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.
Challenges and Opportunities at
Bucharest, 21 November 2013
Global Automotive Consultancy
1. New cars:
Traditional & alternative distribution,
4x major trends 2013
….from possessing to use…….
…Not to Buy is the New Buying…..
Online, Independents, Supermercado’s, etc.
Number of cars per 1.000 inhabitants
EU average: 478
See printed version for car density per country in detail
Consumers accept the “older car”:
Diesel share Europe: 35,9%
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
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
“Transaction Pusher #1”
Crossing the border legitimize the new mileage
Low mileage cars are not trusted
Both the sector & consumer pay the price for it!
The Future for Quality Approved Used Cars looks good!
See printed version for extended 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,
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
From “disposal” to permanent source of revenue
Leading to lower operational vehicle cost!
Based on +39.000 EU Inspections
Above “Normal Wear & Tear” cost per vehicle
In month’s =>
Source: Macadam Europe
17,4% no cost
See printed version for more details
Some conditions for implementing:
Sample of norm:
Latest development: “in-between-inspections”
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)