Fleet News

Completing vehicle repairs before resale ‘may not be achievable’

Fleet and remarketing decision-makers need to prepare for a looming volume returns challenge, MJB Automotive is warning.

With the volume of lease extensions coming to an end, voluntary terminations and repossessions expected to substantially increase as lockdown eases, it says that fleet and remarketing decision-makers to prepare for the reality that completing vehicle repairs before resale may not be achievable.

According to MJB Automotive if the support chain has not returned to 100% operational and onsite smart repairs not feasible then fleets remarketing their vehicles could see “significant” losses.

Marcus Blakemore, founder and CEO of MJB Automotive Solutions, explained: “With a real focus on sale conversion rates, ensuring you understand the condition of your asset before its end of contract will maximise the opportunity to presell or ensure disposed of through the correct channel.

“Returning vehicles that cannot be upgraded in a timely manner will incur daily depreciation costs and tie up valuable cashflow, so it is vital to understand the condition of your vehicles and prepare appropriate actions to ensure efficient refurbishment and disposal.”

Pave, an inspection tool that appraises vehicles in real-time, was recently launched by MJB Automotive Solutions

Blakemore believes pre-inspections could provide the best line of defence against unwanted surprises concerning the condition of a used vehicle.

“By allowing drivers to pre-inspect vehicles prior to return, it allows fleet decision makers to plan vehicle repairs, especially if bodyshops are not operating at full capacity or are overwhelmed with work created by the lockdown hiatus,” he said.

“Fleet decision-makers will also have plenty of time to make an informed decision on the best disposal option prior to vehicle return and so reducing days to sell and hopefully clawing back some profit.”

Developed in Canada, Pave, is an open API self-inspection solution that turns any phone into a professional inspector in one click, says Blakemore.


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