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  • 17/03/2023

Remarketing of used vehicles – A new source of value

Nextlane Remarketing for used cars

Selling a used car is a great way for automotive professionals to generate more value via the used vehicle market. Used cars provide a solution for finding new customers for vehicles that have already been used, at more affordable prices.

With the right strategies and tools, used car remarketing is an effective way for car dealerships to reach new buyers and maximize the value of their used vehicle inventory. This article discusses how car manufacturers and dealerships can use remarketing to generate extra value via the sale of used vehicles.

Automotive remarketing: definition

Auto remarketing is the process of reselling used cars for a profit. It consists of buying used cars from individuals or professionals (manufacturers, short-term rental companies, long-term rental companies, professional sellers) and then reselling them to other consumers at a higher price. This can be done through a variety of channels, including traditional dealerships, online marketplaces and auction sites. The aim is to make a profit by buying at a low price and selling at a high price

To do this, used car sellers must have a good understanding of the market, price trends and consumer preferences in order to maximize their profits. They also need to be familiar with the local laws and regulations regarding the sale and transfer of vehicles in order to comply with all necessary regulations.

Second hand: the growing benefits of used vehicle remarketing

The boom in the used vehicle market has become a new source of business activity for professionals, and this type of sale is increasing sharply for professionals in all vehicle age groups.

The main reason for this is that the lead times for obtaining new cars are long, and new cars are becoming too expensive for many people. Used cars are a great option for people who would like to own a car, but can’t wait or afford to buy a new one. There are many advantages to buying a used car, such as lower insurance rates, more affordable warranties, a better chance of finding spare parts when needed, and a greater choice of models and features.

In addition, buying used cars enables buyers to maximise their budgets, since they cost less than new cars. It also helps boost the economy by providing job opportunities in the automotive industry. For all these reasons, used car remarketing is an attractive choice for many people.

Advantages of used car remarketing

For consumers, a used car is a great way to enjoy the benefits of buying or leasing a car at a discount while still being able to choose from reliable, trustworthy vehicles. Used car reconditioning gives buyers access to cars that have been certified and professionally inspected, which means that they are in good condition with no underlying issues.

Also, reconditioning can offer buyers the opportunity to purchase cars backed by extended warranties, giving them peace of mind and protection against potential repair costs. Lastly, remarketing recent-model used cars gives buyers access to practically new cars for a fraction of the price. Overall, remarketing offers many benefits to those looking to purchase their next vehicle.

Offset the decline in new car sales

From a professional’s point of view, the main advantage of remarketing is to compensate for the drop in sales of new cars by creating an additional source of income. According to one recent study *, the global used car market is expected to grow from $1,154.95 billion in 2021 to $1,219.23 billion in 2022, representing a compound annual growth rate (CAGR) of 5.57%.

The market is expected to be worth $1,523.77 billion by 2026, with a CAGR of 5.73%. This explains why used vehicle distribution is being seen by many professionals as a new golden opportunity.

Attract new customers

As new car prices continue to rise, more and more customers are frustrated at being priced out of that market. Their chosen solution is to look to more affordable used cars. By offering a used car remarketing service, you can take advantage of this new market and attract new customers.

Build customer loyalty

In addition, remarketing builds customer loyalty by offering used cars at a reduced price the manufacturer or dealership retains more of its customers by giving them an alternative to going to competitors. Remarketing used cars makes it possible to satisfy the expectations of current and potential customers while generating an additional source of revenue.

Challenges of used car remarketing

One of the main challenges of used car remarketing is finding vehicles. This requires in-depth knowledge of the market and how to access resources that can help you locate the right cars. Once the potential vehicles have been identified, you need to evaluate their price on the second-hand market. This process can be a tricky one due to the proliferation of makes, models, finishes and other options, as well as potentially volatile market conditions. Lastly, promoting your used car inventory is another challenge, as there are so many options available to buyers. You need to find ways to stand out from the competition and entice customers with special offers or incentives. To be truly successful in used car remarketing, you need to be savvy and agile enough to take on this variety of challenges.

Identify the right market for remarketing your vehicles

Finding the right market for your vehicles is an important step in ensuring a successful sale. First of all, research current market conditions and prices for similar vehicles in your area so you can price your vehicle competitively.

Next, research online platforms to see whether there is a strong demand for this type of vehicle online, and find what tools are available to pricers to assess the market value of the vehicle. Lastly, create a marketing strategy to target potential buyers via adverts and email campaigns. Once you’ve identified the right market for your vehicles, it’s time to get marketing! Be sure to provide accurate information about the condition of the vehicle and any changes you may have made. Also, be prepared to negotiate on price if necessary.

Assess used vehicle damage and prices

Assessing used vehicle damage and prices is an important part of the car buying process. It requires a thorough examination of the vehicle to identify scratches, dents or other damage that is not immediately visible.

To do this, you need to make sure that your sales teams actually conduct a thorough inspection of the car to be traded in. They can now make use of software solutions that automatically detect scratches and document damage, giving a better understanding of what needs to be repaired or replaced before the vehicle can be put back on the market. Also, it’s important to estimate the cost of reconditioning the vehicle to determine its precise market value.

This means factoring in the cost of parts and labour, and the additional time and materials needed for repairs or replacements. Assessing used car damage and prices can help ensure that buyers get the right price when buying their used car.

Understand the applicable regulations when putting a used car back on the market

Used cars are subject to certain legal obligations, depending on the country in which they are bought or sold. Buyers and sellers should ensure they understand their legal rights and responsibilities before buying or selling a used car. In general, specific documents such as a legal ownership document, bill of sale and registration information must be provided when transferring ownership of a vehicle.

Additionally, some jurisdictions may require potential buyers to obtain a technical inspection of the car prior to any purchase. This ensures that the vehicle is safe and meets all applicable safety standards. Lastly, buyers should always be aware of any warranties associated with their purchase, as well as any applicable charges or fees that may be due upon transfer of ownership.

A used vehicle preparation industry is emerging

Remarketing used vehicles is a great opportunity to generate revenue by attracting new customers, but it requires overcoming many organisational challenges.

For this reason, a new generation of automotive remarketing solutions has emerged, helping professionals speed up used car sales by automatically identifying and flagging potential vehicle damage, thus accelerating procedures for processing and buying these vehicles. This allows the stock of cars to be marketed more quickly and profitably, increasing the value of the vehicle portfolio.

Imaweb Remarketing provides a complete set of features in support of this process, starting with the inspection of cars at the point of trade-in using innovative and easy-to-use tools, creating photo and video presentations of vehicles from the mobile app and thus enabling the vehicles to be presented in a variety of formats, including personalised videos, presentation videos 360° captures mapping the vehicle from all angles, etc. “