NEWS

Used car sales continues to grow

May 26, 2021   written by Autorola

Welcome to our May edition of the Newsletter. I hope you will enjoy reading what’s happening in our Group.

Our MarketPlace director Morten Holmsten shares an update on how online used car sales are performing. Online bids were up 31% in April and 8% in May from dealers who are chasing 8% fewer used cars on our MarketPlace platform.

Semiconductor shortages impacts new car production
Just as the market is starting to settle down after Covid so the global shortage of semiconductors is causing new car shortages which in turn is fuelling an increase in used car sales. Expect to hear more about how this will affect the used car market over the coming months.

Italy’s used car market is very much back on its feet from being one of the first countries to be impacted by Covid. And now we can announce a very exciting partnership with Quattroruote Professional which publishes Infocar Italy’s leading used portal for consumers and the motor trade.

An exciting partnership in Italy
We will be providing them with our INDICATA platform, and we will be adding Quattroruote Professional database to our platform, including the vehicle licence plate recognition system. This is set to be an exciting partnership over the coming years.

Autorola Denmark is the largest of our 19 subsidiaries and recently it has expanded its de-fleet centre network.

Part of the online revolution
We talk to country manager Thomas Friis Pedersen how the fleet division called Bilsalg has been part of the online revolution from day one and has introduced a new level of service to end of contract processes for private leasing customers.

They have taken a very strong partnership approach to growing the business in Denmark and work for some of the largest leasing, finance, and dealer groups in the country.

Read more about their story in this month’s newsletter. We hope you have a busy and a healthy summer.


Best regards
Peter Grøftehauge (LinkedIn)

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Introduction from Peter Grøftehauge

Jun 28, 2021   written by Autorola

As many of you know the Euros football tournament is currently behind held and is now down to the final 16 teams. There is nothing like a big sports tournament to bring out the competition between countries and the Euros is no exception.

At the time of writing, I am pleased to see Denmark still in the tournament. Everyone will remember Denmark’s first game in the Euros for many years to come and it is an important reminder that the health and welfare of our colleagues is extremely important. The next time you venture into the office take sure you take time out to find out where the nearest defibrillator is in your building as it may save a life one day.

Educating the used car market
Education is what several colleagues have been involved in during May and June as the team have spoken at various industry conferences and have been guests on customer webinars armed with the power of our INDICATA real time used car data insights


We have used those insight again to provide the very latest positioning on EVs in the used market across Europe. Fair to say they are still building their foundation at a time when car makers are in a hurry to speed up EV sales to reduce the fines currently being given by European Governments in our journey towards zero emissions by 2030.

Used car prices continue to rise
The manufacturer semiconductor new car shortage continues to play a part in creating increased demand for used cars and further stock shortages. Prices are rising and this may continue for some months to come.

This balance of supply exceeding demand is truly a global problem as our Mexico country manager Alfredo tells us. Everybody is having to get used to paying more for used cars with Mexico running closed online auctions for Mercedes-Benz, BMW and Stellantis and its franchised dealers.

His team are also looking to extend our online remarketing expertise into trucks and buses. Mexico has become more of an online economy overnight and now more goods than ever are being moved by road by commercial vehicles so used vehicles are in high demand, especially when they are being de-fleeted by the large corporates.

And as many of us are faced with local holidays in July and August we hope the weather is kind to you wherever you are. And do not forget to keep cheering Denmark on for as long as they are left in the Euros. Happy holidays.

Best regards
Peter Grøftehauge (LinkedIn)

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Autorola is at the heart of Mexico’s digital used vehicle revolution says country manager Alfredo Hernandez Hamelberg

Jun 28, 2021   written by Autorola

Like so many countries Mexico has been impacted by the Covid-19 pandemic, and as of late June only 35% of the population of 130m had been vaccinated.

The first wave of pandemic in 2020 was the worst from the perspective of restricting people movement, but it sped up the country’s switch to buying more goods online. From groceries to used cars, transactions have more than tripled in the last 12 months.

At the heart of the online revolution
The Mexican market has always preferred face-to-face contact when buying and selling, particularly used cars, but it has taken a global pandemic to change this mindset and Autorola Mexico has been at the heart of this online used car revolution with its MarketPlace online platform.

“More car makers have been talking to us about online auctions. They have seen how online auctions can work when they are accompanied by good images and a detailed description of each car.

“Online is more of a trusted platform now in Mexico and during Covid-19 our operation remained open from the beginning of the pandemic as our business was set up to run online. Since the start of the pandemic, we are running more closed auctions on behalf of car makers than ever before to sell cars directly to their franchised dealers,” explained Alfredo, Autorola Mexico’s country manager.

A growing number of OEM contracts
Autorola has contracts with Mercedes-Benz, BMW and Stellantis to run closed auctions throughout the year. Its team of vehicle inspectors inspect the cars thoroughly prior to sale and grade them with five different levels of damage so buyers are clear whether they need repairing prior to sale or whether they are ready to retail.

Once the cars have been purchased online by dealers manages all the logistics to get the cars onsite as quickly as possible. The manufacturer helps fund the logistics to ensure dealers are not compromised by being further away from the used car storage centers. That has helped add further confidence within the dealer networks when buying used cars online.

Launching CV and bus auctions online
Hernandez has plans to start running online sales for commercial vehicles and buses for one major manufacturer. Autorola is set up ready to inspect and sell these vehicles online, albeit with a different damage framework to help dealers clearly understand the condition of each truck or bus prior to it being sold online.


“There is an all-year round demand for used commercial vehicles whatever the economic conditions as they are a working tool. Without commercial vehicles our supermarkets would have struggled to fill their shelves during the various lockdowns. The used market is 12 months a year and the used demand for ex-corporate fleet trucks are very high,” he said.

Demand exceeds supply in the used market
Mexico has been impacted by the shortage of semiconductors, like the rest of the global automotive industry. Fewer new cars are being sold which has meant a rise in demand for used cars. Prices have risen dramatically which has frustrated dealers and pleased vendors, a trend which Hernandez believes will go on for some months.

“No car maker knows how long the semiconductor shortage will continue and so used cars will continue to be in high demand and relatively low supply. It may be into 2022 before we see the market get back to normal,” he explained.

Leasing and rental companies
The rest of the Mexican market is made up of leasing companies and rental companies who continue to do their own thing from a vehicle remarketing perspective. Lease cars are offered to the employee to buy at the end of the contract which 95% of drivers take up.

Meanwhile, rental companies are setting up retail used car centers to sell their ex-hire cars directly to the consumer, although many suppliers have been hit hard by the new vehicle shortage and have resorted to buying used cars to satisfy the short-term rental demand from companies and consumers.

Opening used cars to a national buyer network
“We are in regular contact with the rental sector which has used cars that regularly fail to sell after 90+ days in stock. Rather than sell them to the local trader Autorola can upload them and sell them on its platform. That way it opens the used vehicle up to a country-wide market which will generate a higher price than selling to a local trader, or coyote as we like to call them.

“Autorola’s education and support of Mexico’s maturing used market continues and we are enjoying being an integral part of the digital revolution as it happens. Our proven online technology means we are well placed to work with many more car and commercial vehicle manufacturers,” said Alfredo.

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Europe’s used car sales increased in May as stock levels and prices rose reports INDICATA Market Watch report

Jun 28, 2021   written by Autorola

In May the best-selling used Battery Electric Vehicle (BEV) at less than two years of age was the Renault Zoe, while the fastest-selling BEV was the Tesla 3. Meanwhile the fastest-selling used petrol/diesel car at the same age was the Opel/Vauxhall Corsa.

Diesel remained the fastest selling used car fuel type with a stock turn of 7.3x or 50 days in stock, with petrol close behind (7.2x) which shows the continued strength of demand in the market for the fuel despite European new car sales falling.

Sales rise as stock levels fall
Year-to-date to the end of May European used car sales were up by 24.5% over 2020 and 8.5% above 2019 reinforcing how buoyant the market is.
• Stock levels were 2.0% lower going into June compared to 2020 and 4.6% lower than May
• Spanish dealers saw stock levels rise from May to June by 2.4%.
• Portugal and Poland reported falls of 10.3% and 9.4% respectively.

There remains a particular shortage of cars around one-year-old due to the much lower than usual used cars coming from the daily rental and dealer demonstrator programmes because of the reduced 2020 registrations. Despite a rise in tactical registrations by manufacturers – up 21% versus April – shortages in this sector look set to remain for the rest of 2021.

Global semiconductor shortage
The shortage in used car supply could be further compounded by the global semiconductor shortage as new car production is dramatically reduced. This could mean fleets having to hang on to the current cars for longer.

The UK saw another month of super rates of growth in May (+224.2% YoY) as its late lockdown during the first wave of the pandemic meant used car sales were down dramatically in March, April, and May 2020. This strong demand against a background of reducing supply pushed up prices by 7.5% during May.

An exciting second half of 2021 ahead
“The used car market is pretty much back to where it was two years ago. However, with the added challenge of restricted new car supply some countries are going to remain short of stock for some time. Our insights show prices have been steadily climbing, particularly in the UK and this will continue if demand continues to exceed supply. The scene is set for an exciting second half of the year,” said Andy Shields, INDICATA’s global business unit director.

To download a full copy of the 13-country 20-page report go to www.indicata.com/corona

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Stock turn of BEVs fails to keep up with annual sales growth

Jun 28, 2021   written by Autorola

May used car sales across Europe of BEVs have risen 236% and hybrids by 201% when compared with May 2020 while diesel and petrol have increased by 32% and 36% respectively.

Speed of sale does not match sales
There is no doubt that slowly the used car agenda is starting to turn to low or zero emission used cars, albeit volumes are still very small. However, it is only when you examine the stock turn statistics that make it clear that the speed of sale of BEVs does not match the sales growth.

In May, the stock turn of BEVs was just 4.0x, while hybrids were 5.4x which compares with 7.2x for petrol. By far the most consistent fastest-selling used car for the past couple of years has been diesel, in May alone its stock turn was 7.3x, which is 82.5% faster than the average time for BEVs.

OEMs have an incentive to oversupply the market
When you look across Europe there is a major incentive for OEMs to oversupply the market as each BEV sold new reduces their Corporate Average Fuel Economy (CAFE) fines. In 2020 alone it saved OEMs 26,000 Euros per new BEV sold.

This major oversupply is quickly cascading vehicles into the used market although at a pace which is much faster than consumer demand to buy a used BEV. The used BEV market is still at a relatively early stage across all European countries where they are establishing themselves alongside Internal Combustion Engines.

Used BEV prices are high
Used prices of BEVs are one of the major elements which are still holding consumer acceptance back – the majority of BEVs are relatively expensive to buy new and when they enter the used market their price point is much higher than an equivalent petrol or diesel used car.

Consumers are still coming to terms with this issue as well as some reservation about battery life and pre-usage and the quality and spread of the public charging infrastructure.

All these factors are putting price pressures on used BEVs and until such time as prices start to soften then BEV stocking times are likely to remain behind traditional used petrol and diesel cars.

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Bilsalg Denmark celebrates investment in expanding its vehicle compound network

May 27, 2021   written by Autorola

Bilsalg, which is Autorola’s de-fleet vehicle storage and inspection business service in Denmark is expanding its network of locations to cater for increased demand by fleet customers and to further improve/expand its range of services.

Following the opening of its new location in Jutland in May 2020 it has announced the opening of two new locations on Zealand.

They will provide drivers a choice of location to drop off their lease car whether they live in the north of south of Copenhagen.

Bilsalg’s largest compound
At 40,000 square metres the southern Copenhagen site in Køge will become Bilsalg’s biggest compound in Denmark when it opens later in 2021, while Ballerup remains as the Danish head office due to its proximity to most of its customers.

All the new sites are owned and run by Bilsalg which allows them to design and build each one to their own specification and with customer requirements in mind. Many consumers return their personal lease car to Bilsalg centres so making the sites welcoming and having a dedicated reception and inspection area form a key part of the new site refurbishment plans.

Managing the de-fleet process for private drivers
Bilsalg prides itself on providing excellent service to private lease car drivers with its team spending time to explain any damage which the de-fleet inspection has identified, and the relevant costs incurred. Its aim is for the driver to leave their car behind with the knowledge of their responsibilities at the end of their contract which helps fleets collect end of life damage costs from drivers.

Being part of Autorola enables Bilsalg to offer customers other services from business units within the group. All the used cars arriving at each compound are photographed and uploaded to the Autorola MarketPlace online auction platform and sold online. This digital approach means a car only moves once when it has a new owner which reduces the costs as well as transport emissions when compared with physical auctions.

Helping fleets organise their assets
Digitalisation is an import part of our strategy with large fleet owners for many years managing their fleet in Autorola Solutions’ end-of-contract management tool, Fleet Monitor.

Doing the last couple of months, we have implemented our Fleet Assist concept for the small and mid-size fleet owners, which make the de-fleet and remarketing flow more efficient and transparent. The cradle to grave online asset management from Autorola Solutions provides visibility and control of vehicles at every step of their life cycle. It generates powerful data for the asset owner which enables them to make critical vehicle in-life or disposal decisions on their vehicle fleet.

Peace of mind
With many OEMs having their own bank-funded finance companies this proactive approach to asset management gives great peace of mind to everyone concerned. Big Data is very powerful and very comforting when fleets own and carry the risk for thousands of vehicles.

“We have been searching for the right sites to buy for some time and it’s exciting that these plans to grow our compound network are coming to fruition. It means we will be running one of the most modern fleet inspection networks in Denmark enabling us to meet the current and future vehicle inspection and storage needs of our fleet customers,” said Thomas Friis Pedersen, Autorola Denmark’s country manager.

For further information about Bilsalg go to www.bilsalg.dk

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Online remarketing trends across Europe

May 26, 2021   written by Autorola

MarketPlace business unit director Morten Holmsten updates us on the fast-changing online remarketing trends across Europe.

The European used car sector is extremely busy with conversion rates and prices at a record high, but the one challenge that all countries are facing is the lack of supply.

We have experienced 8% fewer used cars on our MarketPlace online platform during March and April which reinforces the shortage of stock.

Used car bids are increasing
At the same time, we saw the number of bids rise by 31% in April and 8% in May so there are more dealers in the market to buy a rapidly falling number of used cars. Prices have risen by 3-4% for two to four-year old cars during this period which are the used cars currently in demand with consumers.

Generally, Autorola is at the heart of a major cross border focus as countries balance used car imports and exports to satisfy demand but this is happening less and less currently. Now that the semiconductor problem is growing so the number of new cars being produced has fallen which is restricting the numbers of used cars being de-fleeted by rental and leasing companies.

These sectors generally provide a large percentage of the used stock coming into the market at between 2-4-years old sweet spot in the market, but not so far in 2021.

Semiconductor problems
Talking to the industry we believe that some car makers will be impacted heavily by the semiconductor problem while others will see little or no impact on production. However, until this impact is made more transparent many dealers are holding onto stock rather than considering export.

We expect it will be Q3 before production starts to improve and then there will be many back logs of orders to deal with before new car supply is back to normal across Europe. Turkey for instance is badly impacted as most of its new cars come from Turkish factories, which currently have seen production decimated due to the semiconductor shortage.

Restricted stock levels in Portugal and Poland
Countries like Poland and Portugal have an appetite to import used cars currently to improve stock levels, but their retail markets are not able to pay the higher prices of cars they need to import stock. Therefore, used cars will become even more scarce in the coming months.

According to our latest INDICATA report stock levels in Poland fell by 6.2% from April to May and are 38.3% lower than the start of May 2020, but that will not change anytime soon while prices are so high.

Danish demand for small EVs is high
In Denmark, a change in the luxury tax on EVs is already being experienced with a high demand for smaller, cheaper electric cars like the Tesla 3. The VW iD4 was April’s fastest-selling used car at 27.4 days which puts this trend into perspective.

However, Denmark is one of the few countries where demand for used EVs is high. Many countries are seeing EVs are selling more slowly than petrol, diesel, or hybrids as the price differential between zero emissions and the other fuel types is simply too high. Stock turn of EVs is low which is building growing stocks of used cars in many countries. Perhaps with the high used car demand across Europe and a growing appetite from asset owners to clear these cars off the balance sheet used EV prices will start to fall over the coming months to boost consumer interest.

Helping buyers and vendors deal with market challenges
As always, the European used car market is forever changing and in recent months countries have had to deal with the Covid-19 pandemic, the semiconductor supply issue, and Brexit for the UK. The Autorola Group continues to support vendors and buyers to develop remarketing strategies to deal with these challenges.

We look forward to working with you.

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INDICATA report shows 2021 used car sales have risen by 22.1% as stock levels fall

May 26, 2021   written by Autorola

European used car sales continued to make a strong come back with an increase of 22.1% to the end of April year-to date according to the latest INDICATA Market Watch insights report.

That represents a 7.2% increase above the same month in April 2019, pre-Covid and overall, the used car markets in the 13-country report are showing clear signs of stability and consistent growth.

Stock levels are falling
Dealer stock levels are suffering as sales continue to grow with countries like Turkey and the UK down by 11.2% and 10.0% respectively moving from April into May. Portugal, Poland, and Denmark also suffered a fall in stock while only France (+2.9%) and Sweden (+2.5%) experienced a rise in stock levels during this period.

There remains a shortage of sub-12-month-old cars as ex-rental and dealer demonstrator stock is restricted, and after a short spate of tactical registrations by manufacturers during March these fell back again in April. Stock levels in this sector of the market will also rely on how badly new car supply is impacted by the current semiconductor problem.

Opel/Vauxhall Mokka fastest-selling used car
The three-to-five-year-old sector is where the biggest consumer demand is currently and stock turn is at its best, with the Opel/Vauxhall Mokka proving to be the fastest-selling used car in Europe with a stock turn of 17.6. The VW Golf and Renault Clio meanwhile took the honours for the best-selling used cars in April.

Diesel remains the fastest-selling used car with a stock turn of 6.7x or 54.5 days although sales saw a fall of -6.0% from March. Battery Electric Vehicles (BEVs) experienced sales growth of 2.0% while stock turn was at a low of 3.7x which shows consumers are still coming to terms with paying a high price differential for zero emissions over equivalent models with a petrol or diesel engine.

Used market is settling down
“The used car market seems to be settling down just as we get news of the semiconductor shortage which is challenging new car supply,” explained Andy Shields, INDICATA’s global business unit director.

“Diesel continues to be the fastest-selling fuel type while sales of EVs are rising they are also suffering from the slowest stock turn rates. Price differentials between EVs and equivalent petrol and diesel models remain a constant challenge across many countries which is impacting on stock turn,” he added.

For a free download of the 20-page 13-country report go to www.indicata.com/corona

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INDICATA Italy signs partnership with Quattroruote Professional

May 26, 2021   written by Autorola

INDICATA Italy has signed an exciting new strategic and commercial partnership with Quattroruote Professional which publishes Infocar the country’s leading used portal for consumers and the motor trade.

Thanks to the agreement, the Infocar products of Quattroruote, which provide strategic support for business operators, are enriched by the analysis of live market data provided in real time by INDICATA.

Increasing used car data information
It makes new used car data indicators available, such as the car’s online value, the length of time that the car has been advertised and the variability of the price depending on the geo location of the vehicle.

INDICATA meanwhile has adopted the Quattroruote Professional database to its system, including the vehicle licence plate recognition system, thus increasing the level of precision and reliability of its services.

An exciting new partnership
The result of the partnership is a comprehensive and constantly updated tool which car manufacturers, dealerships and used dealers, financial services companies and owners of corporate fleets, can manage the flow of used vehicles in an even more modern and competitive way.

“In an increasingly dynamic market, our services must evolve. This collaboration with INDICATA helps cement Quattroruote Professional’s leadership in the used vehicle evaluation market. “It also confirms its ability to innovate while maintaining the quality and reliability of our Editorial Domus publishing house, something we have done since 1929,” said Luigi Caligaris, Director of the Editoriale Domus Professional Business Unit.

Adding value to our customers
“INDICATA was launched to provide dynamic used car insights for a wide variety of businesses and six years on we are very proud of this strong partnership between Indicata and Quattroruote Professional. Together we are adding value to our customers,” explained Alberto Ongari, Head of INDICATA Italy.

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Our industry is showing signs of getting back to some normality

Apr 22, 2021   written by Autorola


This month it is very nice to be able to share feedback from two of our customers: German dealer group Dello Dürkop has rolled out our Fleet Monitor asset management system across its business and BMW dealer network Pala Group BV that has embedded INDICATA within its used car business operations.

Our solution for Dello Dürkop was to create a platform that would support the operation of the car from order to its sale as a used car. The car is managed in one system by Fleet Monitor from the time it enters the stock of the dealer group, through the sales management of selecting channels and pricing strategies, until it is listed online listed via several select auctions and classified platforms for both wholesales and private buyers.

Added value is enormous
Six months on they are very pleased with Fleet Monitor which is now at the centre of Dello Dürkop’s digital landscape as ‘the added value is enormous,’ according to our customer.

Pala Group’s feedback is also very positive after rolling out INDICATA. They said: “It’s all about dynamic pricing – marketability – something we couldn’t do before. Real time data allows us to compare insights to the market, increase stock turn and reduce obsolete stock.”.
Thank you to both customers for being very open and we are glad that both products are adding value to your business.

Showing signs of growth
The used market across Europe is showing the first signs of sales growth as countries come out of their lockdown periods. It is great to see sales growth but as our INDICATA business unit director explains there are different levels of stock in different countries which is causing levels of price volatility.

The used car industry has been very badly affected over the past 12-16 months so we believe it will be a little while before it settles down. However the signs are that everything is moving in the right direction.

Download our Market Watch report for free
Our Market Watch report continues to provide valuable insights into the impact of the pandemic on prices, stock turn, sales, and trends. If you have not done already, we urge you to download it for free at www.indicata.com/corona as it is tracking insights every month into 13 European countries.

Online sales have saved the industry and as our vision has been to buy and sell used cars digitally for the past 20 years, we are pleased to see buyers and vendors continue to use our online MarketPlace platform as we come out of lockdown. Online is simple, cost effective and frees up time, something which many companies and employees are struggling with currently as they get their businesses trading again successfully.

We hope you have a very successful trading period as we enter the Spring season and look forward to continuing to support dealers, OEMs, banks, contract hire and leasing companies and vehicle asset owners in making 2021 a record year.

Best regards
Peter Grøftehauge (LinkedIn)

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