Fleet News

Marketwatch: Market your cars in alternative ways

FLEETS should not surrender to simply cutting prices for end-of-term vehicles due to the high levels of unsold stock waiting at auctions at the moment, and should consider alternative routes to market.

Mike Pilkington, managing director of vehicle remarketing solutions, issued the call following BCA’s advice recently that fleet managers should consider taking lower prices than they might have done previously (Fleet NewsNet, August 5).

Pilkington said: ‘Whilst it is clear that there are larger volumes of higher mileage and older vehicles in the market, it is a very simplistic view that fleet managers should simply accept a knee-jerk reaction to lower residual values. There are a number of steps manufacturers or large fleet operators can take to protect values.

‘Fleet managers should consider a range of routes to market that best fit the profile of their stock. Discreet remarketing offers a complementary route to market that works with an existing auction programme.

‘The advantage of discreet remarketing is that it not only effectively masks volumes and so protects prices, but also targets buyers across the UK, where demand is highest.

‘This rifle shot approach is unique to vehicle remarketing solutions and a product of our advanced customer management programme. Fleet managers can accept what the doom merchants say or make a positive decision to support the residuals of their vehicles.

‘If they act to prepare their vehicles for sale properly and seek alternative routes to market it is unlikely they will lose such large sums of money when they dispose of end-of-term vehicles.’

Pilkington added that dealers were avoiding cars that required repair work so managers should consider undertaking cosmetic and hot metal repairs prior to sale, although decisions will also be affected by season trends – for example, in January when demand often outstrips supply dealers are more likely to buy vehicles that require repair.

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