USED CAR REMARKETING
Bora Selcen Duvan
Renault / B & LCV Segment Product Manager
E-mail: bora.duvan@renault.com.tr
Dr. D. Selcen Ö. Aykaç
Ozyegin University / Post-Doc Research Fellow
E-mail: selcen.aykac@ozyegin.edu.tr
Prepared from Bora Selcen Duvan’s MBA Graduation Project, which is completed in 2008 at the Istanbul Bilgi University under the supervision of Dr. D. Selcen Ö. Aykaç as an advisor.

Although used car sales represent two or
three times the volume of new car sales,
there are very few studies that fully
explore the used car business.
Dr. D. Selcen Ö. Aykaç

• Used-to-new vehicle ratio
• 2.4 (1999) 2.6 (2007)
•
• Profit margin in used vehicle sales
1.2% (1999) 2.7 (2007)
• ≈ 10% profitability in the
complimentary used vehicle
financing and insurance businesses
Dr. D. Selcen Ö. Aykaç

Used Vehicle vs. New Vehicle Market
(x1,000) UK US France Germany Italy Canada Spain Japan
New 2,567 16,995 2,070 3,320 2,262 1,583 1,517 5,852
Car
Sales
Used 7,701 44,138 5,400 6,650 4,587 2,300 2,081 5,985
Car
Sales
Used / 3.0 2.6 2.6 2.0 2.0 1.5 1.4 1.0
New
Dr. D. Selcen Ö. Aykaç

Definition of
• a used motor vehicle is to be understood as
being one which has previously been
registered
• any motor vehicle that has previously been
registered is a used motor vehicle
• unregistered cars when subject to private
consumption tax are then become
registered and counted as used car
Dr. D. Selcen Ö. Aykaç

MARKET
• Private sales • Remarketed
those in which buyer the sale of vehicles by
and seller are both companies that had
private individuals used them in the
course of business or
to generate revenue
Dr. D. Selcen Ö. Aykaç

the MARKET for by Akerlof
information asymmetry
or ? occurs when the seller
knows more about a product
than the buyer
Owner of a good used car will be unable to get a high enough price to
make selling that car worthwhile.
Therefore, owners of good cars will not place their cars on the used car
market.
Dr. D. Selcen Ö. Aykaç

global used car market
• $819.52 billion (2003)
• 1999-2003 compound annual growth rate
4.2%
Dr. D. Selcen Ö. Aykaç

Europe Used Cars Market
Year Units Million % Growth
2003 27.3
2004 27.7 1.6
2005 27.8 0.3
2006 28.3 1.8
2007 (e) 28.7 1.5
CAGR, 2003-2007 1.3
Dr. D. Selcen Ö. Aykaç

used cars market
≈ 1.5 M vehicles per year
50% : independent traders
40% : C2C
10% : manufacturers
Dr. D. Selcen Ö. Aykaç

Independent Traders
Dr. D. Selcen Ö. Aykaç

C2C
Dr. D. Selcen Ö. Aykaç

Manufacturer Network Channel
Dr. D. Selcen Ö. Aykaç

Auctions
Dr. D. Selcen Ö. Aykaç

Who is the Used Car Ultimate Consumer ???
Dr. D. Selcen Ö. Aykaç

Used Car Buyer

Turkish consumers look for
• Affordable price
• Satisfactory vehicle history report
• Originality (no accident)
• Originality (unpainted)
• Vehicle integrity
• Low mileage on the odometer
• Good mechanical condition
Dr. D. Selcen Ö. Aykaç

Types of Consumers
• Frequent vehicle changers (Whimsicals): tends to buy
used car thinking that new cars will loose more of its value than used
cars
• Vehicle as an investment tool (Investors): used car
doesn’t loose its value as much as new car, even it’s a kind of
investment, it makes money while selling
• Business vehicle owners (Misusers): vehicles depreciate
more as a result of business use, then why buy new while there are
cheaper old ones
• Accessory valuers: it is much more economical to buy a used car
with additional accessories at market price
• High quality brand buyers (Prestige Seekers):
luxury/premium brand followers with limited purchasing power
Dr. D. Selcen Ö. Aykaç

Thanks
Dr. D. Selcen Ö. Aykaç 19