NEWS

Morten Holmsten, MarketPlace global business unit director reflects on Autorola’s recent sponsorship of the ENG Remarketing Summit in Berlin

Written by Autorola in category 
February 29, 2024

 

I have just returned from the excellent 16th annual Remarketing summit in Berlin, which was held by the European Networking Group, where Autorola was proud to be the main sponsor.

This two-day event brought together leaders of the remarketing industry from across Europe for a symposium that allowed attendees to discuss the challenges facing our industry, the wider automotive landscape, and what the future of our business looks like.

 

Used value trends

As part of our sponsorship, we were invited to give a keynote address on the used value trends in a fast-moving used marketplace, with a focus on how we can maximise used car profits within an international business landscape.

It’s an interesting question, as there in no one answer. Instead, it involves the use of data, cross border sales, tax regulation and consumer desires.

Cross border sales

As an example of how all these factors can work together to the advantage or disadvantage of the industry, we looked at the Tesla brand in Denmark and the Netherlands, and how the marketplace changed dramatically in 2022, leading to opportunities for maximising profits via agile cross-border used vehicle remarketing.

We have perfected cross border remarketing over the past 10 years via our MarketPlace platform which brings buyers and sellers together and then our experienced central and country teams manage the paperwork needed to import or export a vehicle from one country to another.

High demand for used Teslas

Because The Netherlands vehicle taxation system favours EV purchases, with a zero rate of taxation on this vehicle type, a discounted company car tax band, and a strong public charging network, demand for used Teslas had been historically high in this territory. By the end of 2022 however, this led to an oversupply of used Tesla vehicles within The Netherlands, which drove down prices as a result.

This created an opportunity for buyers in Denmark, where there is a comparable taxation level on EVs, thanks to their low Luxury Tax banding, and an equally strong public charging network. At the start of 2022, Danish buyers became responsible for 45% of purchases of used Tesla vehicles in the Netherlands which helped them balance supply and demand in their home country.

Demand for Teslas quickly fell

However, as supply and demand levelled out, by the end of 2022, they were purchasing just 5% of used Teslas – so dealers in The Netherlands had to look elsewhere to find a marketplace that offers profitability.

While this is a localised case study, these changes are occurring Europe-wide, and faster than ever before. The market is tightening, and while cross border selling is complex and involves higher transportation costs, it still offers the highest opportunity for profit to help balance supply and demand across Europe.

Data driven remarketing

Due to this level of complexity, the need for data-driven decision making has never been more important for buyers and vendors, and this is where our INDICATA used car pricing platform has become an invaluable tool for decision makers, thanks to the in-depth and up-to-date nature of the data it commands. Dealers can use INDICATA to quickly work out the country where their cars are going to be worth the most money.

Above all, beyond the chance to explain our platform and its benefits to the conference attendees, it was a great opportunity to meet other industry figures, and reconnect with old friends, as we collectively discussed the ways in which together, we can continue to grow in the years to come.

The key take aways from our session were:

  • Europe’s used car market is tightening, and margins are coming under increasing pressure
  • Cross-Border selling is complex, but offers a huge opportunity to boost profitability
  • More than a third of Europe’s used cars offer a cross-border opportunity
  • The potential profit can be €1,000s per car
  • The winners will be those who make proactive data-driven remarketing decisions

We would encourage the remarketing industry to see it as an opportunity, or someone else will. And we can help. We look forward to hearing from you.

 

 

No Responses