B2B and C2B is where the growth is at

Johan Meyssen, CEO CarsOnTheWeb, enlighted the Remarketing Forum’s audience with his vision on Continental Europe’s market potential for used cars. Looking at the different channels, B2C today represents 55 percent of the market, while C2C transactions cover 28 percent of all used car sales.

Far smaller is the share of used cars sold by consumers to businesses (C2B), namely 7 percent. Finally, B2B sales account for one in every ten used cars sold. Clearly, the latter two channels have the potential to grab a bigger slice of the remarketing pie in coming years.

Opportunities and challenges for B2B

Remarkably, compared to the USA, the role of auctioneers in the used car market is far smaller in Continental Europe: in the former, 15 to 20 percent of vehicles sell through an auction house, in the latter, it’s just between 3 and 5 percent. Indeed, there is reason to believe that the potential is not entirely exploited today.

With private lease, car sharing and cross-border trading increasing, the B2B channel will surely have a place in the future, reckons CarsOnTheWeb’s CEO. Gaining the trust of the buyer remains an important challenge in this context.

The future is challenging, but bright

Looking at the trends in B2B remarketing, Mr Meyssen highlighted first of all that customers want it all, demanding a higher service level and support from the seller. Secondly, virtual interactions are on the rise. Additionally, smart customer data analyses will lead to behaviour prediction, increased sales and deeper relationships. Finally, there will be disruptive models at play, requiring financial stability from the sellers.

In conclusion, Mr Meyssen sees lessors and OEMs further invest in B2C to maximise resale values and try to control RVs, but at the same time, auctioneers expect an increase in C2B and trade-in vehicles.