Fleet Short Cycling Produces Stunning Results
WORDS BY PHILIP BROWNE
The primary Autorola business ethos and
value proposition is to :
“ Deliver the highest auction prices achieved by any vehicle remarketers by offering lean and efficient remarketing services based on the implementation of robust online auction systems ”.
With the above in mind , together with the current strength in the used car market and the ever increasing demands of the fleet management industry to optimise vehicle resale values efficiently , Autorola has been sought by various fleet managers to provide viable remarketing solutions to assist in achieving this objective .
One of the remarketing solutions Autorola has implemented is the concept of upstream selling which has been conducted under a “ short cycle ” auction environment . Importantly the introduction of short cycle auctions has been extremely successful with generating higher net returns for vehicle fleets . Furthermore , upstream selling transfers most of the vehicle remarketing processes from the post to pre de fleeting stage . With upstream remarketing , fleet managers can make the most of their aging and used vehicles right up until their replacements arrive or they are retired . The main purpose of upstream selling remarketing is to minimize or eliminate the days to sell a soon to be terminated or grounded vehicle .
Pre -marketing and / or first contact with the driver , ( i . e . Generally 60 days prior to the grounding of the vehicle ), allows the fleet manager to use a specific time- period between the replacement vehicle order date and the new vehicle delivery . Pre-selling these vehicles can occur weeks before ( i . e . Usually 14 days before the vehicle is grounded or retired ). Importantly the fleet manager and the eventual purchaser of the vehicle can benefit from this process in the following ways :
• Minimising or eliminating the vehicles day to sale .
• Improving resale value due to the asset being held for a shorter period of time .
• Generating costs savings to the fleet manager in the areas , depreciation , interest charges and other remarketing costs .
• The purchaser can effectively collect the vehicle at day zero of the process . ( i . e . immediately when the vehicle is grounded ).
Whether reducing days to sell or increasing the percentage of vehicles sold before the new vehicle is delivered , the fleet manager can always benefit from a pre-marketing plan . In addition , the number of days a vehicle is grounded and being held for storage can be significantly reduced from the current average of 30 days to virtually zero .
10 ISSUE 25 OCTOBER 2020 / WWW . AFMA . ORG . AU