CD Auction Group has launched a new vehicle buyback and disposal programme, aimed at improving the defleet process for leasing companies and outright purchase fleets.
The Fleet Crystallisation programme will offer almost immediate payment for fleet vehicles, improving cashflow and reducing uncertainty of auction values, says the company.
Roger Woodward, managing director, said: “We believe it could be instrumental in removing some of the blockages in the fleet supply chain by guaranteeing virtually instant cash, up front, for vehicles coming to market. This could improve trading conditions across the industry.”
This programme will offer the fleet an agreed buyback value, determined within 56 hours of inspection – which Woodward says will usually be based on previously achieved values, typical values and .
Once the vehicles have been processed, CD Auction Group will release the vehicles at the best time, refurbish if necessary, and hold back vehicles due to market conditions if required.
“If a fleet has a large number of a particular model of vehicle due to be defleeted at the same time, there’s a high risk that they’ll flood the market, and the RVs returned will suffer as a result,” Woodward said.
“There will be no unsold vehicles – we will sell the vehicles in the best way possible to achieve the best return. It means vendors can avoid the peaks and troughs of the market, get their money up front and leave the risk with us.”
“Of course, all our customers will have a choice. It’s up to them whether they stick to our successful ‘traditional’ auction or take up our funding offer and get the cash up front.”
Demand is expected to come from small to medium fleet operators and leasing companies.