Adapting to the market conditions pays dividends
Arval, one of the UK’s leading contract hire and leasing companies has been enjoying good trading conditions during this period of economic uncertainty by adopting a proactive and pragmatic remarketing policy. Arval has been working closely with Manheim Auctions to understand better the impact of first, second and subsequent entries at auction, stock condition and stock levels and by using Manheim market intelligence to understand the latest pricing trends throughout the UK. The result has been well prepared stock, supported by full documentation attracting healthy bidding and achieving good market prices.
As the market conditions have become more challenging, so buyers have become much more selective. Consequently, this means that vehicles in the best condition and at the right price are selling best. Investment in appropriate reconditioning of certain vehicles can pay huge dividends, if those vehicles are sold at the first time of asking. However that is only possible if the reserve is set at a realistic level and if the vendor is willing to negotiate. A flexible but sensible approach to the value of stock will result in higher conversion rates. Sticking rigidly to a traditional pricing and reserve policy in these times of economic uncertainty can become counter-productive.
Andrew Petty, Arval’s Head of Remarketing Relationship said: “We have always worked hard to ensure that our vehicles are in the best possible condition, making them more attractive to potential buyers. This approach has proven to be the right one given the challenging market conditions that we are currently experiencing.”
Martin Potter, Corporate Sales Director, Manheim Auctions added: “During the unpredictable market conditions we are experiencing at the moment I would advise all our vendors to be realistic and flexible when reviewing their remarketing strategies. Clearly Arval has done this and is now reaping the benefits.”
For more information on Remarketing, click here.
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