New tactics needed for fleet remarketing, Aston Barclay reports
26 June 2019
Author: Sean Keywood
A rapidly evolving fleet remarketing sector means operators will need to change their tactics to keep stocking days and conversion rates at acceptable levels, according to auction company Aston Barclay.
The firm has made the observation as part of its Used Market Insights Report - The Evolving Fleet Market 2016-2019, which it has produced for the BVRLA.
The report states that with annual new car registrations greater than 2.6 million during 2015 and 2016, and average fleet replacement cycles currently running between 41 and 42 months, significant change within the remarketing fleet sector is likely within the coming years as greater volumes of vehicles return to market.
Aston Barclay warns that this will impact prices, meaning vendors need to adjust as a result.
Aston Barclay group managing director Martin Potter said: "From the beginning of 2016 to the end of May 2019, fleet prices increased by £1,937.
"This continued price inflation has impacted on the buying habits of dealers across the board as they have sought alternative stock profiles and at a different price point.
"The knock-on implications of this changing buyer behaviour are that prices within the late and low sector, and young part exchanges, have also increased."
Aston Barclay puts much of this market evolution down to organic market dynamics, but thinks Brexit and WLTP have accelerated the rate of change.
Potter continued: "Today, the market continues to evolve to meet the changing dynamics at play - Cap HPI's recent downward market alignment is testament to that.
"At the same time, the late and low sector continues to establish a 'natural' replacement cycle rhythm as manufacturers come back into the rental markets, and the dealer young part exchange market is an area that sees increased activity from sourcing dealers and retailers."
Aston Barclay claims that its strategy of mixing digital and physical remarketing channels is the best way to respond to the change in the market.
Potter concluded: "Clearly, the fleet market is evolving, and vendors need to ensure they evolve with it to ensure the greatest return on their assets."