NEWS

March introduction from Peter

Mar 26, 2021   written by Autorola

For many we are already passing one year of living with a global pandemic. It has been a very tough year for many, and the used car market has seen many peaks and troughs of activity which we have followed via our INDICATA Market Watch insights report.

We have now published 14 reports which gives insights into 13 countries. All the reports are hosted online at www.indicata.com/corona so please feel free to download copies if you need a detailed overview of the pandemic-led market trends.

Italian used car market bounces back
Italy was one of the very first countries in Europe which was impacted but from February 2021 it had experienced nine consecutive months of used car market year-on-year growth. The new NEDC emissions tax scheme like the one in France is already restricting new car sales to the benefit of the used car sector. It shows that the used car industry is very resilient.

According to our Spanish subsidiary it will be the year of the used car as WLTP legislation is impacting on new car sales and already the market is looking to import used cars to satisfy demand. Read more about the Spanish market in our interview with country manager Robert Lohaus in this newsletter.

We are also seeing a change in what consumers want to buy and since the beginning of 2020 ex-fleet stock has replaced older cars in popularity. With more ex-fleet cars coming back into the market after contract extensions in 2020 and as more new cars get delivered then that spells good news for all markets. We will keep a close eye on these trends during 2021.

MarketPlace is balancing used car supply and demand
As always, our Marketplace online used car portal is helping European countries balance their shortage or surplus of cars while more asset owners are using INDICATA’s real time used car insights to make the most informed decisions about buying and selling their used cars. And our global team is constantly innovating with new products and services.

Vehicle equipment levels have always had an impact on the value of used cars, and through the recent launch of INDICATA’s equipment/options functionality this has been made much easier. Feedback from dealers has been very positive and this month we have added further functionality to INDICATA with the launch of its 0km/pre-registered cars.

Three types of used car identified
The INDICATA dashboard now identifies three types of used car category to help dealers accurately assess the value of their own stock and that of their local dealer rivals.
  • 0km/pre-registered vehicles which have been registered by the dealer and sit on their forecourt but have never been driven
  • Demonstrator stock which generally has a few hundred kilometres on the clock and are a few months old
  • General dealer used car stock
Watch our short film to find out more how this functionality can help your used car business.
As always please stay safe and we look forward to seeing more used car markets return to some form or normality during 2021.

Best regards
Peter Grøftehauge (LinkedIn)

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Autorola Spain’s country manager Robert Lohaus is predicting 2021 as the year of the used car

Mar 25, 2021   written by Autorola

 

Spain’s new car market fell in 2020 by 32.3% and in 2021 sales have continued to fall. This has been mainly due to the reduction in demand for daily rental by both leasing companies and consumers have been impacted by the pandemic.

During the past 12 months this has reduced the supply of ex-rental cars entering the used market. Combine that with the growing number of extended fleet contracts made by leasing companies then the used car supply has continued to fall.

Used car demand and prices remain strong.
Meanwhile, demand has remained strong and so prices continue to rise which is why some dealers have turned to Autorola for help in importing used cars from other European countries to help meet demand.

Autorola remains at the heart of balancing the supply and demand of used cars within Spain via its MarketPlace remarketing portal using the group’s digital multi-language Cloud based technology.

We protect residuals for our vendors.
“We never shut our business during lockdown as all Autorola systems are based in the Cloud. We carried on servicing the needs of our vendors and buyers with our teams working from home. We are in a unique market position in protecting residual values for vendors by helping them make the right disposal decisions. We are also helping dealers source stock through the adoption of cross border remarketing strategies,” said Robert.

Like many Autorola businesses Spain is using INDICATA’s real time used vehicle pricing portal to help vendors make the right decisions by finding where the best prices are for used cars. That includes exporting stock to other European countries which is where the group’s cross border experience comes in very valuable. When it comes to importing used cars to Spain, Lohaus and his team use INDICATA data to source the best cars at the best prices, making pricing ‘more dynamic’.

The Importance of dynamic pricing is very clear to see. Autorola has noticed a considerable demand increase for real time data from Spanish dealers and leasing and rental companies. Asset owners want to improve their market position by analysing market trends and develop pricing strategies to optimize their used car results and increase revenues.

“Our INDICATA team is consulting with its customers’ to provide bespoke solutions to help them meet their ambition of moving to a digital pricing platform,” explained Robert.

Spain’s used car market is changing.
As with many European countries Spain’s used car market is changing, not just in the type of used cars consumers are buying but also with the greater adoption of digital technology to make remarketing more efficient.

“Diesel has been the favourite fuel with consumers for many years but in 2020 it was the first time that petrol reached more than 56% of registrations. We have not seen big sales of hybrids or electric cars in Spain yet and the consequences of vehicle registration price increases caused by WLTP is another reason why new car sales are not growing back to pre-pandemic levels.

Moving away from spreadsheets
“What we are seeing is more companies moving from valuing their cars on spreadsheets to adopting INDICATA and our digital remarketing workflow management systems. They are beginning to understand the importance of making remarketing decisions on real time data which INDICATA and our remarketing systems provides.

“The pandemic has forced companies to work from home which has created many challenges for employees as their systems do not allow them to access company data from home. For Autorola the Cloud is second nature and Spanish companies are now embracing more technology to increase their productivity and workflows,” said Robert.

It is not just the remarketing sector that is moving to digitalisation but the entire country. Google is investing €500M in a European Cybersecurity Centre in Malaga, while Deloitte will establish its Deloitte Cybersecurity Centre in Madrid providing managed security services for the EMEA region. There is huge investment set to be made in Spain in the coming years as the society and therefore the economy is transformed.

Speeding up change in our country
“The pandemic has helped accelerate the speed of change in our country. There is an ambition to do things better and become more efficient which will help transform our economy to one that does not just rely on one or two key sectors such as tourism.

“Autorola is proud to be at the cutting edge of the reinvention of the Spanish remarketing sector and we already have the tools with MarketPlace, INDICATA and Solutions to become the leading force in the market. Everything is now set for 2021 to be Spain’s year of the used car. I am very proud of the Spanish Autorola team and to be part of the Autorola Group. It is a very good company to work for,” said Robert.

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February introduction from Peter

Feb 22, 2021   written by Autorola

The first few weeks of 2021 have seen the used markets further affected by the Covid-19 pandemic with sales down by more than 16% year-on-year in January.

At the same time, the type of used car being sold by dealers is beginning to change. Used hybrid and electric cars are coming into the market in high volumes but the speed of supply is ahead of where consumers are currently.

Dealers have lots of stocking decisions to make
Consumers are still coming to terms with owning and living with an electric car which means dealers are having lots of decisions to make on how many new low or zero emission cars they stock blended with petrol and diesel cars which drivers are still more familiar with.

This speed of change across each country is amazing, which is where our INDICATA used car insights come into play helping dealers balance buying the right stock and selling it at the right price, to improve stock turn.

INDICATA demonstrates the power of Big Data
As we share the power of INDICATA with more OEMs, dealers, banks and leasing companies in webinars, online conferences and via our monthly Market Insights report so they can understand the power of Big Data when it is brought to life at a local level.

INDICATA can help dealers to decide what stock to buy while MarketPlace provides the online platform which provides the actual metal to bid on and somewhere to dispose quickly of unwanted or repeat stock to the trade. INDICATA and MarketPlace make a powerful combination.

Getting the industry together is very valuable
It has been good to see our teams get together as part of the latest ENG Remarketing conference this week. It is still not the same as meeting up in person, but it is very valuable for the industry to get together and discuss key issues and challenges. I know my colleagues Andy Shields and Morten Holmsten found it very useful when they presented at the conference focusing on how electric vehicles are performing in the used market.

Mobility Solutions is another growing trend where companies are offering people the chance to have access to a vehicle to fit in with their ever-changing transport requirements. These services are definitely shaping the future of vehicle use but of course you need a platform to power the often-complex range of services.

Fleet Monitor – our dynamic Mobility Solutions platform
Fleet Monitor is our platform that enables the company to have an overview in real time of the status of all of its vehicles, while giving the customer access to a range of services. Our colleague Maria Winther shows how our systems can add value to this dynamic new area of the car market.

We hope you enjoy our newsletter. Stay safe and we hope to see you all soon.

Best regards
Peter (LinkedIn)

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New INDICATA equipment launch

Feb 23, 2021   written by Autorola
Different equipment options impact used values by different levels depending on the segment of car and its vital to consider options in the premium segment differently to superminis. 

INDICATA provides true worth of car options
Based on the millions of vehicles INDICATA assesses every day the new functionality gives dealers the true worth of an option which compares with competitor platforms that adopt the same fixed percentage without considering changing market conditions.

Dealers now have the power to compare their used cars with similar stock options in their local area to ensure their part exchange valuations and retail pricing is competitive.

Dealer inventory pricing includes equipment and options
Each dealer’s used car inventory is automatically recorded inclusive of equipment levels and options which ensures values are always based on the latest market price movement. That way dealers have a real time value of used cars they have in stock, a major benefit for larger dealer groups with a mix of franchises and for car supermarkets where pricing is competitive and profit margins are slim.

Generally, the higher value the car, the more optional equipment it is likely to have fitted which means dealer appraisals risk being inaccurate which compromises valuing the part exchange and a potential sale. Alternatively, if the dealer under values the car when selling it in the retail market it risks potentially losing thousands of Euros.

INDICATA judges each car’s value in isolation
“Today’s trend is for drivers to want to drive cars that are bespoke to them. Historically this trend only occurred on premium cars but now many value brands differentiate their models with numerous equipment options,” said Andy Shields, INDICATA’s global business unit director.

“This has made the valuation process more difficult for dealers, which is where our new functionality takes used valuations to the next level. We are not working with averages but judging the value of each equipment level and option in the market now,” he added.

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Autorola Solutions’ Maria Winther says mobility solutions need a strong platform to power their innovative new products

Feb 23, 2021   written by Autorola

Mobility Solutions in terms of more enterprise focused collaborative platforms to support subscription models in the car industry have created a growing demand for flexible and convenient solutions.

Today’s market offers a variety of mobility solutions ranging from mobility-as-a-service and car sharing concepts, to subscription models. These models all have one thing in common: In order to succeed, the platform from which the models are managed needs to be flexible, transparent and accessible.

All this to address the needs of today’s mobility customers, which are characterised by less attachment to their car as a material possession and more focused on the immaterial values that mobility as a service provides – freedom and convenience.

The choice of platform is key
When looking at the subscription and short-term leasing industry, the market is growing. This means that for an organisation to constantly be on top of the service they must have a platform to oversee all vital parameters is the most efficient way to create a value-adding chain both for customers and their organisation.

This also means incorporating all data you need at a car level as well as user data, to centrally control all aspects of this user-centric service model. It requires a centrally controlled, structured process management tool, to oversee these new service models.

One platform needs to manage everything
In short: Fleet owners need one platform to tie all processes and data together to deliver a service that is competitive in the mobility market. This enables providers to offer their customers a ready stock to choose from, at any given time. This also means that how they manage their stock is key, to succeed with this business model.

“Now how do I equip my business to accommodate these needs if I want to be a significant player in this market ?” will be the question on most fleet owners’ agenda. The answer is simple: make it simple.

Workflow management tool
Autorola Solutions has many years of experience within enterprise mobility solutions and its software is a result of this. The team knows the market and is dedicated to always meeting the needs of its clients with a fully customisable and integrable workflow management tool – specifically designed to keep on top of your business.

“We do this by connecting your business into one digital landscape. In this process we work with you, reinvent your business processes, giving access to information, which is relevant and important at any given point in time. This is designed to increase productivity at a decreasing cost. We call this Fleet Monitor.

“Fleet Monitor is a modular-based software system that allows you to freely configure the flows, interaction points, gateways, actions and total stock overview into one platform.

“In short: Integrate your entire value-chain from acquisition and in fleet, to communication to customers, logistic and supplier companies, to active use and multiple subscription periods to de-fleet and disposal, in an easy-to-use and real-time platform, for making your business as transparent and efficient as possible,” said Maria.

Unlocking value in data
Autorola’s main focus is a major transformation to unlock values in data. Then deliver user-centric data that ‘transforms a system of data to a system of engagement.’

The Fleet Monitor platform is designed around a well-planned structure comprising of the solutions to the existing problems in this model. Typically, each project starts with a Business Value Assessment workshop to shape a clear idea about what the strategy should be.

    1. To structure and deliver information where it is required and when it is required
    2. To integrate technology, people and processes for efficient and effective delivery of the core business functions within the organisation around a product offering
    3. To aim to offer solutions to the focus areas of an organisation and to develop efficient processes for users of the system and end-customers.

Autorola Solutions offer a customised platform to integrate the modules that you need to succeed in your business. It will always reflect the way YOU do business and support your operations.

“The whole idea is to simply put people, processes, and technology together in one platform, which facilitates managing operations and services within the context of a business. Our solutions aim at getting the work done in a digital context and is based on technology, which offers a powerful platform in terms of collaboration and productivity said Maria.”

Especially in the short-term leasing industry, the need for instant overview, efficient stock management and collaboration is key to succeed where availability and convenience are main drivers for customers.

For more information go to: https://www.autorolagroup.com/about/solutions/

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Used battery electric vehicle prices fall as supply continues to grow

Feb 22, 2021   written by Autorola

Our INDICATA system has identified that towards the end of 2020 supply exceeded demand which in turn has slowed down stock turn.

Petrol and diesel stock turn is faster
BEV and hybrid stock turn in January across Europe was on average 3.4 and 3.8 respectively, while petrol and diesels were selling much faster at 4.9 and 5.6.

One of the main reasons for oversupply is the OEMs gain a €26,000 reduction in Corporate Average Fuel Economy (CAFÉ) penalties for every new BEV sold. This has become a massive incentive to supply cars into the new market, which is in turn is quickly feeding BEVs into the used market.

BEV residuals come under pressure
CAFE standards are calculated by a production-weighted average of mileage ratings across a manufacturer’s fleet; they are not based on data from actual on-road performance.

BEV residual values are also under pressure from a number of fronts:
   • Unrealistic price premiums versus petrol and diesel equivalent models
   • Consumer fear factor on remaining life left in the batteries
   • Slow charging infrastructure growth

Talking to the recent European Networking Group conference INDICATA and MarketPlace’s business unit directors Andy Shields and Morten Holmsten represented Autorola Group’s views alongside other senior executives from the remarketing industry.

BEV pricing pressure extends across Europe
They said: “There is price pressure on BEVs in all European markets. Dealers have increased their stocks of used BEVs in response to strong consumer demand, but until prices move closer into line with equivalent petrol and diesel cars then sales will be compromised.

“Used supplies of BEVs are going to continue and we may see some cars being sold cross border as countries balance supply and demand. Meanwhile, dealers have to operate a pricing policy to accelerate demand and balance BEV stock with petrols and diesels to satisfy consumer demand.”

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Happy New Year

Jan 24, 2021   written by Autorola

Happy New Year everyone and I very much hope that you and your families are staying safe and well. As many countries are still in lockdown following the festive holidays it was intriguing to see that the European used car market’s sales performance was only very slightly down on 2019.

With some countries suffering three separate lockdowns in 2020 this performance was amazing and shows you how resilient the used car market is.

Please read more about INDICATA’s insights into 2020 as they make fascinating reading on how prices, stock supply and demand have changed across 13 countries on a monthly basis.

European used car sales rose in December despite lockdown
Surprisingly, December was still a very unseasonal sales month for the used car market with only two countries reporting a fall in sales despite the market restrictions that were in place. INDICATA’s insights will continue to give you an overview on how the European used car market is moving during 2021.

Despite the Covid-19 pandemic our Autorola MarketPlace business reported a very busy and successful year as it worked hard with vendors and buyers to keep used car market supply chains open for business.

MarketPlace reported its best ever year in 2020
It was MarketPlace’s best ever year on record and unsurprisingly more buyers than ever purchased used vehicles via their mobile phones. We talked about the European used market embracing online buying and selling more in 2020 and we believe this trend will continue in 2021 as it replaces the physical remarketing used car business model.

It makes my family and I very happy that when we started out on our online crusade two decades ago that the market is now probably trading more used cars online than physically. The future remains online and will continue to fly the digital flag across our 19 subsidiaries.

Dello Dürkop rolls out Fleet Monitor
Recently we have seen another first for the group as our Solutions business unit has rolled out its Fleet Monitor service integrated to both B2B and B2C channels to the Dello Dürkop dealer group. They have become the first customer in Germany.

Dello is one of Germany’s leading dealer groups and they have adopted Fleet Monitor at the centre of their company’s digital landscape which is fantastic news. Another digital success for the group and hopefully the first of many in 2021.

I hope to see businesses being able to trade more freely in the coming months as countries roll out their vaccination programmes. Once again, I hope you all stay safe and I look forward to us all being able to make steps back towards normal life as Winter turns into Spring.

Best regards
Peter (LinkedIn)

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European used car sales fall by just 0.4% in 2020 after healthy December sales reports INDICATA

Jan 24, 2021   written by Autorola

The latest report highlights how despite the ‘havoc’ Coronavirus restrictions and lockdowns caused for the used car market throughout 2020 sales ended the year down just 0.4% compared to 2019.

Unseasonal December sales
December saw significant unseasonal increases in sales rising by 26.4% in Italy, 24.2% in Sweden and 21.2% in Portugal year-on-year (YOY). Spain too saw used car sales rise 13.7% in December (YoY) as did the UK with a 4.9% uplift (YoY).

The turnaround in fortunes for the used car market in December was driven by the popularity of the ‘typical’ franchise dealer used car stock of six-year-old cars and younger. This included a 172% rise in sales year-on-year for BEVs and a 111% increase in hybrid sales, while sales for petrol and diesel cars remained relatively flat YoY across Europe. Overall, this is a remarkable performance and shows just how resilient the used car market is.

Turkey and The Netherlands report December sales fall
Meanwhile, Turkey experienced the most significant reduction in used sales volumes for December, down 25.7% against the previous year. The Netherlands was the only other region to experience a decrease in sales during December with a 4.7% fall in sales (YoY) – the third consecutive month of decline following a 3.5% and 1.4% YoY fall in November and October.

Despite the December reductions, both Turkey (17.5%) and The Netherlands (1.5%) sales volumes for the year were up compared to 2019. Across the year, of the five largest car markets the UK and France both saw used car sales for the year fall compared to 2019 by -12.3% and -4.9% respectively, but this was offset by healthy rates of growth in Germany (+3.6%) Italy (+4.5%) and strong growth of +25.7% in Spain.

Typical dealer stock fuels strong December
Andy Shields, INDICATA’s global business unit director, said: “The November fall in used car sales impacted all ages of vehicles but the December rally was clearly around cars six years of age and younger, i.e typical dealer stock.

“Whilst young used car sales were down two per cent in December year-on-year this is much lower than we have seen for most of the year which would indicate some manufacturers were supporting some tactical sales in the last month of 2020.”

Stock levels varied greatly in 2020
Year-end stock levels were on a par with the start of 2020 despite some vast regional fluctuations, most notably Turkey (+56.1%) and Poland (-16.2%), while average stock turn for all powertrains remained higher in December 2020 compared to the same month the previous year. Stock turn also remained strong for diesel and petrol vehicles than alternative powertrains.

Andy continued: “Some dealers are starting to take pricing action as Coronavirus is still with us. Dealers are having to rethink their operating model by carefully watching the market days’ supply (stock turn) for various ages and powertrains to avoid being stuck with aging and over-priced stock.”

To download the December Market Watch report, go to www.indicata.com/corona

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Autorola MarketPlace sets new records during turbulent 2020

Jan 24, 2021   written by Autorola

The business sold more cars than ever during 2020, a year which proved very challenging for the whole automotive industry and saw various restrictions across many regions with countries being ‘locked-down’ at times.

Business as usual at MarketPlace
“Once again the power of being an online native service provider has shown our strength, especially under these circumstances,” explained Morten Holmsten, Global Director of Autorola MarketPlace. “We have been able to run most of our operations as normal, no matter if we have worked from home or been able to go to the offices.”

During 2020 Autorola experienced that many fleet owners still required and wanted to sell vehicles. Likewise, many car dealers – despite being forced to close their physical showrooms – kept selling vehicles and therefore also had the need of purchasing new stock.

Growth in mobile buyers
The 12-month period also broke the record for most vehicles sold via mobile phones at auctions at 14% of total sales.

Morten said, “I believe the record mobile phone activity is a result of dealers not being at their office desks but still having a need of following and being active at auctions.

“It’s amazing to think that despite all the challenges 2020 posed, the automotive industry – on a global scale – proved its resilience and adapted to the newly required ways of operating.”

Cross border used car sales growth
And now as the market comes out of lockdown over the coming months helped by the country-by-country vaccination programme he predicts a growth in cross border used car sales in 2021 as each market finds itself with too many or too few used cars to meet consumer demand.

“We will be at the heart of each market’s used car recovery whether they have too many or too few used cars or they have too many of the wrong cars or too few of the in-demand cars. Our MarketPlace online platform will continue to be the beating heart of the European used car market,” he added.

To find out more about MarketPlace click here

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Dello Dürkop becomes Autorola Solutions first all-inclusive customer in Germany

Jan 24, 2021   written by Autorola

In partnership with the German dealer group Dello Dürkop, Autorola Solutions has launched its first end-to-end solution developed for dealer groups.

Dello Dürkop has become the first customer in Germany to start using our fully fledged Fleet Monitor service integrated to both B2B and B2C channels and is also launching our new product: The Digital Showroom.

Dello Dürkop is one of Germanys biggest dealer groups with dealerships primarily in the northern, middle and north-eastern parts of Germany with annual used car sales of over 20,000.

This move will help strengthen Dello Dürkop’s position in the industry maintaining its status as one of Germany’s biggest dealer groups.

“Fleet Monitor is now at the centre of Dello Dürkop’s digital landscape, so although the process in itself is fairly simple, the added value is enormous.” said Anders Færgemann Jensen, Head of Client Projects.

The original Press Release in german can be found here 




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