How German Automakers Are Doing Well with Remarketing as New Vehicles Slump

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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.

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