Analyses
8 aoû 17

Autorola is helping the fight against corruption in Brazil

In Brazil, Autorola is doing more than inspecting and remarketing used vehicles. “We are doing out bit with our customers to ensure that good wins over evil”, says Marly Fialho Kierulf, country manager for Autorola Brazil. The Denmark-based company's reputation for transparency is seen as an important weapon against corruption in the used-car space and is winning over an increasing number of Brazilian remarketing customers.

While Brazil's huge new-car market is struggling to recover from a four-year recession, the county's second-hand market is thriving. Autorola has been doing inspections and online remarketing in Brazil for a number of years now. 

 

“Open and transparent”

Recently, the company has experienced an increase in interest for its services, mainly from European car companies, pharmaceutical fleets, rental and leasing vendors as well as fleet owners. In fact, demand in 2017 has reached record levels, says Ms. Kierulf:

“Companies like that everything is open and transparent, right from the recording of an inspection of a car and upload of a vehicle’s condition to the sales portal to the vehicle payment process. As such, Autorola Brazil is more than just a remarketing intermediary. We present a demobilisation process that is based on transparency, flexibility and accuracy”.

Autorola's Danish roots play to its advantage, she says: “They like that there is very little to no corruption in our home country. It gives them the confidence to trade via our online channels”.

 

Audi Brazil

In Brazil, demand is particularly high for small, low-value used Toyotas and Hyundais, but also for used cars from prestige brands such as Audi, Mercedes, BMW, Volvo and even Ducati motorcycles.

It's a market well understood by Autorola Brazil. Case in point, its Sales Cascade programme for Audi Brazil's management, press and HQ demonstrator cars. Used cars can be inspected anywhere in the country via Autorola's online inspection system. They are then uploaded onto the Autorola Brazil remarketing portal, complete with images and a detailed condition report.

The three stage cascade auction offers the used cars to its franchise dealer network first and then those that aren’t sold, normally around 10-15%, are then offered out to Autorola Brazil’s 6,000 active B2B buyers.

 

100% conversion

“Cascade sales generally have a conversion rate of 100%, as buyers trust the process, the declared condition of the cars and know that they will only take delivery of the car once the funds have passed to the vendor”, says Paul Dieter Lundberg (pictured), Used Cars of Audi do Brasil. 

“Vendors are in turn very happy with the transparency of the process, including receiving payment before the car is delivered from a registered Autorola Brazil buyer. And ultimately, the prices achieved are strong”. 

Those prices have been at around 75% of the purchase price. That strong result is due to the fact that the vendor traces the car’s life from when it is registered to when it is sold and who the buyer is. If there is a query from a buyer, Autorola Brazil manages it in close co-operation with its used car team.

 

Zero corruption

It's a confidence-inspiring formula that has proved catching. Autorola is now turning its attention to the rental and leasing industries, as they are also keen to run corruption-free disposal operations. In July and August, Autorola has been tasked with selling a few hundred used cars quickly to free up the vendor’s cashflow and is just about to enter into an agreement to manage the inspection and remarketing of a major rental buy-back deal.

“Ultimately the automotive market is a big part of Brazil’s industrial success story so it would be good to see that it was the first to achieve a zero corruption status with our help,” explains Kierulf.

 

Image: Audi do Brasil

Authored by: Frank Jacobs