Cross border sales continue to rise as demand for used EVs fall
In 2022 Autorola saw the number of cross border used cars sales across Europe rise by 21.5% as used car stocks remained very transient to meet the changing needs of consumers.
The Autorola MarketPlace online wholesale platform continued to play its role in helping dealers source cars in countries with stock shortages while supporting other countries manage their stock surpluses.
Volumes are increasing
Not surprisingly volumes of cross border cars going through the MarketPlace platform increased during Q4 2022 as the demand for used EVs across Europe reduced dramatically. The Europe-wide rise in the cost of living left consumers unable to justify paying two or three times as much for a used EV as a used ICE car.
The slowdown in demand for used EVs resulted in Market Days’ Supply rising to 103 days in early January which left many countries with surplus stock. This is three times as much EV stock that was in Europe earlier in 2022 which has raised the level of cross border activity managed by Autorola to up to 22% in 2023. This trend continued into February and the MarketPlace platform continues to help balance the supply and demand of used EVs across Europe.
All documentation is managed
Autorola’s cross border expertise doesn’t just include the provision of the online remarketing platform. The MarketPlace platform manages all the documentation, including the different Vat and tax elements of exporting and importing a used car from country to country.
Transportation is another key element of Autorola’s cross border proposition. It employs logistics managers in multiple countries in addition to an overall head of logistics in Denmark.
Cradle to grave cross border service
The ability to provide a cradle to grave cross border service is the reason this service continues to grow each year according to MarketPlace’s global business unit director Morten Holmsten.
He said: “Our cross-border proposition is the result of many years of work listening to customers in different countries and by developing our platform to manage all elements of their import and export transactions. It is a unique offering.
“We have experienced people in multiple countries that work together to make the process of exporting and importing used cars as hassle-free as possible. We like to think we play a major part in helping European countries balance their used car shortages and surpluses,” said Holmsten.
Current cross border trends
- Sweden and Poland cross border activity depends on how the exchange rate develops. Currently the Swedish currency is very low against the Euro, which makes it very attractive to export cars. In 2022 85% of Sweden’s used cars sold via MarketPlace were exported
For tax reasons, exporting cars from Portugal isn’t allowed, but Portuguese dealers imported more than half of their used cars during 2022
- The Netherlands has had very strong incentives to buy new PEHV and BEVs and lot of these cars are now being importer from Denmark, Germany and France to satisfy consumer demand
- Many of Italy’s used exports are luxury or sports cars, which incorporate a high share of the new car market
- Many Danish executive used car exports end up in Germany
- Generally neighbour countries tend to trade with one another to benefit from improved logistics and speed of delivery