Rabobank has a market share of more than 50 per cent in the automotive sector. A very competitive sector with very low returns. Banks need to keep a close watch on current developments. For example by making monthly appraisals of trade inventories. DLL Automotive helps local Rabobanks to control the risks and has introduced a handy tool for monitoring stocks. In this newsletter we explain what DLL Automotive has to offer Rabobank.
Conditions in the automotive sector are challenging. Sales of new cars in 2014 have once again been disappointing, with the result that dealers are trying to generate extra returns by providing supplementary products and services such as car rental, leasing and after-sales concepts. DLL Automotive helps them with that. One way it does so is by providing solutions for funding (dealer-related) leasing companies. With one-on-one asset-based financing, for example, or financing based on the entire fleet of vehicles (borrowing base).
Appraisal of trade inventory
Many local Rabobanks finance the stocks of used cars at car dealerships. The value of the used cars fluctuates sharply. A careful check must be kept on the changes in value and also on the number of days the vehicles remain in stock. DLL Automotive has developed a system that shows the real-time trade inventory of dealers at any given time. The appraisal is based on Autotelex. The system also indicates the number of days-in-stock and the turnover rate. It provides a highly accurate view of the current worth.
Joost Simons (Sector Manager Automotive at DLL): “At first this tool was only used for Special Management, but local banks are now using the system more and more in commercial situations as well. At new clients, for example. Banks that have a subscription with us get a complete overview every month: what cars were sold, what cars were added, what is the average time-in-stock? It is impossible for individual banks to maintain such a finely-tuned appraisal of all the cars in stock. That would be far too labour-intensive. The tool is a good illustration of how we can make things easier for the banks.”
Cooperation with Athlon
To serve its customers in the best possible way, DLL Automotive works together closely with Athlon Car Lease. As the largest car leasing company in the Netherlands, Athlon knows the sector better than any other. DLL Automotive translates that know-how and expertise into solid solutions and collaborations.
A prosperous 2015!
In conclusion Joost wishes all his colleagues at Rabobank a prosperous 2015. “I wish everyone a very good year. A year in which we can do a lot of good business together. And if you get into a deal with a car dealership? Be sure to call in the automotive sector manager at DLL!”