Record Surge in Vehicle Values Creates Opportunity for Fleets
During the last several months, the automotive industry has certainly wrestled with some significant challenges – supply chain constraints, telematics device shortages, fuel disruptions, etc. – but along with these challenges comes some opportunities. Perhaps most notable for fleet operators is the current landscape of the used vehicle and equipment market.
Brought to a virtual standstill for several months amidst factory closures, component scarcities, and delivery challenges, constraints throughout the supply chain have set off a domino effect throughout the fleet industry. Today, the number of new vehicles available remains rather limited, creating a perfect storm of unprecedented demand that’s driving used vehicle and equipment values to near record highs and agile fleet operators have a terrific opportunity to capitalize on this red-hot market.
Current Market Trends
Fueled by strong, sustained consumer demand and relative lack of new units available, used car prices continue to climb higher with several of the key industry indexes (Manheim, Black Book, etc.) measuring record-setting months throughout the spring.
According to the latest market data, used vehicle and equipment values have jumped nearly 18 percent since the beginning of the year, and approximately 10 percent in the last month alone. And the market shows little sign of plateauing or slowing down. Current forecasts indicate the used vehicle market is likely to remain exceptionally strong through Q4 of this year and into early 2022.
Now’s the Time to Recover More Value
So what does all of this mean to you as a fleet operator? Simple; now’s the ideal time to take a look at your underutilized or retired assets that can be sold for top-dollar, allowing you to generate immediate capital that can be reinvested into your business.
Rightsizing to Dispose of Underutilized Vehicles
It goes without saying that the pandemic has fundamentally altered the way many organizations conduct business. In some scenarios, you may have vehicles that are being used more as business demand spikes. Conversely, you might have units that are being driven far less or even some that have sat idle for extended periods as business patterns shift and a significant number of employees continue to work remotely.
While each scenario influences your overall fleet strategy differently and there are numerous factors that need to be considered, you may now be in a position to reduce the number of vehicles in your fleet to better align with the evolving dynamic of your business (and our analysts can help you identify your underutilized and no longer needed units).
If you’ve determined there’s an opportunity to eliminate some underutilized vehicles, you’re in perfect position to take advantage of the current market to quickly dispose of these units and maximize your ROI. This additional cash flow can then be used to cover the increased operating expenses of units that have seen a spike in utilization or those that may need to remain in service longer than originally anticipated due to the well-documented supply chain constraints.
Don’t Overlook Your Commercial Equipment
Whether it’s to an employee, in the auction lane, or through a virtual marketplace, you likely have a process in place to sell your fleet’s vehicles at the end of their lifecycle. However, the same can’t always be said for the complex commercial equipment that’s common in most vocational fleets – forklifts, trailers, trenchers, etc.
Instead of letting these types of units continue to gather dust in the corner of your facility, now’s the perfect time to sell this equipment and recover more value for these highly-specialized tools of the trade. Just like the used car and truck market, the secondary market for commercial equipment is exceptionally strong at the moment and you can likely recoup a portion of your company’s initial investment to help further reduce the TCO of this costly equipment.
We’re Here to Help Handle it All
Now that you’re ready to liquidate your excess vehicles and equipment, our team of remarketing specialists is ready to develop a customized strategy to sell these units and capitalize on this unprecedented spike in value. ARI Remarketing Solutions will help you establish a seamless process that quickly gets your assets in front of the right buyers to maximize returns and eliminate your administrative burden, allowing you to boost your operating budget in the short-term while also building a long-term strategy for sustained success.