16 Nov 16
News

CARA holds “very lively” second General Assembly

“A very lively meeting. Lots of positive feedback. The CARA members are very committed”, says Wolfgang Reinhold of the European Car Remarketing Association's second General Assembly, which took place on Monday in Barcelona. 

On the agenda: a discussion of the progress on the five 'deliverables' that were selected at CARA's first GA, last year in Rome. “In only one year, we can report a lot of progress”, says Reinhold, CARA president (pictured).

But first: the admission of new members. CARA represents a diverse cross-section of automotive industries, all with a stake in optimising the international dimension of used-vehicle remarketing – manufacturers, rental and lease companies, auctioneers, data and logistics providers and others (including Nexus Communication, the publisher of Fleet Europe). In all, 22 members. Or rather, 25, with the addition of CAP Automotive, PS-Team and Vehicle Trading International.

Fair Wear and Tear

Of the five deliverables, each the subject of a task force, the aim to establish Fair Wear and Tear Guidelines that would apply throughout Europe and for the entire remarketing industry caused the liveliest discussion. “The issue is that 'fair wear and tear' means different things to different stakeholders along the remarketing chain”, says Reinhold. “We will make sure to separate this, and build on what has already been achieved”. As a means to increase transparency and boost cross-border remarketing, some standardisation of the evaluation process is essential. For now, the task force recommended unified, but separate Wear and Tear Guides for short-term and long-term rental returns, and for cars and LCVs. To be continued.

Cross-border logistics

Another task force looked into the risky and costly logistics processes involved in cross-border trading. It identified a number of issues – chief among them the lack of pan-European transport networks. However, the ECG, the industry organisation of finished vehicles logistics suppliers, has indicated that it does not see such a collaboration as part of its scope. The group continues to explore possible improvements, including track-and-trace solutions and alternative solutions for common platforms.

Mileage fraud

Things were more clear-cut on mileage fraud, the subject of a third task force. Car-Pass, the Belgian system that recently celebrated its tenth anniversary, has virtually eliminated the problem. In 2006, it was estimated that about 60,000 odometers had been tampered with out of a total of 750,000 used cars and LCVs traded in Belgium – fraud estimated at a value of €150–200 million. In 2015, only 1,197 new cases of mileage fraud were registered, no more than 0,16 % of all used cars registered in Belgium. The system rests on a law that severely sanctions mileage fraud and mandated the creation of a central database for odometer readings of all vehicles registered in the country. Selling a second-hand car without a mileage certificate voids the transaction. Car-Pass aims to internationalise its solution, and CARA sees it as a model to stamp out mileage fraud, thus greatly enhancing transparency and trust in the used-car trade.

Import/export regulations

Across Europe – inside and outside the EU – close to 1,000 different, constantly changing VAT and customs rules apply to cross-border used-car trade. That's a huge headache for individual stakeholders, but the intervention of a supranational, whole-sector body like CARA can and will make a difference. The fourth task force, on the import/export problem, consulted with EY, who propose an app containing all relevant information, updated four times a year. The price tag – about €250,000 – would be eye-wateringly expensive for any single player, but enough CARA members showed an interest to bring the cost down to an affordable level. “I am confident that by next year's GA, the app will be up and running”, Reinhold said.

EU lobbying

Before CARA, the remarketing industry lacked a body that could lobby for its interests with the relevant EU authorities. But on 9 December, Reinhold has an appointment in Brussels to argue the case for better regulations and more clarity – notably on the issue of the EUR.1 movement certificate for exports outside the EU, to Serbia for example – currently the source of great uncertainty in the industry. With communications lines established between the remarketing industry and the European institutions, it will become easier to plead for a fairer shake for the industry in matters of regulation. “You can expect a lot more lobbying in 2017”, Reinhold concludes.

For an update on these deliverables, check CARA's next GA in a year's time, traditionally held in tandem with the Fleet Europe Remarketing Forum – location and date to be confirmed. Then as now, CARA aims to open the meeting with a list of new members...

Image: Fleet Europe

Authored by: Frank Jacobs