NAMA Grading is helping digital trade buyers in terms of speed, accuracy and confidence and vendors in terms of conversions and values.
The online buyer is a key player in today’s remarketing sector and it is making a difference to the wider remarketing model, says NAMA.
Online trade buyers are comfortable with technology and use digital channels to access a wide range of stock, regionally and nationally. However, because they don’t see cars before they arrive and have that opportunity to touch, feel and listen to potential purchases, the potential risks of making a buying misjudgement do exist, it says.
NAMA has established clear condition grading as a minimum standard to minimise these risks.
Launched in 2014, NAMA told Fleet News that its Stock Grading Standard has had a significant impact on digital trade purchasing, providing a level of product quality reassurance.
Many NAMA members are going beyond the grading standards to ensure all buyers have a clear picture of the vehicle on offer with photographic evidence to support the condition report. Buyers can bid with confidence, it says.
The impact of grading has been to increase first time conversions, which currently are returning a £300 premium.
NAMA said buyers know this is stock they can market and turn around quickly and they are often prepared to bid strongly on it regardless of the auction location.
“As with any online service, integrity is all-important,” said NAMA’s Louise Wallis. “When it comes to used vehicles that dealers want to bring to market swiftly and ever mindful of regulation, notably the Consumer Rights Act, accuracy and depth of product information is a vital consideration.
“What we have been able to feedback to vendors is that a correct high integrity description significantly enhances conversion levels. Add this to good condition and the impact is to increase values achieved as well. For this reason, many of our members are successfully embedding their support into the fleet management pipeline helping the management of the de-fleet process.”