Fleet News

Remarketing: Act now to avoid big losses

FLEETS need to act now to avoid losing millions in the coming months after figures show the January used market was weaker than it traditionally is.

BCA reports that retail-quality and niche stock continues to achieve premium prices, but that less desirable, high-mileage, big-engined vehicles with a poor specification are struggling.

BCA sales director Mark Hankey said: ‘In short, the market is solid but no better. Historically, January brings high demand and strong trading. However, with values and retail activity remaining remarkably buoyant in November and December, there has not been the scope for a marked step-up in activity or values.’

Hankey recommends fleets obtain valuations on a unit-by-unit basis for success in the current climate. He claims that by seeking prices that are unrealistic in terms of vehicle condition and market demand, vendors will see conversions drop and holding costs rise.

‘It is a disturbing prospect if major fleets are holding on to millions of pounds worth of over-valued, poor condition stock in the lead up to the new registration plate – which will, of course, make these vehicles look a year older,’ Hankey added.

‘There is no reason to believe the market will be any stronger in February or March, particularly given the increased stock that will be available after the March plate-change.

‘BCA’s advice is to value your stock accurately, sell it now and reduce your exposure to unnecessary holding costs and further drops in value.’

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