Fleet News

Fleets widen disposal routes

FLEETS are using a wider variety of disposal routes to sell their ex-company cars, according to the 1998 Lex Vehicle Leasing Report on Company Motoring. This has revealed that a quarter of fleets (26%) sell or trade in their cars with their local dealership while 12% sell de-fleeted cars to staff.

A significantly higher proportion (49%) of small companies (turnover up to £5 million per year) do use local dealers as a disposal route, compared to just 7% of large companies. The latter are five times as likely to use auctions to sell their ex-fleet cars as small firms, 21% compared to 4%, and overall 12% of companies dispose of cars through auction. This figure is artificially low because 36% of companies say they return their cars to their leasing or contract hire supplier, which would then be expected to sell the cars through auction.

'Disposal of company cars is a hassle for many companies,' says the report. It is a tedious and unrewarding process for most busy managers, whether in large or small fleets. The auction houses provide a quick means of disposal, but do not ensure top prices. Those using contract hire companies avoid the hassle of disposing of a car at the end of its useful life.'

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