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Australia is one of the most hotly contested automotive markets in the world. With over 65 brands competing for their share of the pie, there is little margin for error. In 2019, we saw the Australian market sell approx. 1.1 million new vehicles and approximately 3 million used vehicles pre COVID. This equates to approximately 4.1 million sales across 4,898 dealers nationally. Post COVID the market has been corrected by approximately -20% in volume, however, a large uptick in vehicle resale and gross profit due to the current stock shortages that exist now in Q1 2021. Based on this data it is fair to say that trading vehicles to support automotive sales (used or new) with an efficient, effective, and robust process is paramount to an automotive dealer’s success and profitability.
Automotive companies’ budget millions on branding and marketing to promote themselves to consumers. In 2019, it was reported by Forbes that the top twenty companies with the largest marketing budgets were made up by 25% automotive[1]. Further to this, we know most industries globally are investing in digital platforms to help streamline their sales distribution channels. This is no different in the automotive industry, for example, most brands have invested heavily in digital platforms to support sales growth. We have seen huge developments in product content, 3D online car configurators, financial services calculators & products to support branded sales, subsidised low interest rates, digital product content, live vehicle stock locators, sponsorship, and social media to name a few. Bearing all this in mind why hasn’t anyone designed a specific digital platform allowing automotive dealers or traders to buy and sell (trade-in) inventory between themselves in real time?
The current vehicle trading / wholesale process is tired and outdated. It has not kept up with recent technology developments and is relatively analogue compared to how we digitally retail vehicles. In summary, the current wholesale process is labour and time intensive with role specific duplications occurring frequently during daily trading.
FLIPACAR will be launching in February 2021 with a clear vision to link dealers and traders through a digital platform to buy and sell with each other using the FLIPACAR app. We will connect traders by creating a real time trading platform providing quick and easy B2B vehicle trading transactions. FLIPACAR will connect automotive dealers, helping them become more efficient, through functionality in our app providing speed and connectivity. This will allow traders to communicate using a digital method – real time and live. The platform will most importantly create transparency within the industry. For example, it will take up to two minutes to list a vehicle through our validation process, which identifies the vehicle details based on its registration number. Dealers will have the ability to upload thirty images per vehicle to be sent digitally to their specific network at the click of button. The level of information that can be communicated in real time provides transparency and builds efficiencies not seen before.
FLIPACAR was founded to drive fundamental change in the wholesale sector. FLIPACAR will deliver much needed speed and connectivity in this already fast and ultra-competitive industry.
One of the core benefits of FLIPACAR is our ability to provide automotive dealers, fleet and financial services companies and wholesale traders with an efficient digital trading solution to support faster stock turnover and visibility of filter matched stock opportunities.
There will be more exciting technology developments as we approach our launch. We look forward to sharing these with you.
FLIPACAR Faster, more efficient car trading through technology.
[1] https://www.businesschief.eu/digital-strategy/top-20-companies-biggest-advertising-budget