FLEETS that adopt a range of methods for remarketing their vehicles could improve returns by hundreds of thousands of pounds in reduced holding costs and improved residual values.

By switching from a sole auction disposal method to a multi-remarketing strategy, a 1,500-strong fleet could save more than £500,000 a year, according to Jim Kerr, managing director of vehicle remarketing group JTK Automotive. Kerr said: ‘It is no longer safe to adopt one disposal policy for all vehicles and greater consideration needs to be given to choosing remarketing channels in today’s sophisticated and mature market. Supply and demand will always rule but more can be done to reduce the overall effect at all times on an on-going basis, not only when the big boys run out of storage capacity. Streaming vehicles to a targeted buyer base prior to termination date holds the key to driving proactive remarketing.’

Using several disposal methods helped slash £560,000 off one fleet’s budget using JTK Automotive. The company, which sells 1,500 vehicles a year, had been using auction to dispose of vehicles. It was taking an average of 27 days from defleet to sale, with the average holding cost per car, per day, amounting to £10 per vehicle.

The group switched to a multi-channel disposal method, using affinity buyers, buyers club and auction. The majority of vehicles (1,044) were sold to the buyers club, 306 to affinity buyers and 150 at auction. The affinity sales generated an additional £188,496 in sales revenue, with an additional £116,928 coming from buyers club sales. Holding costs were reduced by more than £250,000. On average, margins rose by £373 per car.