EMPLOYERS could sell a fifth of their vehicle fleet to employees or affinity partners instead of using traditional disposal routes and boost residual values by millions of pounds, according to a disposal expert.

Jim Kerr, the force behind the recently launched JTK Automotive, which specialises in vehicle remarketing solutions, believes that if fleets plan ahead, vehicles could be sold long before they reach the end of their fleet lives.

Effective remarketing could mean that before de-fleet day a sale would be agreed, a price set and a deposit paid for the car.

Kerr said: 'I believe the key to success in the used car market is to be far more proactive with the remarketing of vehicles prior to de-fleet day. Through effective affinity sales programmes selling directly to the driver, friends and family, the industry could save millions of pounds.'

Kerr also believes that selling to affinity customers would remove any worries about end-of-contract recharges if the car was leased and had incurred damage above fair wear and tear limits, as buyers would pay for the car in its current condition, without expensive refurbishment.

He added: 'We have clients who are seeing a real benefit to the business of more than £700 per vehicle. We believe that sales penetration of 20% is possible.'

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