Germany-based Auto1 Group SE has launched a digital floorplan financing service for select partner dealers in Germany, Austria, France and Spain.
“Auto1 Finanzierung is a very attractive business for us on a stand-alone basis. Enabling dealers to build larger inventories with it and as a result buy and sell more vehicles will be a strong future revenue and profit driver for us and will contribute significantly to our growth,” said CFO Markus Boser.
As managing director for Germany Denis Belan explained in a LinkedIn post, the service is integrated in the platform’s website, and dealers can see all the related transactions and costs in their dashboard. According to the company, 500 merchants are currently using the service, and the goal is to expand it to other dealers and markets throughout 2024.
In order to launch this product, Auto1 Group entered into a €125 million asset-backed securitization (ABS) program to refinance the receivables generated, with BNP Paribas as senior note purchaser. The program is designed with a view to cover additional markets in the future.
“We give used car dealers the means and flexibility they need to grow their business faster with us. We’ve received overwhelmingly positive feedback and we are certain that being a reliable and strong financing partner for our dealers will deepen our relationships with them,” added CEO and co-founder Christian Bertermann.
In its Q3 2023 report, Auto1 Group reported that its revenue declined by 24.5% year on year (y-o-y) and by 3.6% quarter on quarter (q-o-q) to €1.3 billion ($1.4 billion U.S.). However, the company said it reached its profit goals a quarter earlier than expected.
Established in 2012 and a listed company since 2021, Auto1 Group SE is present in 30 countries and operates such consumer brands as WirKaufenDeinAuto in Germany and CompramosTuCoche in Spain (both of which literally mean “We buy your car”). According to the company, it is the largest wholesale platform for professional car dealers in Europe.