Hamburg, 27.04.2023
The life cycle and sources of vehicle procurement for the used car market continue to change and create challenges for retailers. In order to be able to continue to operate profitably in this environment, it is necessary to make processes more efficient. This can be achieved by adjusting your own mindset and with the right digital strategy.
A changed economic situation and high inflation are leaving their mark on the used car market. Demand is falling and loyalty to the brand and retailer is also decreasing. The result: declining sales figures and increasing downtimes. Vehicle sales are adapting to these changes. Large trading groups are gaining in importance and rely on supra-regional marketing and digital strategies. “Retailers have to adapt to the new circumstances and further develop their strategy based on use and needs. The right mindset is crucial here,” says Carsten Kaufmann, Sales Director of Autorola Solutions.
The vehicle becomes an asset
Many factors such as the war in Ukraine, the energy crisis and the manufacturers’ supply problems ensure that fewer new and used cars are in circulation. It is now all the more important to keep the yield for individual vehicles as high as possible. The question marketers should ask themselves is: Which car can you make the most profit from at which point in the vehicle life cycle in order to remain profitable as a company? “Especially at a time when the struggle for potential customers is becoming noticeably stronger, it is crucial to see the used car as an asset. A valuable capital investment that, ideally, is not marketed just once,” emphasizes Kaufmann. Means: Used car sales should develop into a profit center based on strategic repurchase and resale, precise planning and transparent, scalable and optimized processes. In this way, you can not only keep your own inventory and thus the offer high, but also make it interesting, for example in order to position yourself in a structured manner in the event of unplanned trade-ins.
Profitable decisions thanks to cross-system control
Management by exception is an important key to increasing revenue and reducing lead times in the used car market. A central control over all steps of the vehicle life cycle is essential for this. It is important to use digital software solutions such as the Fleet Monitor from Autorola Solutions to create connections between the different system landscapes of all those involved in the process and to make them transparent and automated. “Through this complete integration, it is possible to focus on the outliers in a corresponding vehicle turnover. In this way, not only the operative can be supported and relieved; In addition, the business areas that generate valuable income can be promoted,” explains Kaufmann.
In order to get the best possible return from a vehicle, access to up-to-date market information is crucial. Is the vehicle being bought and sold at the right price? Are the cars in the current fleet correctly priced in terms of return values? Does it make sense to take these back from circulation sooner? The direct integration of the INDICATA software into the Fleet Monitor enables real-time access to market data at any time. It also serves as a mirror of your own work and can be the basis for efficient decisions in used car management. Using dashboards, KPIs, reports and analyses, the platform provides insights into the dynamics of market development, taking into account factors such as demand, supply, price and inventory.
In order to ensure dealers’ profitability, it is important to actively use helpful tools such as central control units and marketing platforms such as the Autorola Marketplace, which offer targeted, digital vehicles to B2B customers quickly. In order to be able to react flexibly to changes, current market developments should always be kept in view.
Contact for the press:
Patrick Eckhart
Email: [email protected] | Phone: 040 – 180 370 0 | Fax: 040 – 180 370 99
About Autorola:
Autorola is a global leader in online remarketing and automotive IT solutions for used vehicles and fleet management. Autorola employs over 600 people worldwide and has 18 offices in Europe, North America, Latin America and Asia. The head office is in Odense, Denmark. Autorola was founded in 2001 and has been privately owned ever since. In the field of online remarketing, Autorola is considered a pioneer and now operates auctions all over the world. Through a broad network of companies, OEMs, banks, leasing companies and fleet managers, Autorola offers dealers the opportunity to purchase vehicles at fair prices. In addition to pure vehicle marketing, the company has constantly developed and is now divided into three global business units:
Autorola Solutions – In-Fleet & De-Fleet Management Solutions
Software is in Autorola’s DNA. Autorola’s Fleet Monitor is a central end-to-end fleet management, inspection and assessment platform that enables fleet operators to efficiently manage their vehicles. The connection to and integration into existing system environments is a core competence of the Autorola Solutions team. The solutions can be implemented not only by customers, but also by their service providers and can be freely configured according to the modular principle.
INDICATA Business Intelligence und Analytics
With INDICATA Business Intelligence and Analytics, vehicle manufacturers, dealers, leasing companies and fleet operators transform data-supported market insights into clear competitive advantages and thus optimize your success in the used car market. The system uses real-time market data, which is evaluated using its own data warehouse, giving decision-makers the opportunity to act based on the actual market situation instead of having to rely on linear discounts.
Autorola Marketplace – In 2022, the international online auction platform processed more than 31,000 online auctions with over 51,000 professional bidders from 41 countries. Autorola offers a wide range of remarketing services such as transportation, storage, collection, processing, invoicing and export handling. For consignors, Autorola offers maximum configurability and individual marketing options. In this way, Autorola can market the vehicle quickly and profitably in the interest of the consignor.
With this portfolio, Autorola is able to map and optimize all aspects of the in- and de-fleet process and keep them agile for future market developments.
More information about Autorola can be found at www.autorola.de, www.autorolasolutions.com/de/ and www.indicata.de