We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive all cookies on the Business Car website. However, if you would like to, you can change your cookies at any time
The start point for the best source of fleet information |
Where you sold a car used to be hugely important. The thinking often was that coupes and convertibles would do better in the south of the country, and estates and 4x4s could be shifted more easily up north. But then online selling came in and things changed.
A lot of remarketing experts are now of the opinion that regional price differences count for almost nothing any more because the auction halls have opened up to national and international buyers with their digital platforms. That begs the question as to whether it's worth bearing location in mind when your vehicles are due for defleeting.
Simon Henstock, BCA's operations director, believes regional peaks and troughs have all but disappeared since online selling came to the fore.
"The rise of internet remarketing channels means the issue of regional price differences has really been consigned to the history books," he says. "The vehicles buyers look for every day are located online irrespective of where they may be physically. This means the factors of age, mileage, condition and specification are far more important."
He admits that localised shifts in price still happen though, and that there is merit in defleeting vehicles locally to appease regular buyers.
"This does not mean that local price fluctuations never happen as variations in demand are always a feature in a competitive bidding environment, but the location is much less of factor than it was.
"Having said that, physical auction buyers still account for the vast majority of the volume sold and if it is possible to offer vehicles in the geographic location that has the most receptive marketplace, that would make sense. It means reduced logistics costs for the buyer and that may be reflected in an additional bid or two in the auction hall."
Others in the remarketing community reckon there is more scope for regional variations, but that it's confined to certain segments of the used car market. Vehicles that are the most susceptible to fluctuations in price and performance are those with alternative fuel drivetrains, according to Ogilvie Fleet's operations director, Jim Hannah.
"In my opinion, there is only one specific group of vehicles that this applies to:'alternative fuel vehicles,'" he says. "They definitely perform better in the south and in areas where congestion charging and parking zones are either in operation or are being considered for the future.
"I think we will see a similar trend for fully electric vehicles in the future, but I don't think this applies to any other types of vehicle throughout the country."
Chairman of the Vehicle Remarketing Association, John Davies, says there are local changes for used vehicles of this type, but adds they are confined to very specific urban areas: "The used buyer is still not fully aware of hybrids and some of the environmental benefits they may bring, and so there are no real regional peaks in demand or prices, except in London where they [currently] help motorists save money on the congestion charge."
BusinessCar magazine ©2019
Business Car Magazine © 2020 | Business Car is part of NS Media Group.
