Webinar: Will the used car business be driven by the disruptors?

ICDP

Publication Number: Webinar

Author: Luca Montagner and Pascal Haubenreisser

Date: November 27, 2017

Tags: Used vehicles, Presentations

Downloads: 17Rating:

Reflecting on the possible impact of a major expansion of Auto1

The used car business has the potential to be a major profit stream for franchised dealers, which is more under their control, and helps to counteract periodic downturns in the new car business such as the one we saw following the financial crisis.  Our periodic reviews of the used car market have shown wide variations in market structure and the extent and success of franchised dealer participation.  UK dealer groups are generally the most advanced, but the Continental European dealers generally lag in terms of management processes, online development and the results.

Our update this year shows only patchy progress, but it coincides with further developments by new entrants with disruptive business models.  They provide new offers for trade players and private owners, so that transactions can be made faster, more easily and offer better value.  Some of these disruptors allow smaller dealers to compensate for lack of scale, others bypass dealers, making it easier for private owners to make direct P2P sales.

This webinar focussed on Auto1 as a disruptor already operating internationally in Continental Europe, but now due to receive a substantial investment from Softbank - who are also finalising a major stake in Uber, and have investments in autonomous vehicle technology.  Given the slow progress being made by dealers to improve their used car business in the traditional model, what will the effect be of a stronger, expansive Auto1?  Will they and the other disruptors end up setting the agenda for how the used car market develops?

Please follow the link on the right to download the presentation. Speaking notes and the appendix are included.