Fleet News

High prices are 'not always best value'

FLEETS should review their remarketing partners periodically and not assume that just because prices are high they are getting the best value.

According to Guy Pearce, UK sales manager at the Fleet Auction Group, leaving any review until prices weaken means having to do it under pressure, when better deals can in fact be struck when the market is at its strongest.

He said: 'It is easy to see high residuals at auction as indicative of cost-effective remarketing, whereas in reality the strength of the market itself is currently a prime determining factor.

'Making sure now that your remarketing channel is maximising your net return, including such factors as commissions and de-fleeting costs, means you can be more confident they will represent good value when times get tougher. Rather than consider just how far over CAP clean prices you are getting, the true net value of remarketing the vehicle needs to be the criteria for judging the supplier's cost effectiveness.'

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