Motability Finance Ltd is preparing to roll out its new national vehicle remarketing scheme to dealers next year after a successful pilot scheme which has been running since August.
The new scheme sees MFL take the residual values risk in-house and offer end-of-lease vehicles direct to the dealer network.
A spokesman said: “There is merit in offering the vehilces first to dealers which have been maintaining them, and then to other dealers within the same franchised groups. In this way vehicles can be sold in the shortest time and the cost of movement and repair optimised. This will give franchised dealers the opportunity to continue to obtain MFL vehicles by the same routes as they currently do, but at market prices rather than pre-set residuals.”
Vehicles not sold this way will be offered after the end of contract to all approved MFL customers, including dealers buying outside their franchise or other approved trade dealers. Some will go to auction.
The pilot scheme which has seen dealers buying cars under the new contract arrangement began on August 1. Dealers are being signed-up to MFLdirect in preparation for full volumes of vehicles becoming available in March 2002.
The new contract was devised by MFL because it believes the end of lease vehicles it supplies are particularly attractive to dealers. MFL vehicles are generally much lower mileage than traditional fleets, typically three years old with 25,000 miles rather than the ex-fleet vehicle which can be three to four years old and up to 80,000 miles.
Adrian Rushmore, Glass's Guide chief car editor, said: “The MFL remarketing scheme programme will help allay fears of residual value damage that can result from a large influx of used cars to the market. Dealers will be free to buy only those cars representing immediate profit opportunities – something that was often not possible when they were tied into buyback arrangements. Dealers will also value having a relationship with a highly respected company that stands by its commitment to provide cars that are prepared to a known condition with full service history.”