New rules reshape the remarketing game
Remarketing used to be “easy”: Diesel was a safe bet on most markets and RVs were boosted by the usual suspects like leather and satnav. Changing powertrain policies as well as new technologies are complicating things, but as new sales channels and markets open up, so do new opportunities.
For the sixth year in a row, the Fleet Europe Remarketing Forum provides professionals with information and expertise about the trends that are shaping the vehicle remarketing business.
Keynote presentations by industry experts are alternated by debates uniting various stakeholders. Given the relatively compact format, there is also plenty of space for interaction between the room and the stage.
The Fleet Europe Remarketing Board members, who were closely involved in building and developing this year’s programme, explain what makes each session worth your while.
Managing diesel and EV risk
A key theme at this year’s Remarketing Forum is the shift in powertrains. The rise of the one usually means the fall of the other. “With the third wave of BEVs, which come with longer range and mostly more attractive list prices, we currently see more chances than risk for RV development of BEVs in most Western European markets for 2025,” stresses Christof Engelskirchen, Chief Economist at Autovista Group.
“Under this scenario, RVs for Diesel will decline between -1% and -8% between today and 2025 in Western Europe, depending on country and segment. With most of the market correction having taken place in Germany, it will be at the low end of this range, but France will be at the high end.”
An important element in the RV equation is legislation, which today is pushing Diesel aside, even though recent research by Emission Analytics shows that since the introduction of WLTP and RDE the latest Euro 6d-Temp Diesel engines are incomparably cleaner than their predecessors. That calls for a deep-dive and a debate on stage.
The time seems ripe to look at a medium-to-long-term alternative for diesel: hydrogen. It combines the benefits of an electric motor with those of a fuel that can be produced locally and sustainably while guaranteeing easy filling and sufficient range.
Changing business models: B2B, B2C, C2C
The ability to adopt new business models is the key to success in the remarketing business. “As from the start of the first Remarketing Forum in Hamburg in 2014, the digital revolution has been a topic on the agenda every year,” says Johan Verbois, Managing Partner at 5S Consulting. “The session called The Digital Reality Check will give answers to how this digital evolution has been implemented and how used car customers are finding their way in the digital B2C world”.
A topic for debate is direct versus indirect B2C remarketing, for which Fleet Europe has invited experts from CarNext.com, Spoticar, Arval and eBay. Last but not least, there is the C2C business – until now relatively uncharted territory but a channel not to be underestimated or neglected.
“As the used car business has a strong impact on new vehicle sales, on their residual values and stock management at OEMs, intermediaries, mobility providers and retailers, new business models are being developed as digital solutions are reducing the barriers of entry for existing and new entrants, who are venturing into the traditional used car markets but also tap into the vast potential of the C2C business,” explains Marcel De Rycker, Managing Director International Warranty Holdings.
Outside the European borders
Today vehicles are floating more or less freely between the European countries according to where the demand and prices are best. “At the same time, most players in the market have a European approach which aligns most processes and systems. It is import to look outside the EU and see what we can learn from other markets and how the trends outside Europe will influence our daily business,” explains Morten Holmsten, Global Director Autorola Marketplace.
What is to expect from the Russian market? Will the trade agreements with the US have any influence on international remarketing? What can we learn from the Chinese market? What happens on the Turkish market and will it open up towards Europe? And finally, what will be the impact of Brexit in the European market? These questions have never been more relevant and will be discussed elaborately at the Remarketing Forum.
How technology maximises residual values
There is no denying that new technologies impact remarketability. They should therefore guide your RV setting, procurement strategies and company car policies, says Jörg Höhner, Managing Director Central Europe at Groupe Argus.
On the one hand, it’s about knowing which features are positive RV influencers – is it still sat nav, leather seats, sunroof, alloy wheels? Or is it shifting towards advanced connectivity and driver assistance systems? On the other hand, new technologies are impacting the way customers search for their used car.
Mileage fraud: the battle goes on
Odometers are still being tampered with in Europe. “One of our deliverables is correct mileages across Europe. We aim to direct and guide the industry on a possible way of implementing correct mileage through an easy to implement system,” says Wolfgang Reinhold, Chairman of the Board of CARA, the Car Remarketing Association Europe.
”The Car Remarketing Forum is important for CARA. It is a great platform to contact existing and new people who have the same business interest,” he concludes.