Collaboration between industry bodies often proves to deliver strategic advantage. A recently announced partnership between the UK’s Vehicle Remarketing Association (VRA) and its European-based counterpart CARA, the Car Remarketing Association Europe, is a case in point, with both organisations recognising the mutual benefits of working together.
Philip Nothard, chairman of the VRA, spoke to Automotive Management about what this partnership means for the industry and its members.
The VRA and CARA have long operated in parallel spaces within remarketing – one in the UK and the other in mainland Europe. However, as Nothard explains, the increasing overlap of businesses operating across both regions made it clear that a formal collaboration could offer significant advantages.
The UK’s used car market has long been seen as one of the most highly developed, unlike some nations on the European mainland where remarketing is still relatively in its infancy and some motorists still pass their used car down to family members.
Belgium-based CARA itself was established just a decade ago, in 2015, as an international non-profit body to support the market for used cars, and its members include organisations from leasing and fleet management, vehicle rental, data and operations plus motor auctions such as Autobid.de, Autorola, Adevinta, BCA, Copart, Cox Automotive and Openlane.
Yet remarketing professionals on both sides of the English Channel are seeking solutions to many of the same challenges – effective use of technology, electrification of the car parc and changing OEM strategies.
“As we saw at the recent members’ meeting, Luis – Luis Maria Perez Serrano, CARA chairman – was really excited about forming some kind of collaboration,” Nothard says. “We quickly moved forward with it because we’re both operating in the same space. Many of our members have businesses in both the UK and Europe, and with the way the market is changing, it just made sense to work together.”
He believes this partnership is particularly relevant given the impact of imminent regulatory measures. “There are significant changes happening, from tariffs and localisation of tariffs in Europe and the UK against China and the US, to the increasing presence of European dealer groups in the UK market. By joining forces with CARA, we can share expertise and provide a more comprehensive resource.”
Navigating regulatory challenges
According to the VRA chief, the UK’s departure from the EU remains the backdrop and while Brexit is a sensitive topic, the reality is that businesses are forced to navigate what today represents a hybrid regulatory environment.
“You’ve got increased regulation from country to country in Europe,” Nothard explains. “France has introduced the ‘malus’ tax – a one-time fee applied at registration to vehicles with high CO2 emissions or excessive weight, designed to encourage the purchase of greener vehicles – and there are other new tariffs in Europe that we haven’t yet seen in the UK.
“Then, there’s the unique situation with Northern Ireland, which remains part of the EU regulatory framework despite being part of the UK.”
Nothard says the VRA and CARA partnership offers a practical and timely way for businesses to keep up with these regulatory shifts. “We’ll have joint webinars, we’ll conduct sentiment surveys with members from both associations and we’ll attend each other’s meetings to ensure we’re fully aligned on the key issues facing our members.”
What this means for dealerships
From a dealership perspective, this collaboration could provide valuable insights into market trends and business strategies. “We’re seeing an increasing number of European dealer groups entering the UK market,” says Nothard. “On the flip side, we don’t see as many UK dealer groups moving into Europe but here’s a lot we can learn from each other.”
One area where this exchange of knowledge could be particularly beneficial is in the agency model – a retail structure which has gained significant traction in parts of Europe but which has yet to take off in the UK. “We’ve got Volvo, Mini, and a bit of Cupra on board with agency models, but overall, it hasn’t really been adopted here. However, as OEM strategies shift, we might start seeing more movement in that direction.”
A working group has been established by the two organisations to ensure the collaboration has tangible benefits “This isn’t just about words; we want to make sure we actually do something with this partnership and the working group will help maximise the benefits for our members,” says Nothard.
A challenging yet resilient market
Despite the advantages of this collaboration, the UK sector continues to face challenges within its own shores. Nothard notes that dealerships are under increasing pressure due to rising costs. “Minimum wage increases, National Insurance hikes, corporation tax, capital gains tax – these are all hitting businesses hard. Add to that the ongoing uncertainty around vehicle taxation, luxury car tax, and new regulatory requirements, and it’s clear that dealerships have a lot to navigate.”
Even so, Nothard says he remains optimistic about the resilience of the sector. “Supply and demand are fairly balanced at the moment. While demand isn’t particularly strong, we’re not seeing an oversupply either. By the end of Q2, we expect an increase in vehicle volume, and hopefully, consumer confidence will have improved by then.”
As cars become more technologically advanced, he believes data security and AI will become key areas of focus. “In-car data and connectivity are big topics right now,” says Nothard. “With greater vehicle connectivity comes questions around data ownership and privacy. That’s something we’ll be addressing as part of our collaboration with CARA.”
Artificial intelligence is also making waves in the industry. “At our last VRA call, we talked about AI and where it fits into vehicle remarketing in terms of how can AI improve efficiencies and where can it create new job opportunities. These are the kinds of questions we need to be asking.”
Looking Ahead
While 2025 is expected to be a fairly level year for the industry, Nothard believes that clarity around key regulatory issues will be crucial. “The sector just needs stability. We need fewer U-turns from the government and more certainty about the ZEV Mandate, tariffs, and taxation. Once we have those answers, businesses can start planning more effectively.”
Ultimately, the VRA and CARA partnership represents an active approach to navigating these challenges and Nothard is confident that by sharing knowledge, resources and expertise, both organisations will be better positioned to support their members in an increasingly complex market. “This collaboration gives us a bigger voice in the sector,” says Nothard, “and that’s something we can all benefit from.”