Opinion: Fleets have a duty to remarket responsibly

By Tristan Downs, remarketing and operations director, Sogo mobility

Fleet companies reaped the benefits of strong residual values as the market emerged from the pandemic. Equally, the industry has a duty to remarket vehicles responsibly when used values are undergoing a realignment.

The used car market is set to continue to fall into early 2024, and fleets can play a pivotal role in managing the way vehicles are placed back into the market.

Sogo works closely with OEMs to ensure that remarketing channels are balanced and optimised with discreet remarketing used wherever possible. Managing the flow and placement will not only support residual values but also protect the OEM brand. It serves no party to place 50 of the same make and model into a single sale at auction.

In an increasingly digital wholesale market, it's also worth considering the greater visibility that stock has nationally across various portals. Buyers have a greater sense of the number of vehicles in the market and the sort of money they are achieving.

As a flexible mobility provider, many of the vehicles we remarket are late plate and premium brands. There is an onus on our team to support our OEM partners with a responsible approach that will optimise our returns and protect the brand. It's a win-win for both parties and better for the industry as a whole.

Auction partners have increased the number of sales they offer buyers and provide specialist sales for EVs and premium-grade vehicles. Working in partnership with remarketing partners will help to ensure that the most appropriate sales are chosen to increase conversion rates and the percentage of cap clean.

Achieving key performance indicators in a tough market can be enough of a challenge for remarketing managers. But pumping large volumes of stock into an already distressed market doesn't help anyone.

A more discreet approach that blends remarketing channels and considers the pace of supply into the market will support residual values for the fleet company and the wider industry.

The technology is available to reach out to a select group of potential buyers who are specifically interested in the type of vehicles being sold. This can result in quicker sales and more competitive offers. The marketing strategy can also be tailored to the target audience's needs and preferences, allowing for a more personalised and effective sales process.

When dealing with a select group of potential buyers actively looking for specific vehicles, the sales process can be expedited, leading to quicker transactions and a more efficient use of resources.

A discreet approach creates a sense of exclusivity and urgency among potential buyers, giving the seller more leverage in negotiations and leading to a better result.

It's important to note that the effectiveness of discreet vehicle remarketing can vary depending on the specific circumstances and objectives of the seller. While it offers several advantages, there may be better approaches for some situations. Sellers should carefully consider their goals and the nature of the vehicles they are selling when deciding on their remarketing strategy.

The remarketing sector and technology have advanced over the last 20 years. It's important to make full use of the variety of channels on offer, whether they are digital, physical, brand-exclusive, or available to all.

Take an agnostic approach to remarketing strategy to create the most appropriate market for your stock. It's essential for your business and the market as a whole.