Car: Societe Generale invests in the second-hand market
Reezocar feels the growing wings. At the end of 2022, the specialist in the online sale of used cars Société Générale launched a platform dedicated to 10 million customers, and various models were selected on this platform. But what is the relationship between this young shot and an institution that is more than a century old?
Founded in 2014, Reezocar was acquired by a banking network at the end of 2020. Today, thanks to the parent company’s subsidiaries, the site “is able to offer financing for all types of vehicles,” explains co-founder Laurent Potel. and CEO of Reezocar. This includes leasing with the option to buy with car loan specialist CGI, as well as long-term leasing with fleet management specialist ALD. Conventional loans and insurances are also provided by Société Générale. A unique asset to start with.
Read also Used car sales are booming, but will they be able to catch on?
Pioneer offer
Giovanni-Luca Soma, head of Société Générale’s banking networks in Europe, says that Reezocar “is to be the platform of reference in the distribution of financing”.
Reezocar feels the growing wings. At the end of 2022, the specialist in the online sale of used cars Société Générale launched a platform dedicated to 10 million customers, and various models were selected on this platform. But what is the relationship between this young shot and an institution that is more than a century old?
Founded in 2014, Reezocar was acquired by a banking network at the end of 2020. Today, thanks to the parent company’s subsidiaries, the site “is able to offer financing for all types of vehicles,” explains co-founder Laurent Potel. and CEO of Reezocar. This includes leasing with the option to buy with car loan specialist CGI, as well as long-term leasing with fleet management specialist ALD. Conventional loans and insurances are also provided by Société Générale. A unique asset to start with.
Read alsoUsed car sales are booming, but will they be able to catch on?
Pioneer offer
Giovanni-Luca Soma, head of Société Générale’s banking networks in Europe, says that Reezocar “is to be the platform of reference in the distribution of financing”. And it’s main competitor Leboncoin.fr does not yet have this type of offer.
Second hand number 3 in France
Reezocar website has 2 million visitors per month (source: company).
Because used cars are a big cake in France with 5.3 million sales last year. And their prices have been rising for several months due to the lack of certain new models: according to Reezocar, an average of 23,000 euros against 21,000 euros a year ago (and even 15,000 euros in 2014). “One way to reduce this increase is to pay monthly purchases,” adds the manager. So these split payments account for 40% of transactions, double what it was two years ago, and it’s likely to be over 60% in 2025, he said.
Read alsoWhy used cars are getting more and more expensive
Free Inspection
However, the implementation of a number of services is not enough. To become a benchmark player, you need to build customer trust. “Buying a used car is one of the worst experiences a consumer can have,” says Marine Boyer, Sales Director at Reezocar. According to Obvin, a specialist in online payment security, 15% of French people have already been victims of fraud during such a transaction. In order to minimize these risks, the car sold for 189 euros has been reviewed so far at the request of the startup. However, from spring 2022, the service is free and integrated into the financial offer.
Forums on the Internet are still hiccups in service. To reassure buyers, Reezocar opened a showroom and delivery hall with 400 cars in Lille (Nord). A shame for a digital platform with 250 employees. “We will open three more in 2023, with at least twelve in the medium term,” says Laurent Potel. But this diversification does not fully satisfy the shareholder because real estate is expensive… Another risk for sites like Reezocar is to face the builders themselves. “People’s purchasing power will not increase and a part of the population will turn to second-hand goods,” says Luca De Meo. As a result, Renault’s general manager chose to reinvest in this market, specifically in its subsidiary Mobilize Financial Services.
