Vehicle remarketing is the controlled disposal of
fleet
Fleet may refer to:
Vehicles
*Fishing fleet
*Naval fleet
*Fleet vehicles, a pool of motor vehicles
*Fleet Aircraft, the aircraft manufacturing company
Places
Canada
* Fleet, Alberta, Canada, a hamlet
England
* The Fleet Lagoon, at Chesil Beach ...
and
leasing vehicle
A vehicle (from la, vehiculum) is a machine that transports people or cargo. Vehicles include wagons, bicycles, motor vehicles (motorcycles, cars, trucks, buses, mobility scooters for disabled people), railed vehicles (trains, trams), ...
s that have reached the end of their fixed term.
In
vehicle leasing
A vehicle (from la, vehiculum) is a machine that transports people or cargo. Vehicles include wagons, bicycles, motor vehicles (motorcycles, cars, trucks, buses, mobility scooters for disabled people), railed vehicles (trains, trams), wate ...
, after the lease expires, the lessee either returns the vehicle to the supplier or buys it. The vehicles that are not purchased by the driver become an unwanted asset for the fleet or leasing company because of vehicle depreciation and they look to channel intermediaries to relinquish the stock on their behalf quickly and in high volumes. Remarketing can be done to trade or to consumers.
Key performance indicators
Key performance indicators
A performance indicator or key performance indicator (KPI) is a type of performance measurement. KPIs evaluate the success of an organization or of a particular activity (such as projects, programs, products and other initiatives) in which it eng ...
for vehicle remarketing are the disposal price achieved, usually in reference to a trade guide price (such as CAP Clean in the UK or Black Book in Canada) and the days-to-sell, which is the number of days between end of lease and disposal of the car. Different remarketing routes targeting different customers are available and offer different options regarding these KPI.
Remarketing to trade
End of lease vehicles that are not purchased by the lessee have traditionally been remarketed through wholesale vehicle auctions such as
Manheim Auctions
Manheim, Inc. is an automobile auction company and the world's largest wholesale auto auction, based on trade volume with 145 auctions located in North America, Europe, Asia and Australia. As a subsidiary of Cox Automotive, a subsidiary of priv ...
, ADESA Auctions,
British Car Auctions
BCA Marketplace, formerly British Car Auctions, is a used vehicle marketplace. It was listed on the London Stock Exchange until it was acquired by TDR Capital in November 2019.
History
In 1946 Royal Navy officer David Wickins decided to sell h ...
o
Aston Barclayin the UK. During a
car dealer auction, the vehicles are typically sold to car dealerships who in turn will retail them to consumers. In the US, in 2005, 2.7 million fleet vehicles were sold through auctions.
Recently, some of the major fleet owners have chosen to sell the vehicles directly to new and used car dealerships thus bypassing the auction and saving on costs associated with transportation, auction fees and idle time. The same large fleet owners have taken advantage of digital marketplaces such as Avisdirect.com to offload the vehicles at a lower per unit
transaction cost
In economics and related disciplines, a transaction cost is a cost in making any economic trade when participating in a market. Oliver E. Williamson defines transaction costs as the costs of running an economic system of companies, and unlike produ ...
and decreasing the number of days the vehicle sits idle.
Remarketing to drivers and employees
In a company fleet, vehicles nearing their end of lease are made available for purchase to the current driver, and to other employees of the company operating the fleet. The benefits for the fleet and for the leasing company is a reduction in days-to-sell, as vehicles remarketed that way are sold before reaching the end of lease.
References
{{Reflist
External links
International Automotive Remarketers Alliance (IARA) website
Avis Direct to Dealer website
Vehicle rental
Used car market