Thanks for commenting. Do you have views on these businesses yourself? Please share if so!
From a quick glance, Aucnet is an interesting business, but more so for its electronics (smartphone) and luxury brand (handbags, watches etc) than for its car biz which is stagnant or shrinking.
Aucnet is partly a customer of USS and other physical auction houses. Its virtual-only concept has not gained much traction. Its other business in car auction basically helps clients to transact on the physical auctions, I believe.
Everyone needs speed (racing against depreciation) and certainty (of getting the best price) which cannot be provided by concepts like Aucnet’s virtual-only auctions. Need the deadline and the massive critical mass of buyers / sellers provided by USS’s monster weekly physical events.
Thanks tor your comment. I agree the car loans can provide extra revenue. My point was that they will likely be dilutive to group returns on capital, since USS’s core auction business is so attractive in this regard.
any thoughts on Aucnet or Autoserver?
Thanks for commenting. Do you have views on these businesses yourself? Please share if so!
From a quick glance, Aucnet is an interesting business, but more so for its electronics (smartphone) and luxury brand (handbags, watches etc) than for its car biz which is stagnant or shrinking.
Aucnet is partly a customer of USS and other physical auction houses. Its virtual-only concept has not gained much traction. Its other business in car auction basically helps clients to transact on the physical auctions, I believe.
Everyone needs speed (racing against depreciation) and certainty (of getting the best price) which cannot be provided by concepts like Aucnet’s virtual-only auctions. Need the deadline and the massive critical mass of buyers / sellers provided by USS’s monster weekly physical events.
Great writeup
This was a great article! Really like hoe the thesis is laid out. Interesting niche in Japan. Will do some digging myself.
Really enjoyed this, thanks...
"car loans are unlikely to add value"
Given the fact the percentage rate was increased, it's highly likely their financial services (loans department) will increase the revenue
Thanks tor your comment. I agree the car loans can provide extra revenue. My point was that they will likely be dilutive to group returns on capital, since USS’s core auction business is so attractive in this regard.