We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive all cookies on the Business Car website. However, if you would like to, you can change your cookies at any time
The start point for the best source of fleet information |
The residual value expert's view
According to Rupert Pontin, chief car editor at Glass's, the online side of used sales is progressing to the point where physical auctions could dry up within the next 10 years.
"It is not beyond the realms of possibility that physical auctions will all but disappear in the next decade becoming defleet and fulfilment centres," he says.
The nearer future will be less dramatic, though: "In the short to mid term there will be little change. Sales will continue to migrate to online platforms for cost reasons and the volume sold in the physical environment will decrease. Fully integrated defleet-to-sale programmes are already available and some of the major companies use them but tend to add other channels as part of a best-practice process to ensure they are doing the best they can for their inventory."
Pontin continues: "Online sales during a physical sale now account for around 60% of total sales overall. This tends to vary depending on the type of product on offer and the vendor. Some closed manufacturer sales will sell around 80% of cars online whereas a part-exchange physical sale may see just 15% of cars sold online due to condition.
"Fixed-price platforms enhance these numbers but there are very few vendors if any who would rely on electronic remarketing entirely. It is likely that this number will increase further, although it is unlikely to move above 80% in the next five years in our opinion."
BusinessCar magazine ©2019
Business Car Magazine © 2020 | Business Car is part of NS Media Group.
