Celik Motor adds groundbreaking content to Garenta and ikinciyeni.com products
Garenta and ikinciyeni.com are two Celik Motor brands already well known to Turkish corporate fleet professionals. From the next few weeks onward, their offerings will significantly expand to include a groundbreaking range of services, from car sharing to remarkting, both to businesses and individuals. ÃÂOur products will become the benchmark for the Turkish fleet industryÃÂ, says Anil Karaca, Group Director of Operational Leasing and Rental Cars at Celik Motor.
Çelik Motor is an automotive company with some pedigree. It is the oldest business within Turkey's powerful and wide-ranging Anadolu Group. The Group continues to operate across many regions, via partnerships with world-leading brands and in cooperation with various multinationals. In Turkey, ıt has a manufacturing joint venture with Isuzu, to name but one high-level partnership.
Çelik Motor's three main business units are: operational leasing (comprising almost 22,500 units), rental (started up two years ago, with now around 4,000 units) and remarketing (initially to defleet its own vehicles, now around 13,000 units annually). Additionally, Çelik Motor is the exclusive distributer of KIA in Turkey.
“Garenta is the name for our rental business, but it has become so successful that we have decided to bring all our leasing activity under the Garenta umbrella”, says Mr. Karaca (picture). “This will enable us to achieve synergies on an internal level, and generate cross-business gains externally”.
The newer, improved Garenta brand will launch at the beginning of April with a big above-the-line marketing campaign. Garenta will not just stand for rental cars, but also for long-term leasing, private leasing and even car-sharing.
Why private leasing? Isn't that a very expensive option under the current Turkish tax system?
“That's right. Private lease does not deliver any tax advantages to individual customers – yet. We believe that this will eventually be the case, and then private lease will have a great future in Turkey. That's why we wanted to be ready, and start offering the option already via our website. We are the first place in Turkey where individuals can lease vehicles completely online. Since a year ago, we do already have about 1,000 private lease customers. Of course, they don't do it for the tax breaks. But they appreciate the convenience offered by the lease formula”.
Çelik Motor has been testing a corporate car-sharing offer, powered by German technology, that will also be included under the Garenta umbrella. “For some companies, this option will be much more feasible than leasing. Say they have 5 to 10 cars in the garage, our system allows their employees to share them as optimally and flexibly as possible. We even include the option for employees to rent their company's shared cars for private use, for example to take their families on a weekend trip”.
The second brand being overhauled by Çelik Motor is Ikinciyeni.com, its remarketing platform. Initially strictly a B2B platform mainly used by car dealers, it was opened up to B2C, and will soon become Turkey's first C2C remarketing platform where cars are sold through an auction system.
“As our rental and leasing business grew, so did the issue of remarketing our end-of-contract vehicles. That's why we decided in 2011 to be different from the rest of the market and set up our own portal. We correctly identified online remarketing as a hidden opportunity. Using our own platform allowed us to increase resale price, maximising our profits”, says Karaca.
An even better move proved to be opening up ikinciyeni.com to private customers. “They need to register in order to bid on the cars. We have over 83,000 members, and expect to have around 125,000 by the end of this year. They obviously help to drive up the price as well for the cars being resold. This is not only good for us, but also for distributors of new vehicles: the smaller we make the price difference between second-hand and new cars, the better it is for their business, because we increase the incentive to buy new cars. Also, Ikinciyeni.com increases our status with suppliers, as they know we will get a very good price for the cars at the end of their first life!”
20,000 per year
But Ikinciyeni.com will undergo another revolution at the end of this year, when customers can not only buy, but also sell cars on the auction site. “We are still testing for the optimal way to do this, but the general principle will be that consumers can apply to sell their car on the website, and that we will then have experts valuate their cars. Then the sellers can offer their car up for auction at a price set by themselves. We will start small, with between 500 and 1,000 vehicles sold like this next year. But if the formula works well, this could rise exponentially, to 20,000 vehicles sold per year”.
This would also be a first in Turkey. “Being a part of Anadolu Group combined with our experience and knowledge of the dynamics in the industry, we have decided to invest in the SAP system for our core businesses. So it won't be easy for our competitors to imitate us”.
We intend to stay what we are now: the benchmark in Turkey for the fleet and lease industry”. | 22/03/2016 | Frank Jacobs