Aftermarket July/August 2022 Issue

JULY/AUGUST 2022 AFTERMARKET 15 more information and elements of price discovery not readily available before to help buyers. Given the surging prices of raw materials for EV batteries, greater awareness of the options available, along with prices and availability, could make a material difference to the cost of a car. By extension it can help more transactions to complete. The more sophisticated online marketplaces help mitigate the effect of shortages and market disruption. For example, NovaFori has developed an auction platform for the B2B used car sales market, allowing sellers to remain competitive across various countries and enabling 24/7 trading for thousands of concurrent bidders. The online marketplace includes access to an integrated inventory of thousands of vehicles, meaning professional buyers can browse and purchase vehicles. The platform uses data science to implement recommendations based on historical buyer behaviour patterns. Recommendations can also be refined based on substitutions and bids won, resulting in a superior customer experience. All this boosts trade volume and liquidity, helping both the marketplace and sellers on the platform to generate more revenue. Professional traders can bid on a wide variety of cars in multiple languages across multiple regions in Europe. As a result of the combination of auction mechanisms and cross-border trade, marketplaces can deliver demonstrably higher prices. As demand for AFVs and EVs grows against a backdrop of a scarcity of supply and long waiting lists, digital platforms can play an invaluable role. Additionally, recommendation engines can most efficiently satisfy latent demand. While there are no overnight fixes to the current market distortions, digital B2B marketplaces do offer a means to bring transparency, liquidity and efficiency to the second-hand automotive market in which the pressure of high demand for EVs and AFVs will remain a factor for the foreseeable future. www.aftermarketonline.net The current market pressures are bringing about transformation towards new digital tools for selling second-hand vehicles ”