NEWS

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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New INDICATA insights

Sep 23, 2020   written by Autorola

The European used car market grew by 10.3% year-on-year in August on the back of rising prices and supply shortages according to INDICATA’s insights report, but signs of a slowdown are showing.

Twelve of the 13 countries where INDICATA has a presence experienced growth during August.

Turkey, Portugal and Italy saw the biggest year-on-year growth at 41.7%, 39% and 33.1% respectively, while only the UK market contracted in August, by 3.3%.

August used car pricing was strong
Used car pricing was strong and continued to increase in most markets, which combined with reports of rising wholesale prices and high conversion rates, showed that overall demand is outstripping supply.

INDICATA’s insights show that sub-12-month old cars are particularly in short supply as OEM self-registration and demonstrator schemes continue to be compromised by manufacturing plants playing catch up following the impact of the Covid-19 pandemic.

Dealers are short of cars
Dealers across Europe remained short of used cars, particularly those in Poland and Portugal where stock levels reduced by 11% during August.

The UK and Turkey experienced the joint highest rise in stock of 3%.

While August pricing continued to rise, INDICATA warned that dealers are becoming more cautious in their buying habits as wholesale prices have remained high. In addition, rising Covid-19 infection rates could too result in a slowdown across many European countries in September and Q4.

Signs of slowing down
“There are signs that the European used car market started slowing down during August although prices remained strong,” explained Andy Shields, INDICATA’s global business unit director.

He continued, “Dealers are becoming more cautious with stocking following rises in infection rates.

“There are still healthy profits to be found from fast-moving stock but dealers need to keep a close eye on pricing and stocking days to ensure they aren’t left with slow moving stock should prices and demand swiftly fall.”

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Used car market playing catch up in Mexico

Sep 23, 2020   written by Autorola

With a population of almost 130 million, a rich cultural history and diversity, and abundant natural resources, Mexico has the 11th largest economy in the world. Primary activities include farming and fishing; secondary activities comprise manufacturing, mining and construction; and tertiary activities cover retail and the services sector.

Yet it is a country that now faces many health and economic challenges. The Covid-19 pandemic has caused vast challenge with over 70,000 deaths recorded to date. A knock-on implication, but by no means the only contributing factor, has also seen the country’s GDP fall by -17.1% during Q2.

Positive economic signs since May
Mexico’s president, Andrés Manuel López Obrador declared the economy had ‘hit bottom’ in April and May. There have been positive signs since with Mexico’s economic activity advancing 8.9% in June.

Amongst this backdrop, Alfredo and his team have clearly faced their own trials, but indications are that road ahead looks increasingly positive.

“Quite simply, April and May were horrible,” explained Alfredo. “We sold 10% of what we are used to selling during that period.

Used market playing catch up
“Since then, the used car market has been playing catch up and we are now ahead of all expectations.”

Alfredo reports a significant rise in demand for used vehicles since June, from all Autorola partner OEM brands – BMW, FCA and Mercedes Benz – with conversion rates up in the high 90% per sale. This is in contrast to the typical 75% sales conversion rates pre-Covid-19. Such has been the performance that other OEM brands are also looking on with interest to provide their dealers with a steady flow of stock.

And whilst the used car market shows a significant uplift, the new car market continues to be hard pressed. A combination of economic factors and personal security issues highlighting just a few of the challenges.

Daily rental is growing
One area showing some real potential for growth is rental – not least of which because of the geographical challenges Mexico represents with a central urbanisation, surrounded by dessert and mountain ranges.

Some of the highly populated tourist areas which are home to large fleets of tourist transport – Cancun as an example in the south east or Los Cabos on the Baja California peninsula – require defleet vehicles to be shipped long distances to get them back into densely populated areas (central Mexico). Some rental businesses are now exploring the opportunity to use the Autorola platform to facilitate this ‘remote selling’ function.

Our online platforms are suited to OEM activity
Alfredo explained, “Without doubt, the OEM side of the business continues to be key and our platforms are made for their activity, but the rental market opportunity is an interesting one that presents its own challenges and opportunities for fleets and buyers. There is exploratory work to be done but the capabilities and flexibility of our system is opening up potential new opportunities for different market sectors – something we will continue to explore.”

For Alfredo and Autorola Mexico the road ahead is becoming increasingly clear and already there are some exciting plans afoot which will see the business continue to go from strength-to-strength.

As Alfredo himself puts it, “This is an exciting time for us as a business and we are genuinely excited about what is to come over the next few weeks and months.

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Autorola Solutions saves your business time and earns you money while showing you how you go digital with a purpose

Sep 23, 2020   written by Autorola

Autorola Solutions is advising its customers to ‘keep moving’ in a bid to support business finances, and more specifically cashflows, as the remarketing industry continues to settle post-pandemic.

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

Delays in selling assets impacts cashflow
Ib Kimose, director, Autorola Solutions, said, “Cost saving is a central issue in vehicle fleet management and every fleet manager wants to achieve large returns with low costs.

“Each day an asset is standing still on the compound without moving onwards in the flow, it depreciates, while at the same time accruing cost to storage.

“Delays impact largely on fleet management businesses and is directly linked to the final sales price and margin obtained. This has a direct impact on cashflow.”

Work intelligently with data
He continued, “Working intelligently with data allows you to monitor on any gateway your flow and allows you to freely configure your focus areas; from timely call back of your cars on the road, to actual returns, return inspections, sales preparations to online listing of cars and the aftersales processes.”

Autorola Solutions’ insight highlights that fleet managers agree that they spend too much time reporting work times and the most frustrating aspect of fleet management is the high cost throughout the lifecycle of the asset and long lead-times.

Asset life cycle stages
“It is important to stay connected to your stakeholder landscape; customers and drivers, as well as suppliers and business partners, all play an important role in the different stages of the asset life cycle,” explained Ib.

“Thus, boosting productivity collectively is important. Fleet Monitor is both a process management tool and a collaborative platform with communication options – designed to simplify every part of your fleet and resource management.”

Lean fleet management
Autorola Solutions offers lean fleet management based on state-of-the-art online systems that work together to support efficient fleet management processes from acquisition to disposal for fleet, OEM, bank, leasing companies and dealer groups.

Fleet Monitor has been proven to help businesses streamline processes, improve efficiency and performance, as well as ensure all activities are compliant. The collaborative platform provides users with a powerful tool to reduce operational costs and mitigate both operational and financial risks, and its communication module is an integral part of creating a service-minded platform.

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Introduction from CEO Peter Grøftehauge

Aug 20, 2020   written by Autorola

While the European used car market has suffered from trading challenges during the Covid-19 pandemic lockdown the market bounced back in June and July with most countries seeing record sales and demand.

That’s great news to see the markets come back to strength so quickly but now our INDICATA used car insights reveal that the European used car market could be short of 500,000 used cars as dealers do not replace used cars as fast as they have sold them.

Shift towards greener cars
The shift towards buying greener cars continues with consumers walking away from older diesel cars. Electric and hybrid used car sales were up year-on-year and overall consumers seem keen to go green.

This is the seventh INDICATA Market Watch Insights report which we have published, and the response has been very positive. Customers are finding INDICATA invaluable in this current used car climate helping them understand in real time what used cars are selling for in their region to help price and sell them profitably.

In this current climate it may mean increasing prices of stock on dealer forecourts. We are starting to see price rises in some markets, but the majority of dealers are still not making the most of these extraordinary market conditions.

INDICATA also helps dealers determine the fastest selling used cars in their region to help them decide what stock to buy at auction. System demonstrations are available across 13 countries, so we urge dealers and asset owners to try it out for themselves to see how it helps transform used car businesses.

Dealers are being cautious
There is definitely restricted stock in many markets, but dealers are being cautious about the volumes of used stock they are buying in the current market.

Record used car demand saw our MarketPlace business unit record its best ever months in the company’s history. Our sales were up by over 30% and as consumer demand changed following the pandemic, we have seen a renewed growth in export as dealers and fleets look for new markets to sell those cars out of fashion and import cars as dealers search for new stock.

We are still in the unique position of our online used vehicle auction platform driving Europe’s used car remarketing industry. It continues to help vendors who want to sell and buyers who want to buy used vehicles with multiple online auctions held daily across more than 30 countries.

Trade in App film launched
Since Autorola Solutions announced its new Trade In App last month, it has received a great reaction from the motor trade. We have now released a film of the App to show you in more detail how it works. Please take a few minutes to watch the film and you may recognise a few Autorola Group colleagues who are now film stars.

We believe the used car markets across Europe will continue to be very busy across the summer and our MarketPlace, INDICATA and Solutions teams look forward to helping and supporting you in whatever way they can.

Happy selling
Peter

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July’s used car growth should give dealers confidence to increase prices says INDICATA

Aug 20, 2020   written by Autorola

Sales of used cars in Europe rose again in July by an average of 13.5% year-on-year following the June increase of 13.2% according to the latest insights from INDICATA, reinforcing that the sector is alive and well following the Covid-19 pandemic.

Twelve out of the 13 countries, where INDICATA provides real time used car insights, reported a rise in sales, except for the UK which experienced a 1.8% fall, primarily down to a shortage of stock.

12 out of 13 countries saw sales increases in July
Turkey saw a healthy 64% in sales in July while Portugal and Spain reported a 25% and 30% respective sales growth.

Stock shortages continues to be a problem and on average are running at 14% across Europe when comparing 1 August with 1 April, which equates to around half a million cars according to INDICATA data.

UK saw sales fall based on stock shortages
The worst hit markets are in the UK where dealers have 22% fewer cars in stock while Sweden and Poland stock levels have fallen by 26% and 21% respectively. Italy has experienced the strongest stock levels with a fall of just 5% since April.

A number of the countries are turning this stock shortage to their advantage with the likes of Sweden increasing prices by 2.5%, Poland by 1.8% and Turkey experiencing a massive 10% in the last month due to major inflation.

Dealers are passing up chances to increase profits
However, many of the countries are still not increasing prices to reflect reduced stock availability and dealers are passing up chances to increase used car profitability.

INDICATA is encouraging dealers to increase prices on fast moving stock before the opportunity is lost, but to remain cautious on slow moving stock as this should be cleared out whilst demand remains.

Hybrid and electric cars are in high demand
The move to environmental powertrains has continued with the year-on-year sales of hybrid and electric increasing by 98% and 114%. Many companies were waiting for used car buyers to embrace low or zero emission cars and the Covid-19 pandemic seems to be the tipping point required.

Popularity of models varies dramatically country by country but the initial surge in sports cars is falling in place of a growth in SUVs with luxury and small cars strong.

Stock shortages are putting a brake on sales
“With a strong second consecutive used car sales month we are definitely witnessing a major turn in the sector’s fortunes. Indeed, it is stock shortages that is putting a brake on sales, not a slowing down of pent-up demand,” explained Andy Shields, INDICATA’s Global Business Unit Director.

“The strength of the used car market looks encouraging for the rest of the summer, but dealers must now take a hard look at their stock. Caution may return to the market in September. Now is the time to ensure your pricing strategies truly identify fast moving stock and take advantage. If, however, particular stock has not sold in the current market then don’t be greedy as it certainly will not sell if the market turns.”

For further information about INDICATA’s monthly report go to www.indicata.com/corona and sign up to our INDICATA Europe LinkedIn page.


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MarketPlace’s digital auctions help Europe’s used car industry deal with the ‘new normal’

Aug 20, 2020   written by Autorola

At the heart of the used car recovery
The MarketPlace digital platform has been at the heart of Europe’s used car recovery throughout the pandemic with many countries like Germany, Sweden and The Netherlands continuing to trade and support the wholesale market buyers and vendors.

The demand for used cars has been so high that currently there are stock shortages in many countries. Contract extensions means used cars won’t come back into the market until the autumn, while some cars have been locked in compounds and are only just reaching the used market ready for sale.

The industry is still short of stock
That spells good news as supply is starting to improve but still not fast enough to deliver the 500,000 used cars which sister company INDICATA believes dealers need to meet current consumer demand.

In July Italy, Portugal, The Netherlands and Spain all experienced year-on-year sales growth and MarketPlace’s global business unit director Morten Holmsten believes August will continue the growth trend with prices rising in many countries.

Prices must increase
“Markets cannot carry on with demand exceeding supply without prices increasing. Some dealers are short of stock and are trying to buy new stock, but during the pandemic consumers have become more environmentally friendly and are looking to buy a hybrid or electric car.

“That means some dealers are finding it difficult to sell cars they had in stock during lockdown. Meanwhile, used car insights from our INDICATA online platform are showing dealers exactly what they must buy to meet consumer demand. Older cars have also doing well as have sports cars, but trends are changing very quickly, and we are already starting to see this change.

Diesels are making a comeback
“Diesels have started to make a comeback, while SUVs remain extremely popular and older cars continue to be very popular, mainly because they are cheaper. The markets are changing week by week,” he added.

This change in consumer demand has meant that Autorola is seeing more dealers export those cars that are out of favour, while some dealers are turning to import used cars wherever they can just to increase their internal stocks.

Export and import are growing
“Just as we saw after the recession a few years ago, our MarketPlace online portal help balance the demand and supply of cars across Europe. And the same is already happening post Covid-19 lockdown, although not in such high volumes as the markets are still short of used stock,” said Holmsten.

Autorola expects the used market to be very healthy throughout 2020 as it will take time for each country to balance supply and demand. Also with some countries’ economies likely to be affected it could mean older and cheaper cars remain in high demand, although the consumer demand for hybrids and electric cars is likely to push the prices up higher and higher as the stock of used cars will not be able to keep up with demand.

For further information about MarketPlace go to www.autorolagroup.com/business-units/marketplace/


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Autorola launches new Trade In App film

Aug 20, 2020   written by Autorola

Our Autorola Solutions business unit has made a film about its new Trade In App which is an easy to use, real time, valuation solution for dealers to simplify the buying and selling of vehicles.

Trade In is designed to support dealers to sell more cars and increase stock turn to give improved sales volumes and revenues. It provides dealers with the perfect tool to guide customers through a smooth buying process from selling their old car to driving away in a new one.

See the new Trade In film


Read more about Autorola Solutions here.

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Introduction from CEO Peter Grøftehauge

Jun 15, 2020   written by Autorola

In just one month I am pleased to see that many used car markets across Europe are opening back up for business now that dealers are allowed to trade again.

Adjusting to a new normal across the used car sector will take some time but according to our INDICATA data insights we have already seen some markets return back to their original sales levels experienced pre Covid-19.

Used car popularity is changing
Pent up demand from consumers is very evident and, in many countries, they are treating themselves to sports cars to celebrate coming out of lockdown. Petrol, hybrid and EVs are also seeing increased sales which shows that the market isn’t simply starting where it left off according to our latest Market Watch report.

This is great news, and for those countries who have seen a more relaxed lockdown Autorola has been at the heart of making sure dealers could still buy and sell used cars online throughout 2020. In this newsletter we have interviewed Henrik Meissner, sales manager at Autorola Germany whose team kept many dealers going with online sales when physical remarketing providers had decided to close.

Useful tips for dealers
Our MarketPlace business unit director Morten Holmsten also contributes more information on how Autorola’s businesses have kept the used car wheels of industry turning as well as providing some useful tips for buyers and vendors.

It has been an exciting 12 months for our Autorola Solutions business unit with the most recent news that it has launched a used vehicle Trade In App which makes buying and selling used vehicles an easy and hassle-free solution for dealers. Watch the film we have made which brings new exciting new product to life.

I hope you find our newsletter interesting and look forward to everyone enjoying a successful remainder of 2020.

Regards
Peter




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New app allows dealers to know exactly what the vehicles are worth

Jun 22, 2020   written by Autorola

Autorola Solutions has introduced its new Trade In app – an easy to use, real time, valuation solution for dealers to simplify the buying and selling of vehicles.

Trade In is designed to support dealers to sell more cars and increase stock turn to give improved sales volumes and revenues. It provides dealers with the perfect tool to guide customers through a smooth buying process from selling their old car to driving away in a new one.

The Trade In app allows users to capture basic vehicle information along with images, as well as expert technical and mechanical reports. Both the buyer and dealer can exchange all the necessary information within minutes to ensure an efficient, reliable and transparent process.

Importantly, Trade In allows all data to be captured and exchanged within the single platform enhancing personal security and business compliance.

Once all the necessary information is captured, the app then allows dealers to make a valid, real time, market-based valuation on the trade-in vehicle via international pricing dynamics, configured to specific sales and pricing strategies. This allows dealers to know exactly what the customer vehicle is worth, at any moment in time, to calculate a trade in price as well as ensure the right product availability/mix for the business.

An integrated, guaranteed price feature helps ensure transparency and trust.

The app also allows dealers to communicate with select parties, such as OEMs, at the touch of a button, to invite offers on the ‘trade in’ against current vehicle model promotions. This two-way communication assists with the calculation of vital key performance indicators such as market days supply (MDS) and real retail prices in the market.




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