What is vehicle remarketing?
22 Apr 2024
The remarketing of vehicles is a crucial process in fleet management. It allows for maximizing the value of assets before they lose their market value. In this comprehensive guide, we will explore in detail what vehicle remarketing is, its benefits, current challenges, and effective strategies for its implementation.
What is vehicle remarketing?
Vehicle remarketing is the process of resale or recommercialization of cars that have been used in a fleet, whether through rental, leasing, or another usage formula, and that have completed their life cycle within the same.
Instead of disposing of these vehicles, remarketing aims to maximize profits through resale. This process involves a series of key steps, such as vehicle inspection and conditioning, determining the selling price, and marketing through various channels, such as auctions, digital platforms, or direct sales to company employees.
Vehicle remarketing is a common practice in countries such as the United States and the United Kingdom, where car dealerships often acquire used vehicles at auctions to then resell them at retail to end consumers.
Benefits of remarketing for companies and consumers
Vehicle remarketing offers benefits for both fleet-managing companies and end consumers. For companies, remarketing allows:
Compensating for the decline in new vehicle sales: By creating an additional source of income through the resale of used vehicles, companies can offset the drop in new vehicle sales.
Increasing the inventory of used vehicles: By reselling their own fleet vehicles, companies can increase their inventory of used cars and offer more alternatives to customers.
Building customer loyalty: Remarketing allows meeting customer expectations at a lower cost, fostering loyalty.
On the other hand, for consumers, vehicle remarketing offers the following advantages:
More affordable prices: Used vehicles generally have lower prices than new cars, making them more accessible for a larger number of buyers.
Cheaper warranties and insurance: Warranty and insurance costs are usually lower for used vehicles.
Ease of finding spare parts: Due to the greater availability of spare parts for older models, it is easier to find replacements for used vehicles.
Wide variety of models: Remarketing offers a wide range of models and years of manufacture, allowing consumers to find the vehicle that best suits their needs and budget.
Current challenges in the automotive sector
The vehicle sales sector faces significant challenges today, such as the semiconductor shortage and tensions in supply chains, which have affected the supply of new vehicles.
In this context, the remarketing of used vehicles has become a lifeline for the sector, allowing companies to maintain a flow of income and meet consumer demand.
However, remarketing also faces its own challenges, such as the need to adapt to an increasingly digitalized and competitive environment. After the pandemic, vehicle sales companies have had to accelerate their digital transformation, differentiate themselves in a saturated market, and cope with fluctuations in sales.
According to data, in April 2023, used vehicle sales in Spain fell by 2% compared to the same month the previous year. A total of 134,090 units were sold, and sector experts predict that this year sales will drop or, at best, stabilize.
Importance of digitalization in remarketing
In this complex scenario, digitalization has become a key factor for the success of vehicle remarketing. Companies must adopt technological solutions that allow them to streamline and optimize the processes involved in remarketing, such as document management, vehicle inspection, price determination, and marketing through digital channels.
One of the most valuable tools in this regard is digital vehicle inspection software, such as BlueNOW! by TÃœV SÃœD, which offers an inspection service backed by experts and connected remotely with mobile devices, regardless of location.
Additionally, integrated platforms and software solutions specialized in car dealerships have become increasingly necessary to streamline and expedite remarketing processes, from document management to online marketing.
Effective strategies for used vehicle remarketing
To implement an effective used vehicle remarketing process, companies must adopt strategies that enable them to maximize the value of their inventory and attract new buyers. Some key strategies include:
Thorough inspection and conditioning: Before putting a vehicle up for sale, it is crucial to conduct a thorough inspection and carry out necessary conditioning to ensure it is in optimal condition. This may include repairs, deep cleaning, and updating any worn elements.
Accurate determination of the selling price: Setting an attractive and competitive selling price is essential to maximize profits. Companies can use pricing analysis tools and consider factors such as usage, age, special features, and market trends.
Marketing through multiple channels: To reach a wider audience, companies must consider marketing through auctions, digital vehicle buying and selling platforms, social media, and direct sales to existing employees or customers.
Optimizing vehicle presentation: An attractive vehicle presentation, including professional photographs, detailed descriptions, and displaying inspection reports, can significantly increase potential buyers' interest.
Efficient management of logistics and documentation: Proper management of logistics and documentation, including transportation, delivery, and ownership transfer, is crucial to ensuring a smooth and satisfying buying experience.
Comprehensive remarketing services
To facilitate the remarketing process, some specialized companies offer comprehensive services that cover all stages, from the collection and storage of vehicles to managing the final sale. TÃœV SÃœD, for example, offers a modern and agile management model that includes:
Management of vehicle collection and storage.
Optimized document management to expedite timelines and reduce the risk of loss.
Standardized appraisal process tailored to client needs.
Tools to determine selling prices based on variables like usage, age, and special features.
Vehicle image editing services.
Digital vehicle inspection software.
Management of the final sale, including logistics and documentation.
These comprehensive services allow companies to focus on their core business while the remarketing process is handled by experts in the field.
Key indicators to measure fleet performance
To optimize the remarketing process, it is essential to measure fleet performance using key indicators. Some of the most common indicators reference the commercial price of the vehicle, crossed with the days remaining until the end of the lease or days until sale.
Knowing these indicators and staying alert to the remarketing options available in the market will allow companies to make informed decisions on when and how to remarket each vehicle, maximizing its value and profitability.
Maximizing profits through resale
Vehicle remarketing is a powerful tool for maximizing profits through the resale of assets that have completed their life cycle within the fleet. By implementing effective strategies and leveraging specialized services, companies can:
Compensate for the decline in new vehicle sales.
Increase the inventory of used vehicles and offer more alternatives to customers.
Build customer loyalty by meeting their expectations at a lower cost.
Access new markets and sales channels.
Optimize inspection, conditioning, and marketing processes.
Manage logistics and documentation efficiently.
In summary, vehicle remarketing is an essential practice for companies managing car fleets as it allows them to maximize the value of their assets and maintain a steady income flow in an increasingly challenging and competitive environment.
