Fleet remarketing explained
Fleet remarketing is the process fleets go through to resale used fleet vehicles. Fleets need to minimise loss by retaining a sale price which falls in line with the vehicle depreciation. Some vehicle depreciation declines at a quicker rate then others and fleets need to go through several processes to remarket their vehicles to enable them to get a good price.
Remarketing when the vehicle is leased
End of contract charges reflect the loss of value in the vehicle to the leasing company when it is returned in a poorer condition than originally contracted. There are some procedures fleets can put in force to minimise the costs of these charges by putting in place like vehicle inspections, regular cleaning and document checks.
Fair wear and tear occurs when normal usage causes deterioration to a vehicle. It is not to be confused with damage which occurs as a result of a specific event or series of events such as impact, inappropriate stowing of items, harsh-treatment, negligent acts or omissions.
BVRLA produces three different Fair Wear and Tear Guides, for passenger vehicles including MPVs, light commercial vehicles and heavy goods vehicles. The aim of the guides is to provide an industry-wide, accepted standard that defines fair wear and tear when vehicles are returned to a BVRLA member at the end of a contract or finance agreement. The guides also provide advice for best practice in vehicle maintenance and upkeep that will prevent unacceptable wear and tear from occurring.
The industry standard is defined using both images and text for every aspect of the vehicle's condition in the following areas:
- General appearance, documentation, keys Image
- Paintwork, vehicle body, bumpers and trim
- Windows and glass
- Tyres and wheels
- Mechanical condition
- Vehicle interior
- Equipment and controls
Outright purchase remarketing
Rather than remarket the fleet vehicles in-house, many companies choose to send their used fleet vehicles to auction houses.
Selling vehicles by auction will usually provide the quickest and most reliable way for fleets to turn their unwanted vehicles into cash. The larger auction houses cater for all types and values of vehicles from the cheaper, higher mileages ones right up to the luxury end of the market.
For more on fleet auctions, visit the fleet auction page.
Fleet remarketing tips
There are a number of essential things which a fleet operator can do to further enhance a vehicle’s value when selling at auction.
Firstly, take full advantage of the services offered by the auction company which clearly add value, namely reconditioning where relevant, a good standard of valeting and the mechanical inspection report.
Additionally, the following actions will also ensure that vehicles are offered to the market in the best way possible:
- The V5 registration document should be present and with the auctioneer at the time of sale
- The up-to-date service records should also be with the auctioneer
- Any MOT certificate with less than three months to expiry should be renewed for a full 12 months
- Warrant the mileage, wherever you know this to be correct
We recommend that you carry out an appraisal of the vehicle before it is due to be returned. This will identify any damage that does not constitute fair wear and tear and requires repair.
Reconditioning, using smart repair methods, is a very effective way of enhancing a vehicle’s value and can be done very efficiently, as all work is carried out on-site on a ‘just in time’ basis.