Remarketing — a big word for what fleet managers know as trading-in or selling used vehicles — is nevertheless an important part of your responsibilities. But where do you find the highest resale value for used vehicles? Where are remarketing costs lowest and is outsourcing this function the right choice for your operation? Is an auction service the best alternative, and if so, how do you go about choosing the provider for your fleet’s equipment and particular needs?
“Fleet managers should consider auction services because it helps them free up time to manage their daily operations,” says Charles Cook of J.J. Kane Auctioneers. “Auction companies also have their finger on market demand, which in turn keeps a series of checks and balances in place regarding disposal methods and industry fair-market returns.”
Armando Camarena of US Auctions agrees, noting that fleet managers do not often have the time to serve as a retail outlet for their equipment. “They also do not want to haggle over price, collect money and handle all the paperwork,” he states. “With auctions, the biggest difference is that the responsibility lies with the auction company. They handle pickup, clean up, maintenance, advertising and processing of paperwork for the sale, all in one process.”
“The benefits of selling utility fleet vehicles at an auction include certainty and convenience — especially at an unreserved auction — because every item is sold to the highest bidder on sale day and fleets don’t have an indefinite wait for buyers, a process that takes precious time and money. Most reputable auction companies also take care of every aspect of the sale, from advertising to dispersal of proceeds, so fleet managers can concentrate on running their business,” adds Tim Riordan of Ritchie Bros.
Auctioneers. “It’s important, though, for a fleet manager to choose an auction company that can help reach as many motivated buyers as possible.”
To choose the best auction company to handle disposal of a fleet’s assets, Armando Camarena notes, fleet managers are encouraged to visit auctions held by companies that have proposed their services, check out the type of equipment that is being auctioned and if similar equipment is being sold. “Ask what the auction company offers,” he also advises. “Is it a complete turnkey operation?”
For Charles Cook, effectively selecting an auction provider means looking at statistics about prior sales, the auction company’s experience in the marketplace, and understanding what you are signing up for. “The auction company needs to understand and have the experience to properly describe and market a fleet’s used vehicles,” he states.
“Truck values are market driven at an auction as they are with any outlet,” Cook continues. “Another benefit of using an auction service compared to other used vehicle remarketing alternatives is that it brings in a more diverse group of buyers and provides the ability to bring together buyers and sellers worldwide, which in many cases increases the value of the assets.”
Auction services, all three of these company representatives agree, can bring about higher resale prices so fleets can realize more value from their investment. While used truck values may differ between auctions and other remarketing options, there are definitely reasons for fleet managers to strongly consider using an auction service and to at least fully explore the potential benefits this choice could bring to the fleet.
