By: Gov Auctions | 14 May 2013
Clearing Out Existing Vehicles in your Business
When running a business with a number of fleet vehicles, periodically it will be necessary to update the fleet with new vehicles. Buying new fleet vehicles in bulk is a relatively easy process, but a more difficult aspect is getting rid of a large number of identical vehicles. Selling a fleet of vehicles individually will be time consuming and there is no guarantee that you will get a prompt financial return from the vehicles either. To clear out existing vehicles from your business the best route is to take them for sale at car auctions. This article considers all you need to know about selling your business vehicles in bulk.
Selling in Bulk
Auctions have an excellent benefit in allowing you to sell a number of identical vehicles at the same time. This is generally not possible because individual buyers will rarely want to buy more than one of the same vehicles at any one time. At an auction, however, you can sell a large number of vehicles to different individuals looking to buy cheap cars and get a good price for all of them. This allows for a fast turnover and a rapid reinjection of cash into your business. Selling the cars individually, however, will likely see you with a number of fleet vehicles unused and unsold in your parking lot for a long period of time.
When selling fleet vehicles at auction, the individuals will not have an opportunity to test-drive any of the vehicles before they buy them. For this reason it is essential to provide as much detail as you can manage about the service history of the vehicles. If you can provide a comprehensive service history with details of when the clutch was changed and when new parts will be needed, then buyers will be able to calculate a realistic value. If you do not provide information, however, then they will always assume the worst and you will lose out significantly on the sale.
Fleet vehicles are often branded and this is an important thing to consider. With your branding on the side of the van, the actions of the driver will reflect on your business. For this reason it is sensible to repaint all of the vehicles before you sell them. Getting this done in bulk will reduce the costs, but this can still be a pricey process. Thankfully, this cosmetic improvement will likely add value to the vehicles because they will look newer and better cared for. If you do not want to undertake this process, however, then it is possible to sell them with a requirement that they are repainted before they are driven on the road.
Hope for the Best
When selling at auction it is always important to remember that how much you get in return is down to chance. Whilst it is possible and sensible to set minimum limits on the auction sale, there will be a large variation in how much you get for each vehicle. Once the fleet has been entered in for auction, however, there is nothing that you can do but hope for the best. Generally an auction sale will provide a good return on vehicles, but the real benefit comes from clearing your old vehicles quickly so that you can continue with your business and make money with your shiny new fleet of vehicles.