In an interview with AIM Group principal Jonathan Turpin at the AutosBuzz event in Barcelona today, Jost Dieckhaus (LinkedIn profile), VP of Germany-based digital dealer Auto1 Group, said that 60% of the cars that the company purchases are now priced automatically and that it intends to increase this figure to 90% in the coming years.
Dieckhaus added that the main barrier to reaching this goal was a lack of data — particularly data related to the cost of repairs and how this impacts valuations. He added that this data also made the refurbishment process more efficient. Auto1 Group posted an 82% hike in revenues in Q1 2022 annually to €1.6 billion ($1.7 billion U.S.).
The VP noted that around half of Auto1’s sales were cross border — vehicles purchased in Germany but sold in Spain. He added that electric cars presented particularly interesting arbitrage opportunities due to differences in subsidy regimes between different countries.
Dieckhaus also discussed how Auto1 had taken financing onto its own books, noting that this would improve its appeal to consumers. The money is intended to give the group access to scalable and low-cost capital to accelerate the growth of its embedded financing offer for AutoHero, it’s consumer-facing division. The company sees its ability to issue its own consumer car loans and access the asset-backed security market as important differentiators.