To request a copy of this report please email Steve Trow.

This new independent report looks at the state of automotive remarketing today based on in-depth research conducted amongst 40% of the FN50, to find out more about the FN50 visit www.fleetnews.co.uk.

The report is the first of its kind to try and benchmark current industry practice.

Report: Key Conclusions

  • A more strategic approach needed using the adoption of a multi-channel remarketing strategy.

  • Additional channels to market can add value by offering a greater certainty of sale and reducing remarketing costs.

  • Companies should adopt success measures based on analysis of all remarketing costs.

  • True costs of disposal of a vehicle need to be taken into account as part of the remarketing strategy.

  • Industry would welcome better management information and process improvement.

  • Recognition of the substantial investment and resources associated with internal remarketing  - greater outsourcing may be a solution.

 

Research: Highlights

  • 75% dispose of fleets using auction as the main channel with 30 per cent of respondents using auctions more in the last five years.

  • 25% wanted to reduce stock turn days

  • 25% wanted better management information

  • 25% had no predefined measures of success

  • 65% were unable to estimate the cost of vehicle remarketing as a percentage of operating costs

  • 95% wanted greater speed of sale.

  • 90% wanted greater certainty of sale.

  • 65% wanted an alternative remarketing channel which offered cost savings.

 

John Lewis, chief executive, BVRLA (British Vehicle Rental & Leasing Association): “Our industry disposes of more than a million cars and vans into the second-hand car market each year and auctions houses are one of the few channels capable of handing that scale of remarketing on a regular basis.  But, while auction houses are the most popular way of selling used vehicles – our members spend an estimated £330m with them each year – they are not the only route open to the fleet and business car market. 

“This report suggests that some fleet operators are failing to analyse the true cost-effectiveness of their remarketing strategy, which could be costing them money. Vehicles are expensive assets, and any extra investment in getting a more thorough management view of the remarketing process must be money well spent.”