Fleet News

New disposal routes helping to maintain values

New disposal routes to market are helping to maintain values as the number of used cars available continues to grow, reports Epyx.

The company says that online platforms such as its own 1link Disposal Network – which has seen a 65% year-on-year increase in the numbers of vehicles sold - are helping to take the pressure off traditional disposal channels such as motor auctions.

David Goodyear, commercial director at Epyx, said: “The success of PCP and fleet sales in the last few years means that there are increasing volumes of cars entering the used market.

“If these had all been pushed through motor auctions, for example, it is unlikely that the values that are being seen at the moment would have been maintained.

“However, the fact that there are now well-established but newer online channels available has helped to dilute the effect of what could easily have become market oversupply.”

Goodyear added that channels such as 1link Disposal Network were increasingly being used to repatriate vehicles into dealer networks by manufacturers, using 1link and through white label manufacturer branded sites.

He said: “We work with a number on this basis and the results we achieve are excellent. Certainly, the values are often ahead of the industry price guides and the asset made liquid more rapidly.”

Goodyear said that a key part of the success had been the introduction of complementary “wraparound” services that allowed vehicles to arrive in the showroom in retail condition.

“Speed is a key part of the proposition. If we can take a car from end of lease to the showroom in a ready-to-retail state in a matter of days rather than weeks, everyone in the supply chain wins.

“There are predictions that used volumes will continue to increase into the next year and we expect to see an ongoing growth in the number of vehicles sold through 1link.”


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