Fleet News

Fleets warned to lower disposal reserves

EXPERTS are warning fleets to lower reserves if they want to avoid facing a difficult time disposing of vehicles over the next six weeks. As the May bank holiday approaches, Andrew Shepherd, Manheim's senior group auctioneer, is warning that buyers are already well stocked and fleets could see their cars being 'cherry-picked' at auction time.

As the market begins to show signs of faltering, Shepherd is urging fleet chiefs to be sensible and lower reserves if they want to see cars sold successfully. He said: 'If you accept that the market has declined and adjust reserves accordingly, then I see no reason why conversion figures should not remain high.'

Shepherd's comments were underlined by CAP Black Book editor Simon Goldthorpe, who said: 'The stock is in place for buyers to come out over the next six weeks but they're not in a mad rush.' Goldthorpe added that a readjustment of stock was important. 'The market is going to come down to a realistic level as more stock becomes available,' he said. 'Recently the market has been bullish and over the next six weeks buyers could hang back. But the used car market is not going to go over the edge of the cliff.'

Adrian Rushmore, managing editor of Glass's Guide, said: 'The market has already shown the first few tentative signs with conversion rate down 5%.' He added that there was less urgency for the car trade to acquire stock because retail demand was slightly fading. He said: 'We would normally expect the market to show signs of turning at this time of year. And the next six weeks will see even less urgency for buyers to go and find stock. But whatever happens this year it will be less severe than last year's collapse.'

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


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