When it comes to trade, territories are a thing of the past
Written by Autorola in category Autorola Group News
December 1, 2021
Keeping vehicles flowing
Now more than ever, cross border trading is crucial to keeping used vehicles flowing across mainland Europe. While it always allowed dealers to profit from different market needs across the continent, it wasn’t until last year and the pandemic really became key to ongoing trade in all markets.
During the many lockdowns last year and now the new car scarcity caused by the microprocessor shortage, when certain countries have been closed for business, or certain markets have lacked stock, the ability to trade without borders has truly come into its own.
Local markets are key
Currently, all markets across Europe are in need of used vehicles, which means that across our markets, we are seeing less cars than usual being exported, as stock prices and transport costs have risen, markets have increasingly been fed from within the local area. Where we usually expect to see export percentages of around 30%, right now this figure is just below 25%.
With the ongoing microprocessor shortage, and the global demand for raw materials having squeezed or halted new car production, we can only see this focus on used vehicles continuing for a while to come, which is great news for Autorola both now and in the future.
Interestingly, while the number of new vehicles coming onto our platform has decreased by 30%, which is split across OEMs, rental and leasing companies who are all now holding on to vehicles which they might have previously de-fleeted through our platform, our sale / conversion rate has remained steady, with sales volumes unchanged, and the market having adjusted to older used stock instead.
EVs are still crossing borders
The one area where cross border trading is still operating much as it did pre-covid, is with EVs. We see a heavy flow of these vehicles into countries with heavy governments subsidies on these used vehicles, away from regions in which subsidies are only offered on new EV stock – from Germany and into the Netherlands and Denmark, for example.
While December and the holiday season usually sees a softening marketplace for used stock, overall, we are expecting the market to continue to soar, and we expect prices to rise again in January and February. As Autorola has always been an entirely online platform, with a focus on international markets, we are well placed to continue to help maintain the liquidity of the used car market in the months to come.