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The number of sold cars continue to grow year by year. Thus, in 2016 total used cars sales in the world are projected to grow by approximately 4% comprising 75,24 millions of units. There were sold xx,xx millions of units 18,2% of total world sales in Europe . Share of USA comprises xx% from total world sales. xx,xx millions of units were sold in 2015 what is xx,xx% from international car sales.
Q2 of 2016 closed with x.xM vehicles sold in the used market, an increase of x.x% over the previous year. Franchise used sales showed a x.x% increase over 2015 and had its best Q2 ever.
Last year, retail used prices passed the $18K threshold for the first time ever and in 2016, we’ve eclipsed the 19K threshold with a x.x% increase year-over-year. The average price continues to ascend as near-new vehicles are now the majority of franchise dealers sales and the demand for pickups and SUVs has helped to buoy residual values for these already expensive vehicles.
Global market size is larger than $x Trillion. The used car industry is a mega market which is highly fragmented and prices are non-transparent. European market size comprises more than EUR xxx bn. Market size for Germany, United Kingdom, France, Italy and Netherlands comprises more than EUR xxx bn.The examples of already running projects (registration required) are: CarPrice.ru, Etachki.com, AUTO1. AUTO1 is the fastest growing company in Europe. It shows a hypergrowth: 2013 A – EUR xxM, 2014 A – EUR xxxM, 2015E – EUR xxxM.
Delticom AG is represented as online retailer of tires and automotive accessories in Europe and has more than 42,000 offline partners (points of service – fitting stations) and announces new project – online car auction DeltiCars. Online auction is a platform for car dealers, where they can buy cars from private owners using C2B scheme. Dealers are interested in buying honestly and accurately inspected cars at the lowest price that the customers could agree.
Automobile owners evaluate their car to participate in the auction. They are interested to sell a car quickly, for only 30 minutes, and more expensive than buyout points (Trade-Ins). To do this, they are ready to come to the car inspection station (Checking point), to provide the car for inspection and to get the maximum price actually offered in 30 minutes. They have the right to agree with buyout price or not.
The project supposed to be started as Beta-product (MVP) in Germany at the end of December, 2016. After that we are going to scale the project by launching in France, Poland, Italy, Spain, UK during the year 2017. For 2018 we are going to cover all Western and Central Europe. 2019 – Japan, USA. 2020 – Eastern Europe, Australia. 2021-2012 – Near East, Africa.
Marketing strategy includes:
1) Delticom AG has 300 online-shops with tyres and auto parts + accessories. We place the advertising of DeltiCars auction on these web-sites and this way appeal to our new potential clients.
2) Own Clients Base – about x.xxx.xxx customers all over the world and it is growing. E-mail marketing to x.xxx.xxx potential clients: invitation to make free evaluation of their cars. Expected conversion about 3%.
3) Second iteration is contacting these clients through outsource Call-Center. We are going to call up clients with conversion about x%.
TOTAL NEEDED INVESTMENT: xxx xxx EUR.
PAYBACK PERIOD: x years and xx months
EBITDA MARGIN: 3rd year – xx%, 4th year – xx%, 5th year – xx%, 6th year – xx%.