Revolutionising Remarketing: How AI is Driving the Future

The remarketing sector is on the cusp of a transformative era as artificial intelligence (AI) integrates into processes like vehicle health assessments, movement logistics and optimising stock selection.

This year’s Vehicle Remarketing Association Automotive Summit heard how the convergence of AI, data analytics, and comprehensive health checks are set to redefine vehicle assessment.

AI promises not just efficiency in vehicle valuations through better diagnostics and improved ‘honest broker’ transparency through the use of third-party technology partners but also stands to streamline operations through the use of optimised data around business areas such as logistics and stock selection in a bid to drive profitability.

As 2025 approaches, delegates heard how these technologies will likely become increasinly critical to forward-thinking remarketing businesses, enabling smarter, faster, and more sustainable practices.

Comprehensive Battery Health Checks

As electric vehicles (EVs) gain popularity, the focus on battery health testing has emerged as a crucial aspect of comprehensive vehicle evaluation and AI's role is enabling accurate, efficient, and data-driven decision-making.

Battery health, as Nikolaus Mayerhofer, chief technology officer at battery health diagnostic specialist Aviloo, explains, is a mystery to many due to its complex nature.

Unlike internal combustion engines (ICEs), which have been understood and repaired for over a century, batteries require specialised testing to detect anomalies like cell defects or issues with the battery management system.

Mayerhofer reported that Aviloo’s AI-powered diagnostic tools have conducted nearly 100,000 tests, helping to identify red flags often missed by traditional systems, providing workshops and garages with actionable information at the cellular level, as well as reassuring the EV car owner.

“It's like a helping hand for the garage to repair the vehicle because when they plug the EV into their diagnostic system - and there is no error code and there's no lamp going on - there needs to be third parties to show the garage that there's something wrong with the car.”

However, the industry's focus on battery health raised one delegate to question why internal combustion engine (ICE) assessments aren't given the same attention.

Mayerhofer believes this stems from the relative simplicity and lower replacement costs of engines compared to batteries. “The battery value is significant,” he explains, “and it’s a mystery - you cannot just pop the hood and inspect it like an engine.”

Vehicle remarketer BCA earlier this year launched a EV battery health grading service for prospective EV buyers where Aviloo technology is connected to a vehicle's On-Board Diagnostics interface to offer a clear snapshot of the battery health.

Each EV - and BCA plans to sell over 40,000 of them in the next year - is assigned a grade from A to E, along with a precise numbered score based on Aviloo's manufacturer-independent 'Flash Test,' which not only assesses battery health but also detects potential defects.

Optimising Vehicle Movements

Beyond diagnostics, AI is revolutionising vehicle logistics. Elliott Perks, cofounder and CEO of start-up Jigcar, highlighted the challenges of managing vehicle movements, such as coordinating cars traveling between locations.

Traditionally, this has been a manual and data-scarce process. By leveraging AI, companies can optimise routes and resources, reducing costs and improving efficiency.

"AI allows us to suggest the best resource for a movement based on cost, speed, or other factors," Perks states. This approach minimises inefficiencies, especially for businesses handling large fleets.

“We're basically building capabilities to start doing certain things. Say a group is requesting a bunch of movements. How do you marry up those movements? So cars going from A to B, while other cars need to go to C. One driver does that, one third party does another and another third party does another and you end up potentially spending triple the cost of movement.”

Earlier this year Jigcar completed a £750,000 pre-seed funding round to develop a platform using AI to manage and optimise logistics across internal drivers and third-party logistics providers.

Founded by three former members of Cazoo, Jigcar aims to transform the logistics operations of multi-site car dealer groups by optimising stock turnover, reducing costs, and improving customer experience

Already, the company says it has gained traction among the top 50 UK dealers, including partnerships with well-known franchise groups such as Glyn Hopkin, Steven Eagell, and Perrys Motor Group. Jigcar is currently building up its capabilities to be able to target these efficiencies but it believes that its AI solution can already start making inroads without an arsenal of historic data.

“I don't think you need loads of data,” says Perks. “You just need to see what has been happening, let's say, over a three-month period, in terms of movements, and then we can look back and start.

“One of the things is looking back at all the movements that have happened. Anyone requesting movement might use a bunch of different resources across the business: internal drivers or a third party in the marketplace. How do you make calculations on which of those resources is going to do the movement best for you? What’s your focus? Is it the cost of movement? Is it the speed of movement? We can suggest which resource should actually do that.”

Data enabling Better Decision-Making

Data can drive not only diagnostics but also inspection processes. As Maarten Bekkers, founder and CEO of AutoChat, points out, AI tools could easily employ large language models to process inspection reports in various languages, simplifying decision-making for buyers.

The business' AI-powered communication platform AutoChat PRO officially launched in August with Devonshire Motors as its first customer in the UK. 

While AutoChat has been available as an AI assistant for dealership websites and the latest evolution for some time, AutoChat PRO offers an AI assistant to dealership staff, including customer contact centre employees, receptionists, and sales staff.

Instead of manually searching for information, staff can use the AI assistant to quickly retrieve the details from these documents, providing instant answers.

The business also plans to integrate vehicle inventory, workshop planning systems, and DMS connections to make the life of a dealership easier, allowing employees to work smarter, not harder.

"Inspection reports vary in quality," Bekkers noted, "and AI can help make these easier to understand, building trust in the process." This is particularly important, he believes, in different language markets and which require procedural differences, where transparency could be key to fostering buyer confidence.

“We don't focus on offering our solutions to auction houses. We do talk to them and we're giving also some expertise away, trying to actually incentivise them to start working with this technology but for now, we're just focusing on retail.”

For retailers, accurate data enhances lead generation and inventory management. Danny Minshall, regional retail manager at Greenhous Group, stresses that data is a critical business tool, enabling businesses to adapt quickly to market changes.

Greenhous’ speed to market is five days for cars acquired at auction and this level of agility sets the business apart in being able to meet market demands swiftly.

That speed to turn around auction stock has been achieved through streamlining inspection, repair, and detailing processes at fleet centres and using advanced AI tools for vehicle photography and automated listing processes. Improving sales velocity and inventory turnover will remain a strategic goal in 2025, according to Minshall.

“We're in a position where we've got 13 software engineers that work in our business, so we can change the data very quickly. At the moment, we're focusing on speed to market, but then conversion is still important as the amount of leads you get into your business is also critical. So our data suite is very extensive. In fact, data is the most valuable tool we've got as an asset.”

Single Point of Remarketing Truth

As the industry progresses, the convergence of AI, data analytics, and comprehensive health checks is set to redefine vehicle assessments.

Despite these advances, challenges remain. Standardising AI-powered systems across manufacturers and regions is difficult, especially with the influx of new EV models. Mayerhofer estimates Aviloo will have a coverage of around 98% of EV model types in Europe but acknowledges the hurdles in addressing the rapid volumr growth of EVs. 

Mayerhofer envisions a "battery vehicle pass" that consolidates all vehicle health data, from battery diagnostics to overall condition. This innovative approach aims to empower remarketers by providing a holistic view of a vehicle's state. “One single solution would be ideal, though integrating diverse technologies will be challenging,” Mayerhofer concedes.

“However, I believe we’re moving towards a unified pass that evaluates the entire vehicle condition enabled by AI. I think one single solution would be the finest one combined through using AI.”