9:35 am, September 22, 2008
CONTRACT hire and leasing company Arval has reviewed its remarketing policy.
This is in response to current economic uncertainty – and the analysis it has conducted makes interesting reading for dealers.
Advice from Manheim has helped the company understand the technicalities of first, second and subsequent entries at auction. The effect of stock condition and levels have also been analysed.
Dealers have responded by bidding healthily for well-prepared, well-priced stock, helping return fair prices for all.
Buyers, notes Arval, have become more selective as the market conditions have toughened. They’re also buying to order or to replace sold stock, rather than holding in stock.
Thus, only the best-looking machines will be sold – which has meant the company has really ramped up its reconditioning operation.
It has also realised the importance of conversion rates. Only by being flexible with price will cars will cars sell. Sticking rigidly to a traditional pricing and reserve policy in these times of economic uncertainty can become counter-productive.
Martin Potter, corporate sales director, Manheim Auctions, added: ‘During the unpredictable market conditions we are experiencing at the moment, I would advise all our vendors to be realistic and flexible when reviewing their remarketing strategies. Clearly, Arval has done this, and is now reaping the benefits.’
