Fleet News

Motability Finance unveils its disposal plans

EUROPE's biggest fleet, Motability Finance Limited, has unveiled its plans to create a world-class vehicle management and disposal programme for its 400,000 vehicle fleet.

MFL is the business arm of disability motoring scheme Motability and in 1999 announced it was taking residual value and maintenance risk for its fleet in-house in a bid to reduce costs and maintain low leasing rates.

Initiatives unveiled in detail for the first time last week could become a benchmark for service standards among fleets and leasing companies throughout the country as MFL gears up to dispose of about 150,000 vehicles a year through one department.

MFL has revealed it will operate one of the world's largest internet disposal operations as the first stage in defleeting returned vehicles, before offering them to an increasingly wide range of dealers and finally to auctions. It has also launched one of the country's largest vehicle appraisal services, to check vehicle damage before disposal, which will be operated by the RAC, using assessment systems from British Car Auctions.

Remarketing and disposals experts at the event last week remained divided about the impact the firm's plans will have on residual values.

Ford has already insisted it will retain control of the disposal process for its own vehicles which are supplied through Motability.

But during a briefing attended by remarketing experts from MFL, along with the firm's chief executive Ed Lester, senior fleet executives were told the industry had nothing to fear.

Jeremy Martin, vehicle remarketing program manager, said: 'There is no new volume here. All we are doing is changing the route. We expect to sell about 140,000 cars next year from all sources to around 5,000 dealers. Even if we do not auction a single unit, that is only 28 cars per dealer, per year or about one per fortnight each.'

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment

Comments

No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee