This presentation aims to unveil the increasing importance of transparency in the used vehicle market.
Presented by SGS expert François Boncoeur at ENG Vehicle Remarketing summit in January 2017.
2. AGENDA
Transparency
Vehicle remarketing process
Some global trends in the remarketing business
Inspection: a key to build transparency
Consequences for the inspections
The next steps
What is really at stake with Transparency?
3. TRANSPARENCY ?
1. The characteristic of being easy to see through
2. Minimum degree of disclosure to which agreements,
dealings, practices, and transactions are open to all
for verification.
3. Essential condition for a free and open exchange
whereby the rules and reasons behind regulatory
measures are fair and clear to all participants.
4. THE STANDARD VEHICLE REMARKETING PROCESS
Logistic – vehicle collection & transportation
Secured storage
Independent vehicle appraisal (Status, damages, MVI*)
Smart repair
Global or local marketing
Vehicle sales
Reporting
Cash collection
* MVI : Market Value Indicator
5. SOME GLOBAL TRENDS IN THE REMARKETING
Mergers in the Leasing industry in 2016 : Arval/GE,
ALD/Parcours, PSA/Aramis. Bigger players = bigger
volumes of used vehicles to resale.
Used car trading in emergent markets : e.g. China
• FY 2012 = 50 K → FY 2015 = 1.1M
• Big remarketing companies have appeared and already sell
>350K vehicles annually.
Weight of the e-remarketing
• Buyers purchase vehicles worth 25K€ based on Internet data
and pictures only. All the parties need transparency in order to
build trust.
Cross border remarketing
• Need to adapt to local best practices and languages.
6. INSPECTION: A KEY TO BUILD TRANSPARENCY
Detailed and agreed process of inspection according to the
Fair Wear and Tear program of the vehicle owner
Multiple and specific inspections performed by different
parties along the whole remarketing process
• Drop off inspections
• Damage appraisal
• Technical inspections
Site equipments
• Covered place of the right size with appropriate lightning system
• Connectivity (Internet)
Vehicle cleaning (inside /outside)
From “manual” to industrial processes
7. CONSEQUENCES FOR THE INSPECTIONS
Today the vehicle inspections are key because :
Of the development of the e-remarketing: buyers purchase
vehicles online based on condition reports
Leasing Cies resell between 50% and 90% of the returned
vehicles through e-remarketing platforms.
All the big leasing companies operate their own remarketing
platform.
Today inspectors are the “eyes” of the vehicles owners :
Rental/leasing Cies, OEM’s, remarketing Cies to make
damage appraisals.
Centralized or decentralized inspections. From returned
vehicles inspections to upstream remarketing
Delay and quality of the reports and photos (HD)
8. THE NEXT STEPS
Image processing: Background removal
New presentation based on 360° pictures with damages and
standard vehicle information
Remote inspections (Video/Connected glasses)
Automatic scanning systems
Always more images in order to allow the buyer to see the
vehicle
and one day perhaps to « touch » it remotely…Virtual reality
9. WHAT IS REALLY AT STAKE WITH TRANSPARENCY ?
Remarketing is key regarding the global profitability of the
rental/leasing contracts
Find the best remarketing channel
Select the most interesting country to resell the vehicle
Remarketing cost reductions (logistic vs. decentralized
inspection costs)
Labelling of used vehicles
Remarketing optimization (sell faster for a better price)
Create trust and build credibility between the sellers and the
buyers