autobizInsights #20: How does Crossborder unlock remarketing performance?
The used car market is going through a period of real turbulence: increasing tensions, unstable prices, and constantly-evolving public policies. On the one hand, the rapid electrification of vehicle fleets, which is often supported by artificially high residual values (RVs) makes it difficult to absorb trade-ins. On the other hand, the popularity of certain engine types, such as diesel, is declining at a record rate.
The result: markets that are occasionally flooded with products, profitability is under pressure, and remarketing that is more strategic than ever.
Remarketing policies still confined within national borders
Even though commercial, marketing and product strategies have largely harmonized at the European level since the onset of the pandemic, remarketing paradoxically remains one of the last areas still managed strictly on a national basis.
However, over the past few years, manufacturers have strengthened centralisation: This has included European governance, common tools, standardised processes, and the pooling of methods. These advances have made it possible to achieve greater operational coherence and tangible economies of scale.
However, the UC flow management, in most organisations, constrained by the borders and historical perimeters of the NSC.
The reasons are not always explicit, but there are several obstacles inherited from the past that continue to hinder the ability to break down silos:
- Networks fear that crossborder opening will disrupt the local balance of flows and weaken certain markets.
- Differences in equipment between markets are perceived as a hindrance, for fear that they will complicate homologation or reduce resale value.
In practice, these limitations keep remarketing within a closed market framework… whilst allowing parallel flows to develop. Indeed, when NSCs retain too much volume in a market that cannot absorb it, these same vehicles often end up being exported through independent channels, but outside the manufacturer’s control.
This phenomenon creates instability, weakens the control of values, and illustrates precisely why a structured crossborder approach has now become essential.
Crossborder opportunities are now vital
The best value for a French internal combustion engine vehicle is therefore no longer systematically found in France: it is now shifting towards other European markets, particularly in Southern Europe. Recognising and integrating these new attractiveness flows becomes essential to optimising the value of vehicles in trade-in transactions.
This is exactly what we observed with one of our premium manufacturers. They noticed significant performance differences between their various NSCs across several internal combustion engine models. Using our data, they were able to quantify these discrepancies: For example, some markets placed very high values on models that were struggling to find buyers elsewhere.
We therefore helped them set up tools that integrate real-time international pricing data, weighted by the logistics and customs costs specific to each market.
This analysis highlighted a key finding: the opportunities were overlapping. In other words, no single market could absorb all its own flows, but each presented opportunities for for models that were struggling on another NSC. This meant that risks could be redistributed more evenly within the network.
By adopting this new cross-border approach, the manufacturer was able to regain control of its export flows, whilst maximising margins through real-time opportunity detection and a much more agile remarketing management. The company has subsequently streamlined its operations, reduced lead times, and improved pricing accuracy. As a result, over than 200 network members now benefit from a faster, data-driven remarketing process that is perfectly aligned with the brand’s premium positioning.
Crossborder travel is no longer a risk: it's a solution.
In a volatile market, failing to consider used car flows across borders means missing out on opportunities and concentrating trade-in risks where markets can no longer absorb them. In contrast, a structured crossborder strategy, supported by reliable data, allows companies to capitalise on valuation differences between countries, balance volumes, and improve profitability.
Implementation requires support and skills development for local teams, but the benefit is clear and two-fold: regaining control of remarketing and transforming market volatility into a competitive advantage.