These words are highly relevant to the UK’s fleet and business car market where research among senior decision-makers revealed that two-thirds were unable to estimate the percentage cost of vehicle remarketing within their company’s overall operating costs.
Undertaken as part of the grs “Best practice in fleet remarketing” report, the research among decision-makers from some of the country’s leading fleet operators and contract hire companies also showed that many do not measure the full and true cost of their remarketing, which more often than not involved a single-channel approach. However, many of those questioned also recognised the need to improve their processes and gain access to better management information, not to mention reducing their costs in areas such as refurbishment.
While the study indicated that price uncertainty was seen as the major drawback of auction-focused strategies, respondents said the most important factor in considering additional channels to market is the ability of remarketing companies to underwrite residual values – an area where grs can help.
“Vendors can choose how they work with us, whether it’s outright sale or residual value underwriting and we can also act as an agent where we use our extensive expertise and nationwide network of retailers to sell vehicles on a vendor’s behalf,” explains Danny Hartshorne, grs Sales Director, adding that the company looks to develop a partnership with all its customers.
“Our flexible approach ensures that vendors can sell their vehicles the way that suits them best; we don’t dictate on any level. Instead, we work closely with each vendor to ensure they maximise the value of every vehicle – we help them to remarket their assets rather than simply disposing of them”.
Open & transparent
While acknowledging that auctions will continue to be an important part of most remarketing strategies, working with grs puts vendors firmly in the driving seat, giving them additional control. “We are completely open and transparent with our customers. We always agree a price or fee up-front and that’s the price that vendors pay. As well as offering a greater certainty of sale than the auction route, we also provide complete certainty when it comes to cost, which is essential at any time, but especially in today’s challenging economic climate,” says Danny.
In addition to the flexibility of approach across outright purchase, residual value underwriting and acting as an agent, every other aspect of the sales process is built around each vendor’s requirements, including the type of management information provided – an area where many fleet operators need to focus more, according to the grs best practice report.
Real Time Vehicle Reporting
grs measures the transition of every vehicle throughout the de-fleet process, providing information that meets the needs of each individual customer such as ‘days to sale’ or ‘performance against the market’, which can all be accessed through a secure web-based portal 24-hours a day.
The purpose-built grs logistics centre at Cold Meece in Staffordshire also has an important part to play. The 36-acre site can store up to 4,500 vehicles safely and securely at any one time and is capable of processing up to 60,000 cars and LCVs every year.
Vehicles are quickly and efficiently checked in and inspected, and any essential repair work undertaken before the vehicles are photographed inside and out in high quality at the photographic suite. These market-leading images of each vehicle can then be accessed online 24 hours a day by the grs network of 13,000 retailers across the UK, helping many to secure sales.
“Our best practice report indicated that many vendors are keen to explore additional routes to market alongside the traditional auctions,” concludes Danny Hartshorne. “Those with a keen interest in reducing their overall remarketing costs while also looking to maximise the value of every single vehicle should talk to us. I’m confident our flexibility and partnership approach will pay dividends for them in many ways”.
For a free copy of the grs “Best practice in fleet remarketing” report or to speak to Danny Hartshorne, please contact him directly on 01743 281800.