Success Story: Strategic Remarketing Solves Operational Challenges, Minimizes TCO

One of the top hidden cost drivers for many fleets is failing to maximize the ROI of a vehicle. This is often a byproduct of taking a segmented approach to the three main phases of a vehicle’s lifecycle – acquisition, operation and remarketing – rather than embracing a holistic strategy.

Most fleets can realize significant benefits by adopting optimal replacement cycling that removes vehicles from service when resales values remain meaningful and before maintenance costs and downtime begin to increase. Also keep in mind that while the value of a vehicle may have reached its useful end for your organization, it has not lost its value entirely.

As an example, in this case study, ARI partnered with a 1,500 vehicle fleet to develop a comprehensive replacement strategy that would address the company’s mounting challenges – rapidly increasing operating costs, extended downtime and growing safety concerns due to numerous recalls which, together, were hampering productivity.

Working hand-in-hand with the client, ARI coordinated the timing of new vehicles coming into service with the old ones being sold which mitigated any disruption to day-to-day fleet operations while also addressing the fleet’s on-going safety concerns.

Buoyed by newly negotiated manufacturer incentives and a $2 million gain from vehicle sales, the fleet was able to put field sales representatives in new, safer vehicles, reduce overall operating costs and improve productivity.

At times, companies place so much emphasis on the first two phases of a vehicle’s lifecycle that the final phase, remarketing, is often neglected – a critical mistake. A successful remarketing strategy is vital to maximizing ROI and is one of the best ways to reduce your total cost of ownership.

To learn more about hidden cost drivers that can impact your fleet, read our free white paper Cost Certainty, Cost Escalation & Cost Reduction.