1 / 16

The Secondhand Vehicles’ Market Challenges and Opportunities at European Level Bucharest, 21 November 2013

The Secondhand Vehicles’ Market Challenges and Opportunities at European Level Bucharest, 21 November 2013. Rob Henneveld Global Automotive Consultancy. Today. Present dynamic used car sector. 1. New cars: Traditional & alternative distribution, Zero-mileage registration.

neka
Download Presentation

The Secondhand Vehicles’ Market Challenges and Opportunities at European Level Bucharest, 21 November 2013

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Secondhand Vehicles’ Market Challenges and Opportunities at European Level Bucharest, 21 November 2013 Rob Henneveld Global Automotive Consultancy

  2. Today

  3. Present dynamic used car sector 1. New cars: Traditional & alternative distribution, Zero-mileage registration 4x major trends 2013 • 2. Mediteranea countries: • Strong drop in sales new cars • No (local) market for buy-backs & ex-demo’s • Volume- & price pressure on existing used car market • 3. Drivetrains: Auto ≠ Auto • Traditional drivetrain disappears (slowly) • Hybrid & micro-hybrid • Electrical (Full/Plugin/Range Extend. 4. Consumer: ….from possessing to use……. …Not to Buy is the New Buying….. Online, Independents, Supermercado’s, etc.

  4. Car density: Number of cars per 1.000 inhabitants EU average: 478 491 • Flow West => East • Young & high mileage cars • Older used cars 373 524 213 • Flow South => North • Young & smaller cars • Low mileage cars See printed version for car density per country in detail

  5. Trends Registered Car Park ‘07-’12 Consumers accept the “older car”: • Quality of cars in general increases…. • He/she purchases and older one….. • Functionalities are as good • Too high mileage is not an issue…..or is it? Diesel share Europe: 35,9%

  6. Import on the increase (again) Highest ratio new sales vs import! Importing fairly easy Used cars plentiful available Need for mobility ≠ #used car supply Pollution tax cut of 30% * Estimation, **Extrapolated Source: APIA Non-transparency can result in: Disappointment / High Cost/Bad perception of sector………… Eco-fiscal regimes: Too much, Unexpected, Disrupting markets Influence of Government(s) Threat used car sector: Mileage fraud

  7. Mileage fraud used cars “Transaction Pusher #1” • Best target cars: • High mileage • Young cars Crossing the border legitimize the new mileage • Barrier to do business across Europe: • 1.000 cars/Fte (mileage verification) • Financial risk & cost • Bad for image Low mileage cars are not trusted Both the sector & consumer pay the price for it! The Future for Quality Approved Used Cars looks good!

  8. Next

  9. (SWOT) Used Car Sector • Stable product (volume sales fluctuations) • Product differentiation (price/age/quality) • Plentiful used car retail outlets • Accessibility is high through Internet • Lack of transparency • Low competence & retail skillset • Stock funding by banks • Old fashion-based daily practice SWOT • Stock - & Management Information • Development Pan-European market • Cross-selling opportunities • Internet differentiates on quality/price • Low entrée barrier & low sector imago • New car sales volumes & pricing • Eco-fiscal regime governments • Fraud (fiscal, mileage, etc.) See printed version for extended SWOT

  10. Some conclusions SWOT How can we make the real difference Price is NOT enough anymore We need to “lock-in-the-client” with services Are we supplying a used car & maybe services, or are we just moving dead metal? NO supply shortage used cars* & NO slack in demand! We need to manage the perception of high mileage cars Closing the gap of a-synchronic information between seller and buyer Action #1: by “Adding Value” Start with transparent supply of information * In actual volumes

  11. Next

  12. Revenue from End-of-Contract Inspections From “disposal” to permanent source of revenue • Small cost => high return • Strategic reasons lead to: (win-win) • Additional source of revenue • Commercial sales strategic leverage……… • Awareness among Fleetowner & drivers • Increase better driver behavior Leading to lower operational vehicle cost!

  13. Average split Passenger Car & LCV Based on +39.000 EU Inspections Above “Normal Wear & Tear” cost per vehicle In month’s => Source: Macadam Europe 17,4% no cost • Part of determining: • Risk management • Insurance premiums • Correct franchise per incident • Best-practice method: • Audatex based • Brut repair cost (Q-new!) • -/- 30% = actual loss-of value See printed version for more details

  14. Main requirements implementing Some conditions for implementing: • Transparency on method & outcome • Consistency in: “Normal Wear & Tear” • Norm inspection • Consistency in loss-of-value calculation • Processing insurance (claim) file • Educating fleetowner & driver (over time) • Monitor and apply benchmark key-figures Sample of norm: Latest development: “in-between-inspections”

  15. Conclusions Europe is divided in 3-markets Mileage fraud is disaster for image of sector Managing perception high mileage cars No shortage supply, no lack in demand Need to “lock-in-clients” with recurring services More transparency is required Steady and permanent stream of revenue Small investment – high revenue Leads to lower Total Cost of Ownership TCO)

  16. Rob M. Henneveld Global Automotive Consultancy +31 6 54 921 409 www.globaucon.com Rob.Henneveld@globaucon.com Twitter.com/#!/RobHenneveld www.linkedin.com/in/robmhenneveld1

More Related