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How dealers can increase profits from their used car operations

Boost used car supply via fleet and dealer synergy


Fleets need to do more to make sure the company cars they are offering are desirable as used car stock, according to LeasePlan head of remarketing James Hopkins.

The challenge facing fleet managers and dealers is in the choices made by company car drivers. These are usually determined by the vehicle list and benefit in kind (BIK) payments, not by what may be the most desirable cars for used car buyers.

More often than not, company car drivers are faced with a choice between a high-specification vehicle from a brand such as Vauxhall, Ford, Volkswagen or Toyota or an entry-level premium brand – most opt to have the kudos of a BMW on the driveway with minimal specification.

However, when it comes to defleeting those vehicles, entry-level premium cars do not perform as well in the used car market.

Manufacturers, dealers and fleet operators need to put their heads together and identify ways to influence the choice of company cars to create the right mix of vehicles demanded by the used car market.

Hopkins said: “Everything we put on the road as a new company car will return to us for defleet and then find itself on the used car market.

“Spec is so important for used car buyers. As an industry, we need to do more to align the equipment and colour of the company car with what fits with the requirements of a used car buyer. Achieving this would provide fleets with a further direct remarketing channel, while providing good quality stock for dealer forecourts and could well prove more profitable for both parties.”

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