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Maximising your returns on fleet disposal
It may seem obvious, but the most effective way to reduce costs, depreciation being the biggest, is to ensure the best price for your vehicle at disposal time.

But with so many options now available, we’d like to help you choose what’s most profitable for you.

Before you sell the vehicle

You wouldn’t buy an uncared for, neglected or, at worst, damaged car; so ensure that you have a clear policy on fair wear and tear which you communicate to your drivers. The better your drivers care for their vehicles, the higher the resale value is likely to be. So make sure you complete an inspection when they return their vehicles.

To help you manage fleet disposals for maximum return, we have compared some of the most popular disposal methods.

To get a quick idea of which might be the best method, we have summarised the advantages and disadvantages.
 
Selling At Auction
Part Exchange
Selling To Traders
Competitive Tender
Selling To Staff
Selling at Auction
This is one of the most popular and hassle-free methods as the auction house handles the disposal process in its entirety, in return for a fee based on the sale price achieved. Even if you only need to dispose of a few vehicles a month, an auction makes sense. For a start it’s convenient. A good auction house will pick up the vehicle from your premises, advise you on a sensible reserve price and offer a valeting service. At a major fleet sale there will be scores of serious buyers, so the auction arena offers a competitive sales environment where you will get a fair price.

Some tips to help maximise your returns:
  • Don’t set the reserve too high, as professional buyers don’t like putting in provisional bids as it ties their money up on something they won’t know they’ve bought until after the sale

  • Don’t set the reserve too low, as it might tempt the auctioneer to knock the price down quickly to sell

  • You can get a good idea of prices from CAP Black Book or Glass’ Guide

  • Make sure the vehicle goes to an appropriate auction site – for example, a small automatic would sell best at a site close to a city

  • Get the vehicles featured in the auction catalogue
 
Part Exchange
This is a hassle-free method of disposal that can be timed to suit your circumstances. It assumes that you are replacing one vehicle with another and requires you to have an understanding of the valuation process.
 
Selling to Traders
A quick and convenient way of disposing of vehicles. However, you might not be getting the true worth of your vehicle. Also traders are more likely to be selective about which vehicles they are prepared to take.
 
Competitive Tender
If you’ve a large fleet to dispose of, then you could opt for a competitive tender for disposal. The advantages are that it usually attracts a large number of potential buyers and eliminates any negotiating process. The downside is you will have extra administrative work and you need to have somewhere where buyers can view the vehicles.
 
Selling To Staff
An effective way to dispose of vehicles, as it’s often seen as a ‘perk’ of the job by staff. There are a few pitfalls. When you sell to staff, you have the same legal obligations as any vehicle trader – so it might make sense to offer a warranty or sell the cars through a third party. Although staff think this might be a good way to buy a cheaper car, anyone buying the car for less than market value might be liable for income tax on the difference as a Benefit-in-Kind.