Fleet News

Motability scheme is a 'best practice' example

FLEET decision-makers could learn valuable best practice skills for disposing of their vehicles by following the example of Europe's biggest fleet, Motability Finance.

Although Motability vehicles are generally low mileage because their core market is providing transport to disabled people who receive Government disability allowances, they offer valuable examples in their disposal policy.

Adrian Rushmore, managing editor of Glass's Guide, said: 'Motability cars are well presented and, with low mileage, can be offered by dealers at attractive prices.'

By comparison, some fleets are struggling to sell vehicles, for a number of reasons. Rushmore added: 'There is little evidence of oversupply and the only cars that are plentiful are those with high mileage, poor specification, in below average condition or in uninspiring colours.'

Motability Finance recently launched its rebranded disposals arm, with 600 cars passing through three special sales at BCA Measham, Brighouse and Nottingham.

The remarketing arm is now called Motability Operations, and with its strapline 'Ex Motability Scheme cars – direct from the UK's largest fleet', is aiming to raise the profile of its vehicles going on to the used market (Fleet NewsNet July 24).

BCA customer affairs director Tom Madden added: 'The launch of this new brand underlines the continued attractiveness of the Motability Operations product to buyers, with these sales producing near 100% conversions and excellent performances against guide values.'

Fleets have been warned they need to consider disposal values when creating their vehicle allocation policy to ensure they only focus on taking vehicles on to the fleet that will sell easily in three years' time. Preparing vehicles properly for auction is also vital. Research has shown that fleet operators could be losing up to £130 million a year in vehicle damage costs because they are confused over the benefits of vehicle refurbishment.

A Fleet News survey, carried out last year in conjunction with paintless dent removal company Dent Wizard, revealed that 80% of companies that own their fleets achieve less than CAP clean price at disposal time. The research also revealed that 44% of fleets believe a vehicle's residual value could increase by up to 10% through removing dents and scratches. A further 7% felt it would increase values by more than 20%.

But 82% of the 126 fleet managers interviewed had not heard of paintless dent removal. Of the 23 firms that knew about 'smart' repair systems, 96% said it was an extremely effective form of body repair.

While 80% of respondents to the survey stated they would welcome dent removal on their vehicles, a parallel survey of dealerships in Fleet News' sister publication AM revealed only 43% of dealerships offer such a service, even though more than 90% use paintless dent removal on their own used car stock.

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