Have you ever looked around your fleet yard and noticed vehicles that are just…sitting there? Have you thought out defleeting to help optimize operations and cost centers? According to a 2023 State of Fleet Management Survey by Automotive Fleet, about 70% of fleet managers who used a systematic remarketing approach saw a 10-15% increase in net returns compared to fleets that sold vehicles ad hoc.
Here at Ridecell, we know remarketing isn’t just an afterthought; it’s a vital part of the complete fleet lifecycle. It sits right alongside vehicle acquisition, maintenance, and day-to-day operations. The team has created a guide to remarketing your fleet to help you get the most from every vehicle sale.
Understanding Fleet Remarketing
In the simplest terms, fleet remarketing refers to the process of selling vehicles from your fleet once they’ve reached the end of life point where they’re no longer needed or cost-effective to keep. But the reality is a bit more nuanced. Remarketing involves:
- Assessing each vehicle’s condition: You’ll consider mileage, maintenance history, and overall performance.
- Determining resale value: This might involve researching the used-car market, depreciation rates, and trends in vehicle types.
- Selecting the right channel for sale: Maybe you opt for auctions, online marketplaces, or private buyers.
- Planning ahead for maximum return: You decide whether it’s better to sell now or wait for a more favorable market condition.
A 2022 report by the National Private Truck Council (NPTC) found that around 40% of a commercial vehicle’s total cost of ownership (TCO) is tied up in depreciation alone. Once depreciation starts to outpace the vehicle’s utility, you’re essentially losing money by keeping it in your fleet. Hence the need for remarketing.
Building Your Remarketing Strategy
Defining Goals
The first question you should ask yourself is: What do I hope to gain from remarketing? Each organization might have slightly different motivations, but setting clear goals helps you measure success later on.
Identifying Key Players and Roles
Remarketing usually involves multiple stakeholders:
- Fleet Managers: They understand the operational history of each vehicle.
- Financial Officers: They’ll confirm budgets, monitor ROI, and set revenue targets.
- Operations Teams: They ensure day-to-day processes continue smoothly during the sale.
- Remarketing Specialists (Internal or External): These individuals or third parties handle the actual listing and negotiation process.
Clear communication between these parties is key. If everyone knows their role, the entire process flows more smoothly.
Crafting a Timeline
Next, develop a timeline that outlines the expected remarketing windows for your vehicles. For example, you might decide to sell compact cars once they hit 80,000 miles or light-duty trucks after five years, whichever comes first. A 2021 study by the North American Fleet Association (NAFA) suggested that vehicles typically reach their most cost-effective resale point around four to five years of age—of course.
Budgeting
Even remarketing requires a budget. You may have to:
- Fix minor mechanical issues or cosmetic damage.
- Pay for auction listing fees or online marketplace ad placement.
- Cover transport costs if the vehicles need to be moved to a central location.
It’s a good idea to set aside a small “contingency fund” for the unexpected. Think of it as insurance against any last-minute surprises that could derail or devalue your sale.
Vehicle Preparation: Getting Your Fleet Sale-Ready
Perform Thorough Inspections
Start with a comprehensive mechanical inspection. Potential buyers—be they dealers, private individuals, or at an auction—will want to know if there’s anything drastically wrong under the hood. You’ll also want to identify small mechanical issues that can be fixed quickly and cost-effectively, like replacing worn-out brake pads or changing a cracked windshield.
Checklist for a Pre-Sale Inspection
- Engine performance and fluid levels
- Transmission health
- Brake wear and tear
- Tire tread depth and alignment
- Interior condition (seats, dashboard, electronics)
- Exterior condition (paint, dents, rust)
Document Maintenance and Repairs
If you can show prospective buyers a clean record of scheduled maintenance, oil changes, and any necessary repairs, you build trust. And trust translates to a better sale price.
Clean and Detail Vehicles
Spending a small amount on professional detailing can significantly boost your vehicle’s attractiveness and justify a stronger asking price. Remember: You’re competing with other sellers who might be taking these extra steps. Don’t lose out by skipping a simple cleaning.
When to Sell “As Is”
Sometimes, the cost of repairs might exceed the potential increase in your sale price. For example, if a car needs a new engine or major bodywork, it might be more cost-effective to sell it “as is.”
Timing the Market: When to Sell A Fleet Vehicle
A well-maintained van in January might fetch a different price than the exact same van in June, simply because seasonal trends in demand fluctuate. For instance:
- Work Trucks and Vans: Often see increased demand in late winter or early spring, as construction and landscaping businesses ramp up for the year.
- Family or Commuter Vehicles: Might sell better right before the school year starts, when parents are thinking about reliable transportation.
- Electric Vehicles (EVs): Their demand might align with rising gas prices or new government incentives.
Ridecell’s Pro Tip
Here at Ridecell, we encourage fleet managers to set up automated alerts that track key metrics, including how close vehicles are to their “best sell” mileage thresholds and how the used-vehicle market is behaving. This kind of data-driven approach can significantly impact your final returns.
Choosing the Right Sales Channel for Your Fleet Vehicles
Different channels offer different advantages and drawbacks. Here’s a breakdown:
Online Marketplaces
- Pros: Wide exposure, potential for higher bids, direct control over listings and pricing.
- Cons: Can be time-consuming, as you’ll field inquiries, schedule test drives, and handle negotiations.
Physical Auctions
- Pros: Fast, straightforward process, often a good choice for selling multiple vehicles in one go.
- Cons: Prices can fluctuate based on who shows up. Auction fees might eat into your profits.
Dealer Trade-Ins
- Pros: Convenient if you’re buying new vehicles from the same dealership; the trade-in value can offset your purchase.
- Cons: The dealership might offer a lower price than a private buyer because they also want to make a profit.
Direct Sales to Employees
- Pros: Can boost company morale, employees may trust the vehicle’s history, often leads to quicker sales.
- Cons: You might not get the highest market price. Also, there could be internal equity issues if not managed fairly.
Online Auctions
- Pros: Large audience reach, transparent bidding process, can find specialized buyers.
- Cons: Listing fees and transaction costs, plus you lose some face-to-face negotiation advantages.
Setting the Right Asking Price for Your Defleeted Vehicle
One of the biggest challenges you’ll face is pricing your vehicles correctly.Researching Market Trends
Stay informed about current market rates for comparable vehicles. Check trade publications, like Automotive Fleet or Work Truck Magazine, and keep an eye on popular used-vehicle websites. Also consider regional factors: a pickup might command a higher price in a rural area than in a city dominated by compact cars.
Factor in Upfits and Modifications
If your vehicles come with specialized equipment—like shelving, refrigeration units, or advanced telematics—highlight that in your listing. While not all buyers need these extras, those who do might be willing to pay a premium.
Negotiation Tactics
Be prepared to negotiate. Most buyers will try to haggle, and that’s normal. Decide on your lowest acceptable price ahead of time. If possible, highlight unique selling points, like a strong service record, new tires, or recent upgrades, to bolster your position.
Using Valuation Tools
Several tools can offer a ballpark figure for your vehicles. Kelly Blue Book (KBB) and NADAguides are common references, but commercial fleet vehicles might need more specialized industry data. This is where a platform like Ridecell can integrate your vehicle’s telematics data—mileage, maintenance, driver behavior, and more—to produce a more precise, data-backed valuation.
Conclusion: Why Ridecell is Your Remarketing Partner
To truly optimize each stage, you need a holistic view of your fleet and the tools to act on real-time insights. The Ridecell all-in-one 360 platform to streamline every aspect of vehicle ownership, from start to finish. When it comes to remarketing, our platform stands out by:
- Offering Real-Time Data: Continuously track maintenance needs, driver behavior, and utilization. This helps you decide exactly when a vehicle has reached its profitable endpoint.
- Simplifying Documentation: Upload titles, maintenance logs, repair histories, and any compliance paperwork to our centralized hub, making it easy to present a transparent record to potential buyers.
- Integrating Market Insights: We tap into used-vehicle market data to help you see when demand is highest, so you can time your sales to perfection.
- Automating Alerts and Workflows: Tired of juggling spreadsheets and forgetting key deadlines? Let Ridecell’s alert system notify you when vehicles cross a certain mileage threshold or when market trends shift.
- Scaling with You: Whether you’re offloading a handful of cars or an entire segment of your fleet, Ridecell adapts to your size and goals. As your operation grows, the platform grows with you.
In short, with Ridecell, remarketing becomes less of a chore and more of an opportunity—an opportunity to recapture value, reinvest in newer and greener vehicles, and keep your fleet agile in a rapidly changing world.