Simplify to Amplify in Vehicle Remarketing
The challenges vehicle remarketers face in Europe don’t get any easier. Still, the online world provides ample opportunity to simplify and speed up finding, interacting and transacting with customers. But it takes a change of mindset to get it right. The experts we consulted for our latest E-Book: Optimising the Used Vehicle Customer Journey in a Changing World (available for download), say there’s still work to do to combat the challenges remarketers in Europe currently face.
Market Volatility
Fluctuations, changes in demand, economic conditions, and regulatory policies are all too common. These uncertainties impact remarketers by affecting vehicle prices and demand. To overcome this, remarketers should employ strategies such as diversifying their sales channels, proactively monitoring market trends, and adapting pricing strategies based on real-time market conditions.
Depreciation
Fleet vehicles tend to depreciate rapidly due to their higher mileage and usage. To address this, remarketers should focus on effective maintenance and regular servicing to keep vehicles in good condition. Additionally, they can consider remarketing strategies that target specific market segments with higher demand for used vehicles, such as budget-conscious buyers or commercial enterprises.
Remarketing Channel Selection
Choosing the proper remarketing channels is crucial for successful sales. Remarketers may face challenges determining the most effective channels to reach buyers, including online platforms, auctions, direct sales, or partnering with dealerships. Overcoming this requires a comprehensive understanding of the target market, analysing previous sales data, and continuously evaluating the performance of different channels. Remarketers should also consider leveraging digital marketing strategies to expand their reach and engage with a broader audience.
Compliance and Regulations
These include emission standards, safety regulations, data protection laws, and administrative procedures for vehicle transfers. Remarketers must stay updated on the latest regulations and ensure all necessary documentation and processes are in place. Collaborating with legal experts and having a robust compliance management system can help overcome these obstacles.
Vehicle History and Transparency
Buyers are increasingly concerned about the history and condition of used vehicles. Remarketers must provide accurate and detailed vehicle history reports, including maintenance records, accident history, and mileage. Overcoming this challenge involves implementing proper vehicle tracking systems, conducting thorough inspections, and offering transparent information to potential buyers. Third-party vehicle history checks can also enhance buyer confidence and trust.
Sustainable and Green Initiatives
With the growing focus on sustainability and environmental concerns, remarketers face the challenge of meeting the demand for eco-friendly vehicles. Although second-hand EVs are less scarce than a year ago, potential buyers are shying away because of concerns about battery health. Until EV batteries become modular and swappable (as with eScooter batteries), this issue is insurmountable. However, remarketers can incorporate electric or hybrid vehicles into their fleet, promote the benefits of low-emission vehicles, and align with sustainability initiatives. Emphasizing these vehicles’ environmental advantages and cost savings can attract buyers who prioritise sustainability.
Technology Adoption
Rapid advancements pose challenges for remarketers who may need to adapt to new digital platforms, vehicle connectivity, data analytics, and online sales processes. To address this, remarketers should embrace technology, invest in digital infrastructure, and leverage data analytics to gain insights into buyer preferences, optimise pricing strategies, and improve overall operational efficiency.
It's important to note that each remarketing operation is unique, and the challenges faced can vary based on the specific market, fleet composition, and business objectives. Therefore, a tailored approach considering these factors is crucial for overcoming challenges in Europe’s fleet vehicle remarketing industry. More detail, workable strategies and advice are available in the E-Book, which you can download here.
Image: Shutterstock 1378604234 Art Stock Creative
