Automakers and dealers doing business in Europe are seeing tough times as sales continue to drop – German automakers have definitely been feeling the pinch.
Heading toward lowest sales level since West Germany and East Germany reunified in 1990.
BMW, Daimler, and Volkswagen are dealing with the crisis by pushing remarketing in the growing used car market.
Here’s how this market trend has been playing out in the Germany:
• Automakers offering leases and fast-track loans on used vehicles.
• Reaching new customers who had avoided buying new cars beyond their financial reach – someone will become a first-ever customer to the brand.
• Pre-owned vehicle marketing campaigns have paid off – they climbed 10% to eight billion in euros in Germany last year – 6.9 million transactions – highest in a decade and more than double new vehicle sales.
• Automakers are offering traditional add-on services like insurance, maintenance packages and extended warranties.
• Also branching out into new businesses – Daimler’s Car2go offers one-way rentals of two-seat Smart models by the minute. BMW set up a $100 million venture fund in 2011 to invest in transportation-related services.