Autorola Plans Used Car Sales Volumes To Eclipse 500,000 By 2018
Online shopping is commonplace now and the car industry has not been slow to move online. Related products like car insurance have been sold online for some time and now car finance packages are also marketed successfully on the web.
Online shopping is commonplace now and the car industry has not been slow to move online. Related products like car insurance have been sold online for some time and now car finance packages are also marketed successfully on the web. Magazines like Autotrader have moved their business onto the web too, while everyone has seen the adverts for those websites who will buy any car. That is quite a transformation in the private consumer sector but perhaps the commercial industry has been slower to catch on. An indication of this came earlier this month when Audi announced a new online service booking web site. The real news here of course is that it has taken so long to achieve this relatively modest result. Although consumer sales have taken off online, fleet and commercial sales have lagged behind, but according at least to one company, this may be about to change.
Online auction outfit, the Autorola Group, has said that it expects its sales volumes of used cars to more than double over the next five years, reaching 500,000 vehicles by 2018, which would make it the fastest growing online remarketing company in the world. Most of the company's business centres around the sale or 'remarketing' of car stock from leasing companies and dealers who are disposing of trade-in stock. The company say that this projected growth reflects the transition from traditional sales channels to online buying patterns, which they claim could account for as much as 30% of used car sales in some countries.
Autorola was founded in Denmark and now has operations in 17 European countries and clients in 32 nations. It sees online remarketing finally coming of age with both vendors and buyers across Europe in mature and maturing used markets. Autorola group chief executive, Peter Grøftehauge, says that the company is experiencing higher levels of interest from dealers, leasing companies, car hire firms and fleet operators than at any time since setting up the company in 1996. He commented: "We no longer have to spend time educating the sceptics about online remarketing. Instead vendors accept that online has become an integral part of their remarketing strategy, offering them speed, access to new buyers and more often better prices, while buyers understand the convenience and transparency offered by online transactions." In the UK it is estimated that 30% of all used vehicles will be sold online by 2018 as these large corporate owners and operators begin to realise the speed and efficiency of disposing of stock using online auctions.
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