Vehicle remarketing
Encyclopedia
Vehicle remarketing is the controlled disposal of fleet and leasing vehicles that have reached the end of their fixed lease term.
In vehicle leasing
, after the lease expires, the lessee either returns the vehicle to the supplier or buys it. The vehicles that are not purchased by the driver become an unwanted asset for the fleet or leasing company because of vehicle depreciation and they look to channel intermediaries to relinquish the stock on their behalf quickly and in high volumes. Remarketing can be done to trade or to consumers.
for vehicle remarketing are the disposal price achieved, usually in reference to a trade guide price (such as CAP Clean in the UK or Black Book in Canada) and the days-to-sell, which is the number of days between end of lease and disposal of the car. Different remarketing routes targeting different customers are available and offer different options regarding these KPI.
, British Car Auctions
or Aston Barclay in the UK. During a car dealer auction, the vehicles are typically sold to car dealerships who in turn will retail them to consumers. In the US, in 2005, 2.7 million fleet vehicles were sold through auctions .
In vehicle leasing
Vehicle leasing
Vehicle leasing is the leasing a motor vehicle for a fixed period of time. It is commonly offered by dealers as an alternative to vehicle purchase but is widely used by businesses as a highly cost-effective method of acquiring vehicles for business, without the usually needed cash outlay...
, after the lease expires, the lessee either returns the vehicle to the supplier or buys it. The vehicles that are not purchased by the driver become an unwanted asset for the fleet or leasing company because of vehicle depreciation and they look to channel intermediaries to relinquish the stock on their behalf quickly and in high volumes. Remarketing can be done to trade or to consumers.
Key performance indicators
key performance indicatorsKey performance indicators
A performance indicator or key performance indicator is an industry jargon for a type of performance measurement.. KPIs are commonly used by an organization to evaluate its success or the success of a particular activity in which it is engaged...
for vehicle remarketing are the disposal price achieved, usually in reference to a trade guide price (such as CAP Clean in the UK or Black Book in Canada) and the days-to-sell, which is the number of days between end of lease and disposal of the car. Different remarketing routes targeting different customers are available and offer different options regarding these KPI.
Remarketing to trade
End of lease vehicles that are not purchased by the lessee have traditionally been remarketed through wholesale vehicle auctions such as Manheim AuctionsManheim Auctions
Manheim, Inc. is an automobile auction company. It is the largest one in the world by volume of trade. As a subsidiary of Cox Enterprises, Inc., Manheim provides services including financing, title work, transportation, recovery, auto body repair, dealership management systems, dent repair and...
, British Car Auctions
British Car Auctions
BCA Europe , is the largest vehicle remarketing business in Europe, with an annual turnover in excess of £4 billion.-History:...
or Aston Barclay in the UK. During a car dealer auction, the vehicles are typically sold to car dealerships who in turn will retail them to consumers. In the US, in 2005, 2.7 million fleet vehicles were sold through auctions .