By working together fleets and franchised dealers can better meet the used car stock challenge, boost the used car market and make defleet a more efficient and profitable process, according to LeasePlan’s head of remarketing James Hopkins.
Speaking at this year’s AM Used Car Conference, which takes place at the Ricoh Arena in Coventry on 10th October, Hopkins will also explore how fleet managers can influence company car choices which would result in a much more attractive used vehicle for retailers when it comes to defleet.
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. At LeasePlan we purchase thousands of vehicles each year from the franchised dealer network but we need to improve the dovetailing of the front-end purchase with the back-end remarketing. Achieving this would provide fleets with a further direct remarketing channel whilst providing good quality stock for dealer forecourts and could well prove more profitable for both parties.
“The challenge which faces both fleet managers and dealers is the choice of vehicle made by company car drivers. These choices are usually determined by the company’s list of vehicles and benefit in kind (BIK) payments which are set by CO2 emissions.
“Company car drivers more often than not are faced with a choice between a high specified 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 but when it comes to defleeting that vehicle, these cars perform less well in the used car market.. Manufacturers, dealers and fleet operators need to put their heads together and identify ways we can influence the choice of company cars to create the right mix of vehicles demanded by the used car market.”
As well as working with partners such as BCA, whose managing director Spencer Lock is also speaking at the conference, LeasePlan is looking to form more partnerships with the wider retail network to expand its multi-channel remarketing strategy and more closely align the requirements of the used car market with new company car contract hire leasing.