Online car disposal set to overtake traditional auctions
19 October 2010
Author: Tristan Young
The use of online auctions as a vehicle disposal route is set for a massive increase at the expense of traditional auctions, according to a survey of large fleets by recently re-branded CD Auction Group.
The survey of fleets operating an average of more than 10,000 vehicles revealed that in the past five years 83% had increased their use of online auctions. At the same time nearly 43% had decreased their use of traditional auctions.
The survey also asked how fleets expected to change in future, with 80% thinking they will use online auctions even more in the next five years, while 53.8% think they will use conventional auctions less.
According to CD Auction's research the current main disposal route now is 50% through physical auction, 38.9% online trade auction and the rest is direct to retail.
If even part of the predicted swing to online occurs, the traditional auction will lose its lead in vehicle disposal.
The reason fleets use online auctions is for ease (45%) and speed (40%), rather than higher vehicle sale prices. However, this is the thing most fleets would like to improve with 81.3% saying they would like to see a better sales value.
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