New product development for premium leasing brands
Volumes of certain premium car brands are now so high e.g. Mercedes C-Class, BMW 3 Series and Audi A3s that they are overtaking some mainstream brands. This oversupply in the market affects used prices (e.g. 10 years ago 3 Series would achieve approximately 50% of list price as a used asset at 36/60, but is now just 30%).
Another issue is that bringing premium brands to disposal channels (auction) even when volumes are low has a cost barrier. For example used Teslas are still commanding strong used values with auction prices £50 - 60k plus.
Both of these problems (over supply and cost barrier) can be solved by creating data led products that deal in re-leasing these used assets.
Re-leasing keeps them in a profitable cycle until either market conditions improve (or disposal is more profitable than re-lease) or until further asset depreciation occurs and the cost barrier is reduced. And there are considerable benefits in re-leasing older stock for both the leasing company and end customer.
Leasing Company Benefits
In short, if you are not investing in your data analytics capability to design more relevant and therefore more attractive products you will find your business at a competitive disadvantage.
If you want to discuss this in more detail please feel free to contact me here.
Founder and Managing Consultant
Blue Label Consulting
Brendan launched Blue Label Consulting in 2011. With innovative use of Data through emerging data sciences such as AI and other quantitative methods, he delivers robust analytics and actionable insights to solve business problems.