New trends in fleet remarketing? You bet. The wholesale remarketing trends for SUVs and CUVs have been strong, specifically with the number of auctions for them increasing. These new trends are making quite the difference for those making decisions in building fleets for their organizations. Let’s look at some of the most significant trends in the world of fleet remarketing.
Increased Volume of SUVs and CUVs
One of the trends that has recently surfaced in the automotive industry is the rising interest in SUVs and crossovers. The fleet industry has also seen this change take place. With improved miles per gallon, more spacious interiors, and better utility options, these types of vehicles are an easy, more lucrative option for the fleet industry. The growing demand for these vehicles has also changed fleet remarketing.
There is a strong demand for midsized SUVs and crossovers, and in turn more and more are coming off the assembly line. Much of the demand is due to an increase in gas prices – it has definitely had an impact on fleet procurement. With an increasing number of more fuel efficient SUVs and hybrids in the segment, they are sure to remain very popular options for fleet remarketing as well.
In addition to better gas mileage, many drivers prefer to sit higher and have better visibility while driving. Because they sit higher and they offer comparable mileage to sedans, SUVs and CUVs have come close to and may even overtake the sedans in their popularity.
Higher Mileage in Vehicles
There has always been an inclination to hold on to vehicles with higher mileage with regards to fleet remarketing. Many experts have seen this quite often in vocational fleets. However, every fleet is different with respect to how long the vehicles are used. It is always helpful to look at the details of each situation and consider the entire picture before deciding on your fleet remarketing.
The vehicles that have higher mileage remain in strong demand. The type of fleet that the vehicles are being used in is ultimately an important factor in determining the retention of the more fuel efficient vehicles. Many clients are comfortable with vehicles that have over 100,000 miles. A large portion of vehicles obtained through fleet remarketing come from the utility sector, or similar industries. This is why buyers acquiring these vehicles are well aware of what they can expect from the ARI units. This means that the mileage does not necessarily impact the fleet remarketing in a negative way.
There are several reasons why certain fleets are hanging on to their vehicles for longer. The foremost reason is the fact that vehicles nowadays are far better than what the industry used to have in the past. That and the residual value of the vehicles themselves account for a lot.
This is also a bit of a trend that has been around in the recent years. While it has not seen a rise that can be called significant but it is somewhat notable. Another reason why fleets are hanging on to vehicles for longer is the fact that the manufacturers of the vehicles are also offering warranties as to how long they will keep up the maintenance of the fleet vehicles. Manufacturers are extending the period of warranties with the improved quality of vehicles that they have been producing – another important aspect in this new trend in fleet remarketing.
Increased Upstream Sales
Another new trend in fleet remarketing is that upstream sales are going to continue to grow as we move forward. There is an expectation that the number of clients that are open to fleet remarketing will increase. It will become a more profitable avenue to explore as time goes on.
The sale of fleet vehicles to employees is also considered a kind of upstream fleet remarketing. It is a smart way to remarket because it removes the expense of transporting and selling to other customers. It has also been shown to improve the quality of the vehicles. Of course it goes without saying that fleet remarketing through employees has also become quite beneficial for the employees as well.
There are multiple ways in which companies are trying to sell its vehicles before getting them to an auction. This is why there is an expectation of some definite growth in this respect and fleet companies are going to find a lot more lucrative opportunities for fleet remarketing.
This new trend will create a change in some respect when it comes to the job of fleet management. The companies that own fleets will be looking to minimize the costs that they have to incur when they have to auction of the fleet vehicles once they have provided a long enough service for the company.
This increasing interest in selling vehicles directly to clients rather than selling them through auctions has been noticed with the likes of EMKAY. The ratio of the clientele that they have between auction sales versus direct sales has been 80/20 in favor of the auctions. What they are looking to achieve right now is bring the ratio down to a level of 50/50.
Depending on the industry the vehicles come from, the aspect of fleet remarketing can vary. Many people like to look at the cars themselves and will typically kick the tires and check for other operational aspects of the vehicle. Of course nobody wants to buy a vehicle that will need extensive repairs immediately after they have purchased it.