Mobility Centre Strengthens Used Cars Practices with JP.cars

With three branches and a studio in the heart of the city, Mobility Centre is the leading Volvo dealership in the greater Rotterdam area. In addition to supplying new models, the sales of used cars are increasingly important for Mobility Centre, which is why they have partnered with JP.cars for assistance.

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“Strengthening our used cars practices, boosting our turnover rate, reliable data – all in all, Mobility Centre and JP.cars make a great match.”

Prepare for the Future  

Going forward, the Barendrecht branch will be the main site for used Volvos. “As Volvo prepares to transition to agency sales, we are planning for a single branch for new cars – probably our Rotterdam location. This means that our Barendrecht branch will offer used cars exclusively,” said Griffin Houppermans, Location Manager at Mobility Centre Volvo Barendrecht.

“Our used cars showroom in Barendrecht currently features some 60 to 65 models, with new Volvos on the first floor. The switch to 100% used cars means that we can stock almost 100 cars in Barendrecht. This is why we have started preparing for the future – and it is JP.cars’s software that helps us strengthen our used cars practices.”

 

Responding Faster to a Dynamic Market

While the increased emphasis on used cars was a primary factor, Mobility Center’s decision to partner with JP.cars was also driven by the dynamic changes in the market. Where common sense and gut feeling used to inform decisions, there is now a growing need for reliable data.

“There is no going back to working without data. We used to make a few calls and ask each other: ‘What do you think?’ And there would be a difference of a couple of hundred euros. Now, the discrepancies are much larger, which makes the impact that much bigger. This can really affect whether you make a deal or not – or even purchase an entirely wrong model. The JP.cars software enables us to compare with a larger number of cars and access reliable data. As a result, we can make well-informed decisions.”

 

Daily Focus on Data

It was the data accuracy that convinced Mobility Centre, in particular when it came to appraising cars from other brands. Says Griffin: “We monitor the market every day to keep track of the details of our used cars in stock. Obviously, data accuracy is very important in this context. We also exchange many cars from other brands and JP.cars provides us with reliable information that allows us to make solid comparisons.”

Perhaps the biggest progress for Mobility Centre is the grown awareness and the daily focus on data.

“In the past, we would occasionally postpone certain tasks. But now, we receive daily mails with points of concern for certain cars, urging us to address any issues immediately. Our entire team focuses daily on this, which is a great step forward. We monitor the cars that require attention every day. ‘What is wrong with the ad? Do we have a pricing problem?’ The stock days policy in the software is perfect for this. It helps us reduce our stock days, which increases turnover rate.”

 

Bright Future

Griffin is all for a long-term partnership between Mobility Centre and JP.cars. “The software aligns with our vision and expansion plans for used cars. Strengthening our used cars practices, boosting our turnover rate, reliable data – all in all, Mobility Centre and JP.cars make a great match. If you are looking to future-proof your used cars sales, this is the way to go.”

“You can quickly assess the car’s marketability and price worthiness, which helps us work more efficiently.”

“Does it have a high marketability and will it sell?” is a frequently asked question in the automotive industry. Answering this question consumes a lot of time and effort. “Previously, to determine the purchase value and selling price of a car, we would browse websites listing cars for sale. Not very efficient,” says Mark Slegt, Used Car Manager at Auto Hoogenboom. “Towards the end of 2021, JP.cars came on our radar and demonstrated that their data was sufficient to answer this question.”

Consequently, Auto Hoogenboom decided to work with JP.cars. The software provides a wealth of relevant information, which according to Mark is unique in the automotive industry. “You can quickly assess the car’s marketability and price worthiness, which helps us work more efficiently.”

Since the start of this year, Mark has been actively working to harness the full potential of JP.cars, utilizing it for purchasing and dynamic pricing.

 

Adapting to market developments

“The used car market fluctuates so much that we need to consistently monitor our inventory to maintain turnover rates. This gives rise to what we call: Dynamic Pricing. Every week, we review our advertised inventory to determine if adjustments are required, guided by the data JP.cars offers.”

 

A foundation for decision-making

But that’s not all, as Mark points out: “To employ a successful strategy, you need insights. JP.cars grants clarity through management reports. For every branch, we can view the vehicles available, along with their days on lot, turnover speed, and marketability relative to the broader auto market.”

"JP.cars is constantly engaged in guiding the customer to ensure it becomes a success story. That, to me, is very important."

Examining procurement and sales

Radu Nicodim (Managing Director of My Way), made the switch from consultancy to the automotive industry four years ago, enticed by the changing landscape. “The automotive market is currently undergoing a 180-degree turn, with changes such as electrification and a shift from physical to online sales channels.”

My Way’s business model aligns perfectly with these shifts. Radu: “My Way caters to both B2C retail (My Way) and B2B wholesale (My Way Pro). Customers can buy cars from physical showrooms, or entirely online. In this case, they can choose when and at which My Way location they want their car delivered. My Way maintains a network of 20 dealerships that purchase vehicles and sell them to end customers.”

On the purchasing side, My Way also manages two sourcing channels. “One from D’Ieteren itself and the other involves purchasing cars from various locations across Europe, driven by competitive offers.” The company places great importance on monitoring and optimizing these buying and selling channels, based on data-driven insights within the Belgian market. In this endeavor, My Way heavily focuses on data analysis and dynamic pricing.

 

From proof of concept to business-wide integration

My Way was looking for a partner to support their vision and found the perfect fit in JP.cars, based on a recommendation from a Dutch client. Radu: “My Way is a startup, and we embrace an agile approach. The decision to start a pilot with JP.cars was swift.”

The most important aspect for My Way? “The accuracy of the data, as the software informs decisions involving millions. If the data is inaccurate, this poses a significant business risks.” During the pilot phase, My Way was highly impressed with JP.cars’ reliability index. “When the confidence index is high, the quality of the data is always correct. This enables us to determine when to rely on the data and when to involve our experts.”

Additionally, the system was perceived as user-friendly. “In the past, we’ve used other tools for analyzing data, but they often provided too much information. This made it complex and hindered adoption.” Based on these findings, My Way decided to roll out JP.cars across the entire business.

 

 

The right car for the right price

During the pilot phase, My Way utilized JP.cars for dynamic pricing. Now, it’s time for the next step. Radu: “We will introduce JP.cars into the My Way network of twenty partners, enabling them to price their vehicles more accurately and make their stock more dynamic.”

Looking ahead, JP.cars will also be employed for procurement in the wholesale market. “We receive numerous offers each day for cars on the international market. JP.cars helps us rapidly scan through this vast volume. However, the final decision always rests with one of our experts, someone with real-world automotive experience. But this person is backed by powerful software.”

For Radu, the ‘attractiveness score’ (ETR) is crucial. My Way’s main focus is not just buying cheap cars, but acquiring vehicles that have a strong performance in the market. Using JP.cars, they can conveniently filter out attractive cars, both for B2B and B2C.  

“Instead of asking someone to manually inspect and analyze a hundred cars one by one, we use JP.cars to immediately focus on the top 25 most interesting vehicles.”

 

Succeeding together

Radu applauds the collaboration with JP.cars. “The way JP.cars approaches the relationship with the customer, is truly outstanding,” says Radu. “You can see that they are a young and dynamic company as well. They are constantly engaged in guiding the customer to ensure it becomes a success story. That, to me, is very important. For instance, our team initially had a weekly meeting with the expert from JP.cars.”

 

Looking towards the future

A successful collaboration, indeed, that continues to grow on the business front. JP.cars will play an important role in helping My Way Pro identify the best alternatives at the European level, when cars cannot be sold in their own market. “Currently, we have data for the Dutch and Belgian markets. Together with JP.cars, we plan to expand this in the future to include France, Germany, and more.”

What determines My Way’s success in the long-run? “A tool like JP.cars should assist us in enhancing two KPIs. First off, the turnaround time of vehicles, by purchasing cars with high marketability. We already see a positive trend here. Furthermore, we aim to optimize our profit margins.”

"With JP.cars, we can obtain the right prices and recommendations within seconds. This makes our purchasing team highly efficient."

Responding to market changes

“With such a vast number of locations, it’s crucial for us to continue making the right moves to maintain and strengthen our current position,” says Jacco Poldervaart, Director of Used Cars at Hedin Automotive NL. “Because the market is constantly evolving.”

“We’ve had two good years. During the COVID-19 pandemic, many manufacturers faced supply issues, resulting in fewer new cars available and increased demand for used cars. But now, new cars are being produced again. So we need to strategically respond to the opportunities and threats in the used car market.”

However, there are more developments in the new car market. Manufacturers are increasingly adopting the agency model, meaning they directly deliver their cars to consumers through importers. Previously, consumers used to order their cars through dealers who could set their own profit margins. Now, the dealer has become an agent who receives a delivery fee for their services. Brand dealers have less control over the sales of new cars, which is why Hedin Automotive chose to expand its used car operations.

 

Focus on data

To be able to quickly respond to these changes, having the right market information is crucial. Jacco: “We took the first steps years ago, by developing our own Power BI dashboard. But it’s a new day and as such, we had the ambition to take our data capabilities to the next level.”

This aligns well with Hedin Automotive’s vision for the future, aimed at growing their volumes and results. “This means that significant changes are needed in some stores, while small optimizations will suffice in others.” These decisions could be made based on intuition, but Hedin Automotive prefers to be guided by data.

 

From pilot to full rollout with JP.cars

Last year, Hedin Automotive started looking for a partner who could help them with their data ambitions. After comparing various tools, they ultimately chose JP.cars. Partly because it allows Hedin Automotive to unlock relevant data for their own Power BI dashboard.

“But for me, ease of use is one of the most important factors,” says Jacco. “JP.cars allows me to quickly access the KPIs at a cluster or branch level. And it’s a great tool for the local sales teams to work with. Additionally, JP.cars is at the forefront of dynamic pricing, which gives us a competitive advantage in the occasion market.

“To try out the software, we started with one cluster of locations during the pilot phase and gradually expanded from there. This allowed us to see the added value of JP.cars. We’ve also had positive experiences with their support. They actively contribute to our strategy and provide innovative ideas we can implement.” JP.cars has been rolled out across all Dutch locations as of March 1, 2023.

 

 

Monitoring inventory

Hedin Automotive primarily utilizes the software from JP.cars to monitor their inventory. Jacco and his colleagues can track which cars are being sold and determine the average time in stock. “Inventory turnover is an important KPI for us. Despite certain market developments, we see a positive trend in this area.”

“We partly owe this to the insights from JP.cars and the strategic recommendations they provide. Within the tool, we have established several company-specific protocols, which for example allow us to actively sell older cars first.”

 

Daily pricing

Additionally, JP.cars is leveraged for dynamic pricing, meaning the sales price is adjusted daily according to the market. Jacco: “This means we engage in pricing activities on a daily basis. JP.cars is an excellent addition for us. The software scans the market every day and proposes a sales price. The brand specialist then decides whether or not to adjust the price based on the recommendation. This ensures that we are always aligned with the market and optimize our returns.”

Jacco also sees opportunities in purchasing. Because JP.cars doesn’t only provide pricing advice but also offers real-time insights into the marketability of cars. “This doesn’t mean we automatically overlook any slow-selling cars. It’s all about striking the right balance with the purchase

price. Ultimately, we can find a happy customer for every car, as long as we have a sufficient margin between the purchase and sales price. This matters for the long-term success of our company”, says Jacco.

 

Growing with JP.cars

Although the collaboration with JP.cars has only just started, Jacco can already see that Hedin Automotive is successfully keeping up with the market. A positive outlook. “Compared to the past two years, we’ve managed to grow our volume while keeping our margins at a minimum. That’s definitely a win-win for our company.”

As such, JP.cars will remain significant for Hedin Automotive’s growth in the future. “Hedin Mobility Group operates in many European countries, so it’s also interesting to explore how we can incorporate cross-border purchasing advice. JP.cars can help us connect international markets.”

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