REMARKETING: How to maximise residual values
Thursday, February 15, 2018
Looking to the future, industry sources are expecting the volume of vehicles appearing at auction to increase due to the high level of new van registrations in recent years.
The question has to be asked – will sellers who do not do everything possible to enhance their return be left further behind? BCA’s Ward thinks that proactivity is vital: “Choosing a remarketing firm that can offer a wide range of support services and deliver a nationwide audience will help maximise returns.”
Once again, condition and preparation are stressed, this time by Picton.
“There are some big defleets due in the first half of 2018 and inevitably this will lead to downward pressure on values on all but the best examples,” he says.
“Condition, preparation, documentation, full service history and targeting the right auction with the right vehicles will have a bearing on how that vendor performs.
“Anything that can set them apart from the mundane will catch the eye and allow them to perform better.”
“It reminds me of an old motor trade saying,” concludes Kaye, “that there’s a bum for every seat…at the right price.
“There is more room in the used market for these extra vehicles as a declining new market will see some of that business move to used, so demand is likely to be more than enough to soak them up. The issue will be the price they make – clean, ready-to-retail, low-miles, good-spec vehicles will always be ‘book busters’.”
What auction firms can do for you?
Auction companies have developed their operations beyond recognition in recent years. Pre-sale marketing, via social media and other forms of advertising, are used to draw attention to a sale in general or, specifically, a vendor’s presence.
Andy Brown, managing director at CD Auction Group, says that his business has bought into this strategy to the benefit of his sellers: “We implement very organised and bespoke pre-marketing campaigns that target specific vehicles to buyers we know will be interested in the stock on sale. This helps both vendors and buyers as well as avoids bombarding buyers with unnecessary communications. This extra effort on our part does reap rewards as we tend to see a better rate of vans sold first time at auction.”
Andy Picton, chief commercial vehicle editor at Glass’s, thinks marketing activity could become more vital in one specific sector. “The auctions currently do a good job – however, as more alternative-fuelled vehicles (AFVs) become available in the future, I believe that auction companies will need to market and offer these vehicles within dedicated AFV sales to attract the right customers and to maximise the strongest values,” he says.
Condition, condition, condition
“Condition remains the most important factor. Retailers are always looking for the cleanest, best-condition vehicles that are ready for sale. Whenever the vehicle is being sold, proper preparation, documentation and service history are vital if your LCVs are going to achieve the best possible price at remarketing time.”
Duncan Ward, UK commercial vehicles operations director, BCA
“Condition is everything when a vehicle is offered at auction. Vendors want to sell their stock just as much as traders want to buy them, so it’s in everyone’s best interest that the vehicles are prepared to a good standard ready for sale.
“With plenty of similar vehicles on offer at auction, those with a full service history will stand out and encourage the buyer to spend a little more, safe in the knowledge that the vehicle has been well maintained.”
Andy Picton, chief commercial vehicle editor, Glass’s