Insight: Speeding up the sales process

One of the biggest remarketing challenges facing fleets and leasing companies is how to speed up the sales process. The longer a de-fleeted vehicle takes to reach a buyer, the greater the exposure to depreciation.

Figures from the FN50 show the average de-fleet to sale time is 18 days, although it varies from less than 10 days to more than 50 days, depending on the leasing company.

A company vehicle goes through a number of steps before it is sold, including inspection, damage recharges (if the vehicle is leased), photography, reconditioning work, valeting, assurance checks and transportation.

How long the process takes will depend on the vehicle’s condition so the first step to speeding up the sales process is to ensure that the vehicles are in good condition in the first place.

A company should have a policy about reporting damage and decide whether or not to charge drivers for own-fault damage.

Drivers should be advised on how to keep vehicles in good condition and what is considered acceptable fair wear and tear and what is not. Typically, companies issue a driver with a copy of the BVRLA’s Fair Wear and Tear guide.

And vehicle inspections should be carried out throughout the vehicle’s life, not just at defleet.

SMA Vehicle Remarketing says its lifetime inspections “help to enhance user discipline and reduce repair costs that all too often have only been apparent at the end of the lease, with the inevitable costs in terms of time and repairs”.

Inspection and repair time at the point of defleet is being reduced thanks to the introduction of handheld technologies, which provide fleets with real-time condition reporting and accurate repair costs.

Eddie Thomson, national operations director at SMA, says: “This step ensures that transport delays are minimised and that the vehicle can be pre-booked into an SMA Vehicle Refurbishment Centre for repairs/preparation, subject to client authorisation.”

Deciding what needs to be repaired and what can be left without affecting the resale value is also important. A smart repair may be the appropriate action.

A Fleet Auction Group spokesman says: “Damage needs to be strategically and tactically repaired to maximise asset value and in some cases this can be the difference between the car selling or not.”

One of the problems with the remarketing process is that even if a vehicle is in good condition it may not reach the sales channel as soon as it should.