As a fleet owner, having a clear fleet acquisition and disposal policy is key to ensuring you have an efficient fleet that meets your business needs at all times.
Knowing when to sell vehicles, where to sell them (through live or online auction), pre-sale and post-sale measures that must be followed, etc., can help you avoid risks that might lead to revenue loss.
So, what does the automotive fleet sales process look like? Below are five key steps that you should follow to ensure a smooth process.
If your company has adopted automation, inspection will be quick and easy. In this case, you'll have ready reports on the vehicle's condition. If there are any maintenance or repairs needed, the reports will indicate. Again, the information contained in the reports will help you calculate an estimate of the vehicle's market value.
Fleet sales usually take place through auctions. You can opt to sell your vehicles through a live or online auction. Before deciding where to sell the fleet, study the two markets and see where you're likely to find a larger pool of buyers.
Again the type of vehicle(s) you're disposing of will determine which market is best suited. Fleet disposals are time-sensitive as the longer the vehicle stays on the market, the more its value depreciates. You want to choose a platform that will facilitate a quick sale.
Exercise caution when singling out the vehicle(s) up for sale to ensure you don't end up selling the wrong units. Have the vehicle details documented and the vehicles correctly tagged for easy identification.
If you're selling the fleet at a live auction, ensure the auction firm collects the right vehicles. Have the designated staff members confirm the vehicle details and sign a release form ascertaining the same. In case you're doing an online auction, have a dedicated staff member audit the details provided on the online listing to ensure they correspond with the actual vehicle details.
Upon the sale, proper internal controls should be followed to ensure the transaction is duly completed. Before releasing a vehicle to a new owner, your staff should validate the company has received the right payment, and all the necessary documents have been filled and signed.
Once the transaction has been completed, ensure you or your representative does a complete audit of the process to ensure the sale followed proper procedures and there was no policy violation whatsoever. Check that the vehicles sold were indeed due for disposal and the company received the correct payment.
To safeguard the integrity of the process, you may want to ban company employees from participating in auctions as they may exploit their insider knowledge to their advantage. During the audit, you can spot any incriminating issues that may reveal process manipulation by the employees. This is not witch-hunting per se but a critical control that can help protect your company from revenue loss during fleet sales.
Having a clear fleet disposal policy ensures you have a smooth fleet sale process, so you can conveniently phase out units from your fleet at the right time. But if you find the process overwhelming, you can always outsource to a fleet management company.
Fleet sale is one of the services we specialize in at Wilmar Inc. We offer an efficient and cost-effective fleet disposal solution tailored to meet your needs. You can decide to outsource your entire fleet management or engage our disposal services whenever you need to sell. No matter which option you choose, we can design and execute a fleet disposal policy that best suits your business situation.
Ready to collaborate with us? Contact us today and let us discuss.