New service brings corporate vendors ‘huge’ potential to uplift auction profits
Corporate vendors could see average profit lifts of several hundred pounds with the help of a new refurbishment programme from City Auction Group.
The ‘Elevate’ solution is designed to elevate used vehicles from NAMA grade 3-4 to grade 2, delivering corporate vendors a claimed average profit uplift of between £300-£750 per passenger vehicle.
The service offers a range of smart repairs, including glass chips and scratches,plastic and interior repair, alloy wheel refurbishment including diamond cut alloys, fabric and leather upholstery repair, and minor dents and panel repair.
The services was trialled during Q3 2019 for PSA Finance with NAMA grade 3-4 vehicles and resulted in an average financial return of £595 after a £297 spend, with the conversation rate rising to plus 90% conversion at the first sale event.
An LCV trial being carried out with a major rental company in October is expected to bring results very similar to passenger cars.
Michael Tomalin, CEO of City Auction Group, commented: “Around 50% of passenger vehicles that our passing through our auctions at Rockingham and Northern Ireland are between NAMA grade 3-4. Corporate vendors are missing out on potentially huge additional profits on their vehicles. We know that the majority of grade 3-4 vehicles are end-of-term lease and finance voluntary terminated vehicles, which are being sold through auctions across the UK, delivering both lower profits to vendors and are taking longer to sell.”