Fleets urged to prioritise vehicle repairs over quick sales
Fleet operators disposing of vehicles could lose 10% off the value of their stock by failing to undertake basic repairs.
So says Gain Solutions as it warns that rising volumes of used car this year will make it more expedient to prioritise repairs over reducing days to sale.
Marcus Blakemore, commercial director at the fleet management and remarketing solutions specialist, said: “From conversations with vendors, there appears to be a misconception that they need to minimise days to sale but sometimes this is not always the best option.
“On further investigation, it’s usually a case that the vehicle inspection process is flawed, with damage being overlooked or misinterpreting the NAMA grading. With a little forethought, vehicles can be independently assessed, booked in for repair and sent to auction without too much disruption. And the bonus is that pre-sale prepared cars will attract more buyers and higher bidding; this is even more important for high value prestige and executive cars.”
He added that undertaking repairs makes financial sense despite delaying disposal by a few days or a week, saying: “Carrying out repairs prior to auction could add 5% to 10% on stock prices. And, with an increase in the number of cars coming into the used car market expected in the next 12 to 18 months, it is vital vendors get to grips with the remarketing process to avoid the pressures of falling values.”