Volvo Car UK has extended its relationship with Paragon in a new contract to manage the remarketing of all the manufacturer’s end-of-term vehicles.
Paragon now provides Volvo an end-to-end service that spans the vehicle lifecycle, from the docks to de-fleet and remarketing.
It currently handles new car processing, demonstration and press services, together with the de-fleet and refurbishment of all Volvo Car UK’s fleet vehicles. This new appointment is a fully outsourced service, managing the remarketing of more than 7,000 cars a year.
The contract will mean that Paragon takes full control of all remarketing channels, targeting vehicles to support residual values and reduce days in stock. A key focus is on engagement with Volvo franchise retailers nationwide and supporting the brand’s growth over the coming years.
Ian Carlisle, chief executive officer of Paragon, said: “Retailer habits have changed, and by engaging the retail network and leveraging digital channels, we are able to significantly reduce commodity costs (physical auction) to the manufacturer together with reducing franchise buyer fees, which are commonly a barrier to realising a vehicle's true value if sold at a physical auction.
“By delivering a true end-to-end service, we can evidence improved speed to market through true upstream selling and significant efficiencies.”
Volvo Car UK sold more than 43,000 cars in 2015, which was its best sales performance in 21 years.
The arrival of the all-new XC90 helped to drive sales, as did the strong performance of established models such as the V40/V40 Cross Country and the XC60.
“Paragon brings a new level of flexibility to the remarketing process,” said Selwyn Cooper, head of business sales at Volvo Car UK.
“Paragon offers a refreshing approach to our remarketing activity that brings innovation to the process and the flexibility to scale the programme at speed.
“Pulling together the management of our remarketing and de-fleet into one location makes for smarter decisions and cost savings.”