By now, we’ve all read the economic forecasts. We’ve all pivoted to address COVID-19 restrictions, and we’ve all scoured our fleets for new efficiencies. But as the nation slowly starts to open up again, there’s another dynamic on the minds of many fleet managers: how to handle excess inventory and vehicles coming off lease. Luckily, remarketing has the potential to drive quantifiable profit at a time when our nation’s fleets need it most.
At a bird’s eye view, remarketing looks pretty simple. But there’s a science, and a strategy, to disposing of your off-lease and off-rent vehicles. Whether you have vehicles coming off-lease soon or are dealing with excess inventory from staff reductions and consolidation, the right partner can help you maximize your remarketing profit.
Remarketing and the TCO
As any fleet manager will tell you, the TCO comes down to both actual vehicle costs and the costs of using it. There are many ways to reduce your TCO: fuel programs, OEM discounts for vehicle acquisition, maintenance partnerships and asset management, to name a few. When taken together, these strategies can add up to a significantly lower TCO. But one of the biggest drivers for profit creation, and a lower TCO, is undoubtedly remarketing.
Remarketing “done right” requires more than just the right relationships or the right model. One essential component is forecasting. By using data to gauge the true residual value for a vehicle, you can set a foundation for accurate expectations. Meanwhile, seasonality has been shown to increase resale values by up to 20%. Although the situation we’re experiencing now throws a curveball in the conventional wisdom, understanding the dynamics of data science, seasonality, supply and demand, and speed of sale are critical to getting top dollar for your assets. This revenue can be invested back into your fleet or allocated elsewhere, providing a much-needed influx of capital at a time when all eyes are fixated on the bottom line.
The “full picture” approach
It might be tempting to view remarketing as the final link in your asset’s TCO. And if you’re dealing with excess inventory or vehicles about to come off-lease, you don’t have time to think about anything but the quickest, most lucrative disposition. But a smart remarketing strategy should begin the moment your assets enter your fleet.
Choosing the right vehicle for the job (and standardizing your fleet). Getting savvy about preventative maintenance and mobile fueling. Using telematics and other technologies to enhance your safety and efficiency. This comprehensive, “full picture” approach ensures that when your vehicle reaches remarketing, it’s in the best position to command the highest price. For this reason and more, a turnkey fleet management partner can deliver tremendous value for your remarketing efforts.
The value of a fleet remarketing partner
A turnkey fleet management partner is just that: turnkey. By managing all the stages in your fleet lifecycle—from acquisition through remarketing—a full-service partner can help you identify key optimizations that drive up your assets’ sale prices down the line. With a single partner executing all essential management functions, no area of your asset’s value gets overlooked or left behind. (And we all know that the multiple vendor model rarely results in cost savings, let alone the service your business deserves.)
At Onward, we take a comprehensive approach to remarketing. By leveraging multiple channels, partnerships and resources, we create custom-tailored strategies that reflect each fleet’s unique dynamics. We optimize every aspect of your fleet, making the decisions today that will result in the most profitable sale down the road.
What if your vehicles are coming off-lease now? Or maybe you have excess inventory stemming from staff reductions and vehicle consolidation. No matter your situation, Onward is here to help. We’ve found that remarketing is an easy way for new customers to reap the immediate benefits of our solutions. Whether we can control every aspect of your fleet management or are brought in to maximize time-sensitive sales, we leverage our partnerships, decades of experience and data analytics to ensure you get every penny you deserve for the assets leaving your fleet.
And when it’s time to reinvest some of your remarketing profit back into your business, count on Onward to ensure that money delivers a return. Because whether a vehicle is just entering your fleet or ending its service life, we’re passionate about unlocking the power of data-driven decisions—the kind that lower the TCO and turbocharge fleet profitability. Let’s talk about your remarketing needs and how Onward can help.