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