Automotive E-ssentials

the percentage of drivers interested in buying a vehicle online is increasing

The pandemic has driven trends such as online sales of used vehicles or the percentage of buyers who want the vehicle to be delivered to their own home.

As part of the 24^th Madrid Used and Preowned Car Show this year, TÜV SÜD has analysed the latest trends associated with digitalisation and the remarketing process of used vehicles. Over the last couple of months, the Covid-19 pandemic has increased online purchasing of used vehicles by 21%, as well as the percentage of buyers considering the option of purchasing a vehicle online, which has risen from 28% to 38%; or buyers who would like the vehicle to be delivered to their own home, going from 38% to 43%.

Digitalisation has revolutionised how second-hand vehicles are sold, to the extent that what used to be considered as an alternative is now an essential method. In fact, although not a recent trend, the pandemic has forced the implementation of 100% online buying, from the initial contact with the salesperson right up to the vehicle being delivered to the customer’s home. The expert adds that the goal is to make the vehicle more accessible to the customer, to make it easier for the customer and to provide them with an excellent virtual experience. To improve online sales of used vehicles, the company has developed a set of recommendations based on:

1. Creating an annual marketing plan focused on these goals.
2. Posting photographs of vehicles which meet the brand standards.
3. Facilitating adverts which provide the customer with quality content and interesting information about the vehicle.
4. Closely tracking lead management, keeping in touch with the customer efficiently, smoothly and on an ongoing basis and analysing the conversion ratios to assess the reasons behind those leads that don’t turn into sales.
5. Developing nurturing campaigns by tapping into the dealership database.
6. Organising proper planning of all the departmental processes like, for example, refurbishing.
7. Structuring teams in line with market needs, which includes a team of salespeople who are online selling specialists.
8. Providing a product mix which meets each client’s needs. “Currently, we can capitalise on the brands having low stock turnover from remarketing to increase our purchasing of available 2 - 7-year-old stock, which will provide the dealership with a differentiated and profitable inventory”, explains Lara Ramos.

The effect of the pandemic on the remarketing sector has been seen in the drastic reduction in the quantities of used vehicles available in the market. The big fleets sold by the manufacturers to rent a car companies with repurchase agreements (Buyback) have stagnated, which has created a shortage of a product type in considerable demand by buyers who are looking for a vehicle with low mileage.

FOUR DIGITAL TOOLS WHICH FACILITATE DEALERSHIP DIGITALISATION

Apart from the business process, amongst the digitalisation trends of used vehicles, TÜV SÜD provides innovative solutions like Car Manager One, a tool designed to control and monitor processes which integrate the management of used vehicles like, for example, the refurbishment process, fleet management or the records of online vehicles. The company also has PhotoFairy, an application which enables the photographs of vehicles to be touched up to adapt them to the brand standards for publication; NuMoS, an online tool which monitors the stock and sales of the dealers’ used vehicles or Blue Now, an ideal mobile application for contacting the customer and assessing his/her vehicle 100% remotely.