"Explore the advantages of cross-border marketing, focusing on the intricacies at the model level"

The European automotive market is undergoing a significant transformation, with the reshaping not solely attributed to the pandemic, but also rapid digitization, the electrification of mobility, and the market entry of Chinese brands.

In this dynamic landscape, Original Equipment Manufacturers (OEMs) are taking control of the remarketing of their products from National Sales Companies, creating a streamlining effect. This shift is just one of the many changes shaping the European used vehicle market, according to Jordan Pageot, Pricing and Asset Manager at Autobiz.

The market is constantly evolving, influenced by a variety of parameters. For instance, in France and Italy, both Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs) depreciate at a similar rate due to a large supply of PHEVs in those countries. However, Mr. Pageot notes that the depreciation of both BEVs and PHEVs experienced strong headwinds in 2023 and 2024, but is stabilizing now, albeit still at a much lower level than before the pandemic.

One notable trend is the homogenization of new car offers by OEMs, characterized by standardized model ranges and flattened ranges of models. This homogenization, while creating a more uniform market, also presents opportunities for cross-border trade.

The opportunity for cross-border used-vehicle trade is growing stronger due to this homogenization. To reap benefits from cross-border remarketing, it's necessary to drill down to the model level. Price differences between markets are creating opportunities for cross-border remarketing, but a broad-brush approach will not generate positive results.

For example, the Volvo C40 Recharge Extended range 78 kWh Plus, registered in Spain, 24 months old, can generate up to €5000 when sold in Finland, Belgium, or France.

Regulatory authorities are also making efforts to improve vehicle tracking and market transparency, strengthening the possibility of cross-border sales of used vehicles in Europe. Proposals require valid inspections for vehicle sales and exports, combat market issues like the sale of zero-kilometer used cars, and establish lifecycle tracking systems and stricter rules on immediate resale practices.

In some European countries, there are incentives for drivers to purchase used PHEVs, which is not the case in France. This variation in supply, influenced by government incentives, adds another layer of complexity to the used vehicle market.

To stay informed about the latest trends and developments in the sector, joining the Remarketing Community can provide access to the Remarketing Insight, a monthly newsletter featuring the latest insights and developments in the used vehicle market.

"Explore the advantages of cross-border marketing, focusing on the intricacies at the model level"