Fleet Europe Special Remarketing

FOR INTERNATIONAL FLEET & MOBILITY LEADERS

Special Remarketing

Nexus Communication - Fleet Europe Special Remarketing - Periodic magazine - June 2018 - Deposit Office Liège X

CAR REMARKETING SUCCESS IN 2019 • Used car market evolution • Residual value trends • Diesel or electric • Insight in defleeting • Certified Pre-Owned Programs

CAR REMARKETING ASSOCIATION Interview with Wolfgang Reinhold, CEO CARA

SMART MOBILITY Smart ways to defleet

in asssociation with

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HOW REMARKETERS CREATE VALUE Welcome to this Remarketing Special by Fleet Europe, supported

by CARA, the European Car Remarketing Association. Vehicle remarketing is an integral part of today’s fleet management. Moreover, the European remarketing industry is an important economic sector on its own. But remarketing is also challenging and complex, due to our fast-moving business ecosystem which is constantly reshaped by new technologies and regulations, changing consumer behaviour and the next wave of disruption.

With this special issue, Fleet Europe focuses on the importance of vehicle remarketing, and on the need to keep the industry informed about the latest trends and developments: from residual-value evolution and used-car volatility over the diesel question to cross-border trade, digitalisation and optimising the defleeting process.

Keeping a close watch on the hot to-pics in remarketing allows remarketers to benefit from new business opportunities and create even better value for their customers. So, enjoy your read – and don’t forget to register for our next rendez-vous: the 2018 Fleet Europe Remarketing Forum, on 27 November in Barcelona – check out http://forum.fleeteurope.com.

11

34

43

DIESEL

DEFLEETING

LEASING

The outlook is painful, but not lethal

The quest for upstream remarketing

Increasing appetite for used-car leasing

MARKET EVOLUTION

Residual values close to 10-year high………………………………………………………………………………………………………………… 5 Residual values under mounting pressure…………………………………………………………………………………………………… 7 Demand drives ex-fleet cars East……………………………………………………………………………………………………………………………… 8

DIESEL

Waiting for the powertrain battle………………………………………………………………………………………………………………………… 14 Data shows diesels depreciating faster than petrol………………………………………………………………………… 21

CPO

A transparent warranty to boost EV confidence……………………………………………………………………………… 24

EXPERTS

Fix diesels or face crisis…………………………………………………………………………………………………………………………………………………… 27 We have to sell diesel for the price of petrol cars……………………………………………………………………………… 38

CARA

Fighting mileage fraud and fake news………………………………………………………………………………………………………… 28

DEFLEETING

Online remarketing demands new services………………………………………………………………………………………… 30 A picture is worth a thousand words……………………………………………………………………………………………………………… 32

TRENDS

Direct and digital sales will dominate…………………………………………………………………………………………………………… 36

INSOURCING

TCO focus supports risk control…………………………………………………………………………………………………………………………… 39

EQUIPMENT

Luxury pays in terms of RVs………………………………………………………………………………………………………………………………………… 41 Increase and secure your margins

Walk through the online adverts jungle

Speed sales velocity and reduce your stock turn

Compare in real-time any advertised price with the competition

Improve the quality of your stock and your visibility on the Internet

Find the best deals for sale with personalised search criteria

REMARKETING COMPANY PROFILES

……………………………………………………………………………

Steven SCHOEFS Chief Editor, Fleet Europe

27 SEPTEMBER

Any question ? E-mail us at europe@groupe-argus.com

IFMI DIGITAL MASTERCLASS: Electrification

27 - 28 NOVEMBER

46

2018 FLEET EUROPE SUMMIT

Barcelona

MARKET EVOLUTION

Residual values close to 10-year high Jonathan Manning

cap hpi global consultancy

The slow, steady rise in the average residual values of company cars since the crash of the financial crisis between 2008 and 2011 masks significant differences in the performance of fuel type, body shape and holding periods.

Essential material for forecasting and financial planning in the fleet sector

In many instances fleets are choosing to keep company cars for four years, rather than three years prior to the financial crisis, yet average mileages are falling slightly. Cars have proved themselves to be reliable over 48 months, and the longer duration of contracts lowers the residual value risk, with both fleets and leasing companies able to amortise depreciation over longer periods.

Data | Insights | Expertise

• Bespoke data provision • Insight into market conditions and early view of residual values

The last decade has also seen a dramatic change in the remarketing opportunities for used cars, thanks to the increase in online sales. This has allowed manufacturers and leasing companies to reach buyers in other countries, a channel increasingly explored as attitudes to diesel harden in certain Western European countries.

• Electric in automotive www.cap-hpi.com/consulting

CROSS-BORDER SALES Bart Beckers, chief commercial officer, Arval, said: “Cross border remarketing is a strongly growing activity, particularly in the context of diesel bashing going on in certain countries but not necessarily everywhere at the same time and to the same degree.”

The internet has also allowed leasing companies to start remarketing their end of contract cars directly to private buyers and encouraged major leasing companies FLEET EUROPE #SPECIAL REMARKETING

to invest in the direct retail of ex-company cars to private buyers. LeasePlan forecasts that its B2C operation CarNext will account for a growing share of the 250,000 ex-lease cars that it sells in Europe every year.

OPPORTUNISTIC SALES Looking ahead, the greater accuracy and immediacy of residual value data presents the major leasing companies with the opportunity to take an active approach to the market, seizing opportunities to sell when values are profitably high, even if this means the early termination of contracts.

“Lease companies are looking at optimising the lifetime of their fleets,” said Christopher Ley, senior manager, Deloitte Consulting. “Sometimes they also want to get customers out of a contract earlier if the residual value can be higher somewhere else in Europe. If you understand the RV curve of the customer portfolio, they can think about the earlier termination by up-selling the vehicle to a market where it would deliver more equity. It’s more on a conceptual level at the moment, but companies are spending a lot of money on IT systems to understand their portfolios.”

In the ExpertEye study on the residual values in Europe, it appears that the five main European markets have steadily moved upwards since the financial crisis of 2008-09. However, used car values in Germany are still below their level a decade ago.

The general rise in residual values obscures two key developments, said Laurent Queinec, Chief Executive Officer

5

MARKET EVOLUTION

MARKET EVOLUTION

GRAPH 2 - RESIDUAL VALUE VOLKSWAGEN GOLF PETROL TRADE RV %

Spain UK France Germany Italy

50%

40% 2/14 5/14 9/14 12/14 4/15

7/15 10/15 2/16 5/16

9/16 12/16 4/17

7/17

11/17 2/18 5/18

TRADE RV EUR (€) 16000 Spain France UK Italy Germany

14000 12000 10000 2/14 5/14 9/14 12/14 4/15

7/15 10/15 2/16 5/16

9/16 12/16 4/17

7/17

11/17 2/18 5/18

Source Autovista Group

GRAPH 3 - RESIDUAL VALUE VOLKSWAGEN GOLF DIESEL

The future values of pure electric vehicles are still shrouded in uncertainty, due primarily to the longevity of their batteries. “Even if manufacturers decide to offer replacement batteries for three-year-old cars, will secondhand buyers view the car as renewed or still treat it as a three-year old car?” asked Christopher Ley, Senior Manager, Deloitte Consulting.

In the graphs of Autovista Group (Graph 2 and 3), the Volkswagen Golf illustrates the significant change in used car demand, with the trajectory of petrol residual values outperforming diesel. Italy bucks this trend, maintaining its faith with diesel.

After a steady rise, even the residual values of petrol powered Volkswagen Golfs have declined since the end of 2016 in France, Germany and the UK.

New car sales across the European Union have risen by 28% in the last five years.

Portugal, Hungary, Lithuania, Iceland have enjoyed the greatest percentage growth, more than doubling the volume of annual new car registrations between 2013 and 2017. The volume of new car sales has risen most sharply in Italy, up by nearly 667,000 registrations in five years, followed by Spain (512,228), Germany (488,830), France (320,292) and the UK (275,880).

The market move away from diesel will see residual values in Spain slip by 2.2% and 3.2% in 2018 and 2019 respectively, according to Autovista, although petrol values should rise by a similar amount.

In the UK, used car demand is proving comparatively resilient, falling by just 1.1% compared to the 5.7% contraction in new car demand. In France and Spain, 20 Autovista forecasts that this 18 year diesels’ market share will slip below 40% for 16 the first time since 1996.14 In Germany, Autovista reports that the12crash in diesel sales is even more marked10among private car buyers, where the fuel's market share 8 declined to 18% in the first two months 6 of 2018, compared to 33% in 2015. With 4 private buyers also the target customers

Autovista Group’s residual value outlook in the first quarter of 2018 forecasts that among the five major European new car markets, values will only strengthen in France and Italy in 2018 and 2019.

2

0

AVERAGE AGE OF CARS IN USE ACROSS THE EU

TRADE RV %

40%

If the short-term prognosis for diesel residual values is bleak - Autovista's latest residual value outlook forecasts that EU5 diesel values will underperform petrol values in 2018 and 2019 - the forecasting experts also see some light at the end of the tunnel, with a stabilising effect in the medium term, i.e. 2020-25, especially as diesel remains the optimal fuel choice for fleets. Given the rising CO2 levels and the challenge of meeting new emissions targets, diesel could even fight back - especially if policymakers recognise how clean the latest diesel offerings actually are and turn their attention back to petrol cars.

AVERAGE AGE OF THE EU CAR FLEET

20

Spain UK France Germany Italy

50%

for ex-company cars, Germany's fleet sector seems unduly exposed to diesel residual value risk, given that diesel still accounts for 60% of fleet sales in the country.

POLAND

CHANGE IN USED CAR DEMAND

The risk of an oversupply of used cars, excessive exposure to diesel and undesirable vehicle body shapes threatens the residual values of ex-company cars in the next few years.

LITHUANIA

If the average RV in France, UK, Spain, Italy and Portugal reached their level of before the crisis, it is still not the case for Germany...

LATVIA

Source Experteye

Jonathan Manning

ROMANIA

Plug-in hybrid electric vehicles are now forecast to retain a higher proportion of their new price than any other fuel type, followed by hybrid, petrol then diesel models. As the supply of used alternatively-fuelled vehicles increases, Queinec expects to see their inflated residual values decrease a little over the next two years.

2018

ESTONIA

2017

HUNGARY

2016

CZECH REPUBLIC

2015

CROATIA

2014

GREECE

2013

SLOVAKIA

2012

FINLAND

2011

PORTUGAL

2010

SPAIN

2009

SLOVENIA

2008

ITALY

2007

SWEDEN

20

NETHERLANDS

25

The residual values of petrol models have enjoyed an upswing in four of the five largest European markets, with Italy the exception.

FRANCE

Average in UK

30

IRELAND

Average in Portugal

AUSTRIA

Average in Spain

35

GERMANY

Average in Italy

BELGIUM

Average in Germany

DENMARK

Average in France

40

Residual values under mounting pressure

UK

45

LUXEMBOURG

50

of Experteye Consulting. Firstly, the rise in residual values of petrol cars has compensated for a plateau in diesel values.

Secondly, “SUV residual values used to be very high compared to sedans, but now we’re seeing a slight decrease in the UK and Germany. The values are still high, but the increase has stopped,” he said.

YEARS

THE RESIDUAL VALUE EVOLUTION IN EUROPE

12

18 10

16 14

8

7/15 10/15 2/16 5/16

9/16 12/16 4/17

7/17

11/17 2/18 5/18

YEARS

2/14 5/14 9/14 12/14 4/15

YEARS

12 10 8

12000 10000 7/15 10/15 2/16 5/16

9/16 12/16 4/17

7/17

POLAND

LITHUANIA

LATVIA

ROMANIA

ESTONIA

HUNGARY

CZECH REPUBLIC

CROATIA

GREECE

2 0 2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: ACEA

Source: ACEA

Across the EU the average age of a car on the road is 10.7 years.

The average age of the EU car fleet is rapidly extending, a tribute to the greater reliability of older cars and an increase in car ownership per head of population.

11/17 2/18 5/18 12

Source Autovista Group

SLOVAKIA

FINLAND

PORTUGAL

SPAIN

SLOVENIA

ITALY

SWEDEN

NETHERLANDS

FRANCE

IRELAND

AUSTRIA

GERMANY

BELGIUM

2 0

DENMARK

14000

UK

Spain France UK Italy Germany

LUXEMBOURG

4

16000

2/14 5/14 9/14 12/14 4/15

4

6

TRADE RV EUR (€)

6

10

6

FLEET EUROPE #SPECIAL REMARKETING

FLEET EUROPE #SPECIAL REMARKETING 8

7

MARKET EVOLUTION

MARKET EVOLUTION

Demand drives ex-fleet cars East

The graphs below confirm high levels of exports from Belgium, France and the Netherlands, with virtually zero from the UK and Portugal. The extremely high proportion of vehicles exported from Switzerland and Sweden is due to restricted access for local bidders to these auctions.

The second chart shows that France also imported significant numbers of used cars – reflecting stronger demand for Frenchmade used cars in their domestic market than some other European market.

Mark Sutcliffe

Despite the impact of dieselgate on new car sales and residual values of some older diesel cars in Western European EU member states, the demand for ex-fleet vehicles from new EU member states remains strong. fellow Europeans. According to Eurostat, in 2012, the proportion of registered cars per 1000 of population across the EU was 487. In Slovenia, the corresponding figure was 518, Poland 487 and in the Czech Republic 448. Ownership does however fall significantly further to the east in Slovakia (337), Hungary (301) and Romania (224).

LeasePlan’s huge Koopmans remarketing facility in the Netherlands where ex-lease cars are prepared for sale on CarNext.com.

While the sales of new cars in countries like Poland, Hungary and Romania are increasing slowly, the emerging automotive retail sectors in these countries are still not generating sufficient sales of new cars to sustain a self-supporting used market.

In volume terms, the largest exporter of used cars remains Germany at circa 1.2 million vehicles per year, accounting for an estimated 65% of used vehicle exports in the EU. An estimated 75% of these vehicles are destined for CEE countries.

France, Belgium and the Netherlands are also significant exporters of used cars, though official figures are less robust than for Germany (Source: Transport and Mobility Leuven).

8

The key export markets are Poland, where official Government figures suggest circa 750,000 used cars were imported in 2014, Romania (220,000), Hungary (122,000) and the Czech Republic (120,000) – although it should be noted that used car imports are actually falling in the Czech market.

Used car imports massively exceed new car sales in these markets. For example in Poland, the ratio of new car sales to used car imports has remained constant at circa 1:2/2.5 since a spike in imports in 2008 due to a beneficial exchange rate.

But in terms of vehicle ownership per 1000 of population, some of the accession states have already caught up with their

Consequently, accession states continue to exhibit strong demand for well-maintained ex-fleet vehicles from all the major western car markets: Germany, France and the Benelux Countries. The exceptions are Spain and Portugal, where the logistics and transportation costs of getting ex-fleet cars from the western fringe of Europe to the used car markets in the east can make cross-border remarketing impractical and/or unprofitable.

Stringent Portuguese VAT regulations on imports act as a further brake on the flow of vehicles to the east from the Iberian Peninsula. The other obvious exception is the UK, where the fundamental challenge of having the wheel on the ‘wrong’ side of the car is difficult to overcome (see box below).

German brands such as Audi, BMW and Mercedes continue to be the most popular marques for export to the CEE states.

While models like the Audi A4 and BMW 3-Series are increasingly mainstream fleet cars in the West, they are still perceived as premium cars in countries like Poland and Romania.

Traditional fleet workhorses such as the Passat and Golf continue to enjoy a high standing Eastern Europe and even basic specification ex-rental class A and B cars have eager customers awaiting them in countries experiencing strong growth in ownership like Hungary, Romania and Lithuania.

NO CAR-PASS Because of the sheer volume of cars imported from the West, the issue of clocking is on the radar at both EU and member state level. An estimated 70 to 90 percent of the imported cars each year have had their odometers tampered with.

and the European Parliament wants the European Commission to act. Bavarian MEP Ismail Ertug has lodged an initiative calling for legislation that takes the Car-Pass model, and a similar system introduced in the Netherlands, and makes it Europe-wide.

FLEET EUROPE #SPECIAL REMARKETING

Because the Brits drive right hand drive cars, the export route is effectively closed to UK fleets.

This has led to the evolution of one of the most sophisticated and efficient used car markets in the EU. Because such a high volume of ex-fleet cars are sold through physical auctions, accurate and comprehensive pricing data is widely available. This increases confidence among used car dealers and – crucially – consumers, because both buyer and seller are well informed about the market price of the car in question. However, the rapid shift to online auctions across continental Europe means the rest of the EU is catching up and accurate residual values information is increasingly available in real time.

“The most crucial element here is to enable the cross-border exchange of those odometer readings,” Ertug told Politico Magazine.

“This will enable consumers to verify the mileage of a used vehicle they intend to buy. The examples of Belgium and the Netherlands show that those combined measures drive down odometer fraud close to zero.”

Wolfgang Reinhold, chairman of CARA (European Car Remarketing Association), echoed the calls for an EU-wide crackdown on odometer fraud.

And the cross-border market in used cars doesn’t stop at the EU border. An increasing proportion of vehicles are being sold on to intermediaries based in Eastern Europe who then export into secondary and tertiary markets beyond the EU. Among the Baltic states, there is strong demand from Lithuania (163,000 vehicles in 2014), but only a relatively small market Estonia (26,000). There is also a growing demand for used cars from the Ukraine and Russia, where new car sales have fallen by 40% since sanctions were imposed follow the invasion of the Crimea in 2013.

Sweden and Estonia have established systems of vehicle background checks

EXPORT RATE PER COUNTRY

SHARE OF TOTAL IMPORT

120%

18% 16%

100%

14% 80%

12% 10%

60%

8% 40%

Data from online auction company Autorola confirms the pattern of used car sales between EU and CEE states.

The pioneering online auction platform now operates in 24 markets worldwide, processing some 90,000 vehicles per month.

THE UK EXCEPTION

6% 4%

20%

2% 0%

0% AT

BE

CH

CZ

DE

DK

FR

GB

IT

NL

PL

PT

SE

AT

BE CH CZ DE DK ES

FI

FR HR HU

IT

LT

LU

NL

PL

PT RO

RS

Source: Autorola

Source: ACEA

Percentage of used vehicles sold via Autorola to customers in another country (by country).

Percentage of used vehicles purchased from other countries via Autorola customers (by country).

FLEET EUROPE #SPECIAL REMARKETING

SI

SK

9

DIESEL

The outlook is painful, but not lethal Dieter Quartier @DieterQuartier

New car buyers turn to petrol, but diesel has not fallen from grace entirely on the used-car market.

The RV evolution and outlook are very market dependent, as Autovista explains.

UK 2018

2019

2018

2019

C-segment

-1%

-1,50%

C-segment

-1,50%

-1,50%

D-segment

-1%

-2%

D-segment

-2%

-2%

FRANCE

The Experts in Residual Value Intelligence Our new Autovista Intelligence platform is a game-changer for Europe’s automotive industry and is revolutionising the way that our customers are able to access and use information. In a world first, we combine our best-in-class vehicle data with leading visualisation software and insights from our industry experts to provide you with the information and metrics you need to drive your business.

GERMANY

2018

2019

C-segment status quo status quo D-segment status quo status quo

ITALY

SPAIN 2018

2019

C-segment

-2%

-2%

D-segment

-2%

-2%

2018

2019

C-segment

+1%

+1%

D-segment

+1%

+1%

Contact us today for a trial of Residual Value Intelligence or Residual Value Monitor on: insights@autovistagroup.com DIESEL RESIDUAL VALUE FORECAST (AUTOVISTA GROUP) 36 months/60,000 km

F § or more information on our data, applications and cutting-edge new products, please visit: autovistaintelligence.com � autovista_group � autovista-group FLEET EUROPE #SPECIAL REMARKETING

11

DIESEL

On average, diesel RVs are falling, while petrol is on the rise. The difference between the two will continue to level out. Still, as new diesel sales are dropping, the supply on the used-car market will decrease, which will support resale prices. On the other hand, OEMs are bound to provide larger discounts on new diesels to keep production utilisation high and to hit CO2 targets. This will slightly increase the pressure on resale values in turn.

IN ITALY, THE WEAKNESS IN USED CAR SUPPLY SHOULD HAVE A POSITIVE EFFECT ON RESALE VALUES

THE RV OUTLOOK FOR FRANCE IS THE HEALTHIEST AMONG THE EU5, BOTH FOR DIESEL AND PETROL

IN GERMANY AND THE UK THE DECLINE IN NEW DIESEL REGISTRATIONS IS CAUSING UNCERTAINTY REGARDING RESIDUAL VALUE EVOLUTION

GERMANY: A GOOD INDICATOR New car registrations in Germany increased by 2.7% in 2017. At 3.4 million units, demand was at its highest level since 2009. The usedcar market contracted by 1.4% last year, after six years of continued growth.

“Oversupply of diesel used vehicles meets a substantially reduced demand and the trend for diesel is downward,” explains Autovista’s Managing Director Consulting and TCO Solutions, Christof Engelskirchen.

“For the D-segment at 36m/60,000 km a c. 5 point gap between petrol and diesel has now built, for the C-segment c. 3 points, both in favour of petrol.” Autovista expects that diesel RVs will decrease for the D-segment (C-segment) by about 2% (1.5%) in 2018 and 2% (1.5%) in 2019.

SPAIN: RIDING HIGH After three consecutive years of doubledigit growth, the new car market expansion slowed to 7.7% in 2017. Just 48% of new cars sold in Spain in 2017 were diesels, down from over 70% at the start of the decade and under 57% in 2016. As to used cars: Spanish sales have risen steadily since 2012, with a yearon-year rise of 11.9% to 2.8 million cars.

“RVs in Spain have been riding high for several years, as the weak supply struggled to satisfy the recovery in used car demand,” highlights Christof Engelskirchen. “However, with the rapid growth in the new car market since 2015, used car supplies are now catching up. In general, 2018 and 2019 should be relatively stable as far as residual values are concerned.

Still, as used-car buyers are moving away from diesel as well, their RVs are expected to drop by c. 2% in 2018 and 2% in 2019 in C- and D-segments.”

FRANCE: HEALTHY OUTLOOK New car registrations in France increased by 4.7% in 2017, exceeding 2.1 million units for the first time since 2011. The used-car market has been thriving since 2014 but decelerating

12

to just 0.6% in 2017. Residual value performance has been strongest at the lower end of the market, which is dominated by petrol cars. “The RV outlook for France is the healthiest among the EU5, with growth of over 1% forecast for both 12 and 36-monthold cars in 2018 and 2019,” explains Mr Engelskirchen. “However, diesel is suffering from both taxation and a negative public perception and will be further impacted by higher taxes on the fuel itself. The forecast is therefore stable in both the 12 and 36-month scenarios in 2018 and 2019, whereas petrol values will continue to rise.”

ITALY: DIESEL VA BENE Last year, the Italians bought 7.9% more new cars (2 million). Interestingly, the diesel share increased every year from 2012-2016, with some 57% of new cars sold in 2016 powered by diesel. Used car sales averaged a modest growth rate of 3.1% between 2012 and 2017.

“The weakness in used-car supply is expected to have a positive effect on resale values, which should rise by 1% in 2018 and 2019,” says Autovista. Diesel is far less demonised in Italy than in other major European markets. Nevertheless, stricter regulations for diesel, continued interest in CNG and improved fuel efficiency for petrol cars is likely to close the gap between diesel and petrol.

UK: THINGS ARE COMPLICATED After 2.3% of growth in 2016, new car registrations declined by 5.7% in 2017. 2.5 million new cars registered is still firmly ahead of pre-crisis levels. The diesel share fell from nearly 48% in 2016 to 42% in 2017 and has been below 40% every month since October.

The used-car market outperformed new car sales the last two years, expanding by 7.3% in 2016 and falling slightly by 1.1% last year.

Registrations of new cars in recent years have caused sizeable overcapacity in the used-car market. Add to that large volumes of used-car returns and major discounting on new cars and there is only one way prices could go: down. RVs of 36-month old cars are forecast to fall by 1% in both 2018 and 2019, regardless of their fuel type. Although the sharp decline in new diesel sales will reduce supply, demand in the used-car market remains robust. Used diesel transactions increased by 3.3% in 2017 compared to a 14.7% decline in registrations of new diesels.

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FLEET EUROPE #SPECIAL REMARKETING

Joep Weijden Business Development Manager North Europe joep.weijden@macadam.eu

DIESEL

DIESEL

Waiting for the powertrain scales to settle Mark Sutcliffe & Dieter Quartier

Sales of electric cars are growing quickly from a low base. But battery and charging technology needs to go further to meet fleet requirements.

@DieterQuartier

according to automotive consultant Dean Bowkett. “That explains why diesel still holds up well and why electric vehicles generally show weak residual values.”

The dieselgate effect is beginning to subside, but profound changes in the powertrain mix lie ahead. Petrol is the big winner and of all the alternative powertrains, the immediate future looks the brightest for hybrids.

There has clearly been some fallout across Europe from the prolonged media frenzy demonising diesel and the ongoing efforts to improve air quality. But rather than disappearing altogether, diesel is believed to become a ‘specialist technology’ for high mileage drivers, LCVs and some specific usages.

Looking at Q1 2018 sales data, diesel has lost 17 per cent (nearly 8 %pt) compared to Q1 2017, while petrol went up 14.6 percent (nearly 7 %pt). In fact, petrol cars are the big winners, taking over 70% of the fall in diesel sales. Hybrids make up most of the rest in volume. During the first quarter of

2018, roughly one in every 23 new cars sold (4.3 percent) runs on both electricity and a fossil fuel. That is a rise of 31.7 percent.

Battery electric vehicles (full EVs) even saw their sales increase by 34.3 percent. Still, with a market share of just 0.8 percent, they remain marginal.

MIXED DIESEL OUTLOOK Used cars usually follow the trends set by new vehicle sales with a delay of a few years.

New car sales are therefore interesting indicators of what we might see happening on the remarketing side. “Yet, used car buyers are typically more influenced by function and less by government rhetoric”,

NEW CAR SALES IN WESTERN EUROPE, Q1 2018 COMPARED TO Q1 2017 Q1 2017

Q1 2018

Q1 2017

Q1 2018

Q1 2018

Q1 2018

BEV

24,251

32,566

0.6%

0.8%

8,315

34.3%

OTHER

55,073

61,668

1.3%

1.5%

6,595

12.0%

HYBRID & PLUG-IN HYBRID

134,279

176,888

3.3%

4.3%

42,609

31.7%

DIESEL

1,896,955

1,574,333

46.0%

37.9%

(322,622)

(17.0%)

PETROL

2,009,253

2,303,129

48.8%

55.5%

293,876

14.6%

4,119,811

4,148,584

Source: ACEA.BE

14

FLEET EUROPE #SPECIAL REMARKETING

Also, there is evidence that some corporate buyers are holding off replacing diesels or replacing them with petrol or hybrid company cars. This may actually mean there’s a shortage of used diesel vehicles in two to three years’ time, so longer term, diesel residual values may actually regain some of their recent losses.

petrol is on the rise. In Germany, there is no difference in RV percentage at all anymore.

Leasing companies have been adapting their residual values accordingly, in most cases penalising diesel and not raising, but maintaining their petrol expectations. The current rise in petrol resale values is indeed expected to be of a temporary nature, as Dylan Setterfield from Cap hpi explains: “In most markets, we expect diesel cars to fall in value by more than typical aging patterns,

particularly older vehicles and we have introduced additional penalties in our forecasts for some Euro 5 and older diesels in Germany.

Petrol cars have been performing strongly, particularly in the UK, with values for vehicles there actually increasing over time, but where we see these ‘bubbles’ in the used market we are assuming them not to be sustainable and are building in future price movements closer to historical norms.”

Dylan Setterfield from Cap hpi believes that in the short term, as registrations of new diesel cars decrease, the reduced supply of used cars will indeed act to mitigate the fall in diesel used values.

“However, at some stage in the medium term there is likely to come a point where large dealers or dealer groups attempt to minimise exposure to diesel cars by discouraging or refusing diesel tradeins, although this is likely to be outside of the scope of even the longest fleet contracts issued today.”

WATCH OUT FOR THE PETROL BUBBLE Residual value percentages based on data provided by Autovista Group (Trade RV % in the graphs below) show that in general, residual values have been rising in Western Europe since 2014, with the exception of the UK. The gap between petrol and diesel RVs is closing: diesel is losing a few percentage points, while FLEET EUROPE #SPECIAL REMARKETING

To improve residual values of electric cars, car makers need to enhance transparency on the battery, both in terms of reliability and the replacement cost.

15

DIESEL

ADVERTORIAL

CONCEDED EDITORIAL SPACE RESIDUAL VALUE INTELLIGENCE

FRANCE

VARIANCE

LATEST

3 MONTHS

6 MONTHS

12 MONTHS

DIESEL

47.2%

-0.6 pp

-0.7 pp

-0.4 pp

PETROL

45.8%

-0.5 pp

-0.1 pp

+0.7 pp

HYBRID

45.1%

-0.5 pp

-0.5 pp

+0.5 pp

ELECTRIC

28.1%

+1.4 pp

-0.2 pp

+0.9 pp

PLUG-IN HYBRID

49.0%

-0.2 pp

+1.8 pp

+5.7 pp

SHARE OF USED CAR MARKET

LATEST

3 MONTHS

6 MONTHS

12 MONTHS

DIESEL

72.4%

-2.7 pp

-3.6 pp

-4.7 pp

PETROL

25.8%

+2.8 pp

+3.8 pp

+4.9 pp

HYBRID

1.2%

+0.0 pp

-0.2 pp

-0.5 pp

ELECTRIC

0.3%

-0.1 pp

-0.1 pp

+0.0 pp

PLUG-IN HYBRID

0.3%

+0.1 pp

+0.1 pp

+0.2 pp

3 MONTHS

6 MONTHS

12 MONTHS

VARIANCE

GERMANY

LATEST

DIESEL

45.3%

-0.7 pp

-0.9 pp

-1.7 pp

PETROL

45.1%

-0.5 pp

-0.8 pp

+0.1 pp

HYBRID

46.7%

-0.4 pp

-1.2 pp

ELECTRIC

39.1%

-0.4 pp

-0.2 pp

-0.5 pp

PLUG-IN HYBRID

48.7%

-0.7 pp

-1.2 pp

-2.1 pp

0.0 pp

SHARE OF USED CAR MARKET

LATEST

3 MONTHS

6 MONTHS

12 MONTHS

DIESEL

53.5%

-1.4 pp

-3.7 pp

-2.7 pp

PETROL

45.4%

+1.4 pp

+3.7 pp

+2.8 pp

HYBRID

0.5%

+0.0 pp

+0.0 pp

-0.2 pp

ELECTRIC

0.4%

+0.0 pp

+0.0 pp

+0.1 pp

PLUG-IN HYBRID

0.2%

+0.0 pp

+0.0 pp

+0.1 pp

ITALY

VARIANCE

16

LATEST

3 MONTHS

6 MONTHS

12 MONTHS

DIESEL

45.4%

+3.0 pp

+1.5 pp

-1.3 pp

PETROL

36.8%

+2.7 pp

+1.6 pp

-0.3 pp

HYBRID

38.8%

-1.6 pp

-3.7 pp

-4.3 pp

ELECTRIC

40.6%

+3.0 pp

+1.9 pp

-2.8 pp

PLUG-IN HYBRID

45.5%

+6.9 pp

+3.6 pp

-3.4 pp

SHARE OF USED CAR MARKET

LATEST

3 MONTHS

6 MONTHS

12 MONTHS

DIESEL

77.9%

+1.9 pp

-0.1 pp

+1.4 pp

PETROL

20.9%

-1.6 pp

+0.4 pp

-1.0 pp

HYBRID

1.0%

-0.3 pp

-0.3 pp

-0.3 pp

ELECTRIC

0.1%

+0.0 pp

+0.0 pp

+0.0 pp

PLUG-IN HYBRID

0.1%

+0.1 pp

+0.0 pp

+0.0 pp

SCRAPPAGE 2.0 One possible solution to the problem of older, dirtier diesel cars is to pay consumers to take them off the roads. Some EU member states are considering launching similar schemes to the 2009 initiatives following the Global Financial Crisis of 2008. This saw a steep decline in export flows of used vehicles to CEE states as the removal of some two million older cars dramatically constrained used car supply across Europe. Against a more buoyant economic backdrop, such a huge stimulus would almost certainly bolster used values of Euro 6 diesels and sustain demand for Euro 5 and Euro 4 diesels in key export markets like Poland, Hungary and Romania.

IT’S ALL ABOUT POLITICS Older, hard to shift ex-fleet Euro 4 and 5 diesels are likely to find eager customers in the CEE states if Western European used car buyers are deterred by increasing taxes and urban driving restrictions. Politicians in some of the accession states have been less vocal about the environmental issues with diesel and we think the current furore could potentially see higher numbers of diesel cars with a younger age profile heading east,” said Bowkett.

Wolfgang Reinhold, chairman of CARA, agreed, saying: “Dieselgate has been terribly badly handled by the industry and it’s also become a political disaster, which makes things more complicated. The politicians need to sort out the politics while the automotive industry sorts out the technology. The fact is – if auto manufacturers want to meet the CO2 targets laid down by the Kyoto Protocol – diesel can’t just go away. Energy-efficient diesel power is the only way to achieve that. The NOx issue is a challenge, but the new limits set out in Euro 6d-temp and Euro 6d will go a long way to improving air quality.”

“Most of the potential for future disruption comes from the lack of clear policy from governments and the expected FLEET EUROPE #SPECIAL REMARKETING

Why AUTO1.com wants to sell your used fleet Why would professionals choose AUTO1.com to sell and buy used cars? “In a word, because nobody is more international, more digital or faster”, says Jost Dieckhaus, Director Remarketing at AUTO1.com. Better prices are just one advantage of trading on Europe’s biggest B2B remarketing platform.

Berlin, 2012: because the sale of a private vehicle turned out to be very difficult and generated a lot of negative experiences, Christian Bertermann and Hakan Koç wanted to find an easier, more transparent way. That was how AUTO1 Group started.

Within AUTO1 Group, AUTO1.com represents the B2B business arm.

AUTO1.com and its ambition to do things better – and easier – have propelled it to become a leading online vehicle remarketer in Europe, now operating in more than 30 countries.

In 2017, more than 420,000 vehicles were traded across the platform – an increase of more than 40% over 2016.

With over 40,000 dealers across Europe and around 3,000 new used cars coming online on a daily basis, AUTO1.com is one of the biggest B2B vehicle remarketing platforms in Europe. That comes with a bunch of advantages, for both sellers and buyers.

“First off, corporates remarketing their used fleet vehicles with us get frictionless access to a much larger market. A majority FLEET EUROPE #SPECIAL REMARKETING

of the vehicles traded on AUTO1.com are sold internationally”, says Jost Dieckhaus.

“Secondly, that allows sellers to take advantage of international price differences: some used car models may be more popular in other markets. And thirdly: speed.

We only sell cars online, and our auction starts immediately after the final evaluation of the car. The whole remarketing process can be completed within 5 days”.

As a major force in B2B online vehicle remarketing in Europe, AUTO1.com is able to generate attractive prices for both sellers (fleet owners, dealerships of all types and sizes, including OEM subsidiaries, but also rental and lease companies) and buyers.

AUTO1.com offers expertise in logistics and paperwork, and security by actually buying and selling the car itself. This eliminates the export risk for the seller.

Standardised inspections and expert knowledge eliminate surprises when buying vehicles on the other side of the continent.

In the words of Remarketing Director Jost Dieckhaus: “We will continue working on making cross-border car trading more convenient and more efficient, in addition also generating very attractive prices for sellers”.

MORE INFO www.AUTO1.com 17

DIESEL

DIESEL

SPAIN

VARIANCE

LATEST

3 MONTHS

6 MONTHS

12 MONTHS

DIESEL

53.3%

-0.6 pp

-0.3 pp

+0.1 pp

PETROL

49.8%

-0.6 pp

-0.6 pp

-0.4 pp

HYBRID

51.0%

+0.2 pp

+0.8 pp

+0.6 pp

PLUG-IN HYBRID

56.2%

+2.3 pp

+5.3 pp

+6.9 pp

SHARE OF USED CAR MARKET

LATEST

3 MONTHS

6 MONTHS

12 MONTHS

DIESEL

70.5%

-3.7 pp

-5.7 pp

-6.8 pp

PETROL

28.0%

+3.3 pp

+5.4 pp

+6.5 pp

HYBRID

1.2%

+0.2 pp

+0.0 pp

+0.0 pp

PLUG-IN HYBRID

0.1%

+0.1 pp

+0.1 pp

+0.1 pp

UNITED KINGDOM

VARIANCE

LATEST

3 MONTHS

6 MONTHS

12 MONTHS

DIESEL

44.0%

+2.9 pp

+3.7 pp

+2.2 pp

PETROL

44.3%

+2.3 pp

+1.7 pp

-1.9 pp

HYBRID

51.9%

+4.8 pp

+6.6 pp

+5.5 pp

PLUG-IN HYBRID

39.4%

-0.3 pp

-2.4 pp

-2.0 pp

ELECTRIC

29.6%

+1.7 pp

+1.9 pp

-0.1 pp

SHARE OF USED CAR MARKET

LATEST

3 MONTHS

6 MONTHS

12 MONTHS

DIESEL

50.2%

+4.0 pp

+3.9 pp

+1.1 pp

PETROL

47.1%

-4.2 pp

-4.1 pp

-1.5 pp

HYBRID

2.0%

+0.2 pp

+0.0 pp

+0.0 pp

PLUG-IN HYBRID

0.5%

+0.1 pp

+0.2 pp

+0.4 pp

ELECTRIC

0.2%

-0.1 pp

+0.0 pp

+0.1 pp

Source: Autovista Group

introduction of local low emission zones, particularly where these are poorly thought out and uncoordinated, with the biggest risks appearing to be in Germany”, stresses Dylan Setterfield.

HYBRID: THE HOLY GRAIL Most experts believe the clear majority of smaller A and B segment cars will be powered by petrol or hybrid engines in the future while pure electric power will continue to grow – especially among vehicles intended predominantly for urban use.

In general, alternative powertrain vehicles are still only available in small volumes as used cars and current demand is understandably strong for hybrid vehicles.

For most models Cap-hpi expects this to continue.

Interestingly, among the hybrids, especially the plug-in models have seen their value on the used car market increase considerably over the past 12 months, according to Autovista. For a 36-month/60,000-km car, PHEVs are now outperforming ICE cars in France, Germany and Spain. In the UK we see that mainly the non plug-in hybrids are thriving on the used car market.

Dean Bowkett also predicts a shift towards hybrid power in the short term, but questioned the environmental credentials of mild hybrids: “Both the manufacturers and governments are likely to use fiscal and/or legislative incentives to promote hybrids as a short term solution to the emissions issue, but there is a caveat: there is evidence to suggest that many Plug-In Hybrids aren’t always plugged in and most fleet operators will not countenance their drivers covering 250 miles a day in a petrol car – even if the first 25 are in electric mode.”

GENERAL CONSERVATISM FOR EVS Electric cars are shrouded in a veil of uncertainty, which is not doing their RVs any good. In France, BEVs are only worth 28 percent of their list price after 3 years, which is 19 percentage points lower than diesel. A similar scenario can be seen in the UK, looking at Autovista’s figures.

In Germany, however, BEVs are at 39.1 percent, which is just 6.2 percentage points lower than diesel and petrol.

Petrol cars have been performing strongly, but these ‘bubbles’ in the used market are not expected to be sustainable.

18

Herr Reinhold from CARA said: “Electric vehicles will have a growing role in the future, but I personally don’t think they will ever amount to much more than 10 FLEET EUROPE #SPECIAL REMARKETING

Manufacturers are rushing to bring out Euro 6d-temp compliant diesels – such as the new Opel Grandland X powered by PSA’s latest 1.5 BlueHDi engine.

per cent of the overall EU car parc. In the future, petrol will become the ‘go-to’ fuel for small cars, diesel for larger cars and SUVs and maybe a small amount of pure electric motors for urban deliveries and city dwellers.”

The average list price of electric cars is still considerably higher than a comparable ICE car, whereas used car buyers are not willing to pay more for them. Getting the RVs up is nonetheless crucial for OEMs to get their new electric cars sold.

“To improve residual values of electric cars, car makers need to enhance transparency on the battery, both in terms of reliability and the replacement cost”, stresses Dean Bowkett. “Used car buyers are deterred from buying EVs because they are afraid the battery will fail and that it will cost a fortune to replace it. Battery prices have actually come down a lot, to roughly €8,000 for a 40 kWh-unit, and prices will continue to fall.” Moreover, in many cases a failing or degraded battery will only need part of it replaced.

“Battery electric vehicles remain a niche choice as the current generation of vehicles available for sale are unsuitable for many drivers, however manufacturers have certainly learned some lessons from the past few years and are better at selling these vehicles both as new and used cars. Dealer training is a key factor, but the used market is extremely localised for these vehicles and remains dependent FLEET EUROPE #SPECIAL REMARKETING

on available infrastructure”, concludes Dylan Setterfield.

BUILDING EV CONFIDENCE Looking at actual usage data from EVs from Tesla and Nissan, battery degradation is rather limited and the failure rate is extremely low. “That is something the brands should shout about. Also, they should focus more on renting EVs rather than selling them. The easiest way to overcome consumers’ concerns is to let them pay for use with attractive monthly all-inclusive rates and without worrying about perceived costs which may never crystalize, like replacing batteries. That will bring a lot more EVs to the streets and create awareness.”

Another concern pertains to the technology of the car and its batteries, which is in risk of becoming obsolete fast given the incredible development rate. Battery cells will contain ever more energy, become more compact and charge faster.

Logically, lessors are not inclined to take any risks in terms of RVs. Tesla was clever enough to offer buy-back agreements, thereby controlling the game. Perhaps the time has come for conventional OEMs to follow their lead – at least to get the electric party started.

THE WLTP IMPACT There is a potential for a small positive impact on new diesel car sales from the introduction of WLTP, as the new driving cycle is likely to be relatively less favourable for some smaller engine petrol vehicles, according to Caphpi. As CO2 emissions are a key determining factor in how much employees pay for the private use of their company car (benefit in kind), WLTP may also contribute to a shift towards hybrids, or CNG in those markets where there is sufficient infrastructure, like Italy and Germany.

“Still, on the used car market, research shows that emissions and fuel consumption are at the bottom of the top 10 reasons to buy a specific car. That is why WLTP will make no difference to most used car buyers”, reckons Dean Bowkett. Maarten Baljet from Bahr & Fess Forecasts is not exactly on the same wavelength: “Our forecast defines the usedcar buyer of tomorrow. And this buyer wants clean engines at affordable prices. The best outlook is for hybrids, provided that they have a substantial warranty cover on their batteries.”

19

DIESEL

Data shows diesels depreciating faster than petrol Frank Jacobs @Frank_J_Jacobs

Is diesel fatally wounded and will petrol be king again? Opinions vary, but data doesn't lie. autobiz and Autorola are some of the biggest purveyors of automotive market information. Here, they provide a quick peek on the Mother of All Fuel Duels.

Autorola, a leader in online vehicle remarketing and automotive IT solutions, commands vast amounts of data.

MARKET DAYS SUPPLY (MDS) One of their yardsticks is Market Days Supply: this indicator measures the balance between supply and demand by dividing current stock by average sales per day.

A low Market Days Supply represents a seller's market, in which cars are in high demand relative to the supply. A high Market Days Supply represents a buyer's market, in which cars are in lower demand relative to the supply.

Reviewing Market Days Supply in the all-important German market, the gap between used diesel and used petrol cars has widened to 30 and closed to zero over the past 12 months, but in April 2018 as in May 2017 hovered at around 10 days, in favour of petrol (with the lower figure).

J SEGMENT Autorola also provided information for various segments, with used petrol and diesel cars in the C, D and E segment largely shadowing the overall result. Remarkably, however, J-segment vehicles (SUVs) were the only ones where Market Days Supply for used petrols overtook the figure for used diesels, if only by a little, and just for November and December.

FLEET EUROPE #SPECIAL REMARKETING

Market Days Supply data for other markets shows used petrols abandoning parity to achieve significantly lower Market Days Supply than used diesels in both Belgium and Italy. In the Netherlands, the gap is widening to the advantage of used petrols – but in both Spain and Turkey, it is closing to virtually zero.

WIDE MARGIN Looking at figures for online retail B2C sales of used diesels versus used petrols, for each of the markets mentioned above: • Used diesels remain the more popular option in Belgium, by a wide margin: 20,000 vs. 10,000 in April 2018.

• The same for Turkey, with 60,000 used diesels sold vs. 40,000 used petrol cars.

Also in Spain, with close to 30,000 used diesels sold vs. 10,000 used petrols.

• However, in the Netherlands, used diesel sales have consistently hovered near 20,000 per month for the past year, with used petrols at around 80,000, also in April.

STOCK DAYS autobiz, a worldwide leader in car valuation, provided insight into stock days for both used diesels and used petrol cars, using three data points: Q1 of 2016, 2017 and 2018.

21

DIESEL

ADVERTORIAL VALUE

CONCEDED EDITORIAL SPACE • In Germany, stock days for used diesels have increased dramatically, from 97 to 122 days (+25 days). Over the same two-year period, stock days for used petrol cars have decreased slightly: from 107 to 102 days (-5 days).

• Similar to Germany, stock days for used diesels in France are increasing, if not by as much (or to as much): from 67 in Q1 2016 to 79 in Q1 2018 (+12 days).

Unlike Germany, used petrol cars in France are also seeing their stock days go up, if only slightly: from 58 to 62 (+4 days). Also unlike its neighbour, France has not seen a reversal in the ranking – but the gap has widened: from 9 days more for used diesels to 17 days more.

Consequently, the difference between both has been more than reversed: in Q1 2016, petrol cars were subject to 10 more stock days; but by Q1 2108, used diesels experienced 20 stock days more.

As a consequence, while the difference between both remains to the advantage of diesels, it has shrunk from 7 stock days to just the one.

• And finally, Spain, where the stock days for used diesel and petrol cars show a remarkable convergence: from just two days apart in Q1 2016 to no more than three in Q1 2018.

MARKET DAYS SUPPLY IN GERMANY AND ITALY Market Days Supply per fueltype - DE 100

90

Here too, a reversal has taken place: used petrols went from having slightly more to having slightly less stock days.

80

70

Market Days Supply

• In Italy, the number of stock days are converging. In Q1 2016, used petrols had 85 stock days, 7 more than used diesels (78 days). By Q1 2018, used-petrol stock days had increased by 3 to 88 days, while used-diesel stock days had risen by 9 to 87 days.

GREAT VARIETY While these snapshots show a great variety, one trend is unmistakeable in all four markets: the relative position of used diesels versus used petrol cars is weakening.

60

50

40

Diesel Petrol

30

20

10

April 2018

March 2018

February 2018

January 2018

December 2017

November 2017

October 2017

September 2017

August 2017

July 2017

June 2017

May 2017

0

Market Days Supply per fueltype - IT

“Diesel RVs (across Europe) are depreciating at a much faster pace than for petrol”, autobiz confirms. In Q1 2016, the gap between the year-on-year depreciation rates of both engine types was about 1 percentage point. In Q1 2018, “it has reached nearly 6 percentage points”.

120

The spread between diesel and petrol RVs has grown particularly fast in Germany (7.7% in Q1 2018) and the UK (7.6%) but is much less pronounced in France (4.2%), Italy (3.8%) and Spain (2.4%). “Germany's used-diesel market is swamped with vehicles that cannot be moved off the lot (…) Will diesel RVs in France come under pressure, when, and to which extent?

110

100 90

Market Days Supply

80 70

60 50 Diesel Petrol

40 30

Many thanks to Hans-Joachim Schütze (autobiz) and Lucy Stephen Leifgen (Autorola).

20 10

April 2018

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December 2017

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0

CarsOnTheWeb is not just any online car auction platform.

Its unique business model and pan-European scope ensure transactions are fast, easy and hassle-free. Customers are satisfied, their numbers increasing rapidly. Here's how CarsOnTheWeb is aiming for the top.

Since its inception in 2004, CarsOnTheWeb has processed more than 100,000 used-vehicle auctions. Last year alone, 42,000 cars were sold via its B2B platform, an 18.7% increase over 2016.

From its start in Belgium, the company has expanded into Germany (2006), Italy, Spain and France (2007) and the Netherlands (2012) - the main source countries for the more than 25,500 cars on offer every single month on CarsOnTheWeb’s platform.

8,300 BIDDERS These are end-of-contract cars from lease and rental companies, and other vehicles ready for a second life, from manufacturers, dealers, importers and fleet owners.

In all, more than 1,500 partners are selling used vehicles via the platform.

The vehicles are sold to more than 50 countries, with Eastern Europe the primary destination. More than 40,000 dealers are registered as customers, and at any time around 8,300 bidders are active on the CarsOnTheWeb platform.

“More than ever we are focusing on offering the best sellable used cars to a growing customer portfolio”, explains Johan Meyssen, CEO of CarsOnTheWeb.

The gap in Market Days Supply between used diesels and used petrol cars, from May 2017 to April 2018: fluctuating strongly in Germany (top), closely mirrored in Italy (bottom); but in both cases, used petrols perform significantly better.

22

How CarsOnTheWeb is aiming for the top

FLEET EUROPE #SPECIAL REMARKETING

FLEET EUROPE #SPECIAL REMARKETING

CREATING SECURITY Uniquely, CarsOnTheWeb does not merely function as a meeting place for buyers and sellers. CarsOnTheWeb is a party to each trade, buying the vehicle from the sellers, selling it to the buyers. This creates security, transparency and uniformity.

For each vehicle, CarsOnTheWeb experts provide a full damage report, photo gallery and valuation assessment. CarsOnTheWeb also takes care of the admin involved in cross-border trades (both within and outside of the EU) and provides logistical solutions.

Another example is a mobile app, launched to improve the auction experience of customers on the go.

“We will continue improving our processes to make buying and selling at CarsOnTheWeb easy, fast and hassle-free”, says Johan Meyssen.

NUMBER ONE In February 2018, CarsOnTheWeb acquired GWLISTE.DE, both growing its volume and expanding is sourcing on the crucial German market. The move is part of CarsOnTheWeb’s ambitious growth plans, backed by the capital and know-how of majority shareholders Vortex Capital Partners and ABN AMRO Participaties.

This year, CarsOnTheWeb aims to increase volume by 25% to 70,000 units sold, a figure slated to increase to 100,000 by 2021. Its ambition: to be one of Europe’s top 3 remarketing auction sites and the number one partner in exporting to Europe and beyond.

MOBILE APP Any questions are answered immediately, online or via phone, in the language of the customer, who is invited to evaluate CarsOnTheWeb after every trade. That client-centred approach has led to an average customer satisfaction level at an industry-leading 8.3/10.

In all, 89% of customers are 'satisfied' to 'very satisfied'. Even so, CarsOnTheWeb systematically follows up low-scoring feedback to improve its services. One example of services that saw daylight after such feedback is 'Optimo'. Optimo provides customers with delayed payment, extra inspections and priority transport.

Johan MEYSSEN, CEO of CarsOnTheWeb

23

CPO

CPO

A transparent warranty to boost confidence Dieter Quartier @DieterQuartier

The supply of used Tesla is still smaller than the demand, supporting residual values.

Consumers are hesitant to embrace electric vehicles, especially when they are pre-owned. What are leading EV makers doing in terms of certified pre-owned programmes (CPO) to boost buyer confidence and thereby residual values?

BMW PREMIUM SELECTION BMW started selling its electric i3 in 2013, both as a purely battery-electric car and a range-extended EV. Sales were very timid at the start. The public seemed intrigued by the controversial design, the recycled and hi-tech materials and the magic electric performance, but remained largely in doubt as to range, charging facilities and price.

Five years later, the battery capacity has increased from 22 kWh to 33 kWh, doing away with the car’s (perceived) lack of range. Moreover, charging points are popping up everywhere, limiting the time lost and distance travelled while finding a place to plug in. Also, lessors provide supporting services to make e-life easier, such as home chargers, the possibility to regularly use a conventional car when needed, and so on.

BMW Premium Selection does not differentiate between the standard range, M models or i products.

24

FLEET EUROPE #SPECIAL REMARKETING

ESTABLISHING SOLID RESIDUAL VALUES One last issue remains: the price tag. Or rather: the difference between the investment amount and the resale value. That’s where BMW Premium Selection comes in. By upholding quality standards and keeping as much used i3s within its own network, BMW exerts an influence on residual values, thereby keeping depreciation within reasonable limits.

TESLA USED

Interestingly, BMW does not differentiate between their standard range, M models or i products: the contents of the Premium Selection label are the same, i.e. at least two years of warranty without mileage limitation. The only particularity for electric models is that the drive battery must have at least 70 percent of its initial capacity.

In September 2015, the Model S was joined by the Model X, a 5-to-7-seater crossover with iconic falcon wing doors. In just two years’ time it hit the 70,000-unit mark, a remarkable performance for a premium hi-performance SUV that basically created its own niche. In the meantime, Tesla has also expanded its Supercharger network across the globe, making long-distance travel ever more feasible.

If during the warranty period the battery falls below this threshold, BMW will intervene in the costs to get the battery above 70 percent again. Before a BMW receives the Premium Selection stamp of approval, it gets a 360-degree check, incidentally. In the case of i3, the battery status is verified and certified. That should help convince buyers that owning a used i3 is just as carefree as any other pre-owned BMW, even if it is five or six years old.

FLEET EUROPE #SPECIAL REMARKETING

Launched in 2012, the Model S was the first executive saloon that offered an all-electric range of 400-odd km, obliterating every objection as to everyday usability. Its ambitious list price was no obstacle to its worldwide success: by the end of 2017, over 200,000 Model S were roaming the planet’s roads, making it the second-best selling EV, after the Nissan Leaf.

RENAULT-NISSAN ALLIANCE: REORGANISING The French-Japanese alliance are currently assessing their certified pre-used approach and were unable to disclose any specific information about their plans. With the Renault Zoé and Nissan Leaf being the best-selling cars in Europe and globally, respectively, the group could use the used car business as an important leverage to accelerate EV adoption. As to reliability, the first-generation Leaf proved extremely satisfactory. This information, together with a transparent battery warranty should reassure prospective EV buyers.

25

CPO

EXPERT

Fix diesels or face a crisis Dieter Quartier @DieterQuartier

Older diesels can be made clean for just €1,000, says Mark Pecqueur, Automotive Research Developer at Thomas More University College. Peanuts, if you consider that not fixing them could cause an economic crisis.

Since years Toyota has a strong CPO programme for its hybrid tech vehicles.

HIGH DEMAND, LOW SUPPLY Teslas are en vogue, but out of reach for most people. Until the arrival of the more affordable Model 3 in Europe, buyers for whom a new Model S or X is not an option could consider a used one. The market is not on their side, though: the supply of used Teslas is still smaller than the demand.

In fact, Autoscout24.com featured just 500-odd pre-owned Model S and Model X across Europe in May 2018.

That means strong resale values. In fact, Tesla seems to be the only electric car maker that has to do little to support them.

Still, it has its own quality label, called Tesla Used. About 20 percent of all new Model S and X sold are expected to be bought back by its maker within 5 years. If they are less

than 4 years old and have driven less than 80,000 km, they get another 4 years and 80,000 km of warranty. Cars that exceed these thresholds are eligible for a 2-year warranty, which expires when the car hits the 8-year or 160,000 km mark.

The warranty remains vague about battery degradation. That might seem alarming, but the latest actual usage data involving 350 Tesla drivers from over the world (gathered by the Belgian-Dutch Tesla forum) indicate that Tesla’s batteries lose less than 10 percent of their capacity after 160,000 kilometres.

TOYOTA: UP TO 11 YEARS OF WARRANTY Admittedly, Toyota does not sell electric vehicles yet, but as the world’s largest hybrid maker, it has invaluable expertise in the battery warranty department.

In fact, the Toyota Plus used car programme specifically caters for Toyota hybrid models. On top of the 36-month general warranty, used hybrid buyers get a so-called Hybrid Life Assurance. The yearly battery health check extends the warranty with 1 year or 15,000 km, up to a total of 11 years.

HYUNDAI: PUTTING THINGS IN PLACE The Hyundai Ioniq has found its way into the (P)(H)EV top 5 in many countries. It is attracting existing eco car drivers to Hyundai showrooms, but dealers seem hesitant to embrace trade in hybrids and EVs in their parking lot. That sometimes stands in the way of new Ioniqs being sold. Hyundai Motor Europe is therefore developing a programme for its European dealers that should make them eco car specialists and provide support in the used eco car business by means of a quality label.

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German diesel bans, EU fines against member states for failing in assuring air quality in their cities, ongoing lawsuits against carmakers: they are not doing residual values of diesels any good.

Especially Euro 4 and Euro 5 cars are becoming pariahs on European roads.

Could a relatively cheap hardware fix save them from their demise and avoid billions of euros from evaporating?

Belgian automotive technology specialist Mark Pecqueur believes it can.

An investment of 1,000 euro per car would suffice to fix excessive NOx emissions. Can you explain?

To reduce NOx emissions of older diesels, you can do two things. First, you can ensure less NOx is produced by the engine to start with. Second, you can treat the NOx emissions in the exhaust. The first measure means sacrificing about 20% of an engine’s peak power to lower the combustion temperature and avoid NOx from forming and is relatively easy to implement.

A loss of 20% of peak power, that seems a serious obstacle.

Consider the consequences if you do not sacrifice part of the engine power.

Your diesel will be banned from city centres and you won’t be able to sell it. Its resale value will be null. Consequently, current owners of a diesel car will not FLEET EUROPE #SPECIAL REMARKETING

FLEET EUROPE #SPECIAL REMARKETING

be able to afford a new car. Not fixing the diesel problem means risking a serious economic crisis.

So it is in car makers’ interest to fix older diesels. Should they pay for it, though?

I believe the cost should be spread over authorities and car makers. Governments have pushed consumers to buy diesels for over a decade by taxing cars on CO2 emissions. Now that the winds are changing, they are punishing diesel drivers with higher taxes and even threats to ban diesel altogether. It would only be fair that governments chip in. It would also benefit the treasury in the end – as well as the car industry.

So subsidising a diesel fix would eventually create extra tax income and push new car sales?

Indeed. If you make sure older diesels meet the emission standards – it is possible to make them comply with Euro 5 – they will retain their value. Diesel owners will therefore be able to sell their car at a reasonable price and buy a new one. That is good for the economy and thus tax income. In short, governments and car makers should join hands and avoid a massive diesel crash.

Automotive Research Developer Marc Pecqueur believes diesel deserves a future.

diesels are: absolutely. Excessive NOx emissions are a thing of the past. Let’s look at the facts and stop acting as if diesel is the dirtiest fuel possible. It simply isn’t – on the contrary. The best diesels are yet to come – and they will not be dirtier than petrol engines. The latter emit NOx and particulate matter too, incidentally, sometimes in greater quantities than diesels.

Does diesel deserve a future?

Looking at how clean Euro 6d-temp

27

CARA

CARA

Fighting mileage fraud and fake news Benjamin Uyttebroeck @uytteb

“The European parliament discusses the length of bananas, but they’d better implement a European Car-Pass to make mileage fraud impossible,” said Wolfgang Reinhold, chairman of CARA, the European Car Remarketing Association.

LEGAL FRAMEWORK TO COMBAT CLOCKING The EU Commission is considering calls to draft new laws to combat mileage fraud. The proposals are based on 3 pillars: regular readings and national data registers (like Car Pass in Belgium), making clocking a criminal offence, and monitoring how OEMs protect odometers against manipulation. Thanks to national mileage data registers, buyers of a used car should be able to verify the accuracy of its odometer reading, regardless of the EU country in which it was previously registered. Recording odometer readings could also be made mandatory at each technical inspection, each service, maintenance and repair operation carried out, starting with the vehicle’s first registration.

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Car-Pass is a Belgian system designed to prevent mileage fraud, a major topic for CARA and indeed one that can turn people away from buying used cars. Last year, Mr Reinhold was optimistic about the possible introduction of a European Car-Pass. Talks with leasing companies and car manufacturers were going well. This year however, the mood seems to have turned with GDPR looming over the industry. “It isn’t easy because we need third parties to deliver the figures. We need the VIN number, the kilometres and the date of the kilometre reading. In Belgium, they also add the last vehicle inspection but this is going too far for the rest of Europe.”

At the moment, there is interest in a Car-Pass system in Lithuania and the Czech Republic but these countries are too small to make a difference. CARA is working on convincing the German and European authorities to instate a legal framework which would bypass privacy concerns.

GROWING MEMBERSHIP Mileage fraud is only one example of issues CARA is working on. Mr Reinhold wants to attract more members in order to grow the association’s clout. These can include manufacturers, leasing companies, used car dealers or any other business active in remarketing.

In July, CARA is launching a new and interactive website. The association is collaborating closely with other partners, including Fleet Europe, to send out newsletters and other information to its members.

FAKE NEWS “We want to make sure our members get the right information,” said Mr Reinhold.

“There is so much fake news out there that this is our main priority.” This year, CARA is prioritising on informing members on CO2, NOX and Euro norms – pressing topics that affect the car industry as a whole and that can also have an impact on remarketing.

infrastructure. If half the cars on the road were electric, it would be mayhem. There aren’t enough charging stations and even the electricity supply wouldn’t cope. I think electric is here to stay but it won’t dominate for a long time. Not during my and your lifetime.”

Mr Reinhold sees a brighter future for hydrogen. “Unfortunately, very few manufacturers are developing this technology and it remains very expensive.”

According to Mr Reinhold, hybrids have a brighter future although range is often very limited, reaching only 30km or so. “That’s fine if you only drive around the corner but it doesn’t make any sense for people that drive longer distances,” said Mr Reinhold.

“Today, people are often buying hybrids because of taxation benefits and not because they have the right driver profile.

It’s a matter of what you’re looking at: the environment or your wallet?”

ELECTRIC VANS A segment that is still dominated by diesel engines, is that of light commercial vehicles. A number of predominantly Chinese

A European Car-Pass similar to the Belgian system could help prevent mileage fraud.

manufacturers are introducing or developing electric LCVs. SAIC, for instance, has launched the Maxus EV80 electric van on the European market in 2017. Mr Reinhold isn’t convinced by these newfangled vehicles. “I don’t see a large market for electric vans,” said Mr Reinhold. “Delivery companies like DHL need range that van manufacturers today can’t provide. Everybody is saying they are bringing out a car that can do 400 or 500km on a single charge but I haven’t seen one yet. If you’re a van driver and you need to drive 300 or 400km a day, you cannot afford to stop and charge for five hours or so.”

CARA BOARD MEMBERS

As an example of fake news, Mr Reinhold evoked the new diesel ban that was introduced in Hamburg at the end of May. “Diesel cars are banned from Hamburg,” reported the news outlets. They failed to mention that only Euro 4 and Euro 5 diesel cars are banned and that the ban only applies to 2 streets, a total of 1.5km. This underlines the importance of a pressure group like CARA, which can dot the i’s and cross the t’s.

Wolfgang E. Reinhold CARA Chairman

David Chapple CARA Vice Chairman

Johan Meyssen CARA Treasury

Roland Gagel Member of the Board

ARE CARS ELECTRIC Aside from diesel, electrification remains another important topic. “To be brutally honest, that’s been the case for many years and I don’t think that, say, 30% of the fleet will be electric in 20 years’ time,” said Mr Reinhold. “There are still issues that need to be solved: the cars are expensive, which is something the OEMs have to look at, and the battery range isn’t sufficient.”

Wolfgang E. Reinhold joined LeasePlan Germany as Managing Director in 1989. He was elected Senior Vice-President Car Remarketing of LeasePlan Corporation in 2003 and became Senior Vice-President Car Remarketing, Operations & Procurement in 2006.

David Chapple is the head of Remarketing at Europcar International.

Previously, he worked for major leasing and contract hire companies such as Godfrey Davis/Bank of Scotland, Hertz Lease and ALD Automotive. He was also vice chairman of the BVLRA Residual Value & Remarketing Committee.

Johan Meyssen joined CarsOnTheWeb as CEO in March 2008. Previously, he was Managing Director of Europcar Belgium, where he was in charge of the merger between Europcar and Keddy Car & Truck Rental. Prior to this merger, Johan occupied various management positions at Keddy.

With more than 20 years’ experience in the automotive industry for OEM and service suppliers, Roland Gagel is Vice President Field Services for SGS Transportation Business. The industry focus spans from Automotive over Aerospace to Rail. Prior to his job at SGS, Roland worked for GM’s Opel Vauxhall division for 15 years.

It’s not only about market share, continues Mr Reinhold. “You also need the FLEET EUROPE #SPECIAL REMARKETING

FLEET EUROPE #SPECIAL REMARKETING

29

DEFLEETING

DEFLEETING

Online remarketing demands new services Jonathan Manning

As increasing numbers of trade and private buyers purchase cars without first seeing them in the flesh, vendors are having to invest in a range of new services, from refurbishment to logistics.

inspection service, providing an accurate appraisal to buyers who could even be in a different country, but the rapid increase in popularity of private leasing is forcing technicians to develop softer, diplomatic skills, too.

Even in the business to business environment, where both the fleet manager and the leasing company are professionals and should understand the concept of fair wear and tear, frequent disagreements can arise over end of contract charges. Indeed, this summer the Car Remarketing Association, CARA, will publish Europe-wide guidelines on what constitutes fair wear and tear in a bid to defuse these situations of potential conflict. At least, however, the concept of fair wear and tear is established in this relationship and the charges are paid from business budgets.

Online remarketing demands highly accurate vehicle inspections.

A suite of new and more sophisticated remarketing services are helping fleet vendors to maximise residual values and shorten the time period between defleet and sale. From vehicle inspections to refurbishments, fleet vendors are relying on new products and skills from the remarketing industry to present their vehicles in the most accurate and attractive fashion to trade buyers, and increasingly to retail customers.

High quality photos and video are now widely expected as part of the vehicle

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PRIVATE LEASING DIFFERENCES But private leasing customers might react in a far more emotional way if they are faced with an end of contract inspection that identifies damages and calculates charges that the driver will have to pay with their own money.

In this scenario, the inspector is a representative of the leasing company and needs to be aware of the responsibility this involves.

“Hence it requires other skills beyond the technical skills required for a broad B2B inspection,” said Donck. “You need to know how to treat a personal customer, how to accompany him through the process, how to explain what constitutes fear wear and tear, how he can check that, and even instruct him what to do if there is a conflict. It means inspectors will not just be technicians but will need to have a bit more diplomacy. They will need to be very professional to go through a process which can be difficult for the driver.”

Donck also sees opportunity for specialist independent companies to deliver inspection services for car dealers, providing both inspection services and quality controls for dealer technicians if the dealership carries out the inspection.

THE REFURBISHMENT DILEMMA With end-of-contract damages established, vendors have the choice of whether to refurbish vehicles to showroom conditions or to sell cars in their original condition. Physical auctions have long promoted refurbishment, which is not simply a source of revenue but also a proven way to raise the prices bid in the auction hall by presenting ready-to-retail cars. Online buyers, however, seem to prefer to make this choice themselves.

Peter Grøftehauge, chief executive officer of Autorola, said, “Refurbishment has the biggest value within an OEM scenario, because an OEM would like cars refurbished to a certain standard and it makes sense that they do it, because it’s much easier for the dealers to pick a car and put it straight into a showroom.

For leasing and rental companies it’s less relevant because many of their buyers prefer to do the refurbishment to their own standards. A used car dealer can

then choose to do only a small refurbishment or a franchised dealer can do it to an excellent level. The key is to give buyers the opportunity to refurbish cars as they want.”

The third remarketing channel is for leasing companies to sell ex-lease cars directly to the public, which demands an element of refurbishment to bring the vehicles up to showroom standard, albeit not to the same level as OEMs would demand of their dealerships.

And, of course, if a leasing company manages to sell a company car directly to its driver at the end of a lease contract, there’s no refurbishment required at all.

The driver goes into the transaction with his or her eyes wide open, having driven the car for the previous three or four years, and so the need to clean and polish it disappears.

䄀渀搀攀砀 椀猀 琀栀攀 昀愀猀琀攀猀琀 最爀漀眀椀渀最 䈀㈀䈀 瀀愀爀琀渀攀爀 椀渀 琀栀攀 愀甀琀漀洀漀琀椀瘀攀 猀攀挀琀漀爀⸀ 䐀椀猀挀爀攀琀攀 愀渀搀 昀椀渀愀渀挀椀愀氀氀礀 猀琀爀漀渀最Ⰰ 眀攀 戀漀漀猀琀 礀漀甀爀 猀愀氀攀猀 琀栀爀漀甀最栀 琀栀攀 眀栀漀氀攀 漀昀 䔀甀爀漀瀀攀⸀ 䜀攀琀 椀渀 琀漀甀挀栀 琀漀搀愀礀 眀椀琀栀 漀甀爀 琀攀愀洀Ⰰ 愀渀搀 戀攀挀漀洀攀 愀 挀氀椀攀渀琀 漀爀 愀 猀甀瀀瀀氀椀攀爀 漀昀 䄀渀搀攀砀⸀ 圀攀 愀爀攀 愀氀眀愀礀猀 氀漀漀欀椀渀最 昀漀爀眀愀爀搀 琀漀 琀爀甀猀琀眀漀爀琀栀礀 瀀愀爀琀渀攀爀猀栀椀瀀猀⸀

眀眀眀⸀愀渀搀攀砀⸀瀀爀漀

“When you deal with personal customers they might not have the full knowledge of the end of contract process and might not understand that any unacceptable damages will have to be paid for,” said Bertrand Donck, chief executive officer, Macadam.

“They don’t necessarily know what represents unacceptable damage, and a technician might go to an inspection on behalf of an independent leasing company and take quite a significant amount out of the pocket of a private person.”

FLEET EUROPE #SPECIAL REMARKETING

夀漀甀爀 䘀愀猀琀攀猀琀 圀愀礀 吀伀 匀唀䌀䌀䔀匀匀 FLEET EUROPE #SPECIAL REMARKETING

31

DEFLEETING

Autorola is a global leader in

A picture is worth a thousand words

Online Remarketing & Automotive IT Solutions for De-fleet & Inventory Management

Jonathan Manning

The online remarketing and sale of ex-company cars means vehicle inspection reports need detailed and reliable photographs and video to present an accurate appraisal.

In practice, there are often two processes.

In the defleeting process pictures are taken by the inspector (e.g. SGS, Dekra, Macadam, ...). These are focused on admin details (VIN n°, mileage, ...) and damages. Later in the process when the car will be sold B2C, the lease company or auction specialist will bring that vehicle to a 360° photo booth, this to optimise consumer appetite and create customer confidence.

The burgeoning online remarketing of ex-company cars is driving the need for accurate and reliable vehicle descriptions. This acceleration of remote purchasing has placed much greater responsibility on vendors and their

remarketing partners to provide trustworthy profiles of vehicles that buyers may not see until they arrive on their forecourts, or to entice private buyers choosing cars online.

For trade buyers, good photography is vital, illustrating the general condition of a vehicle but also capturing any scratches and damages, both external and internal, that will have to be repaired before selling the car to a private customer.

Peter Grøftehauge, chief executive officer of Autorola, said, “What is very important is to have a very precise photo record of your car from all different angles, and to have a consistency in the way you do that. You have to have a photo of all the damages as well.”

VIDEO DELAYS Adding video to this can enrich the profile of the car, but it also adds time and cost to the process; the extra time for an inspector to video the car and the time it takes a buyer to watch the film – especially if the buyer is assessing 100-plus cars.

Accurate, honest and reliable photographs of the condition of a car are vital for online sales.

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“The big advantage of video is that you can see everything. The trouble is that walking around a car and taking a good video will take a professional 30 seconds to one minute. This doesn’t sound long, but for professionals it is long and it’s not exciting to look at. The big advantage of pictures is that you can have much higher quality and zoom in, and the buyer can choose which pictures he finds interesting.”

Macadam is now using new technology that enables the same inspection process to generate both photographs and video.

“With certain applications you can combine both,” said Donck. “You take eight to 16 picturtes and you generate a 360 degree impression, so you see the whole vehicle but with only 16 frames.

And if you want to see a detail you can zoom in on the frame.”

While B2B customers tend to prefer photographs, private customers who have greater emotional involvement in purchasing a car, tend to seek video, a point not lost on leasing companies and dealers when marketing cars online to a B2C audience.

“Video is great if you have a lot of things to show and there is a real sequence in going through the car,” said Bertrand Donck, chief executive officer, Macadam, the international vehicle inspection specialist.

Software is in our DNA Our user friendly platforms allow you to buy and sell cars online, monitor and optimise your fleets performance, and apply actionable insights from real-time market data to drive your used vehicle business to profitable growth.

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6 million

DEFLEETING

DEFLEETING

The quest for upstream remarketing Jonathan Manning

Cutting the time between the defleet and sale of fleet cars, and even preselling used vehicles, can cut costs and optimise sales proceeds.

Radio companies call it ‘dead air’, the desperate moments when they broadcast nothing but silence. The vehicle fleet industry has its equally troubling equivalent – the period between defleet and sale of a company car.

For fleets that outright purchase their vehicles, it’s a time when they continue to have all the holding costs of a car without the upside of business activity, a deadweight on the corporate balance sheet. For leasing companies, it’s a lull when a revenue generating asset becomes nothing more than a depreciating asset that has stopped earning its keep and instead stands idle, tying up capital.

No wonder, then, that the concept of ‘upstream remarketing’, which accelerates the sales process, is so attractive to vendors.

The shorter the remarketing period, the better the cashflow and the lower the residual value risk; and if this time can be reduced to zero then so much the better.

Ingo Schlosser, ADESA, vice president of business development Europe, said, “Successful upstream remarketing is all about reducing the time it takes between the asset being defleeted and being sold at a good market price in the used sector.

Upstream remarketing maximises the returns for the fleet-owner in a way that is difficult, if not impossible to match by physical auction sites as they carry the associated legacy costs of logistics, storage and sizeable overheads; all of which impact the value of the asset through the remarketing process.”

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Reducing stocking costs and cutting logistics movements can help to avoid drops in book prices, added Schlosser.

“The less time a vehicle spends upstream the greater the returns for everyone in the remarketing channel,” he said.

PRE-SELLING FLEET CARS The smartest way to reduce de-fleet times is to pre-sell vehicles before they end their fleet life, an avenue increasingly explored by certain categories of vendors, particularly manufacturers selling ex-demonstrator models and rental buy-back cars into their dealer networks Peter Grøftehauge, chief executive officer, Autorola Group, said, “Best practice is seeing between 30% and 50% sold before they are returned, and because you are selling the cars before they are returned the savings on each transaction are about €400.”

These are young, low mileage cars in prime condition, and the sales are supported by the strong relationships between manufacturers and their dealers, which is vital to resolve issues where the state of the car does not match its pre-sale description.

“You need to have some kind of rules for that so if a car is returned in a significantly different condition you need to compensate the buyer, but normally it’s not an issue,” said Grøftehauge.

FLEET EUROPE #SPECIAL REMARKETING

The presale of a company car can maximise remarketing revenues.

THE WIN-WIN SALES PROCESS Underwriting the condition of a car is more of a challenge for three and four years old lease cars, for which the optimum upstream remarketing solution is a sale to their former drivers. There’s no gap or delay in cashflow, no logistics costs, no refurbishment expenditure and no auction or remarketing fees to pay.

Plus, it’s possible to negotiate a sale price that is attractively below retail price for the buyer, while being comfortably above trade price – a win-win for vendor and buyer.

Bart Beckers, chief commercial officer of Arval, said, “Upstream remarketing is particularly interesting in the case of sales to drivers, their relatives or friends.”

But with the majority of company car drivers waiting for the keys to their next car, leasing companies and fleets need to find upstream solutions for the majority of their stock.

THE CHALLENGE FOR LEASING COMPANIES Pre-selling these cars is complicated; leasing contracts are frequently extended, making it difficult to confirm sale dates, and vehicle conditions can change significantly.

FLEET EUROPE #SPECIAL REMARKETING

Chief among these is the difficulty of knowing exactly when a contract is going to terminate, because the fleet might choose to extend the contract either for its own needs or simply to provide a stopgap while waiting for the delivery of the replacement car, said Laurent Laurent Queinec, chief executive officer, experteye consulting.

With a 35-year career in the fleet and automotive sector, Wolfgang Reinhold, chairman of the Car Remarketing Association (CARA), said he had consistently tried to upstream remarket cars, but without any significant growth in volumes.

“The risk is that you do not have a very clear view of what the car looks like, and it’s difficult to do a very clear inspection to sell it three months in advance,” he said. “The prospects of trade or private buyers purchasing a car without seeing it are limited”. Buying secondhand items from ebay for a few euros, is one thing, but spending several thousand euros requires much greater confidence and reassurance.

SHORTENING THE SALES PROCESS But it is still possible for leasing companies and fleets to shorten the gap between defleet and sale by using upstream remarketing services to market and sell vehicles online the instant they stop active service.

It does, however, require a change in mindset and the adoption of new technologies, said ADESA’s Ingo Schlosser.

“In order for the companies defleeting their vehicles to take advantage of these, they need to have embraced the digital transformation and, quite frankly, disruption. Some of these new technologies include self-inspection; damage detection and the dynamic pricing of damage; pricing of vehicles using AI; and real-time compound management,” he said.

Ingo Schlosser sees the shift to upstream remarketing as a natural evolution of the European car remarketing arena, where efficiency will be leveraged via the use of technology and consolidation of data through artificial intelligence.

And looking ahead, there seems little doubt that fleets and car leasing firms will continue to seek remarketing channels that keep the ‘dead air’ of end-of-contract company cars to a minimum.

Upstream remarketing, also known as selling a vehicle before its contract ends, is an enticing prospect for fleets and leasing companies looking to optimize and reduce the time it takes to remarket a car.

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TRENDS

TRENDS

Direct and digital sales will dominate Mark Sutcliffe

The future of remarketing is definitely digital, but opinions are divided over the long-term demand for diesel.

Two clear-cut themes will dominate the debate over the shape of the European remarketing landscape for the short to medium term: digitalisation and diesel.

There is a broad consensus over the first issue – the widespread adoption of digital disposal systems as the preferred option for defleeting vehicles across Europe – as evidenced by the growing numbers of vehicles sold via online as opposed to physical auctions.

But in the wake of continuing fallout from the ‘dieselgate’ emissions scandal, question marks remain over the future of diesel as the preferred choice of powertrain for fleet users.

In purely operational terms, diesel is still almost certainly the best option for high mileage company car drivers. However, managing the residual value risk inherent in operating a fleet that is dominated by older diesel technology in danger of being superseded by alternative fuels or new diesel engine technology such as that recently announced by Bosch is causing some serious headaches.

The current picture suggests that the falls in sales of new diesels across the largest markets: Germany, France, UK – which actually started in 2011 – may be slowing and current residual values remain relatively buoyant. But uncertainty remains and if governments are pressured by public opinion to introduce punitive taxes or city bans on all diesel engines, confidence in the strength of used demand for diesel may be further eroded.

DIESEL STILL IN VOGUE The imminent introduction of new fuel consumption and emissions data under the Worldwide Harmonised Light Vehicle Test Procedure (WLTP) can only add to the uncertainty.

Direct and digital – the future of disposal across the EU.

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Hybrid, petrol and diesel variants look likely to remain in vogue in the short term, and it is possible that next generation battery technology will appeal to urban-based fleets in the medium term, but according to most automotive experts, Euro 6 diesels offer the only low-carbon, low particulates way to cover the mileages demanded by fleet users while meeting the CO2 targets enshrined in EU law.

Industry experts expect a significant move away from diesel power trains in Aand B-segment cars because diesel never really made sense for small cars. But the market-share predictions for penetration of electric vehicles in the short to medium term are hugely inflated.

In the longer term, the solution to the urban air quality dilemma that has driven much of the debate over diesel, may come out of the leftfield. Population growth in EU member states’ will be concentrated in our cities, where the connected economy may deliver solutions based on car sharing and ride hailing networks like Uber or AlphaCity.

In the same way that the future of urban transport will be shaped by digital technology, online platforms in both the B2B and B2C are also driving rapid change.

CROSS-BORDER REMARKETING TOOL Autovista is aiming to capitalise on the potential for maximising remarketing returns via cross-border disposals with the launch of a new residual value intelligence tool. This comprehensive database maps residual value trends using data from actual sales and traders.

The data generates graphs and charts in a series of dashboards which track used values in the big five EU markets: Germany, UK, France, Spain and Italy. For example, tracking residual values of a petrol Golf 1.5 TSI across the top 5 EU used car markets, shows a variance of up to 13.2% (equivalent to €3,135) at 36 months/90km. Remarket this benchmark fleet car in France and it will achieve only €12,184 but ship it to Spain and the used price could be as high as €15,319.

In response to increasing demand for seamless cross-border remarketing solutions, many of the big leasing companies are in the process of launching direct sales platforms.

LeasePlan’s consumer-facing CarNext platform adds value and builds confidence with customers by offering an extended warranty and a range of flexible finance options on ex-lease cars. Initially launched online, CarNext will morph into a bricks and clicks operation with the opening of up to 50 delivery stores across the continent.

CARA president Wolfgang Reinhold said: “Already, in many European countries,

FLEET EUROPE #SPECIAL REMARKETING

FLEET EUROPE #SPECIAL REMARKETING

The Final Frontier – getting the right car to the right dealer at the right time remains a challenge.

physical auctions are a thing of the past.

They remain popular in some countries and they are especially strong in the UK – but increasingly we’re seeing dealers evolve from tyre-kickers to tyre-clickers.

This is down to investment in technology, standardisation, harmonisation and a general consensus that it’s more efficient to buy cars from your office chair than drive all over Europe looking for the best stock.”

Peter Grøftehauge, managing director of online auction company Autorola, added: “In many European countries, physical auctions have already been consigned to history.”

“Over the last decade, auction software systems have become much more sophisticated and the level of description and the quality of the photos now actually provide more information about the vehicles being sold than a dealer could discover during a quick inspection.”

“The whole process is much more transparent and the trust between the buyers and sellers is far higher. In fact, I would say that it’s now safer to buy a car online than it is from a physical auction because it’s easier to verify exactly what it is you are buying.”

DISTANCE REMAINS THE CHALLENGER While online remarketing platforms are creating new market opportunities and building trust across the continent, there is one last barrier to a genuinely pan-European market: distance. Increasingly sophisticated remarketing platforms can bring buyers and sellers together at the click of a mouse, and payments can be made online in a matter of seconds, but transporting the vehicle to its purchaser can still present significant challenges. Car transport networks across the continent tend to be patchy and opaque, with little consensus on the costs. This makes dealers more risk-averse when it comes to buying cars online from the other side of the continent if the costs and lead-in times that can erode margins remain uncertain.

37

TRENDS

INSOURCING

RMS Automotive, whose digital remarketing platform is used by many OEMs to sell on their management cars, has processed four million cars online and volumes continue to grow.

“In 2017, we recorded circa 180,000 transactions and we would expect this figure to continue to grow in 2018,” said Sebastian Fuchs, senior director sales & marketing at RMS.

“Historically, we are seeing annual growth of 10 to 12% and we don’t see any reasons for this growth rate to slow.

Digitisation of the European remarketing landscape is here to stay, but no matter how sophisticated the customer-facing platforms become – they are all dependent on high quality data and robust integration of the tax and regulatory regimes in operation across the continent.”

DEALERS ARE EVOLVING FROM TYRE-KICKERS TO TYRE-CLICKERS.

TCO focus supports risk control Tim Harrup

EXPERT

We have to sell diesel for the price of petrol cars

While vehicle fleet outsourcing has become the norm over recent years, it is not totally universal. Some companies prefer to purchase their vehicles or organise fleet management activities in-house. This means also bearing the remarketing and residual value risks.

To find out what consequences fleet insourcing has for remarketing, we asked one of the most experienced fleet managers in Europe. Ivor Johnson, who won the Fleet Europe Fleet Manager of the Year Award in 2011, believes that in terms of deciding how much to out- and insource, it is useful to keep a degree of knowledge within the business so that you can keep control of the strategy. There needs to be a balance between full outsourcing and the need to have some internal resource to ensure the right policy and strategy.

Benjamin Uyttebroeck @uytteb

Tom Knaepens, CEO Andex: “ADAS systems are starting to be expected in used cars.”

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How visible is the powertrain shift in the field of remarketing?

We spoke with Tom Knaepens, CEO of Andex, a B2B wholesaler of recently used cars.

Are electrical vehicles starting to appear in the remarketing sector?

Are you starting to see the effects of the drop in popularity of diesel-powered cars?

What equipment is essential to fetch a good resale price?

“Most definitely. You can still sell diesel cars at the right price, albeit in fewer markets. It’s getting hard in Germany and to some extent also in the Netherlands and Belgium. Petrol cars are no longer cheaper than diesel variants. Today, you have to sell diesel cars for the price of a petrol-powered car, even if it is Euro 6.”

TAKE ADVICE ON RV’S In terms of the residual value risk, if vehicles are purchased outright, which happens in some countries, it is a good idea to work with outside market resources (probably a fleet management company) to give an indication of what the RVs should be. Their knowledge of the RVs in a given market is going to be much more up to date than a client company, as they sell vehicles every week. They also have a vast array of tools to help in this process. It is also very important to track the performance of the cars at remarketing and to use this as a guideline for buying future products. Not over-budgeting on RVs is also advisable – at the moment the used car market is strong, so between these two elements it is possible to have pleasant, rather than unpleasant, surprises.

“It’s no issue at all to sell electrical vehicles although they tend to depreciate faster when they have high mileages. Most EVs we see go to Scandinavia where resellers expect us to bring cars back to showroom condition.”

“Today, people expect back-up sensors or cameras, satnav, air conditioning and Bluetooth. Heated seats are important to people in Germany and Scandinavia, and cruise control in France. ADAS systems are becoming essential, too. If cars don’t have this equipment, you can expect the RV to drop with the equivalent value of the option’s new list price.3

FLEET EUROPE #SPECIAL REMARKETING

FLEET EUROPE #SPECIAL REMARKETING

The elements which it is important to retain in-house relate not only to policy, but also to governmental issues such as taxation.

However, you can still take guidance and input from external service suppliers like fleet management companies, but you still have to ultimately own your own policy and strategy. Decision-making can never be outsourced, so the resource element to be retained involves strategic management, not tactical day-to-day operation.

DIESEL REMARKETING The forecast collapse of the second hand diesel market, Ivor Johnson goes on, doesn’t seem to have taken place, and indeed in some markets diesel RV prices are actually rising. This may be because as retail customers are increasingly opting for petrol models now, there is a shortage of diesels on the used car market.

However, this situation may not last and regulations may push companies away from diesel. Setting a roadmap is a worthwhile exercise, to look at the use of electric vehicles and other powertrains which could replace diesel. It looks probable that there will be enough electric models at the right price available by around 2020 to 2022, and this should see certain markets – such as the Netherlands and Norway – take off with EVs. From then, there will be a gradual build-up to greater electrification.

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INSOURCING

EQUIPMENT

Luxury pays in terms of RVs Alison Pittaway @StevenSchoefs

Are optional extras worth it when it comes to residual values? Some experts say it depends on which end of the market you’re coming from, others remark it’s not as simple as that.

WELCOME TO EVS But the residual value issue, especially in terms of who owns the battery, evolving battery performance and so on, is difficult.

No-one really knows what the situation is going to be. At the moment, though, there isn’t enough competition in the market for companies to move wholesale into EVs. It is going to be the case that companies look for comparative pricing between diesels and EVs, not on the purchase price but on overall TCO – and again, the RV element of this (a huge part of the TCO) is not yet known. And with a few exceptions, nobody has any real experience of remarketing these cars, so it is very much a ‘toe in the water’ approach first.

This will change though, and when the market is in a position where there is more choice and more volume, the second hand

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market will pick up as well. EVs will move away from their current positioning, which is as niche products, to being practical day-to-day cars, a viable mobility option.

Purchasers of used luxury brands (such as BMW, Lexus, Mercedes, Audi) expect certain extras when they purchase a used vehicle. But that’s not so at the economy end of the market where extra equipment is considered “nice to have” and has no bearing on resale or residual values.

NO VALUE, BUT A FASTER SALE According to remarketing experts most additional equipment adds no clear added value to a car, other than making them stand out in the sale room.

WLTP The new real world testing – WLTP – is tending to be confusing, and companies can have the impression that they are being used and abused by this. There is a lack of clarity about how vehicles are going to be taxed going forward, especially where the accuracy of the new readings is concerned in the interim transition period. With all this muddy water and the difficulties with seeing clearly, it is going to be a wait and see situation in terms of how WLTP will affect buying decisions. Some companies which base their decisions on CO2 emissions and which reduce the level year on year, are now holding the current levels.

FLEET EUROPE #SPECIAL REMARKETING

For the car purchaser, optional extras often end up costing a whole lot extra. Selecting every available option (including leather seats, in-built SatNav, WiFi, smartphone integration and so on) could, in many cases, double the original price. But such an investment is unlikely to deliver the equivalent in value at resale.

However, trade price specialist CAP hpi released analysis in 2017 showcasing a significant uplift in value for Project Kahn Range Rover vehicles - Evoque, Sport, RS and Pace models when compared to the standard vehicle. CAP’s Black Book value for the Project Kahn Evoque highlighted RVs up by 22%, the Sport 16.5%, RS 14% and Pace car 18%.

And although they won’t add value to the resale price, optional extras do endow a car with the ‘stand-out’ effect. Why? If a basic car model goes to resale and is up against similar models that have optional extras, it will not sell as quickly. And for

FLEET EUROPE #SPECIAL REMARKETING

fleet managers selling ex-fleet vehicles “quickly” matters.

“Clearly, a car with a higher level specification should provide a better used sales proposition than one with less equipment on it.” Says Dylan Setterfield, international forecast manager at CAP hpi. “At CAP hpi, we differentiate between typically specified cars and naked vehicles in each country by individual model generation.”

He cites the difference between Germany and other European markets in which the German brands are expected to be crammed with optional extras.

THE FIVE “MUST-HAVE” OPTIONS There are certain optional extras that are worth the investment. Rupert Pontin, director of valuations at Cazana and VRA (Vehicle Remarketing Association) board member, lists five, which include satellite navigation, panoramic roof, Bluetooth and Smartphone integration, air conditioning and better alloy wheels. “Outside of these,” he says, “almost nothing that can be added to a vehicle has any real value.”

CAP hpi’s Setterfield states the importance of leather upholstery. “It’s probably the most important option in terms of maintaining value.” He explains. “Even alternative leather-like choices (such as Alcantara) and part leather can add value.” He also says to beware of customization. “It can be a dangerous game. The more individualized a car is, the lower the number of potential buyers for it.”

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EQUIPMENT

LEASING

Increasing appetite for used-car leasing Alison Pittaway

Large lease companies, such as ALD Automotive and LeasePlan, have been providing usedcar leasing in European countries for several years. So, it’s nothing new but what is new is its relevance within the marketplace, which is now blossoming as interest evolves from car “ownership” to “usership”. for the consumer is that the monthly cost usually includes servicing, maintenance, insurance, tyres - pretty much everything other than fuel. The most attractive benefit, however, is that at the end of the contract term the customer can swap the vehicle for a newer one (another 2-3 year old) for the same monthly fee.

Optional extras are a non-essential luxury that will only help a vehicle sell faster but not at a higher price.

Inexpensive (or even free) SatNav apps for smartphones are readily available but despite this buyers of second-hand family and executive cars (including 4x4s, SUVs and crossovers) prefer them to be factory fitted and a must-have feature.

By the same token, Bluetooth and smartphone integration are almost considered a human right by car buyers now, especially as aftermarket systems are so poor.

Most newer models of vehicle at both the luxury and economy end, offer this as standard but experts caution that if the vehicle you’re thinking about buying doesn’t, think again!

Optional extras come in three categories: “must-haves”, “nice” and “nice-tohaves”. Must-haves are practical items like those listed previously, alongside parking sensors, reversing cameras and decent quality, factory-fit infotainment systems that do help protect the residual value of your car. Nice are items like metallic paint that may help with forecourt or salesroom appeal and speed up the sale of a vehicle but they don’t really add value.

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Nice-to-haves are all the other items like massage seats that may be appealing to some buyers but not the majority.

For fleets, it’s a little different because the vehicle is often either a perk or tool of the job for high-level, mid-level or entrylevel executives, or a usable asset (such as in the case of daily rental providers).

The type and specification of vehicle is, therefore, dictated by car policy, in the first stance, or the demands of the market in the second. Residual value is a consideration in terms of lifetime asset value verses costs.

Higher trim levels present better value for fleet managers than added optional extras. Setterfield explains: “Avoid the Christmas Tree effect at all costs – adding a host of options doesn’t necessarily add value. Safety features although mandatory in fleet policy will not add financial value but may act as selling aids.”

Other than the five must-haves mentioned earlier, it seems optional extras are a non-essential luxury that will only help a vehicle sell faster but not at a higher price.

Young second hand cars with low mileage and well maintained are ideal assets for used-car lease programmes.

ADDRESSING THE NEED FOR FLEXIBILITY IN AN EVOLVING MOBILITY LANDSCAPE Used-car leasing usually involves 2-4 year old vehicles that are in good condition, with low mileage being made available by leasecos with a full-service leasing (FSL) contract for 1-36 months (depending on customer requirements).

BEWARE THE CHRISTMAS TREE EFFECT Basic trim in most vehicles usually includes keyless entry, six-speaker sound system, CD/MP3 player, USB ports and Bluetooth connectivity. Higher spec models, with larger engines, may also include larger allow wheels, leather interior, electronic mirrors and seats, heated seats, premium sound system, larger touchscreen on the infotainment system, parking sensors and rearview camera.

For the consumer, the cost of leasing a used car is less than that of a new one. That said, however, over the long-term, used car leasing can be surprising costly by comparison to outright purchase. The advantage FLEET EUROPE #SPECIAL REMARKETING

FLEET EUROPE #SPECIAL REMARKETING

NEW COMPETITION FOR DEALEROWNED LEASING COMPANIES Earlier this year (February 2018) LeasePlan announced a 9.7% rise in net profit to €467 million and its aim to lead the trend from car ownership to usership using the slogan ‘any car, anytime, anywhere’. It offers used-car leasing and vehicles on a subscription or FSL basis through CarNext. com using the digital marketplace (and thus disrupting other players in it).

ALD Automotive has been offering usedcar leasing, primarily to the consumer market, across Europe for several years but has recently intensified its offering to directly address the more recent [concept] of the Car-as-a-Service (CaaS) marketplace.

Interestingly, in both cases what this does is place both companies in the same space as dealer or manufacturer-owned leasing companies like Arnold Clark Finance and Volkswagen Financial Services that have the ability to sell ex-fleet vehicles through their dealer networks.

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LEASING

LEASEPLAN GOES CARNEXT.COM With 1.7 million cars on the road in over 30 countries, LeasePlan is one of the largest leasecos in Europe. The CarNext.com service is available completely online and the platform is then supported by a network of up to 50 delivery stores where customers can view used cars and receive the necessary supporting consultation before making their final decision.

In 2017, CarNext.com grew its penetration of B2C sales in Europe from

7% to a run rate of 15%. Due to its new car leasing business, the company has a guaranteed supply of 250,000 used cars to re-market every year so CarNext.com will not be short on options for customers. The company is expecting strong growth in the CaaS market in 2018 and beyond.

In an interview with FleetEurope last year, CEO Tex Gunning said: “I’m very optimistic about the future of LeasePlan and of the entire lease industry.”

The service is currently only available in Belgium, Greece and the Netherlands but customers in those countries can use the website to browse availability of 18 brands. All vehicles are LeasePlan used cars, low mileage with just one previous driver. They are thoroughly checked against 43 points and are available to buy, lease and - in the near future - finance.

It could be you!

Be rewarded for your innovative remarketing solutions • You are an actor in the automotive remarketing sector?

• You are developing an innovative project, product or service standing out in the field of international car remarketing operations?

INTERNATIONAL CAR REMARKETING AWARD 2017 : RMS Automotive, Sebastian Fuchs, Senior Director Sales and Marketing

APPLY NOW Tim Albertsen, deputy CEO of ALD Automotive is also upbeat about the future of CaaS and its impact on his business: “It is clear that our high quality used cars can play an important role in the development of this marketplace, which requires a more flexible approach.” He said: “In particular, the subscription models will clearly be used cars in different forms depending on the customer preferences.”

Both in B2B and B2C the lease of second hand cars makes sense.

ALD AUTOMOTIVE'S HOLISTIC APPROACH ALD Automotive has been progressively implementing used-car leasing programmes over the past few years and is committed to continually developing the channel. It too has a healthy pool to choose from.

ALD’s offering is currently available in 10 countries and what’s on offer varies from country to country and by market segment but typically vehicles are low mileage and in good condition.

So far, the service has been implemented through associations with strategic partnerships with the likes of BlaBlaCar in France and NatWest Bank in the UK.

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Used car leasing is destined for growth and leasecos are well placed to be the primary disruptors; they have a healthy pool of quality stock (from their new car leasing businesses) and the high profile to create a wide market. The little they may lose in competing with themselves (in terms of new vs used car leasing), they will more than make up for in re-marketing their fleets without paying out to auction houses Press Release

and third-party channels.

And be the second winner of the International Car Remarketing Award!

More information on forum.fleeteurope.com

Brought to you by FOR INTERNATIONAL FLEET & MOBILITY LEADERS

Thanks to our advertisers in this issue ANDEX.

AUTO1 Group accelerates growth in 2017

A direct B2C offering has been implemented in some countries, namely Denmark (ALDCarmarket. dk) , which is a “brick and click” approach, fully digital platform plus showroom. Lease duration ranges from one to 36 months. Used vehicles are generally offered on a full-service leasing basis, which includes financing, maintenance, insurance and associated services, which offers optimal convenience for customers. It is a 100% digital experience, with all transactions handled online.

● ● ● ●

AUTO1 Group increases revenue by 47% to €2.2 billion in 2017 More than 420,000 used vehicles traded on all platforms Expansion of branch network to more than 350 branches SoftBank supports growth course and invests €460 million

Berlin, 5 April 2018 - AUTO1 Group, Europe's leading car trading platform, grew its 2017 revenue by 47% to €2.2 billion (2016: €1.5 billion). The Berlin-based tech company traded a total of more than 420,000 used vehicles via its platforms AUTO1.com, wirkaufendeinauto.de and Autohero in 2017. AUTO1 EDITORS Ley (Deloitte), Group thus increased its sales volume by more than 40% from the previousChristopher

Steven Schoefs – Chief Editor Laurent Queinec (ExpertEye), year (2016: 300,000 used cars traded). sschoefs@nexuscommunication.be Wolfgang Reinhold (CARA),

Alexander Unfried (PwC), Céline Gilson – for Project Wirkaufendeinauto.de, Europe's leading specialist the Coordinator purchase of used Johan Verbois (5Sconsulting) cgilson@nexuscommunication.be cars, further expanded its branch network in 2017. Customers currently can Benjamin Uyttebroeck – Journalist ©Shutterstock get an estimate for and sell their used vehicles at more than 350 branchesPictures:

buyttebroeck@nexuscommunication.be across Europe. In addition, AUTO1.com, the Group's B2B arm, has expanded Layout: Cible - www.cible.be Christine Germain – Editorial Manager its dealer network to more than 40,000 partners. Meanwhile, the Group cgermain@nexuscommunication.be & MARKETING expanded its presence to Norway, Greece, Albania, Bosnia, Croatia,SALES

David Baudeweyns – Sales Director Macedonia, Montenegro and Serbia. CONTRIBUTORS dbaudeweyns@nexuscommunication.be Tim Harrup, Frank Jacobs,

COLOPHON

FLEET EUROPE #SPECIAL

Jonathan Alison Lannau – International Key "AUTO1 Group continued to develop very Manning, successfully in Pittaway, 2017. We areSaskia

Dieter Quartier, Mark inSutcliffe Manager extremely satisfied with our strong organic growth, both terms of sales andAccount

slannau@nexuscommunication.be the expansion of our on-site presence. Our customers’ satisfaction is and will EXPERTS Daniel Savigny – International Key remain the basis of our success and the top priority for the entire AUTO1 Bart Beckers (Arval), Dean Bowkett Account Manager team. We will continue to work on (BAC), makingBertrand selling and

buying

used

vehicles

Donck (Macadam), dsavigny@nexuscommunication.be easier, more transparent and more trustworthy," says AUTO1 Group Co-CEOVincent

Christof Engelskirchen (Autovista), Degives – Marketing Manager Sebastian Fuchs (RMS), Christian Bertermann. vdegives@nexuscommunication.be Peter Groeftehauge (Autorola),

AUTO1 Group continues on its successful course in #SPECIAL 2018. In January the REMARKETING FLEET EUROPE REMARKETING company won a new investor, SoftBank Vision Fund, which invested €460

Virginie Emonts – Sales and Marketing Assistant vemonts@nexuscommunication.be Aline Verpoorten – Internal Sales Assistant averpoorten@nexuscommunication.be Laura Petit – Sales and Marketing Assistant lpetit@nexuscommunication.be ADVERTISEMENTS Groupe Argus (2), CAP (4), Autovista (10), Macadam (13), Auto1 (17), CarNext (20), COTW (23), Andex (31), Autorola (33), CARA (48)

FLEET EUROPE

Fleet Europe Magazine FleetEurope

@Fleet_Europe

www.fleeteurope.com Fleet Europe is published by Nexus Communication SA Parc Artisanal 11-13, B-4671 Barchon (Belgium) T +32 4 387 87 71 - Fax +32 4 387 90 63 contact@nexuscommunication.be Fleet Europe is registered and copyrighted trademark.

Reproduction rights (texts, advertisements, pictures) reserved for all countries. Received documents will not be returned. By submitting them, the author implicitly authorizes their publication.

PUBLISHERS Caroline Thonnon – CEO & Head of Business Development Thierry Degives – CEO & Managing Partner

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REMARKETING COMPANY PROFILES Looking for the right car remarketing partner? Take a look at the company profiles of the international remarketing suppliers. Dedicated remarketing companies present themselves through a synoptic company profile enlightening their structure with a detailed description of the company's activities, products and services. The company profiles introduce readers to the management board and sales team of each company.

The published company profiles can be consulted as well through the genius centralized digital network platform www.globalfleetdirectory.com.

All contact details published online can be updated by each individual supplier at any time. In this way www.globalfleetdirectory.com will also be your preferred network tool up-to-the-minute!

ABOUT CARA CARA Europe is a non-profit organisation set up by key players in the Leasing and Car Remarketing industry. The members of the association are car manufacturers, fleet management & car leasing companies, used car auction companies, used car data providers, used car service providers, companies active in the car remarketing industry.

COMPANY DETAILS Regional Headquarter, Europe Parc Artisanal 11-13 4671 Barchon Belgium

The Car Remarketing Association has set various goals. Some of these are: to represent the interests of the Car Remarketing Industry vis-a-vis bodies of the European Union and international institutions; to inform the members of any European or international developments likely to affect the car remarketing industry; to coordinate the views of the members so as to adopt common positions and a common voice; to promote the car remarketing industry at European and international levels; to organise events on topical issues and/or for a specific audience; o provide the members with a platform so that they can exchange views and best practices; Networking.

CONTACT DETAILS Axelle Mentior Administration Officer +32 16 29 54 44 axelle@theofficehelp.be www.cara-europe.org

Our objectives cover all aspects and procedures related to the Car Remarketing industry.

Some of our main objectives include standard return process, European export guidelines (legal & tax) and fair wear & tear, transport solution throughout Europe and correct mileage reading.

Visit the company profile on Global Fleet Directory: https://www.globalfleet.com/en/company/european-car-remarketing-association-cara

COMPANY DETAILS Wellington House 5th Floor 125 Strand WC2R 0AP London United Kingdom

ABOUT AUTOVISTA GROUP

ABOUT CARSONTHEWEB

At Autovista Group, we provide pricing and specification intelligence for Europe's automotive decision-makers.

CarsOnTheWeb (COTW) was founded in 2004 and with 6 branches and +150 staff, it became the biggest online car auction website for the car trade in Belgium. The company has an up-to-date selection of used vehicles available for the best market price. The company sells over 42,000 end-of-contract lease vehicles, car dealer and fleet owner vehicles from Belgium, the Netherlands, Germany, Italy, France and Spain to car dealers across Europe and specifically Central Europe. CarsOnTheWeb stands out for its high level of expertise in the cross-border sale of vehicles and for its unique business model.

CarsOnTheWeb is more than just a platform that puts buyers and sellers together. The company operates as an intermediary between buyers and sellers, operates a uniform process and ensures smooth payment, delivery and service both for buyers and for sellers.

Every day, we take masses of complex automotive data and make sense of it. From vehicle design and production to sales and fleet management, we combine our data with the expertise of our people to provide insights that lead our customers to the best choices and profitable outcomes throughout the vehicle's lifecycle.

We turn data into insights. Insights into bigger and better opportunities for our customers, always staying close to the metrics that matter most: RV and TCO.

COMPANY DETAILS Lorenzweg 5 12099 Berlin Germany

Grijpenlaan 19A 3300 Tienen Belgium

CONTACT DETAILS +32 16 38 69 65 Sales@CarsOnTheWeb.com www.CarsOnTheWeb.com

CONTACT DETAILS Mr Dirk-Marco Adams Global Sales Director +49 (0) 151 14863556 dirk-marco.adamsaLeLLLCaaDautovistagroup.com www.autovistagroup.com

COMPANY DETAILS

Visit the company profile on Global Fleet Directory: https://www.globalfleet.com/en/company/carsontheweb

Visit the company profile on Global Fleet Directory: https://www.globalfleet.com/en/company/autovista-group

ABOUT CAP

ABOUT MACADAM

cap provide quality market driven, digital, real-time data to use in your own automotive systems, such as car values, future car data, service maintenance repair data, total cost of ownership data and new vehicle data.

COMPANY DETAILS

We also have the cap global consulting team that provide bespoke data provision, insights into market conditions and early view of residual values; and produce themed reports for the European automotive market, which you can access here.

Schaarbeeklei 613 1800 Vilvoorde Belgium

Founded in 1993 in Belgium, Macadam is a fully-integrated and digitized inspection specialist. Its digital tools are well-established, enabling the company to offer its customers hundreds of thousands of inspections annually, conducted across Europe. Today, Macadam is a major player in the automotive market as a leader in the Long Term Off Lease inspection. This is in no small part thanks to its high standards of quality and strong knowledge of remarketing as well as the daily effort and flexibility of its team of over 300 professionals. They continually ensure the growth of the business referrals while steadily increasing the number of jobs completed for its clients. Macadam is eager to continue its European expansion in the coming years over the current 6 countries to other countries by collaborating on an operational level with strong local partners and providing IT solutions to its customers.

CONTACT DETAILS

CONTACT DETAILS

+32 2 756 59 59 info.europe@macadam.eu www.macadam.eu

Mr Verrelli Global Commercial Director +44 (0)113 222 2000 kontaktzcg8S5fWKgcap-hpi.com www.cap-hpi.com

FLEET EUROPE #SPECIAL REMARKETING

Macadam's core-business is in off-lease inspections for the leasing industry, fleet owners and car manufacturers. We are active in all Western European Countries and deliver on-site inspections at the customer's address as well as inspections on centralized locations (compounds).

Visit the company profile on Global Fleet Directory: https://www.globalfleet.com/en/company/macadam

Visit the company profile on Global Fleet Directory: https://www.globalfleet.com/en/company/cap

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OFF-LEASE INSPECTIONS ANYTIME, ANYWHERE

FLEET EUROPE #SPECIAL REMARKETING

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★

DISCOVER OUR

NEW WEBSITE AS FROM

JULY, 1ST

A COMMON VOICE TOWARDS THE MARKET, PARTNERS AND SUPPLIERS The European Car Remarketing Association (CARA) has 5 clear deliverables: • Have a clear and common return process throughout Europe ‘fair wear & tear guide lines’ • Guidelines of European Import and Export regulation of used cars • Transport solutions throughout Europe • Support ‘correct mileage reading’ • Actively lobbying for the right need in our industry

To get more information about the association or to become a member, please visit our website

www.cara-europe.org