As fleets purchase new trucks to replace less-reliable older models, fleet managers are left with millions of rands worth of redundant and idle vehicles in their yards. This surplus doesn’t have to be a burden for your fleet. By implementing proven remarketing strategies, you can maximise recovery value for your old trucks, generating working capital that increases your bottom line and frees up cash for new purchases.
The key to maximising recovery for your redundant trucks lies in the secondary market. With credit and lending standards in the trucking industry still tight, many fleets are looking to the secondary market to purchase used (but still quality) vehicles at affordable prices. Understanding the secondary market and the best practices required for success will vault you ahead of competing sellers and ensure you sell your surplus trucks for maximum value, removing these expensive assets from your books and your yards. Read on to discover a straightforward three-step process for selling your redundant and idle trucks in the secondary market.
1. Understanding the Secondary Market
Understanding the secondary markets’ widespread demand and the availability of sales platforms have created today’s robust secondary market for trucks. Understanding this market will help you set appropriate recovery expectations, ensuring you never sell your vehicles for less than they’re worth.
The manner in which large fleet operators approach their trucks’ lifecycles creates a very competitive secondary market for sellers. Most organisations turn over about 20% of their fleets annually, which could be up to 1,500 trucks for a large fleet. Typically these trucks are around five years old, with 800,000 to 1 000,000 miles on them. Trucks at this point in the lifecycle are often off warranty and completely depreciated, but still at a low enough mileage to claim a high recovery. If they’ve been properly maintained, these trucks can be smart investments for secondary-market buyers. With many relatively high-quality trucks like these in the secondary market, you can expect stiff competition among sellers and high expectations from buyers. This makes it all the more important to set your organisation apart through the best practices described in this white paper.
2. Adhere to Remarketing Best Practices
It takes good planning and marketing savvy to set your trucks apart in the competitive secondary market. Here are some best practices to ensure maximum recovery:
Estimate values for vehicles
Check out online auction sites to see how similar vehicles are priced however, getting a valuation partner to accurately appraise your redundant vehicles will be more precise.
Determine a sales channel
Auctions (online, live webcast, or in person) and private treaty sales are both highly effective methods. Private treaty, which focuses on a select group of prospective buyers, is the preferred sales method for specialised vehicles. Auctions are better for general vehicles with high demand.
Implement a targeted marketing strategy
Your buyer base will vary depending on your trucks’ conditions, makes, models, and locations. Identify your target buyers, determine the best channels to reach them and craft communications designed to get their attention. Or better yet, use a disposal partner who has proven marketing practices to best reach an extensive buyer database.
Schedule a preview period
Allowing potential buyers to inspect your trucks in person will help them feel confident the assets meet their needs, increasing their interest and bidding.
Provide complete asset information
If you’re selling trucks online, be sure to include detailed product descriptions and compelling pictures to increase buyer interest.
Establish a removal timeline
Ensure a smooth removal process by setting and clearly communicating expectations for when trucks should be removed.
3. Navigate the Auction Process
Auctions are usually the best way to turn trucks into cash quickly. Working with a professional auction partner can save you valuable time and resources. What should you look for in such a partner? Whether you’re looking to sell trucks in a local market or have vehicles across a range of locations nationwide or worldwide, you should partner with an auction company with global reach and a vast buyer base (such as AllSurplus). Expanding your buyer base leads to higher bids and recovery. Be sure to select an auction partner capable of the following:
- Inspecting the trucks (if needed)
- Appraising the trucks to determine market value
- Using proven marketing and sales strategies to maximise recovery
- Handling all aspects of the process, including marketing, sales, buyer vetting and customer support, and payment processing
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