Used-car market presents cross-border remarketing opportunities (2022)

22 September 2022

Used-car market presents cross-border remarketing opportunities (1)

Resilient demand for used cars has created greater opportunities for cross-border remarketing. But there are challenges to overcome, explains Autovista24 senior data journalist Neil King.

The large consumer-to-consumer element of the used-car market, without reliance on physical dealers, means used-car sales fared far better during the COVID-19 pandemic than new-car registrations.

The first wave of the pandemic stopped sales activities at dealerships that were not digital. The less pronounced downturns in subsequent lockdowns exemplify how the establishment, and increased consumer acceptance, of online purchasing has also significantly improved the opportunities for cross-border remarketing.

New-car supply issues have compounded this, with markets such as Spain increasingly relying on imported used cars to meet demand. This phenomenon has also maintained residual values (RVs) in exporting countries such as Poland.

‘There used to be huge imports of used cars from Western Europe into Poland, at the level of about one million units every year. Now it is much more limited, and I can see the opposite trend of exporting the youngest used passenger cars from Poland. This is based on relatively lower market values and the exchange rate, which is approximately 7% higher than before COVID-19,’ commented Marcin Kardas, head of valuations, Eurotax Poland (part of Autovista Group).

Used-car activity has retreated this year and will be affected by the cost-of-living crisis. However, in conjunction with ongoing new-car supply issues, the squeeze on household budgets also means many consumers will invariably turn to more affordable used cars.

(Video) WEBINAR: Automotive megatrends - the effect on used car markets

Autovista Group’s base case for 2023 anticipates continued supply-chain issues, very low economic growth paired with high uncertainty, and inflation above target zones. This will keep new- and used-car demand under pressure, but new-car registrations should rise compared to 2022. Used-car markets are expected to be stimulated accordingly, as more cars will be supplied.

This does not mean 2023 will be a rebound year for the automotive industry, but cross-border remarketing opportunities remain. The trend towards standardisation of trim-line names and equipment across European market will facilitate the practice too – not only for existing online used-car retailers, but also for dealer groups and even carmakers themselves.

Online used-car retailers

As the internet has become a more acceptable platform for buying used cars quicker than may have been anticipated, this has given rise to several independent online retailers such as Auto1 Group, Cazoo, and Driverama.

In April 2021, Driverama announced its launch as Europe’s first borderless online used-car retailer, pointing to the pandemic as an accelerant that drove people towards online retailing more quickly. The company also noted forecasts stating that by 2030, 20% of all cars bought in Europe will be transacted online.

‘Cross-border remarketing may still be marginal but is growing with the expanse of the internet and English being spoken more widely by the latest generation, which is also less afraid of going abroad to buy a car,’ explained Ludovic Percier, RV and market analyst, Autovista Group France.

‘For example, there is a website in France,, which collects all used-car adverts across websites worldwide to help you find the right car. You can select the countries you are interested in or even the distance from your location. For people living in the centre of western Europe, this can lead them to many foreign countries, sometimes closer than the other end of their own country. The key factors in going abroad are a lower price, more choice, and sometimes proximity.’

(Video) How to buy a car without getting ripped off (Marketplace)

Aside from individual buyers travelling to source a car, the ongoing supply shortages, and increased consumer willingness to purchase online, create significant opportunities for market players when it comes to cross-border remarketing. However, not all consumers are prepared to travel internationally and deal with the bureaucracy involved, so a local presence is required. But this requires scale, which is the core reason Cazoo cites for its withdrawal from the mainland European market.

‘Following a review of a range of strategic options, management has concluded that the right course of action is for Cazoo to now focus exclusively on its core opportunity in the UK, an enormous addressable market with approximately eight million used-car transactions and a value of over £100 billion annually,’ Cazoo announced on 8 September.

‘The plan to withdraw from the EU is based on the material further investment that would be required for Cazoo to continue to scale its operations in the EU and the conflict this has with the company’s priorities of cash conservation and achieving profitability without the need for additional capital. As a result, the company intends to commence an orderly wind down of its operations in Germany and Spain and is in consultation with its employee representatives in France and Italy.’

Another key challenge for online used-car retailers is sourcing cars, especially as they scale operations and enter new markets. One solution is to establish relationships to gain access to de-fleeted vehicles.

In February for example, Auto1 Group, one of Europe’s largest online retailers for buying and selling used cars, struck a deal with Munich-based Allane Mobility – formerly known as Sixt Leasing – to secure supply of around 10,000 leased-car returns and fleet vehicles per year.

Standardisation of equipment and trim-line names

Scale is less of an issue for established large dealer groups and carmakers’ own dealer networks. They may be hampered by borders, but this does not mean that cars cannot be sourced elsewhere. One key challenge, however, is the inconsistent naming conventions of trimlines and/or standard equipment.

(Video) Cross-border B2B sales, GEOpricing and import TAX. Break out Session with Cars2Click

‘The Volkswagen trim line Carat in France for example means nothing in Germany, Specifications may differ, but consistent version names at least add clarity,’ commented Andreas Geilenbruegge, head of valuations and insights at Schwacke (part of Autovista Group).

This inconsistency in both trim-line names and standard equipment has not passed carmakers by, with Geilenbruegge pointing to heated seats as an example. They are not essential equipment in new cars in southern European markets such as Spain, but their absence limits a car’s remarketing opportunity in northern Europe. Carmakers are therefore looking at measures such as introducing seat heaters as standard equipment across Europe from the second trim line upwards.

This may not entirely remove international prejudice, whereby cars registered new in one country are often valued lower than those registered domestically.

‘A car bought new in Germany and driven its whole life in France is not worth the same to a dealer as the same car with the same specifications registered new in France. So, consumers risk losing money when trading in cars imported to France compared to a car bought new in the country,’ Percier commented.

Conversely, consumers may be unwilling to pay the same amount for an imported used car as one that has only been registered in their home country.

One manufacturer that has swerved inconsistent trim-line names and specifications – and seemingly international prejudice too – is Tesla. This has facilitated the widely reported exporting of used models from Germany to Norway for example.

(Video) Autovista24 webinar - How vehicle equipment strategies are changing

‘We are heading towards a future universal European market and some carmakers, such as Tesla, are already uniformising their offer to sell cars wherever the demand is high and the offer low. Most people will still buy a car in their own country, so brands must adapt to providing cars where they are needed. This is true for the European market but also in the local market, between areas and cities,’ said Percier.

Carmakers as used-car agents?

Looking ahead, Percier noted that features on demand (FOD) may eradicate the differences in standard equipment across markets. ‘With the coming FOD in cars, everybody will be capable of activating any option on the car, even after five years. The only differences will be the engine, gearbox, and the car’s aesthetics – that is it.’

With consistent trim lines and equipment, there is greater scope for carmakers to enter the realm of cross-border remarketing themselves. One approach could be an agency model, whereby carmakers can actively offer to purchase cars from a dealer when there is higher demand in another country. This also works passively, however, with dealers able to identify cars that are available for sale across the carmakers’ European dealer network. They can then source them, with the carmaker assuming responsibility for the paperwork, financial transaction, and logistical arrangements.

Whatever the future holds, cross-border remarketing is here to stay and will only gain momentum as transparency increases, both in terms of standardised equipment and names, as well as online presence.

Used VehiclesRemarketing

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Which site offers most for used cars? ›

Best Used Car Sites of 2022
  • Best Overall: Autotrader.
  • Best Basic Option: CarsDirect.
  • Best for Classic Cars: Hemmings.
  • Best for Mobile: Autolist.
  • Best for Cheap Cars: CarGurus.
  • Best for Comparing Options: AutoTempest.
  • Best Auction Site: Cars & Bids.

Will used car prices Fall 2022? ›

Fears of a used car price crash in 2022 appear to be unfounded. Instead, we expect the market to deflate slowly to pre-pandemic levels as the lack of new vehicles continues to cushion the impact of falling consumer confidence.

What are the most sought after used cars right now? ›

These 10 best-selling used cars made up 21.3 percent of all used car sales for 2021. The most popular used car is the Ford F-150, which is followed by two additional American full-size pickup trucks: the second-ranked Chevrolet Silverado 1500 and the Ram Pickup 1500.

Will used car prices Drop UK 2022? ›

However, according to the latest Used Car Price Index for September 2022, the average asking price of a three-year-old car was down 10.08% month-on-month (MOM), reversing August's MOM rise of 13.66%. It is the biggest MOM drop heycar has seen this year.

How is the used car market trending? ›

Used vehicle retail transaction prices have significantly risen since the start of 2021, when those in the auto industry first became aware of a semiconductor microchip shortage. September 2022's average transaction price was 30.3% higher than the average transaction price in January 2021.

What is the best source for used car values? ›

7 Trustworthy Websites to Value Your Used Car
  1. Kelley Blue Book. Whenever you're looking to value your used car, Kelley Blue Book is the place to start. ...
  2. Edmunds. ...
  3. NADAguides. ...
  4. Auto Trader. ...
  5. TrueCar. ...
  6. Consumer Reports Car Value Estimator. ...
  7. Parkers.
17 Aug 2021

Is it worth buying a new car right now 2022? ›

While soaring used car prices are bad for those who can't afford a new car, they may mean 2022 is a good time to buy a car for those with a vehicle to trade in. A high trade-in price means added capital that can help reduce the finance share of purchasing a new car.

Can car prices be negotiated in 2022? ›

Our YAA Auto Experts help hundreds of car buyers every week, and they gather real-time insights of the market along the way. The market is changing, and both new and used cars are more negotiable than at any time in 2022.

What will happen to used car prices in 2023? ›

What does 2023 have in store for car buyers? There's a good chance used cars will get more affordable in 2023, since prices seem to have already peaked earlier this year. But new cars could remain expensive if the chip shortage isn't addressed.

How many miles is too many for a used car? ›

Often, 100,000 miles is considered a cut-off point for used cars because older vehicles often start requiring more expensive and frequent maintenance when mileage exceeds 100,000.

Which used cars last the longest? ›

Longest-Lasting Cars: Toyota's Land Cruiser Easily Wins the Top Spot
Longest-Lasting Vehicles to Reach 200k Miles – iSeeCars Study
RankVehicle% of Cars Over 200k Miles
1Toyota Land Cruiser16.3%
2Toyota Sequoia11.2%
3Chevrolet Suburban5.1%
14 more rows
28 Feb 2022

Do dealers make more on new or used? ›

Many dealers admit they make more money per unit selling used vehicles than new vehicles. Dealers may spend $700 to $1,000 to recondition and clean up a used vehicle but the potential for profit could easily be $3,000 or $4,000 on a late model pickup truck and $2,000 on a crossover, for example.

Should I buy a car now or wait until 2023 UK? ›

Looking at the data, and assuming no more unexpected disasters, September 2023 or later. At present production is slowly returning to normal levels, but with squeezed incomes and increased costs coming from all angles, the best thing to do is wait unless you absolutely must buy a new car now.

Will cars ever get cheaper again? ›

As new-car inventory begins to stabilize, J.D. Power forecasts that used-vehicle values will begin their descent to more normal levels by late 2022 and into 2023. “We do expect used prices to cool once new-vehicle production and inventories begin to recover,” Paris said.

Will used car prices continue to rise in 2023? ›

Bottom Line: Demand for new and used vehicles will continue to grow in 2023. You might not be able to find exactly what you want in a vehicle. You'll also be paying top dollar for a used vehicle.

Why is the used car market so hot? ›

Right when new car inventory levels dropped off, used values started to jump.” The surge in demand for used cars during the pandemic took the average used car transaction price on, an automotive insights and sales platform, from around $20,000 in early 2020 to over $31,000 by April of this year.

Why is the used car market hot? ›

A "hot" used car market is one where the demand for used cars is high, driving prices up. Demand for used cars can increase due to a variety of reasons, such as an increase in buyers, a shortage of vehicles in general, sharp price increases for new cars, and many other economic factors.

What will happen to the used car market in 2022? ›

As new car production gradually ramps up, demand for used cars is expected to moderate. In the U.S., the Manheim Used Vehicle Value Index — which measures the prices dealerships pay for used cars at auctions — hit a high of 236.3 in January 2022 and has since fallen to 219.6 in July 2022.

How old of a used car is the best value? ›

In retaining “like new” quality and inheriting a slower depreciation rate, the best used car age for buying is 2-3 years. In fact, Americans are saving up to $14,000 on a 3-year-old vehicle. For example, a car that may have cost you $30,000 when new would cost around $16,000 after just 3 years.

What is the most accurate trade-in value for cars? ›

The Kelley Blue Book Value is a price for a particular automobile make and model from the largest automotive valuation company in the U.S. Listed automobiles get appraised, and market values assigned. The best values come from undamaged vehicles that do not need repairs.

What do dealers use instead of KBB? ›

Most dealers do not use KBB for trade-in (wholesale) values. Instead, many rely on National Auto Research's Black Book or the Manheim Market Report, neither of which is available to the public. More important, both tend to skew lower than KBB in wholesale pricing.

What should you not say to a car salesman? ›

5 Things to Never Tell a Car Salesman If You Want the Best Deal
  • 'I love this car. ' ...
  • 'I'm a doctor at University Hospital. ' ...
  • 'I'm looking for monthly payments of no more than $300. ' ...
  • 'How much will I get for my trade-in? ' ...
  • 'I'll be paying with cash,' or 'I've already secured financing. '
19 Aug 2019

What is the cheapest month to buy a car? ›

In terms of the best time of the year, October, November and December are safe bets. Car dealerships have sales quotas, which typically break down into yearly, quarterly and monthly sales goals. All three goals begin to come together late in the year.

How long should I wait to buy a car in 2022? ›

U.S. auto prices remain in high gear in late 2022, with the average vehicle transaction price up 6.3% on a year-to-year basis from September 2021 to September 2022. The good news is that prices are coming down this autumn.

What percentage can I negotiate on a used car? ›

Based on your pricing homework, you should have a good idea of how much you're willing to pay. Begin by making an offer that is realistic but 15 to 25 percent lower than this figure. Name your offer and wait until the person you're negotiating with responds.

Why do car salesmen talk to manager? ›

They are actually going to talk to the manager. The main reason being that the sales manager controls all the pricing of the cars in order to ensure that the dealership is making a profit.

How much profit does a dealership make on a car? ›

Front-end gross profit is usually described as the difference between dealer invoice and the selling price. That percentage tends to be somewhere around 20%. If a vehicle was sold with a $1,000 front-end profit, the salesperson would earn somewhere around $200.

Are used car prices finally dropping? ›

“A lot of manufacturers have taken out some of the features that are heavily reliant on microchips.”The good news is, according to experts, higher interest rates could drive down new car prices. Eventually. Used car prices are finally on the decline, but they're coming down after reaching record highs.

Will car sales improve in 2022? ›

October 2022 U.S. New-Vehicle Sales Forecast Highlights

Volume is expected to rise 4.4% from October 2021 but decline 1.3% from last month. The October 2022 SAAR is forecast at 14.3 million, above last year's 13.2 million level and up from last month's 13.5 million pace.

Are car sales down in 2022? ›

According to a recent report from the California New Car Dealers Association (CNCDA), the new vehicle market fell 16.1% in the first nine months of 2022. That's compared to the same time frame in 2021. The report said there are a few contributing factors, including less-than-predictable supply chain issues.

Is a 10-year-old car too old? ›

When buying a used car that's 10-years-old or older, your primary concerns are purchase price and reliability. Don't pay more than that 10-year-old car is worth. And, pick a car with a solid reputation for dependability. No car is really too old if you follow those rules.

How many miles should a 9 year old car have? ›

Seeing as the average driver covers about 12,000 miles a year, you'll want to see the following: About 60,000 miles on a 5-year-old car. About 84,000 miles on a 7-year-old car. About 108,000 miles on a 9-year-old car.

How many miles should a 5 year old car have? ›

As a general rule, you should assume that the average car owner puts 12,000 miles on a car each year. To determine whether a car has reasonable mileage, you can simply multiply 12,000 by its age. That means good mileage for a car that's 5 years old is 60,000.

What car brand has least problems? ›

The most reliable car brands - and the least
  • Kia. Reliability rating: 95.8% ...
  • Mazda. Reliability rating: 95.9% ...
  • Mitsubishi. Reliability rating: 96.9% ...
  • Dacia. Reliability rating: 97.3% ...
  • Lexus. Reliability rating: 98.7% ...
  • Alfa Romeo. Reliability rating: 86.5% ...
  • Land Rover. Reliability rating: 82.5% ...
  • Fiat. Reliability rating: 82.0%
6 Aug 2022

What SUV lasts 300000 miles? ›

Best Cars that Last 200K-300K Miles
  • Midsize Pickup Truck – Toyota Tacoma. Especially important for midsize pickup owners, it's essential that their truck is ready to work as hard as they are. ...
  • Minivan – Honda Odyssey. ...
  • Full-Size SUV – Ford Expedition. ...
  • Luxury Full-Size SUV – GMC Yukon. ...
  • Full-Size SUV – Chevrolet Suburban.

Which car engines last longest? ›

These Are Some Of The Most Reliable Car Engines Ever Made
  • 10/10 Toyota 2AR-FE Engine.
  • 9/10 Toyota 1ZZ Engine.
  • 8/10 Honda B Series Engine.
  • 7/10 Honda K Series Engine.
  • 6/10 Lexus 1UZFE Engine.
  • 5/10 Lexus 2UR-GSE Engine.
  • 4/10 BMW M57 Diesel Engine.
  • 3/10 Nissan RB26DETT Engine.
5 Jan 2022

What should you not do at a car dealership? ›

7 Things Not to Do at a Car Dealership
  • Don't Enter the Dealership without a Plan. ...
  • Don't Let the Salesperson Steer You to a Vehicle You Don't Want. ...
  • Don't Discuss Your Trade-In Too Early. ...
  • Don't Give the Dealership Your Car Keys or Your Driver's License. ...
  • Don't Let the Dealership Run a Credit Check.
3 Aug 2021

Are you supposed to haggle with used car dealers? ›

Negotiating the price of a used car at a dealer should depend on the car's condition, market value, and how much you're willing to pay. Negotiating a used car price begins with your first impression, so strike a balance between friendly and confident.

What should you not buy from a dealer? ›

Here are eight dealer add-ons you should always avoid.
  • Extended Warranties. ...
  • Gap Insurance. ...
  • Window Etching. ...
  • Tire and Wheel Protection. ...
  • Nitrogen for Tires. ...
  • Key Protection. ...
  • Paint and Fabric Protection. ...
  • Roof Racks.

Will car prices stabilize in 2022? ›

In the past, Clark has predicted that the market would gradually improve throughout 2022, and now we're finally starting to see some lower prices. While this decline will continue gradually month to month, it'll likely be sometime in 2023 before we see the used vehicle market return to near-pre-pandemic prices.

Is it cheaper to buy a new car instead of used? ›

Multiple costs are often cheaper when you buy a used vehicle rather than a new one. Everything from the price of car insurance to dealer fees will be less expensive when you buy a used vehicle. Depending on the vehicle you choose, the purchase price will also typically be less for a used car.

What is the best month to buy a new car UK? ›

The end of the financial year in April is also a good time to go looking for a deal, as businesses are keen to make as much out of each year as they can. This means that Spring is a great time to go car shopping. In March and September in the UK, the new number plates are launched.

Which car manufacturers are not affected by chip shortage? ›

Top 7 Cars Unaffected By The Chip Shortage
  • 2021 Hyundai Sonata.
  • 2021 Jeep Compass.
  • 2021 Nissan Titan.
  • 2021 Nissan Altima.
  • 2021 Ram 1500 Classic.
  • 2021 Nissan Sentra.
  • 2021 Volvo XC60.
  • 2021 Ford Expedition.
1 Sept 2022

Will there be a car market crash? ›

Don't expect a crash.

While many consumers are hoping used car prices will fall back to pre-pandemic levels, Charlie Chesbrough, Cox Automotive's senior economist, told Fortune that's unlikely. “We are starting to see prices come down,” he said.

Will car prices plummet? ›

Don't expect car prices to drop significantly anytime soon. Instead, new-vehicle prices — already at record highs — will remain elevated, automotive experts say. At the same time, used-vehicle pricing should moderate as the Federal Reserve continues raising interest rates to curb inflation.

What month do 2023 cars come out? ›

Traditionally, new model year vehicles start to come out in the fall of the previous year. For example, a 2023 model will debut in the fall of 2022 — and dealerships usually want the old stock gone before the new model arrives.

Where are used car prices the cheapest? ›

Florida offers the lowest upfront costs for buying used cars across the country. Florida's initial rates are generally relatively cheaper than the national average in the United States, ultimately saving you money on your purchase.

Is Used car demand still high? ›

The availability of vehicles on U.S. dealer lots improved to nearly 1.4 million vehicles last month, up from 1 million for most of the year, Cox Automotive reported. Before the pandemic, normal supply was far higher — around 4 million. So historically speaking, inventory remains tight and demand still high.

What are best option to buy used cars? ›

Buying a certified pre-owned (CPO) car is a convenient way to find a used car, SUV or truck in excellent condition. CPO vehicles, which are sold from dealerships of the same brand, go through extensive inspections and are reconditioned with factory parts. They also come with the best warranties.

What are 3 websites that can be used to get an accurate value on a car? ›

Here are some of the most popular sites:
  • Kelley Blue Book. Kelley Blue Book, commonly abbreviated as KBB, is a leading online car value estimator. ...
  • Edmunds. ...
  • (NADA) National Automobile Dealer's Association. ...
  • Trade-in value. ...
  • Private resale value. ...
  • Certified pre-owned value. ...
  • Dealer resale value.
25 Feb 2021

Are used car prices ever going to drop? ›

“Over the course of the next two years, we're going to see used car prices retreat back to more normal levels. So by the time we get to 2025, that's really when used prices will bottom,” J.D. Power's Paris said. And even when prices do “bottom out,” they aren't likely to return to pre-pandemic levels.

What time of year are used car prices lowest? ›

January, February, and December are the three best months to buy a used car, in that order. According to iSeeCars, in general, late fall and early winter are good times to purchase a used car with a deal.

Should I buy a car now or wait until 2022? ›

While soaring used car prices are bad for those who can't afford a new car, they may mean 2022 is a good time to buy a car for those with a vehicle to trade in. A high trade-in price means added capital that can help reduce the finance share of purchasing a new car.

Will used car prices drop in 2023? ›

There's a good chance used cars will get more affordable in 2023, since prices seem to have already peaked earlier this year. But new cars could remain expensive if the chip shortage isn't addressed.

Why are used car prices so high in 2022? ›

Car prices have been climbing steadily for the last two years, as a shortage of parts, particularly computer chips, has limited supply in the face of strong consumer demand. Those higher prices have been a major factor in overall inflationary pressures since roughly 40% of US households buy a car each year.

What are 3 advantages of buying a used car? ›

The advantages of buying a used car or a CPO are numerous, here are just a few:
  • They Cost Less. You already know this. ...
  • Less Depreciation means a Better Investment. ...
  • Lower insurance rates. ...
  • Avoid Hidden Fees. ...
  • Options. ...
  • Selection. ...
  • Total Confidence Pricing included Used Cars.

What are the three most important things to consider about a car when buying used? ›

Obviously price is a starting point, but to help you narrow down your choices further, you need to focus on the following three factors: Quality, Cost of Ownership, and Reliability. Let's take a look at each one, explain why they're important, and provide you with the best resources for further research.

What are the top 5 tips for buying a used car? ›

5 Tips When Buying A Used Car
  • Examine Exterior and Interior.
  • Test Drive.
  • High Mileage Versus Low Mileage On A Used Car.
  • Professional Inspection.
  • All The Ways To Research.
  • Driver's Auto Mart.
10 Jul 2020

What is the most reliable source for car reviews? ›

Consumers Reports is the go-to source for unbiased car ratings. According to this trusted organization, the most reliable cars for 2021 are from brands such as Audi, Buick, Hyundai, and Toyota.

What is the best automotive website? ›

Top Websites Ranking for Automotive Industry in the world
RankWebsiteCategory Similarweb website categorization
1autozone.comVehicles > Automotive Industry > Automotive Industry
3rockauto.comVehicles > Automotive Industry
4goo-net.comVehicles > Automotive Industry
46 more rows

Which car valuation site is the most accurate? ›

An HPI car valuation provides the most accurate and reliable car valuation available. Not only is our service free, but we also give you more information than any other car valuation provider. If you're looking for a used car value, then look no further than HPI valuations.


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