NEWS

European used car prices continue to rise as market remains starved of stock reports INDICATA

Mar 31, 2022   written by Autorola


European used car prices rose dramatically in the first two months of 2022 as the used market continues to be starved of stock according to INDICATA’s latest used car insights report.

Average used car prices have increased by an average of 7.1% since the end of last year across the 13 European countries as they continue to suffer from a shortage of used stock due to new car sales compromised by global semiconductor shortages.

Majority of markets experience used car price rises
Since December 2021 Italy, Austria, Belgium, and Germany all saw price increases by more than 7 percentage points going into March 2022 equivalent to between a 6.3% and a 7.2% increase. Turkey average used car prices rose by 18.6% between December 2021 and January 2022 with foreign currency exchange rates and supply challenges driving much of that uplift. Average prices have dropped by 3.2% over the subsequent two months.

Meanwhile the United Kingdom has seen average prices fall 1.1% between the peak in January and March with trade buyers and retailers showing little appetite to push up prices. However, they are still 33.2% higher than back in May 2021 when prices started to rise.

Used demand exceeds supply
All countries are operating in a market where used car demand exceeds supply and this looks likely to remain unchanged as restricted new car availability forces leasing companies to extend contracts and lead times impact on dealers delivering new cars to retail customers.

Dealer stock levels fell by between 4.2% (France) and 39.9% (Poland) year-on-year and in February sales were 4.4% lower than January. All thirteen countries in the report saw February YTD sales fall by 0.9%.

Dealer stock levels fall
Moving from February into March dealer stock levels showed few signs of improving with markets like Portugal and Poland suffering from a 7.2% and 6.3% fall.

Meanwhile, used Battery Electric Vehicles continue to grow in popularity with stock turn getting closer to petrol and diesel although there is still some way to go. Diesel stock turn was the highest in February.

‘High prices will continue’
“The high prices will continue to show no signs of abating until the new car production issues are resolved,” explained Andy Shields, INDICATA’s global business unit director.

“We are seeing some mainland European markets looking to import and export used cars to balance their needs but not in big enough volumes to resolve supply issues. The market continues to experience unprecedented issues and looks very unlikely to return back to normal until well into 2023,” he added.



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


A Welcome from Peter Grofthauge, managing Director at Autorola Group

Jan 28, 2022   written by Autorola


As we begin a new year, it seems that many of the challenges faced by the used car market in 2021 will remain with us for some time to come.

As the supply of new vehicle stock seems likely to be slow in returning to the levels that were seen before the pandemic, we will continue to see increased pressure on the dealers and fleets to make up for the shortfall in new stock from OEMs.

Limited quantities of used stock should not be seen as limiting the business potential for dealers in the year ahead, as in many European markets the volume of sales has increased. What it does mean for dealers is that to retain a competitive advantage in a pressurised market, the ability to move quickly to secure the right stock, and a willingness to consider cross-border purchases or sales will be crucial in the coming months.

Fortunately, we have seen that more customers than ever are able to rely on Autorola and its business units as trusted partners to achieve all of the above.

Our INDICATA team are trusted experts, with the ability to provide real-time data and valuable insights for dealer groups to help them make strategic business decisions. We know that users benefit from increased stock turn, a better price to market and less chance of being stuck with over age stock, which is crucial at times like this.

This newsletter is our first of 2022, and will touch on what is happening around the group.

The latest Market Watch report is now live and gives deep insight into the market conditions across Europe, as well as predictions and emerging market trends for the year ahead. For anyone involved in the motor trade, it is essential reading.

We also dive into the fastest and top selling vehicles of 2021, which is also part of the Market Watch. If you want to know what buyers have been looking for across European markets, but do not want to read the fuller report, this will give you a top-line overview of the market.

Lastly, do not miss the introduction to Autorola Group’s latest dealer group offering, the integrated fleet monitoring package, which is explained by Autorola’s Global Director, Ib Kimose.

I hope that it proves an interesting read.

Peter
Best regards
Peter Grøftehauge (LinkedIn)

Ib Kimose, Global Director at Autorola Solutions, explains why the latest package for Dealer Groups is a must have in today’s competitive market

Jan 28, 2022   written by Autorola


Now more than ever, the pressures of a fast-moving retail environment and the relative lack of available vehicle stock means that dealer groups are having to react quickly and manage their processes effectively in order to retain a competitive edge.

With a market which requires flexibility, rapid decision making and above all, the need for accuracy of data to facilitate these decisions, it can be a challenge for dealerships within this segment to keep track of the multiple data sets and forecasts which are needed to keep ahead of the market.

Autorola Solutions Fleet Monitor platform has been designed from the ground up to offer a simple, secure and scalable management solution for dealer groups. With the ability to integrate diverse systems seamlessly onto one easy to operate interface which can sit within or alongside an existing dealer management system, Autorola Solutions gives dealer groups the ability to manage incoming stock, existing stock, and KPIs in real-time.

With Autorola Solutions in place across dealer groups, vehicle lead times are reduced and, thanks to the ability to implement better workflow structures, the lead time between preparation and sale of each vehicles minimised. Put simply, it maximises dealership efficiencies.

On top of this, Fleet Monitor’s live market view offers a dynamic and up to date pricing tool, enabling dealers to enjoy a complete overview of current pricing and market demand trends, guaranteeing that stocklists don’t become over-aged as the market evolves.

This short video gives a clear overview of the whole solutions platform and is well worth 2 minutes of your time – see video here.


For any dealers wishing to ensure the ultimate edge in business, or who are looking to guarantee maximum efficiency across their business, Autorola offers a consultancy service, bringing expertise to companies wishing to optimise their businesses in a rapidly changing marketplace. If you are looking to secure a good result for your dealership group in 2022, contact your Autorola representative to see how our experience and insights could be of benefit.

INDICATA reveals December’s fastest-selling and top used cars in Europe

Jan 28, 2022   written by Autorola

Understanding which cars are the fastest-selling or top-selling in any country is very useful for dealers, OEMs, and fleets.

The information can be used to help decide which used cars to buy for dealer forecourts and can help OEMs and leasing companies make an informed decision on residual values at the end of personal leasing or contract hire contracts.

That’s why our INDICATA team has developed top selling and fastest-selling reports for used cars less than four years of age for 13 European counties to support customers in making the best buying and selling decisions.

Our recent Market Watch used insights report published Europe’s top-selling and fastest-selling used car tables for December and not much has changed. Our Market Day’s Supply figure gives you some idea of the amount of stock left in the market.

Top-Selling
  • The VW Golf remains as the top-selling car overall and ICE car
  • Renault’s Clio and the VW Polo are second and third place in both tables
  • Toyota has a clean sweep of the hybrid top three with its C-HR, Yaris, and Corolla
  • Renault’s Zoe leads the way again in the BEV list followed by the Audi e-Tron and BMW i3




Fastest-selling
  • Skoda’s Enyaq is the fastest-selling used car overall and tops the BEV list
  • The MG3 is second to the Enyaq and fastest-selling ICE car
  • There are a mix of BMWs that appear in the ICE, hybrid, and BEV table
  • Lancia’s Ypsilon is Europe’s fastest-selling used hybrid



View the top-selling and the fastest-selling tables for 13 European countries in our latest Market Watch report at www.indicata.com/corona

Used car shortages restrict European sales – 2022 will see used prices remain at record levels

Jan 28, 2022   written by Autorola



All 13 countries featured in our INDICATA Market Watch insights report recorded major used car stock shortages as they entered January 2022.

These ranged from 6% in France to 26.2% in Germany while Italy and the UK fell by 24.4% and 10.3% respectively.

Our INDICATA team expects record prices will remain across Europe during 2022 based on consumers buying used cars in preference to new cars which are restricted by the global semiconductor shortage.

During 2021 prices rose to record levels across Europe with double digit increases in the UK (32.6%), Poland (20.9%), Spain (19.9%) and Germany (15.2%).

Despite these high prices Europe’s online B2C used car sales were 9.0% higher than 2020 and 7.4% above 2019 levels which reinforces demand is very high and continues to exceed supply.

In December six countries experienced year-on-year sales growth. This was despite low used car stock levels, high prices and a seasonal market slowdown, Seven countries meanwhile reported a fall in sales including Germany.

“The market continues to operate at a new normal where demand and prices are high and stock levels are low,” explained Andy Shields, INDICATA Europe’s business unit director.

“Fleet volumes will not increase as companies extend their contracts in the absence of new cars being available while rental companies are buying rather than selling used cars.

“Dealer part exchanges are limited so dealers have to work harder to source the right cars and sell them quickly as they are paying more than 30% higher prices for cars than 12 months ago,” he added.

Used diesel continued to sell fast in December at 6.5x with used petrols also selling fast with a stock turn of 5.5x. Used BEVs are now consistently selling as quickly as other powertrains at 5.4x and in Denmark and The Netherlands were the fastest-selling fuel type.

Remarkably the Volkswagen Golf retained its position as Europe’s top-selling used car up to four years old followed by the Renault Clio and Volkswagen Polo. The Renault Zoe was the top-selling BEV followed by the Audi e-Tron and BMW i3 while Toyota took a clean sweep in the hybrid category with the C-HR, Yaris and Corolla.

For a full copy of our 13-country 34-page report go to www.indicata.com/corona.


A Welcome from Peter Grofthauge, managing Director at Autorola Group

Dec 20, 2021   written by Autorola



2021 has been another challenging year for the automotive industry – first with the Covid-19 pandemic and then with the global semiconductor shortage which has impacted new car supplies.

However, the used market sector has performed very strongly with demand and prices high, but with stock levels falling in virtually every country we operate in.

Stock falling and prices rising
Our INDICATA Market Watch report confirms a year-on-year stock fall of over 20% and price rises of between 10-20% in some countries.

We have spent a great deal of time with both vendor and buyer customers helping them deal with the current market and prepare them to meet the challenges of 2022. That includes launching a new European stock locator that supports dealers who want to source and buy used vehicles cross border.

How is 2022 likely to shape up?
So, I asked our three business unit directors Morten Holmsten – MarketPlace, Ib Kimose – Solutions and Andy Shields – INDICATA for their views on how 2022 is likely to shape up and the hopes and fears which the markets will bring. They make for interesting reading.

Not surprisingly the speed at which companies are digitising their businesses has risen. More dealer leads are being received online which need to be captured and managed effectively, while asset owners are managing their vehicles via the Cloud as more colleagues switch to home working.

The online dream is becoming reality
We have predicted the move online for all aspects of sourcing, buying, and remarketing used cars for many years and the pandemic has accelerated this vision. The future for many has suddenly become reality and the digitisation of businesses will continue to gather pace.

We wish you a happy and relaxing festive season and look forward to supporting your business during 2022.

Peter
Best regards
Peter Grøftehauge (LinkedIn)

Morten Holmsten – a look at the year ahead

Dec 20, 2021   written by Autorola


As 2021 comes to a close and we begin to look forward to the year ahead in 2022, we have experienced an extraordinary year in the used vehicle market, with Autorola continuing to help dealers access the stock needed to trade while more traditional physical avenues have been closed to them.  

Predictions for the year ahead
As we look ahead to 2022, it is clear the stock shortage in the used car market won’t disappear overnight, indeed it looks set to stay for most of the year ahead. Some brands will be better able to manage the production issues than others, meaning that we expect just a few brands to return to full production by Q2 2022, which will start to ease the burden on the used car market by the end of the year.

Changing market share
We are seeing brands’ market shares change, and this will continue into next year. As newer brands, and in particular many of the Korean manufacturers have benefitted from an increase in the quality of new product over the last five years, while also managing their production over the last 12 months, we are seeing a much greater volume of these vehicles entering the young/used market.

As a result of this volume shift into newer brands, I would expect dealers may well diversify their stock choices in the year ahead while relying on new sourcing channels to fulfil their demands and maintain profitability.

Luckily, Autorola remains perfectly placed to help these diversifying dealers, working across all brands and as many territories as it does.

Diverging supply among car markets
A second trend that we foresee emerging in 2022 is one of a divergence of supply across global markets, which may well be felt more acutely within European markets.

Where many used car retail networks are supplied and supported by OEMs and the rental industry combined, both sectors are currently experiencing pressures, which will have a knock-on effect for retailers.

As the supply of young used vehicles will be restricted due to the lack of supply from these two major sectors, we foresee a tendency for OEMs to favour their home markets for the disposal of stock. As a result, we expect that home-market manufacturer owned dealer groups will experience less of a vehicle shortage than some others.

Again however, dealers outside of these parameters will be able to use the Autorola network to source available stock without borders and without manufacturer constraints.

The EV future is coming
I think it is fair to say the demand for EVs will only now increase going forwards, and of these, Battery Electric Vehicles will likely outperform hybrids for most vendors. As a result, dealers who have not yet begun to retail these vehicles should consider doing so in the next year. Demand and supply of these vehicles is only going to go up, and so any investments needed into charging infrastructure at dealerships should be made now, to avoid retailers being left behind the curve.

Final thoughts
Overall, the online retail environment is set to continue as it has done, while new players will continue to target online sales channels for 100% of their business. This is certainly the way the industry appears to be heading, although it won’t be an instant shift to digital. As every country has now learned to work around Covid-19, restrictions on trade will continue to ease, and many retailers will be able to breathe a sigh of relief.

Autorola continues to be fully prepared for these changes, as 95% of our processes are already digital. Navigating a changing business landscape will be much easier for Autorola clients, who will continue to benefit from our end-to-end and borderless network proposition.

I wish you all a Merry Christmas, and a Happy New year.

Autorola Solutions

Dec 20, 2021   written by Autorola


“Automotive companies are continuing to dispose of manual systems and processes as more employees work from home and replace them with automated processes that cover every car’s life stage from manufacture to disposal.

That’s where Fleet Monitor comes in. It digitises every single part of the car’s journey for asset owners joining up all of those in-life processes and giving a bank, OEM, leasing company or dealer group complete transparency of a car’s status and value at every life stage.

Fleet Monitor is powering car subscription companies
Orders for Fleet Monitor have more than doubled in 2021 fuelled by new car subscription clients. The subscriptions industry recognises the power of our systems to automate and integrate every step of their process.

From the moment the finance is underwritten, and the order form is signed to when a car is prepared and then delivered to the driver, to when a car is collected, inspected, and refurbished at the end of a contract to go out on a secondary lease, Fleet Monitor gives OEMs complete control.

Car ownership trends are changing
Autorola recognises that the popularity of car subscriptions will continue to grow as car ownership trends change. Younger people are less keen to buy a car and instead prefer to rent a car for a fixed period of 3-6 months and then have the flexibility to change it regularly.

They want to sign up to an all-inclusive monthly fee that includes all maintenance and insurance as they consider themselves as time poor and don’t want to deal with the hassles associated with the buying, upkeep and selling a car. We continue to talk to many other European companies about rolling out Fleet Monitor to support this new car ownership trend.

Mobility service providers
OEMs are now positioning themselves as mobility service providers and as they change their retailing strategy so the relationship with their dealers is also changing. It means selling more cars direct to drivers as they start to own the relationship with drivers.

Dealers will be used more as agents for servicing and maintenance and the OEM owned cars will be directed into this network when their connected car data informs them mechanical attention is needed or when a car receives a recall notice. Fleet Monitor seamlessly manages the needs of an OEM mobility provider including connection with its dealer network.

Dealers are centralising used car trade-in processes
The Covid-19 pandemic and semiconductor crisis have forced many car dealer groups to review the way they manage their used car trade in processes. More used cars are being purchased online by drivers with their part exchange being valued by our INDICATA Lead Generator software as part of this process. With used cars in great demand, dealers want to buy and collect a customer part exchange and put it up for sale on a dealer forecourt as quickly as possible.

Dealer groups are now centralising this process via Fleet Monitor to ensure it is lean and fast and that cars are allocated to the right dealership after they have been refurbished.

Wholesale auction platform
For the used cars that the dealer group doesn’t want to retail based on age, mileage, and condition, it is using Fleet Monitor to offer them out to the wholesale market via our auction platform. The focus once again is on speed, as dealers want to turn these cars into cash as quickly as possible.

So, 2022 looks like it will be as exciting for Solutions as 2021 and we are confident that Fleet Monitor will help businesses future proof their asset management and support those new innovators that are launching new mobility solutions for drivers.”

Happy Christmas.

INDICATA’s pricing and insights data will continue to tracking the European used car market to help buyers and vendors during 2022

Dec 20, 2021   written by Autorola


During 2021 the attention switched from Covid-19’s reducing impact on the used market to the global shortage of semiconductors which has dramatically restricted new car supplies.

Record used demand and prices
This shortage of new cars has switched buyers’ attention to used cars thus creating record demand and prices in most countries, a trend that will continue some predict into late 2022/early 2023.

The leasing industry started by extending contracts from 2020 to 2021 as new car orders were delayed by many months. Many contracts are now being extended again from 2021 to 2022 which has meant the volume of three-and four-year old used cars coming into the market has dramatically fallen.

Ageing leasing industry car parc
And when these contracts do finally expire the leasing industry will be faced with selling tens of thousands of used cars far older than their normal mix which will be a new experience for them.

Meanwhile, the lack of new car sales has impacted franchised dealers with a shortage of part exchanges reaching the used market. Our experience is that dealers are keeping the majority of their part exchanges to put them back onto their retail forecourts which is further contributing to the shortage in the open trade market.

Helping dealers convert online leads
Our Lead Generator online evaluation tool continues to play a vital role in helping dealers convert the growing number of online leads into sales. The website plug in is empowering drivers to value their part exchange car while they are searching online for their next car which creates a healthy trading environment for the dealer.

The rental industry continues to work with OEMS to extend their buy back vehicles beyond the typical 6-12 months which is further restricting supplies of nearly new used cars coming back into franchised dealers. Rental companies are buying used cars from auctions to keep their fleets at optimum working levels which is adding to the increased demand and high prices we are likely to see for at least another year.

More EVs coming into the market
OEMS are using this current new car supply challenge to focus on feeding more EVs into the markets at the expense of petrol and diesel cars. This fits in with their continued strategy to combat the Clean Air For Europe (CAFE) fines, where 95% of a vehicle manufacturer’s fleet needed to emit below 95g/km CO2.

In November and December our Market Watch report has identified how EV sales are rising while stocking days are coming down as an increasing number of consumers look to buy zero emission used cars for the first time. Within just two months the market has swallowed up the stocks of used cars in the market and now they are in short supply which should keep prices very healthy.

INDICATA continues to roll out new features
So, in 2022 the changing dynamics of the used market will be led by how quickly semiconductor production starts to feed into OEMs building more new cars. The INDICATA team continues to develop its products and services to meet its customer’s ever-changing needs and we promise wider and broader data provision, more forecasting functionality while our series of user guides have been rolled out to provide greater training resources including videos for our customers.

Happy Christmas.

Creating a perfect storm for rising prices

Dec 20, 2021   written by Autorola

The perfect storm for rising prices has been created with new car sales continuing to be constrained by semiconductor shortages and increased used cars demand which has created a shortage of stock.

INDICATA’s Market Days’ Supply analysis confirms how stock has fallen dramatically in 2021 across all fuel types.

Increasing demand for used EVs
The biggest change is the increased demand for used EVs with European countries ending December 2020 with a Market Days’ Supply (MDS) of 112 days and entering December 2021 with just 61 days of stock available. Used hybrids have also seen a rise in demand moving from an MDS of 100 days to 59 days during the same period.

Used diesel stock is lower than any fuel type with demand across Europe remaining strong. Its MDS figure has fallen from 71 days to just 43 days, while the MDS for petrol has fallen the least from 77 days to 55 days.

It’s easy to see why prices have risen
“The market has seen record price rises during 2021 but when you review the levels of stock it is easy to see why they have risen. Stock levels are the lowest many countries have ever experienced as consumers turn to used cars as new car production continues to be affected by the global semiconductor shortages,” explained Andy Shields, INDICATA’s global business unit director.

“EVs continue to show signs that they are becoming a mainstream used car option as demand increases and stock levels have halved during 2021,” he added.

The Golf is Europe’s most popular used car
When reviewing the most popular used cars, the Volkswagen Golf remains both Europe’s overall best-seller and best-selling internal combustion engine car for the fourth consecutive month. Toyota’s C-HR remained the best-selling hybrid and the Renault Zoe the top selling BEV.

The fastest-selling used car under 4-years-old in November by Market Days’ Supply was the Toyota Prius + (27.3 days MDS) with the MG 3 second (32.2 days) and the Škoda Enyaq iV in third place (32.6 days).


Go to www.indicata.com/corona for a free download of the 13 country report  www.indicata.com/corona