The ever growing importance of online sales in the remarketing industry to the fleet management sector should not be underestimated or taken for granted. Manheim recently shared their thoughts with Fleet Auto News about online sales and what the future might hold.
At Manheim online sales account for 40% of all transactions. While the wholesale remarketing industry is already geared towards online sales, Manheim expects to see a large increase in the sale of passenger vehicles online to retail buyers.
In their passenger and commercial business, 30% of sales are made online, primarily via the Simulcast online auction system. Closed manufacturer auctions to franchised dealers and online listings make up the bulk of these figures, with trade buyers also comfortable to buy online in trade only and public auctions.
Manheim know though, from their our own research and that of Cox Automotive in the US, that consumers are more and more likely to be buying new and used cars online in the future.
Today 42% of consumers use multiple devices to research and shop for cars online and on average spend 10 hours doing so. This figure is set to grow to 80% by 2020.
To reinforce just how comfortable consumers are becoming with internet buying, an Accenture study in the US reports that 75% of consumers are ready to complete the entire process online – if the process meets all of their needs.
Given the current state of play and these trends, the remarketing industry will continue to better cater for public online sales. Already it is shaping improved website listings and the way vehicles are presented online.
It certainly drove Manheim’s improvements in online condition reports with new inspection technology and automated imaging capabilities, in addition to vehicle grading to give consumers increased confidence when viewing vehicles online.
Clearly the higher the appeal which can be created in an online environment customer’s vehicles, the greater the competition which drives higher returns for the fleet management industry.
It is expected that all players in the industry will make big changes to their online sales capability to better cater for the increasing numbers of buyers willing to research and purchase online.
Manheim are launching a new website next year designed specifically to facilitate online sales and they recently launched an all new version of our online auction system – Simulcast.
It has been designed around the buyer experience and is now fully mobile compatible. Buyers can now purchase at auction on their smart phones or tablet devices. And the more buyers who can participate in an auction, the better the returns for our customers.