Vehicle remarketing is a crucial process in fleet management. It makes it possible to maximise the value of assets before they lose their market value. In this complete guide, we will explore in detail what vehicle remarketing is, its benefits, the current challenges and the effective strategies for implementing it.
What is vehicle remarketing?
Vehicle remarketing is the process of reselling or remarketing cars that have been used in a fleet, whether through leasing, contract hire or another usage model, and that have reached the end of their life cycle within it.
Instead of disposing of these vehicles, remarketing seeks to maximise profits through their resale. This process involves a series of key steps, such as vehicle inspection and reconditioning, determining the selling price and marketing through different channels, such as auctions, digital platforms or direct sale to company employees.
Vehicle remarketing is a common practice in countries such as the United States and the United Kingdom, where car dealerships often buy used vehicles at auctions and then resell them at retail to end consumers.
Benefits of remarketing for companies and consumers
Vehicle remarketing offers benefits both for fleet-managing companies and for end consumers. For companies, remarketing allows:
Offsetting the decline in new-vehicle sales: By creating an additional revenue stream through the resale of used vehicles, companies can offset the fall in new-vehicle sales.
Increasing the used-vehicle stock: By reselling their own fleet vehicles, companies can increase their used-vehicle stock and offer more alternatives to customers.
Building customer loyalty: Remarketing makes it possible to meet customer expectations at a lower cost, encouraging loyalty.
On the other hand, for consumers, vehicle remarketing offers the following advantages:
More affordable prices: Used vehicles usually have lower prices than new vehicles, making them more accessible to a greater number of buyers.
More economical warranties and insurance: The costs of warranties and insurance 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 broad range of models and production years, enabling consumers to find the vehicle that best suits their needs and budget.
Current challenges in the automotive sector
The vehicle sales sector is facing major challenges today, such as semiconductor shortages and tensions in supply chains, which have affected the supply of new vehicles.
In this context, remarketing of used vehicles has become a real lifeline for the sector, enabling companies to maintain a revenue stream and meet consumer demand.
However, remarketing also faces its own challenges, such as the need to adapt to an increasingly digital and competitive environment. After the pandemic, vehicle sales companies have had to accelerate their digital transformation, differentiate themselves in a saturated market and deal with fluctuations in sales.
According to the data, during April 2023, used-vehicle sales in Spain fell by 2% compared with the same month the previous year. In total, 134,090 units were sold, and sector experts predict that sales this year will fall or, at best, stabilise.
The importance of digitalisation in remarketing
In this complex scenario, digitalisation has become a key factor in the success of vehicle remarketing. Companies must adopt technological solutions that enable them to speed up and optimise the processes involved in remarketing, such as document management, vehicle inspection, pricing and marketing through digital channels.
One of the most valuable tools in this regard is digital vehicle inspection software, such as BlueNOW! by TÜV SÜD, which offers an inspection service backed by experts and connected remotely with mobile devices, regardless of location.
In addition, integrated platforms and software solutions specialised in car dealerships have become increasingly necessary to make remarketing processes more flexible and faster, from document management to online marketing.
Effective used-vehicle remarketing strategies
To implement an effective used-vehicle remarketing (VO) process, companies must adopt strategies that enable them to maximise the value of their stock and attract new buyers. Some key strategies include:
Thorough inspection and reconditioning: Before putting a vehicle up for sale, it is crucial to carry out a thorough inspection and undertake the necessary reconditioning to ensure that it is in optimal condition. This may include repairs, deep cleaning and updating any worn elements.
Accurate selling-price determination: Setting an attractive and competitive selling price is essential to maximise profits. Companies can use price-analysis tools and take into account factors such as usage, age, special features and market trends.
Marketing through multiple channels: To reach a wider audience, companies should consider marketing through auctions, digital vehicle buying and selling platforms, social media and direct sales to employees or existing customers.
Optimising the vehicle presentation: An attractive vehicle presentation, including professional photographs, detailed descriptions and the display of inspection reports, can significantly increase the interest of potential buyers.
Efficient management of logistics and documentation: Proper management of logistics and documentation, including transport, delivery and transfer of ownership, is crucial to ensure a smooth and satisfactory buying experience.
End-to-end remarketing services
To make the remarketing process easier, some specialised companies offer end-to-end services that cover all stages, from collection and storage of the vehicles to managing the final sale. TÜV SÜD, for example, offers a modern and agile management model that includes:
Vehicle collection and storage management.
Optimised document management to speed up times and reduce the risk of loss.
Standardised appraisal process adapted to the customer's needs.
Tools to determine selling prices based on variables such as usage, age and special features.
Vehicle image editing services.
Digital vehicle inspection software.
Management of the final sale, including logistics and documentation.
These end-to-end services allow companies to focus on their core business, while the remarketing process is handled by experts in the field.
Key indicators for measuring fleet performance
To optimise the remarketing process, it is essential to measure fleet performance using key indicators. Some of the most common indicators take the vehicle's market price as a reference, matched against the days remaining until the end of the lease or the days to sale.
Knowing these indicators and being alert to the remarketing options available in the market will enable companies to make informed decisions about when and how to remarket each vehicle, maximising its value and profitability.
Maximising profits through resale
Vehicle remarketing is a powerful tool for maximising profits through the resale of assets that have reached the end of their life cycle within the fleet. By implementing effective strategies and making use of specialised services, companies can:
Offset the decline in new-vehicle sales.
Increase the used-vehicle stock and offer more alternatives to customers.
Build customer loyalty by meeting their expectations at a lower cost.
Access new markets and sales channels.
Optimise inspection, reconditioning and marketing processes.
Manage logistics and documentation efficiently.
In short, vehicle remarketing is an essential practice for companies managing car fleets, as it enables them to maximise the value of their assets and maintain a steady revenue stream in an increasingly challenging and competitive environment.
Vehicle remarketing is a crucial process in fleet management. It makes it possible to maximise the value of assets before they lose their market value. In this complete guide, we will explore in detail what vehicle remarketing is, its benefits, the current challenges and the effective strategies for implementing it.
What is vehicle remarketing?
Vehicle remarketing is the process of reselling or remarketing cars that have been used in a fleet, whether through leasing, contract hire or another usage model, and that have reached the end of their life cycle within it.
Instead of disposing of these vehicles, remarketing seeks to maximise profits through their resale. This process involves a series of key steps, such as vehicle inspection and reconditioning, determining the selling price and marketing through different channels, such as auctions, digital platforms or direct sale to company employees.
Vehicle remarketing is a common practice in countries such as the United States and the United Kingdom, where car dealerships often buy used vehicles at auctions and then resell them at retail to end consumers.
Benefits of remarketing for companies and consumers
Vehicle remarketing offers benefits both for fleet-managing companies and for end consumers. For companies, remarketing allows:
Offsetting the decline in new-vehicle sales: By creating an additional revenue stream through the resale of used vehicles, companies can offset the fall in new-vehicle sales.
Increasing the used-vehicle stock: By reselling their own fleet vehicles, companies can increase their used-vehicle stock and offer more alternatives to customers.
Building customer loyalty: Remarketing makes it possible to meet customer expectations at a lower cost, encouraging loyalty.
On the other hand, for consumers, vehicle remarketing offers the following advantages:
More affordable prices: Used vehicles usually have lower prices than new vehicles, making them more accessible to a greater number of buyers.
More economical warranties and insurance: The costs of warranties and insurance 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 broad range of models and production years, enabling consumers to find the vehicle that best suits their needs and budget.
Current challenges in the automotive sector
The vehicle sales sector is facing major challenges today, such as semiconductor shortages and tensions in supply chains, which have affected the supply of new vehicles.
In this context, remarketing of used vehicles has become a real lifeline for the sector, enabling companies to maintain a revenue stream and meet consumer demand.
However, remarketing also faces its own challenges, such as the need to adapt to an increasingly digital and competitive environment. After the pandemic, vehicle sales companies have had to accelerate their digital transformation, differentiate themselves in a saturated market and deal with fluctuations in sales.
According to the data, during April 2023, used-vehicle sales in Spain fell by 2% compared with the same month the previous year. In total, 134,090 units were sold, and sector experts predict that sales this year will fall or, at best, stabilise.
The importance of digitalisation in remarketing
In this complex scenario, digitalisation has become a key factor in the success of vehicle remarketing. Companies must adopt technological solutions that enable them to speed up and optimise the processes involved in remarketing, such as document management, vehicle inspection, pricing and marketing through digital channels.
One of the most valuable tools in this regard is digital vehicle inspection software, such as BlueNOW! by TÜV SÜD, which offers an inspection service backed by experts and connected remotely with mobile devices, regardless of location.
In addition, integrated platforms and software solutions specialised in car dealerships have become increasingly necessary to make remarketing processes more flexible and faster, from document management to online marketing.
Effective used-vehicle remarketing strategies
To implement an effective used-vehicle remarketing (VO) process, companies must adopt strategies that enable them to maximise the value of their stock and attract new buyers. Some key strategies include:
Thorough inspection and reconditioning: Before putting a vehicle up for sale, it is crucial to carry out a thorough inspection and undertake the necessary reconditioning to ensure that it is in optimal condition. This may include repairs, deep cleaning and updating any worn elements.
Accurate selling-price determination: Setting an attractive and competitive selling price is essential to maximise profits. Companies can use price-analysis tools and take into account factors such as usage, age, special features and market trends.
Marketing through multiple channels: To reach a wider audience, companies should consider marketing through auctions, digital vehicle buying and selling platforms, social media and direct sales to employees or existing customers.
Optimising the vehicle presentation: An attractive vehicle presentation, including professional photographs, detailed descriptions and the display of inspection reports, can significantly increase the interest of potential buyers.
Efficient management of logistics and documentation: Proper management of logistics and documentation, including transport, delivery and transfer of ownership, is crucial to ensure a smooth and satisfactory buying experience.
End-to-end remarketing services
To make the remarketing process easier, some specialised companies offer end-to-end services that cover all stages, from collection and storage of the vehicles to managing the final sale. TÜV SÜD, for example, offers a modern and agile management model that includes:
Vehicle collection and storage management.
Optimised document management to speed up times and reduce the risk of loss.
Standardised appraisal process adapted to the customer's needs.
Tools to determine selling prices based on variables such as usage, age and special features.
Vehicle image editing services.
Digital vehicle inspection software.
Management of the final sale, including logistics and documentation.
These end-to-end services allow companies to focus on their core business, while the remarketing process is handled by experts in the field.
Key indicators for measuring fleet performance
To optimise the remarketing process, it is essential to measure fleet performance using key indicators. Some of the most common indicators take the vehicle's market price as a reference, matched against the days remaining until the end of the lease or the days to sale.
Knowing these indicators and being alert to the remarketing options available in the market will enable companies to make informed decisions about when and how to remarket each vehicle, maximising its value and profitability.
Maximising profits through resale
Vehicle remarketing is a powerful tool for maximising profits through the resale of assets that have reached the end of their life cycle within the fleet. By implementing effective strategies and making use of specialised services, companies can:
Offset the decline in new-vehicle sales.
Increase the used-vehicle stock and offer more alternatives to customers.
Build customer loyalty by meeting their expectations at a lower cost.
Access new markets and sales channels.
Optimise inspection, reconditioning and marketing processes.
Manage logistics and documentation efficiently.
In short, vehicle remarketing is an essential practice for companies managing car fleets, as it enables them to maximise the value of their assets and maintain a steady revenue stream in an increasingly challenging and competitive environment.
