Automotive Wholesale & Remarketing
In fact, wholesale is a form of remarketing. For a long time, wholesale companies have played a very large role in the remarketing of cars. They fulfill the following functions:
Large providers, such as leasing companies, have a huge volume of cars to process. It goes without saying that in this process one wants to achieve optimum recovery as quickly as possible. At least as important is getting paid quickly from these large volumes of cars. The wholesaler was an ideal partner in this, which quickly settles up car prices, and then these cars were traded in the weeks that followed to retailers, with a much smaller company size, often with payment agreements.
In addition to working capital and commercial strength, a wholesaler is also a partner for the rapid processing of large volumes of cars. Think of transport and storage. For many leasing companies, there is a constant supply of ex lease cars. Not delivering ex-lease cars a week will lead to stagnation on storage sites that can not take place very long without a logistical disaster.
Wholesale companies in the automotive industry are used to trading large volumes of cars on a weekly basis to retailers and smaller traders. This is a specialism that does not control many large providers. You can see this as a real added value from wholesale companies. In the meantime this function has been weakened by the arrival of, for example, internationally oriented and fully online businesses.
All the above functions mean that doing business with wholesalers leads to a simple and efficient remarketing process. Gradually, efficient systems are available for large providers that make it possible to combine the aforementioned functions with doing business with smaller market parties. This has changed the function of wholesale companies. A car wholesaler will have to focus intensively on offering added value for the future in order to continue to have sufficient right to exist. In the near future, we will see whether the wholesale companies are able to continue their market function.