Press Release
New Indicata research exposes critical performance gaps in OEM used car networks despite positive market impact
Major study of 73 OEM franchised networks across 12 countries* reveals that while programmes outperform independents, most fail to deliver sufficient returns on investment.
- Analysis of 73 OEM networks shows systematic underperformance – most programmes failing to cover their estimated €1,100 per unit investment despite achieving €450 average premiums.
- OEM-owned locations consistently price below market – fundamentally undermining residual value objectives they’re designed to protect.
- Franchised dealers with superior used car capabilities still achieved 23% better new car penetration – proving the business case despite network shortcomings.
A comprehensive study by Indicata has exposed significant performance gaps across OEM used car programmes, revealing that while these initiatives show positive market impact, the majority of networks are failing to deliver sufficient returns on substantial investments.
The groundbreaking research analysed 73 OEM franchised networks across 12 countries, uncovering systematic issues that prevent manufacturers from maximising the potential of their used car investments.
“The results are eye-opening,” said Andy Shields, Indicata’s global business unit director. “While OEM used car programmes consistently outperform independent dealers, our analysis shows most networks are leaving significant value on the table through poor execution and inadequate performance measurement.”
Finding 1: Investment vs. Returns gap across 73 networks
Indicata’s comprehensive network analysis revealed a troubling disconnect between programme investment and returns:
- Total OEM programme investment estimated at €1,100 per unit across remarketing programmes, certified pre-owned initiatives, and network improvement.
- Average premium achieved: only €450 per unit – less than half the investment cost.
- Certified Pre-Owned dealers achieved 1.7% median price premium above market rates, with top performers exceeding €1,000 per unit.
- However, significant numbers of network dealers consistently price below market when first listing cars, missing revenue opportunities.
Finding 2: OEM-owned locations undermine their own objectives
Perhaps most concerning, the study found that OEM-owned locations fundamentally price lower than both franchised dealers and the overall market.
“If an OEM’s objective is to support residual values, managing their own networks is failing to achieve that goal,” Shields explained. “OEM-owned locations appear more focused on clearing old stock at high speed than supporting residual value objectives and network profitability.”
This finding challenges the assumption that manufacturers know better than their dealers how to execute used car strategies.
Finding 3: The silver lining – used car capability drives new car success
Despite network performance issues, the study’s analysis of 130 franchised dealers revealed a critical business insight that should encourage OEMs to address their programme shortcomings:
- Dealers with superior used car capabilities achieved 23% better new car penetration compared to weaker performers.
- 55% better new car penetration when maintaining strong focus on own-brand used vehicles.
- Significant improvement in overall profitability – strong used car operations benefit new car performance and aftersales.
“This data fundamentally changes how OEMs should view used car operations,” said Shields. “Used car capability isn’t separate from new car success – it’s the engine that drives it. The challenge is that most OEM programmes aren’t unlocking this potential.”
Indicata’s call to action for OEMs
The study provides a clear three-step roadmap for manufacturers seeking to address these performance gaps:
- Acknowledge the performance gap: While your programmes outperform independents, most are not delivering sufficient returns on the substantial investments being made.
- Implement proper measurement: Establish reporting structures that track real KPIs:
• Network share improvement for your brand
• Residual value enhancement through premium positioning
• Continuous improvement in network used car capability - Focus on execution excellence: Move beyond point-of-sale materials and warranties to help dealers optimise pricing, stock management, and operational processes.
“The opportunity is enormous,” concludes Shields. “OEMs that address these execution gaps will see dramatic improvements in both network profitability and new car performance. Those that don’t will continue to subsidise underperforming programmes while missing significant value creation opportunities.”
About Indicata
Indicata, part of the Autorola Group, is a leading provider of automotive market intelligence and valuation services across Europe. The company delivers comprehensive data and analytics to support automotive professionals, financial services, and fleet operators in making informed decisions about vehicle valuations and market trends.
*12 countries include: Austria, Belgium, Denmark, France, Germany, Italy, The Netherlands, Poland, Portugal, Spain, Sweden, United Kingdom