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Used Cars have been of major importance in recent years with the pandemic affecting the basic lifestyle and buyable range of various consumers in terms of reference towards automobile sales.
Used cars are more preferential for new or first-time buyers of automobiles in various regions of the world as this helps in inculcating the required User-drive experience which would have a positive impact on a long-term usage time frame.
The development of the Internet has changed the power struggle between dealers and consumers in terms of requirements towards the User cars segment of the European Nations.
Buyers can now potentially gain the upper hand. Customers are increasingly knowledgeable about cars, their quality, residual value, prices applied, finance charges, availability, and, more and more frequently, the exact profit margin that the dealer makes in closing a deal.
To learn more about Used Car Market in the US, read our report
The most important success strategy in the used car business is the development of trust-inducing initiatives such as certified used vehicle programs.
These programs provide the best protection against channel competition and allow dealers to improve margins significantly while offering an additional source of revenue for OEMs.
To learn more about Europe’s Used Cars Market, read our report
In the past, vehicle manufacturers and dealers have preferred to omit used automobiles from their operations, believing that the focus of dealers’ sales efforts should be on new cars, which have higher price tags and are targeted at richer consumers.
Aiming to push new automobile inventories to the market with suitable incentives has been a goal of dealers and original equipment manufacturers (OEMs).
Dealers’ bottom lines, on the other hand, have benefited more from the sale of used vehicles than from sales of higher-status new cars.
As used automobile quality and dependability have improved, a loyal client base has been created. Because of this, automakers began to recognise the importance of used vehicle management in increasing residual values, new car sales, and manufacturing.
The used car market is most active in the European Union Nations, France, and the UK. In these markets, the used car business generates considerable economic income.
In contrast, the used car market is weaker in Canada, Japan, and Spain. In Europe dealers have experienced high rates of consolidation, largely due to the Block Exemption legislation, which came into effect in 2002.
Sources indicate that the number of franchised dealer sales outlets in France declined by about 17%, while the number of German outlets declined by approximately 18%.
The European used car market generated total revenues of $268.3 billion in 2007 with a generation of total sales volume of 16.3 million units, equivalent to 56.8% of the market’s overall volume.
But in the recent year, there has been a blockade placed upon the Manufacturer dealer networks in both Europe and North America have experienced consolidation in recent years, a process that has been historically characteristic of the automotive industry and is likely to continue.
The Other main agenda of development for used cars within the market has been through the auction on platforms of varied levels.
Used car sales via auctions are mainly developed in England which used to be part of the European Union till January 2021 and to a smaller degree in Germany and Holland and are emerging in other countries.
Organised sector to account for 35% share of India’s Used car market by 2026.
While new car sales scale record highs in India, the other bright spot is the pre-owned passenger vehicle business which is seeing accelerated growth as a result of the shift in consumer mindset and enhanced transparency enabled by the organised sector.
There are several reasons why the Used car industry will continue to remain a sunrise sector.
While the Covid-19 pandemic was instrumental in driving demand for the sector as a result of the consumer preference for personal mobility, other factors like the growing number of established OEMs in the business, increased inventory levels, wide choice of new-generation vehicles across segments along with warranty, and customer-friendly digitalisation which has delivered enhanced transparency and trust, have powered recent growth.
What further enhances the Used car buyer’s peace-of-mind quotient is the rigorous vehicle quality checks, evaluation, refurbishment and certification process undertaken by the organised sector.
Given the rapid pace of growth in the Used car sector and the marked shift in consumer mindset towards the more transparent nature of operations – from initial enquiry through to Urethane Automotive purchase – the organised sector, including digital-platform sales, can only expect to achieve speedier growth in the coming years.
Car market leader Maruti Suzuki India drove into the Used car market with its ‘True Value’ business vertical. Maruti True Value, whose all-India network currently stands at 559 outlets spread across 277 cities and is the largest in the country, has since sold over 4 million cars and counting.
At present, potential buyers are compelled by high prices of new cars, which is the result of various factors like material cost hikes and regulatory changes, among others. Most of the primary buyers today are fulfilling their desire of owning a vehicle with used cars.
Typically, replacement car buying used to be 26-30 percent of overall sales before the pandemic. However, it fell drastically to 15-16 per cent during Covid-19 as people held onto their new cars. Last year, this segment saw a revival and reached almost 23 per cent.
The Used car segment witnessed a trying demand-supply scenario during the two years of the pandemic. As a result of the increased need for personal mobility across the country, the demand for used cars shot up and supply fell sharply in the absence of a replacement cycle.
The new era demands transparency and openness in business, which can only come from digital platforms and thereby create an organized atmosphere.
Therefore, data is something which is going to be extremely critical to measure how things are today and how they will shape up going forward.
The Global Used Cars Market can be segmented into the following categories for further analysis.
The used vehicle market has grown in size and importance in the past decade and is positioned to continue to do so in the future.
A successful used vehicle strategy on the part of automakers and dealers is becoming essential to their operations and is increasingly recognized as such.
There have been some core strategies being implemented that are essential for growing dealers’ used vehicle sales in the European Market in recent years which include Continually improve the customer experience, from the Internet to the showroom, rationalising customer relationships through CRM, perfect online promotion and merchandising efforts to reach prospects and existing customers, manage inventory and pricing with network-wide IT solutions, maximize high-margin sales opportunities, optimize certified used vehicle programs.
The Recent integration of technology has to be followed alongside the integration of a branded OEM Dealership to have a better notion of the complete market operability in terms of increased sales in European markets.
There has been a focus placed on having this value-added service integrated into the used cars market of the Union.
The urban customers would have better saviours towards the OEM-affiliated branded dealerships. The internet portals did not have a visible share.
It looks like the customers looked at the information on the internet but concluded the transaction at a physical dealership.
It must also be said that the identification of a customer who transacted in a conventional dealership as opposed to a web portal is relatively lower when integrated directly into a non-branded platform dealership. It is, therefore, likely that there is a certain amount of bias away from the buyers on the internet.
KAR Auction Services, Inc., a prominent operator of wholesale used automobile internet markets, has completed the $450 million cash acquisition of CARWAVE Holdings LLC (“CARWAVE”).
The acquisition builds on KAR’s rapid development in the dealer-to-dealer segment, accelerates profitability, prepares the company to accomplish long-term goals, and strengthens the company’s unique blend of digital markets and physical networks.
This acquisition strengthens the competitive position and improves profitability throughout the dealer-to-dealer offerings by adding a premier digital platform on the West Coast to the dealer-to-dealer segment.
With the addition of CARWAVE to its popular digital marketplaces, such as ADESA and BacklotCars, as well as its extensive network of vehicle logistics facilities, can meet the demands of dealers in any market at any time.
CARWAVE was created in 2009 in California and now services franchise and independent dealers in California, Arizona, Nevada, Oregon, and Texas.
Dealers can easily wholesale trade-ins and older frontline units directly from their lot, and swiftly acquire new inventory from anywhere, thanks to the web platform.
Despite the fact that the companies have begun actively merging, neither company’s product offerings, price, or client agreements will alter immediately.
Re-AL, an online marketplace for old commercial vehicles, was introduced by Ashok Leyland. The Hinduja Group’s Ashok Leyland, the company’s flagship, announced on Saturday the opening of an online marketplace for used commercial vehicles called “Re-AL.”
This platform is made to make it easier for clients to trade in their old cars for Ashok Leyland trucks or buses, simplifying upgrades. The used commercial vehicle market is primed for change.
They have numerous potential to offer solutions that are focused on serving customers by leveraging our digital platform,” The city-based maker of heavy commercial vehicles said in a statement that it wanted to increase the ecosystem’s lack of organization and openness.
Customers will have access to several services through the digital service, including validated documentation and the option to select their preferred vehicles.
Asok Leyland emphasized the significance of the used car business as a key focus area, saying that this used vehicle e-marketplace solution marks a significant milestone in their digital transformation path.
They claimed that this market segment gives clients the chance to resell their cars for more money. They think this online marketplace would improve the overall experience for customers when they trade in their old cars for brand-new Ashok Leyland trucks and buses.
Launch of an online marketplace for second-hand commercial vehicles by Ashok Leyland The brand is making an effort to promote openness in the used-car market.
The flagship company of the Hinduja Group, Ashok Leyland, has opened an online marketplace for second hand commercial vehicles.
According to a statement from the business, it will assist customers in trading in used cars and upgrading to brand-new trucks and buses.
The market for old commercial vehicles is primed for change. There are numerous of potential for them to offer customer-centric solutions by leveraging their digital platforms.
We will be able to significantly improve the customer life cycle thanks to this used automobile e-marketplace solution, which represents a critical turning point in their digital transformation path.
They place a lot of emphasis on the used car market since it allows their clients to sell their cars for more money.
They believe that by adding a level of comfort and openness to the exchange process and thereby fostering trust, this online marketplace would improve the overall customer experience when customers trade in their old cars for brand-new Ashok Leyland trucks and buses.
Customers will have access to several options on this online marketplace to find their ideal autos with ease. To liquidate their vehicles, sellers might also list them.
The advent of this electronic marketplace, according to a statement made by the maker of heavy-duty commercial vehicles, is meant to improve the used-car market’s existing disarray.
Customers will be given access to certified documents through the digital service as well as several tools to help them choose the vehicle they want.
As it enables customers to dispose of their automobiles with a higher resale value, the used vehicle industry is a crucial emphasis area.
CarBravo, a brand-new approach to looking for used cars, was introduced by General Motors. By providing used-vehicle customers with access to a sizable inventory, an omnichannel shopping experience, and exclusive ownership perks, CarBravo will elevate the shopping, buying, and ownership experience.
Customers will have additional options thanks to CarBravo, which will provide them access to a vastly increased selection of GM used cars from both the dealer and a central national stock. Additionally available on non-GM second hand cars is an important aspect of the programme.
Additionally, CarBravo will provide a smooth consumer experience via GM’s new digital retail platform (DRP). A clear dealer pricing structure, vehicle history reports, and 360-degree views of the vehicle are just a few of the features that the DRP’s shopping interface will offer.
To satisfy the criteria established by GM, all CarBravo vehicles will undergo inspection and maintenance. Even if they do not acquire a vehicle through CarBravo, customers can obtain assured online offers from the industry standard Black Book to buy their vehicles.
To deliver a flexible, contemporary shopping and purchasing experience, CarBravo makes use of GM Financial, GM’s assets, and the GM dealer network. In cases where participating dealers offer them, customers can also benefit from house delivery and test drives.
A wide range of ownership benefits, such as roadside assistance, courtesy transportation, and OnStar and SiriusXM trials on qualified vehicles1, are included with CarBravo as standard warranty coverage on all vehicles, a vast nationwide network of dealerships for service and maintenance, and a built-in nationwide network of dealerships.
Ford and its dealers have worked together to develop a used car digital marketplace that offers customers the best and most comprehensive selection of Ford-certified pre-owned cars and the option to shop online or in-person.
The user-friendly online store satisfies consumer desire for a hassle-free buying experience by offering the largest and broadest variety of pre-owned Ford cars and trucks available whenever and wherever all backed by a Ford guarantee.
Users of Ford Blue Advantage can narrow their searches using advanced search features such as feature level, at-home test drive preference, or video walkaround preference. According to research, consumers spend 10 to 12 hours per visit online looking for a used car.
They can now more quickly than ever match the ideal customer with the ideal pre-owned Ford car. Offering a fantastic digital experience is crucial, but they also recognise that people still prefer to touch, smell, and feel a car before they buy it.
With Ford Blue Advantage, customers may purchase online, in-person, or a mix of the two, giving them the best of both worlds. Ford is partnering with Cox Automotive’s Autotrader to fuel its digital platform.
The partnership will take advantage of the company’s patented relevance algorithm and search technologies to give customers a simple user experience. At Cox Automotive, they are firm believers that a fully integrated dealer, consumer, and manufacturer network is essential for the success of the automotive sector.
Stellants debuted in the UK two years after that, and now, two years later, it’s debuted in the United States. Imagine it as a Certified Pre-Owned (CPO) program for Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, and Ram products; Maserati is the only business brand not included.
When used in a large sensing area, this sensor is effective at detecting human mobility by measuring body temperatures. Security tools, wireless gadgets, building supplies, industrial machinery, and energy-efficient household appliances are just a few examples of typical applications.
GM Customers will have more options and access to much larger dealer and national central inventories of GM used cars thanks to CarBravo. Importantly, non-GM-used cars will also be able to purchase the program’s features. Customers may order a car from participating GM dealerships online or locate a local GM dealership to make their purchase in person.
Used automobile purchasers are increasingly turning to the Internet as a source of information. Consumers still utilise local media and word-of-mouth to investigate used car purchases, but they are increasingly turning to the Internet, underscoring the necessity of having a solid Internet strategy for used vehicle programmes in general.
A growing number of dealers report that their Web operations have boosted sales and expanded their trading range, thanks to their increased attention to multi-channel communication techniques.
There is a 50/50 joint venture between Turkish industry and service organisation and a U.S.-based supplier of used vehicle services to supply wholesale purchasers with Web-based second-hand automobile sales services.
Turkish Borusan and U.S.-based Manheim have teamed together to develop a new service called Borusan Manheim. A global leader in used automobile sales, Manheim has operations in 17 countries.
Cars24 has been one of the most advanced solution providers in the used car requirements. It’s like Uber / Ola (taxi aggregators), Zomato / Swiggy (restaurant aggregators), and Airbnb / OYO (hotel aggregators) (aggregators in the hospitality segment).
All used vehicle dealers/brokers are gathered on a single online bidding platform. Price discovery is improved by dealer rivalry.
It has been trying to expand its operations, so it makes sense to collaborate with big dealers, which are usually organised / semi-organized in nature. As a result, their bidding platform has a high share of organised / semi-organized dealers vs. unorganised dealers.
