If you manage a fleet of vehicles, no matter how big or how small, at some point in time you will have to decide what to do with vehicles that have reached the end of their useful life. It may be due to standards set by your company and only wanting vehicles made in certain years. It could be that the vehicle has damage or is just plain old. No matter the reason, vehicle remarketing is a phrase you will want to become familiar with.
What is Vehicle Remarketing?
Vehicle remarketing is the process by which fleet and lease vehicles are disposed of once they have reached the end of their term. Companies seek to remarket leased vehicles that the lessee decided not to purchase due to the depreciation on the vehicle. Once a company has decided it is time to dispose of a vehicle, they can enlist the help of a vehicle remarketing professional services firm or attempt to go at it alone.
Using a professional services firm has many advantages:
1. The fleet owner doesn’t have to take his or her time to find a buyer and go through all the paperwork.
2. Professional firms will be able to refurbish the vehicles as part of their services.
3. A professional firm should have various sales channels to leverage, allowing them to source the best deal for your vehicle.
Vehicle Remarketing Strategies
When it comes time to remarket your fleet or lease vehicles a few options are available. Depending on the service provider you decide to work with may influence if all or these or only a few are available.
1. An auction is one option and allows various parties to bid on your vehicle. Well-known auctions include Manheim Auctions and ADESA Auctions. In these settings the vehicle is usually, though not always, sold to a dealership that will then sell the vehicle to consumers.
2. For those looking to avoid the auction setting, the direct to dealer approach can be used. As the name implies, the fleet manager will sell their inventory directly to a dealership.
3. Selling the vehicle to the driver or employees of the company can also be done. This method is very useful since it reduces the time that a vehicle sits idle. In many cases, the vehicle can be sold prior to the lease ending.
All of the above sales channels can be done electronically. For example, using an online vehicle auction platform or having a portal for employees to view soon to be available vehicles. Leveraging technology can help reduce transaction costs and expedite the time to sale.
Working With a Vehicle Remarketing Firm
When it comes to working with a professional vehicle remarketing firm, each one is different. Prior to engaging the firm it is critical to understand their specialties. For instance, if you have a fleet of sedans engaging a firm that specializes in passenger vans might not work to your advantage. It is also important to get a sense of their sales channels. Do they have relationships with dealerships in your area? Are they able to transport the vehicle if that is required? All of these will be important components to consider prior to working with a professional firm.
If you are new to vehicle remarketing and are looking for a service provider, check out of list and find one that works best for you.