{"id":9525,"date":"2021-01-28T10:11:45","date_gmt":"2021-01-28T09:11:45","guid":{"rendered":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/?p=9525"},"modified":"2021-01-28T10:12:20","modified_gmt":"2021-01-28T09:12:20","slug":"remarketing-3","status":"publish","type":"post","link":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/2021\/01\/28\/remarketing-3\/","title":{"rendered":"Remarketing: Putting extras on can pay off"},"content":{"rendered":"
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Deliberately opting for extras on vans with an eye to boosting their second-hand value can pay dividends. Yet it is a policy that fleets do not always pursue when making acquisitions.<\/p>\n

\u201cIt doesn\u2019t come into the conversation,\u201d says Activa Contracts remarketing manager Martin Hughes.<\/p>\n

Venson Automotive Solutions marketing director Alison Bell adds: \u201cTheir decision is driven primarily by what they need the vehicles for and whether they are fit for purpose, rather than specifying them with the resale value in mind. Other considerations include how good a manufacturer\u2019s dealer network coverage is, and whether there are a lot of warranty and maintenance issues associated with its products.\u201d<\/p>\n

James Davis, customer strategy and insight director for commercial vehicles at automotive services organisation and auctioneer Cox\u00a0Automotive, says: \u201cFleets mainly look at the transaction price and the level of support they\u2019re getting from the manufacturer concerned.\u201d<\/p>\n

However, additional features that add to safety and comfort can help a fleet discharge its duty of care to its drivers, says Davis, as well ensuring better residual values (RVs); and healthier residuals can help drive down regular payments if vehicles are acquired on contract hire.<\/p>\n

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\u201cReversing cameras and sensors make a van safer and can reduce the amount of accident damage it suffers as well as adding to its desirability second-hand,\u201d he says.<\/p>\n

If it suffers less accident damage while in fleet service then repair costs will fall, and RVs should improve.<\/p>\n

Although used buyers may find safety devices appealing, that is not to say they will pay extra for them. \u201cThey\u2019d rather have heated seats and air conditioning than side airbags,\u201d says Hughes.<\/p>\n

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Shoreham Vehicle Auctions managing director Alex Wright (pictured) says: \u201cAir conditioning is starting to have a positive impact second-hand and is becoming the norm.\u201d<\/p>\n

A study conducted by BCA last year revealed that air-conditioning added well in excess of \u00a31,000 on average to the price realised by used light commercial vans (LCVs).<\/p>\n

\u201cA van such a Renault Trafic with air-con, sat-nav and finished in an appealing colour can make bundles,\u201d says Wright. He has known Trafics factory-finished in lime green fetch \u00a31,000 more than those in more common tones.<\/p>\n

\u201cThey\u2019re all things the small business\u00a0buyer is looking for,\u201d he remarks.<\/p>\n

His comments apply to younger stock, he stresses. \u201cOnce a vehicle is five or six years old and has covered 100,000 miles or more then small business buyers are not worried about the specification,\u201d he says. \u201cThey just want something that will do a job of work.\u201d<\/p>\n

Used van buyers may like to see cruise control, but may not be so interested in sat-nav, says Davis. \u201cA lot of people have got smartphones and use Google Maps instead,\u201d he says.<\/p>\n

Hughes stresses: \u201cA van must have Bluetooth though. If it hasn\u2019t, you\u2019ve got a big problem.\u201d<\/p>\n

Automatic and automated manual boxes have a definite appeal.<\/p>\n

A Volkswagen Caddy or Transporter with a dual-clutch DSG (direct shift gearbox) transmission has a massive advantage over one with a manual box, says Wright. \u201cThey\u2019re like gold dust,\u201d he comments.<\/p>\n

Says Davis: \u201cI\u2019ve known cases where a DSG box has added more to a van\u2019s price than the option costs new.\u201d<\/p>\n

\"\"Geoff Flood, commercial vehicle sales manager at auctioneer Aston Barclay<\/a>, sounds a note of caution, however. \u201cThe presence of an auto box can mean that a van will fetch \u00a3700 less than a manual if it is high-mileage and several years old,\u201d he comments.<\/p>\n

Potential buyers may fear hefty repair bills if the box goes wrong.<\/p>\n

\u201cIf it is newer and low-mileage though then it may attract a premium price,\u201d Flood adds.<\/p>\n

More power than the fleet operator may need can play well in the second-hand sector, but has to be balanced against the potential risk of more fuel consumption, accidents and speeding tickets for the fleet\u2019s drivers.<\/p>\n

Aston Barclay has an auction site in Leeds, among other locations. Flood says: \u201cWe find that in a hilly area like West Yorkshire, used buyers want the 140hp rather than a 102hp Transporter.\u201d<\/p>\n

Perhaps surprisingly, Citro\u00ebn Berlingos<\/a> with three-seater cabs are extraordinarily popular second-hand, says Flood, despite the limited elbow room for the centre passenger. They appeal to customers who use their vans for personal transport in the evenings and at weekends.<\/p>\n

\u201cThey can accommodate a child as well as the driver and spouse,\u201d he points out. The ability to use them as family transport as well as for business purposes means crew vans, with a second row of seats plus a load area at the back, have a ready audience among used buyers too.<\/p>\n

Even the type of doors fitted can make a difference to a van\u2019s second-hand desirability. Hatch- or tailgate-type back doors rather than twin rear doors can be more appealing on certain medium-size panel vans because it\u2019s easier to convert them into campers.<\/p>\n

Hughes says: \u201cA Vivaro with a tailgate can make up to \u00a3500 more than one with twin doors.\u201d<\/p>\n

As group fleet manager at Auto Windscreens\u00a0Shaun Atton understands that opting for cheaper, entry-level vehicles does not necessarily translate into lower leasing costs. The bulk of his firm\u2019s 310-strong all-Ford van fleet is made up of Transit Customs and he is upgrading one rung, from entry-level Leader trim to Trend.<\/p>\n

As a consequence, Auto Windscreens drivers will benefit from safety-related features such as front and rear parking sensors and front fog lights. Atton additionally specifies its Customs with adaptive cruise control plus air-con.<\/p>\n

The safety systems specified mean the vans sustain less damage \u2013 good news from the RV viewpoint \u2013 and are at less risk of being involved in an accident.<\/p>\n

\u201cWe\u2019re meeting our duty of care, we\u2019ve got a happier workforce and we\u2019re getting a better leasing rate,\u201d Atton comments.<\/p>\n

Obtained through three lessors \u2013 CVM, Arnold Clark-owned Activa, and Rivervale \u2013 the Customs stay in service for three years and each cover around 30,000 miles annually.<\/p>\n

A question of presentation<\/h3>\n

How should an ex-fleet LCVs be presented to prospective purchasers?<\/p>\n

Any business or personal data that the vehicle may hold must be deleted prior to disposal and the spare ignition key plus the keys for any extra locks that may have been fitted must be available. \u201cHaving all the keys present is a real must,\u201d Wright says.<\/p>\n

A full service history adds to the van\u2019s used credibility and should be accompanied by the V5C logbook and MOT certificates, if applicable.<\/p>\n

\u201cYou should certainly ensure the van is given a good clean, inside and out, and the livery is removed,\u201d Wright continues. The fleet\u2019s name, address, logo and so on should all be stripped off, and a cutting compound and plenty of elbow grease should be used to remove any tell-tale outlines they may have left behind.<\/p>\n

\u201cThe vehicle has to look presentable,\u201d he says.<\/p>\n

This is especially the case given that auctions have increasingly enabled buyers to bid online in recent years. Online gives purchasers more time to peruse photographs of a vehicle from all angles before they decide whether to bid or not.<\/p>\n

Stuart Pearson, BCA\u2019s chief operating officer, UK remarketing, says: \u201cWith increasing volumes of vehicles being sold digitally, presentation is important for online buyers in combination with high-quality imaging and accurate appraisals.\u201d<\/p>\n

Vendors who use auctions do so because the process is transparent, there is no comeback from the buyer and they can expect to see their money quickly.<\/p>\n

What they receive, however, is the trade rather than the retail price, and there is likely to be a difference of several hundred pounds.<\/p>\n

Some operators sell their vehicles themselves \u2013 always an option if they have been bought outright \u2013 which, potentially, allows them to achieve a price closer to retail. On the downside, however, it is time-consuming, the van is likely to take longer to sell than at auction, a warranty may have to be provided and complaints and demands for compensation may ensue if buyers have problems with their purchases.<\/p>\n

Outright purchase can be accompanied by a buy-back deal under which the manufacturer agrees to buy the vehicles at a pre-agreed price at a future date. An open buy-back deal gives the fleet the option of selling the vans itself if it reckons it can get a better price than the manufacturer\u2019s buy-back figure \u2013 worth considering.<\/p>\n

If a van has been vinyl-wrapped, the wrap should be removed, Pearson says \u2013 hopefully revealing pristine paintwork underneath \u2013 and BCA can deploy a variety of smart repair techniques to deal with damage to paint and trim.<\/p>\n

Really extensive refurbishment is unlikely to yield a return on the expenditure required unless the van happens to be late year, low mileage and with a high specification.<\/p>\n

\u201cHave a bonnet re-sprayed to get rid of a few stone chips and prospective buyers may think you\u2019re trying to disguise a major front-end shunt,\u201d remarks Steven Botfield, senior commercial vehicles editor at Cap HPI.<\/p>\n

Flood says that \u201c92% of all the vans we sell are not refurbished and are, instead, sold \u2018as seen\u2019. Auction bidders prefer to see them in the raw\u201d.<\/p>\n

Replacing the load area\u2019s ply lining may be worth considering, though. \u201cSome buyers may be suspicious than you\u2019re trying to hide something, but they also know that if it\u2019s badly-stained with old oil for example then they\u2019ll have to change it anyway,\u201d Hughes observes.<\/p>\n

Damage and excessive wear and tear due to driver abuse are likely to be minimised, and residuals enhanced accordingly, if fleets monitor their LCVs closely while in service.<\/p>\n

That is likely to involve installing a tracking package with driver behaviour telematics to pick up instances of speeding and harsh\u00a0acceleration; issues that can be raised with
\nthe individual concerned with an eye to\u00a0implementing a driver training programme.<\/p>\n

An incentive scheme that rewards drivers\u00a0with zero own-fault accident damage can be\u00a0beneficial too, suggests Hughes.<\/p>\n

Adherence to manufacturer maintenance schedules is vital, but long service intervals mean that interim checks are likely to be necessary to ensure the van\u2019s condition is not allowed to deteriorate. \u201cMany LCV fleets utilise mid-life inspections to identify any issues before they become expensive to repair,\u201d says Pearson.<\/p>\n

\"\"Hitachi Capital Vehicle Solutions managing director Jon Lawes says: \u201cEffective maintenance procedures are key to protecting a van\u2019s RV. So, to help fleet managers and drivers stay on top of maintenance, we operate a driver app and booking portal.<\/p>\n

\u201cOur advice to drivers is to conduct regular checks and quickly report any instances of damage so they don\u2019t turn into more serious issues further down the line.\u201d<\/p>\n

If drivers who work from home have to attend periodic meetings at head office or regional centres then ensure they bring their vans with them, Hughes advises.<\/p>\n

\u201cThen audit their vehicles, if necessary using an independent third party, while the meeting takes place,\u201d he says. \u201cIf they know their vans are going to be inspected every few months that will ensure they look after them, and that issues such as bumper damage are reported and dealt with.\u201d<\/p>\n

A fleet should avoid disposing of a large quantity of vans with an identical spec at one go, says Botfield. Doing so will depress the price.<\/p>\n

\u201cIt makes far more sense to follow a policy of phased de-fleeting and drip-feed them into the market,\u201d he observes.<\/p>\n

Demand for used vans will rise<\/h3>\n

Wright is confident the second-hand van market will come back strongly post-lockdown as the economy gets moving and SMEs try to catch up with a backlog of orders.<\/p>\n

\u201cIt looks as though the big infrastructure projects will begin to get underway again and the demand for used vans will rise as sub-contractors return to work,\u201d he says. \u201cEx-lease stock will start to come back into the market in late summer at a time when SMEs will be looking to replace existing vehicles, or acquire more.<\/p>\n

Wright suggests that this all bodes well for a stronger market in quarters three and four.<\/p>\n

Flood adds: \u201cWe could find it\u2019s red-hot.\u201d<\/p>\n<\/div>\n

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Source: https:\/\/www.commercialfleet.org<\/a><\/span><\/p>\n<\/div>\n

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CUT COTS OF THE FLEET WITH OUR AUDIT PROGRAM<\/strong><\/a><\/h3>\n

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The audit is a key tool to know the overall status and provide the analysis, the assessment, the advice, the suggestions and the actions to take in order to cut costs and increase the efficiency and efficacy of the fleet. We propose the following fleet management audit.<\/p>\n

FLEET MANAGEMENT AUDIT<\/strong><\/a><\/h3>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Deliberately opting for extras on vans with an eye to boosting their second-hand value can pay dividends. Yet it is a policy that fleets do not always pursue when making acquisitions. \u201cIt doesn\u2019t come into the conversation,\u201d says Activa Contracts remarketing manager Martin Hughes. Venson Automotive Solutions marketing director Alison Bell adds: \u201cTheir decision is…<\/p>\n","protected":false},"author":3,"featured_media":9526,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[18],"tags":[47],"_links":{"self":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/9525"}],"collection":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/comments?post=9525"}],"version-history":[{"count":2,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/9525\/revisions"}],"predecessor-version":[{"id":9528,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/9525\/revisions\/9528"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media\/9526"}],"wp:attachment":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media?parent=9525"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/categories?post=9525"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/tags?post=9525"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}