Fleet remarketing can be a challenging process, with many potential pitfalls and mistakes that can cost your business time and money. Whether you operate a fleet of service vans for your HVAC company, work trucks for your construction firm, or a mix of vehicles for your security business, getting the most value out of your used fleet vehicles is critical. Here are eight tips to help you avoid common remarketing issues:
1. Sell What You'd Want to Buy
Put yourself in the buyer's shoes. Would you purchase the truck, van, or equipment you are trying to sell in its current condition? Customers typically want to get what they are buying on the road as fast as possible, which means something that needs multiple repairs before getting it out on the road isn't appealing.
With more supply in the market now compared to the shortage in late 2021/early 2022, your remarketed vehicles need to stand out. Ensure your units are as clean as possible and show well. The next buyer is looking to keep their driver happy, and buying a nice, clean piece of equipment is what they are looking for.
2. Put Some Effort In
Taking the time to professionally clean and detail your vehicles before remarketing them can go a long way. Fleet managers would do well to put some effort into getting a piece of equipment ready for sale. At a minimum, you should have the unit professionally cleaned and detailed.
While this may cost upwards of a thousand dollars, depending on the wheels and chrome that need to be polished, your work truck is much more attractive to potential buyers. Not all end users want to buy a project, so putting in the effort to make your vehicles presentable can significantly impact the sale price and speed of the sale.
3. Be Reasonable on Repairs
There's a difference between normal wear and tear and issues that significantly impact the operating condition and visual appeal of the vehicle. Cosmetic issues like scratches and dings that accumulate throughout normal usage can make less sense to fix than something that significantly detracts from the visual appeal, such as a bumper hanging, a cab extender folded over (or missing), or a broken windshield.
Mechanically, fleet managers should be mindful of anything concerning enough for a customer to pass over the equipment. Make sure the truck is in good working order, with no warning lights on the dash that might give a customer pause. Ensure your AC/heat, emission system, and brakes are in good working order. Don't give buyers a reason not to bid on your vehicles.
4. Set it Up for Success
Consider getting a full "wet" preventive maintenance service before remarketing. A full service includes changing the oil, filters, lube chassis, fluid level check, and a general inspection covering a long list of non-invasive checkpoints.
Most dealerships do this in the process of getting a truck 'frontline' ready, so they might be more interested in equipment that already meets their requirements. By ensuring your vehicles are in top condition and ready to hit the road, you increase their appeal to potential buyers and can command a higher price.
5. Price Appropriately
Use multiple sources to determine the right price for your used work trucks. It's not recommended to rely on a single guidebook or pricing tool. Research current retail prices and work down from there, factoring in transaction prices and reconditioning costs. By pricing your vehicles competitively based on market conditions and their specific condition, you can attract more potential buyers and sell your vehicles faster.
6. Save the Paperwork!
Having complete, organized title work is critical – particularly if you have a fleet. If there's one common pitfall seen repeatedly, it's problems with title work. If you're going to remarket a vehicle, you must have the title work to sell it to anyone. Fleets need to remember that every day a vehicle isn't sold, it's usually still on lease, piling up charges and fees.
That's why it's so important to have title work in order – if you do, the vehicle can be purchased in a day, but if not, even if you're going to auctions, there are going to be a lot of holdups. Also, if you have service records – provide them! Customers love to look at what was already completed on the truck.
7. Don't Wait to Sell
One of the biggest mistakes fleets make is waiting too long to sell vehicles they no longer need. As seen over the last three to four years, timing is everything. If you have vehicles and equipment you don't need, sell them as soon as possible because you never know what's coming around the corner.
There have been instances where customers sat on vehicles for months before COVID-19 hit, and when it did, they were forced to hold them until they became worthless. Holding onto unused assets for months, especially in an unpredictable market, can leave you stuck with depreciating vehicles.
8. Diversify Selling Options
Finally, position yourself with diverse dealers if you are selling directly. Avoid relying solely on bid sales (a bid sale is when local dealers are invited to bid on many multiple vehicles). This approach can be a quick way to sell work trucks, but unless you have the time to watch every wholesaler as they review and bid on the vehicles, you may be at risk of sudden mechanical issues.
It's common to see an attending buyer try to game the system by switching a couple of plug wires and pulling a fuse so the dealers looking at the vehicles later in the day will assume mechanical issues and bid less. If you cannot sell work trucks on your own to many dealers, it's recommended to seek out an online or a brick-and-mortar auction. If you are working with a fleet management company, there is typically a team of remarketing experts that oversee remarketing needs and the entire process to garner the highest sale price while working with a client's desired timeline.
Partner With Fleet Remarketing Pros
Remarketing your fleet vehicles can be a complex and time-consuming process, but following these eight tips can help you avoid common pitfalls and mistakes. From preparing your vehicles for sale to pricing them appropriately and diversifying your selling options, these strategies can help you get the most out of your sale. If you're looking for a partner to help you navigate the fleet remarketing process, consider working with Wilmar, Inc.
Headquartered in Charlotte, North Carolina, Wilmar is the Southeast's largest independent fleet leasing and management company. Our mission is to deliver customized fleet solutions that help clients like HVAC contractors, plumbers, electricians, and security companies operate their businesses more efficiently.
When Wilmar manages your company vehicles, you immediately merge into the passing lane. We get to know what makes you and your business tick and then craft a sound fleet solution that fits one company: yours. One that propels your fleet forward. Our fleet solutions include:
- Fleet Analysis
- Fleet Selection
- Fleet Management
- Fleet Maintenance and Repair
- Vehicle Leasing
- Equipment Leasing
Contact us today for a free fleet analysis to see how we can help you maximize your fleet remarketing efforts and drive your business forward. With Wilmar in the driver's seat, you can step on the gas with confidence.
