Specialist
Former senior executive at BCA Marketplace Ltd
Agenda
- Remarketing daily volume sales expectations and pricing outlook in light of automotive supply challenges and inflationary environment
- Digital transaction growth outlook and penetration rate
- BCA Marketplace’s unit economics and potential margin expansion opportunities
- Shift to EVs and potential structural impact on auction sales
- Cinch’s medium-term growth outlook and potential impact on dealer relationships
Questions
1.
What is your outlook for BCA Marketplace’s daily volume of car sales?
2.
When do you expect the industry to recover to pre-pandemic levels?
3.
What’s the average price per vehicle at an auction?
4.
What is BCA’s typical revenue per vehicle? How is that split in terms of buyer and seller fees?
5.
What price improvement could auction businesses, or BCA specifically, realistically achieve on a per-vehicle basis?
6.
You mentioned two models of charging buyer fees. Why would a company choose one over the other? Are there particular advantages vs disadvantages?
7.
How do buyer fees differ between physical and online auctions?
8.
How are you expecting BCA’s Partner Finance programme to grow relative to total sales?
9.
What changes are you expecting for buyer fees over the next 1-4 years?
10.
How is the current inflationary environment impacting BCA’s sourcing and supply dynamics, as well as demand and consumer behaviour?
11.
What percentage of the supply base does Webuyanycar.com typically account for?
12.
How might the inflationary environment impact BCA in terms of demand and consumer behaviour?
13.
What is BCA’s typical supply mix across part exchange, leasing and Webuyanycar? If 20% used to come from Webuyanycar – and presumably that’s much higher now – where does the rest come from?
14.
Is there any distinction in the inventory price point? Does leased inventory typically have a higher ASP vs part exchange, given it is typically a newer car?
15.
With leasing becoming a much more common practice, would auction houses such as BCA benefit from leasing inventory rising, meaning the buyer commission fee would be higher due to the car’s higher value, given it is calculated as a percentage?
16.
Do you think the shift to EVs presents more of a challenge than an opportunity for BCA and other auction houses?
17.
You mentioned OEMs looking for users instead of buyers and owners for their cars. Does this move towards an agency model and D2C present a threat to BCA, especially as some OEMs might remarket their own cars and open D2C channels?
18.
Can you elaborate on BCA’s additional services and how important that segment might be as a growth driver?
19.
What is the rough penetration of online auctions at the moment?
20.
Could you outline the main features of Cinch’s business model, which falls under Constellation Automotive? How does this online e-commerce for used cars work?
21.
Where does Cinch get its own-brand inventory from? How does its relationship with BCA work?
22.
Do you think Cinch’s longer-term strategy would be to add more dealers to the platform instead of having a larger share of own-brand vehicles? Presumably this would avoid any problems through the dealer network.
23.
Could you elaborate on the metal margins regarding Cinch and your expectations for this, given the possibility of a recession?
24.
What is your growth outlook for Cinch? You mentioned it is still relatively small volumes. Do you see it achieving significant volume, as would be expected, when you see the value?
25.
Is there anything important to mention or any final thoughts about BCA and the European car auction market?
