Grøftehauge

Oct 28, 2020   written by Autorola

Welcome to our October newsletter, we hope Q3 was a healthy quarter for your business as countries moved out of lockdown.

There are signs that Q4 will be another good quarter for the used car sector, although we are starting to see the big new car sales push for EVs and hybrids impact on pricing of used cars.

Stock turn of EVs and hybrids is slowing
Pricing is starting to slow, and stock turn is also considerably lower than petrol and diesel cars which are in short supply. It will be interesting to see how this pans out to the end of the year and our INDICATA director Andy Shields looks at these insights in a little more detail.

He will also be speaking at the virtual Fleet Europe Summit which has been announced for mid-November. All three divisions of the Autorola Group will be in attendance and while we are sad we can’t see you in person, the summit will be the next best thing.

Our Marketplace director Morten Holmsten will also be on the jury and our Solutions director Ib Kimose will be in attendance.

We look forward to networking with you and encourage you all to stay safe.

Best regards
Peter (LinkedIn)


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European used car market grows on the back of improved supply

Oct 28, 2020   written by Autorola

The European used market grew by 18.4% year-on-year in September a significant improvement on August’s 10.3% growth according to insights from our latest INDICATA Market Watch 9 report.

Supply has been constricting the size of the European market, not demand, so with more balanced supply the market grew in September.

Dealer stock level fall by 15%
Dealer stock levels had fallen on average by 15% from June to end August, but in September this flattened and growth in UK and France (5% and 6% respectively) allowed these larger markets to power forward.

Turkey, Portugal and Italy experienced the strongest used market growth at 59.6%, 36.2% and 29.6% respectively, while overall prices remained firm during September at a time when countries would expect a small price fall. This suggests the market remains nicely balanced with underlying demand exceeding any increases in supply.

EVs and hybrids sales volumes continue to increase
Environmental powertrain (BEVs and hybrids) volumes continued to increase significantly in September up 123% and 104% year-on-year respectively. However, stock turn of environmental cars is well below the market norm (4.4x and 5.4x respectively) suggesting the growth is driven by oversupply as much as underlying demand. Accordingly, prices are less stable.

Conversely, diesels and petrols are now both in short supply with high average stock turns of 7.9x and 7.3x which is up 35% and 37% respectively.

Supply shortages in sub 12-month market
Sub-12-month old volumes are down significantly (7.0%), but their level of stock turn increased year-on-year (34%) suggesting low volumes are still driven by supply shortages caused by OEMs not forcing the market through demonstrators and pre-reg cars.

“Growth in the September used car market was extremely healthy but was still tempered by tight levels of dealer stock”, explained Andy Shields, INDICATA’s global business unit director.

Market in good shape but dealers should remain cautious
“The market is very stable with prices firm and demand continuing to exceed supply. As we move into Quarter 4, the used market looks in good shape. However, with the second wave of virus infections now seemingly inevitable and new lockdowns happening, dealers and remarketers should remain cautious.

“Combine OEM new supply coming back online and an increased number of trade-ins, the market could switch quickly from under to oversupply,” he added.

To download your free 21-page Market Watch report go to www.indicata.com/corona


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European new and used EV sales are growing, but residuals are falling. INDICATA’s director Andy Shields puts this market trend into perspective

Oct 28, 2020   written by Autorola

Since August, used EV sales volumes have been going well year-on-year across INDICATA’s 13 European countries with our data showing a significant switch to environmental powertrains since lockdowns were lifted.

At the same time European used car markets are generally being constrained by supply, with an increase in volumes by 10.3% in August year-on-year, but a contraction in stock supply since June of 15%. This is creating a generally stable market price or a price increase as supply outstrips demand.

EV prices are softening
However, EVs are not following this trend. Since February, in Germany the Indicata EV price index for petrol used cars in August was 97.6%, however used EVs were down to index 90%. In the UK used petrol prices are at 103.5%, while used EVs are priced at 99.6%.

Indeed, INDICATA sees similar price lag trends in almost all European markets, with EV prices worse off than their petrol and diesel counterparts.

INDICATA analyses not only sales but assesses market attractiveness by comparing sales to stock availability, and here the issue is clear. In August diesel cars had an annualised stock turn of 10.2x, up 30% year-on-year and petrol cars a stock turn of 9.5x, up 29%.

EV supply still outstrips demand
EVs however have had only a 5.3x turn in 2020 and whilst marginally up versus 2019, this is a sign that EV supply still outstrips demand, hence the poor performance residual values.

There are several factors causing this poor stock turn? The gap in range and speed performance of newer EVs versus older ones is greater now than between new and old petrol cars, is one reason.

OEMs have a vested interest to push EVs into the market and after slowly setting up production capacity and launching new models into the market, many have finally caught up and started to benefit from free supply.

EV new car sales rise 3-fold
ACEA’s new car statistics show that EV registration share in August had increased three-fold (7.2% vs 2.4%) compared to the used car EV market only doubling. This suggests that sales volume increases are supply pushed and not matched by a corresponding demand in the used market.

As a sign of the times, INDICATA’s recent work with a 50-outlet dealer group demonstrated an optimisation of price and stock mix. Overall, they were in a good shape, apart from EVs, where sales were slow, stock aging and unit profitability was starting to become a challenge.

EVs face a tough time in the used market
Therefore, INDICATA anticipates a tough time for EVs going forward with a healthy increase in sales not lulling the market into a false sense of security. As always, INDICATA encourages dealers not to look at sales alone, vehicle attractiveness led by KPIs such as market day’s supply and stock turn are the true measures to make decisions on what stock they should buy.


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Autorola Group confirms virtual attendance at the Fleet Europe Summit 2020

Oct 28, 2020   written by Autorola

We are looking forward to attending the digital Fleet Europe Summit on the 17 and 18 of November.

Our three business units – MarketPlace, INDICATA and Solutions will all be represented so please come and see us on our digital booth.

Our global INDICATA director Andy Shields will also be speaking, Morten Holmsten, our global MarketPlace director will be on the jury and Ib Kimose, our global Solutions director will also be in attendance.

Pleased to support this annual event
While we are sad not to be able to meet up with our customers, colleagues and friends in person we are pleased that Fleet Europe is able to host this important annual coming together of the fleet and remarketing industry.

“It is important that we all continue communicating and stay together as we fight this pandemic so what better way than supporting the Fleet Europe Summit. We look forward to seeing you online in November,” said Autorola Group CEO Peter Grøftehauge.

Please also look out for our forthcoming article in the Fleet Europe magazine.


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Introduction from CEO Peter Grøftehauge

Sep 22, 2020   written by Autorola

August was another strong month for the European used car industry according to our latest August INDICATA used car insights report with sales up on average 10.3% year-on-year.

Used car pricing continued to increase in most markets with Turkey, Portugal and Italy experiencing the largest year-on-year rises.

Despite these rises we sense that the used car industry is cooling down very slightly and it will be interesting to see how September pans out for vendors and buyers alike according to INDICATA business unit director Andy Shields (LinkedIn).

This will involve tight control of stock and pricing, both of which INDICATA can help companies with across 13 European countries.


Autorola Mexico continues to grow
Mexico is a country where the remarketing sector is still growing in maturity and our Autorola team led by Alfredo Hernandez (LinkedIn) is doing some great work with OEMs, banks and rental companies developing these strategies.

The used market is very strong currently and Autorola’s online used car inspection and sales portal is at the heart of many successful online auctions.

We interviewed Alfredo about the changing face of the Mexican market focusing on how the used and new car markets are doing and how Autorola is using its technology and processes to help increase the transparency and professionalism of all used vehicle sales.

Digitisation of remarketing plans a central role in fleet management
Our Solutions business unit is advising its customers to keep its used cars moving to support business finances and cashflows as the remarketing industry settles down following the global pandemic.

With digitisation and automation now playing a central role in running fleets, Autorola Solutions believes profitability and efficiency are two immediate areas which can be influenced significantly as a result.

Read what business unit director Ib Kimose (LinkedIn) has to say about how our Fleet Monitor asset management system can help streamline processes, improve efficiency and performance, as well as ensure all activities are compliant.

End of an era – a tribute to Niels Grøftehauge
Finally, it is with great sadness that I announce the passing of my father Niels Grøftehauge. Niels has been involved with Autorola from the very beginning and has been a great source of inspiration for us all in Autorola, Bilsalg, Autocom and Bilpriser.dk and a significant contributor to the market position we have achieved at Autorola Group today.

I know many customers, colleagues and suppliers have met Niels over the years and will remember his cheerful nature and depth of knowledge of the automotive industry. He will be missed, and we honour his memory!

Best regards
Peter (LinkedIn)


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