All steps of car remarketing: from fleet to final delivery
Car remarketing is a widely used strategy in the automotive sector, as it allows vehicles that have been discontinued by company fleets or rental companies to be brought back onto the market, thereby lowering maintenance costs.
As we have already seen in our article on car remarketing and its advantages, this strategy can be very cost-effective for those who know how to exploit it.
In this article, however, we will analyse what steps cars need to go through in order to be remarketed efficiently and profitably.
What are the steps in the car remarketing process?
The car remarketing process comprises several steps that are necessary for a successful strategy. Every dealership or car hire company has its own internal procedures, but in the case of remarketing there are steps that cannot and must not be neglected to ensure that the cars are at peak performance and can be sold on terms that are satisfactory for all parties involved.
- Car status assessment: one of the first steps in the remarketing process is certainly a general review of the vehicle’s components to make sure that they are suitable for safety standards and do not have a negative impact on the resale price;
- Selection of suitable cars: not all cars within a fleet of decommissioned vehicles will be able to be remarketed, so a careful selection has to be made of vehicles with a higher resale value;
- Washing, mechanical and cosmetic appraisal: in this phase all the operations necessary to restore the vehicle are carried out;
- Vehicle valuation: once the vehicle has been restored, it will be necessary to value the car in order to establish the most consistent selling price in relation to the market and its condition;
- Professional photoshoot: the vehicle is professionally photographed in all its parts;
- Put back on the market: in this phase each dealership or car rental company selects the most suitable platforms or facilities for putting vehicles back on the market;
- Customer service and sales support: following re-introduction onto the market, many dealerships or car rental companies also offer support throughout the sales phase, thus guaranteeing an all-round service;
- Vehicle delivery: having completed the purchase process on the part of the end customer, the last step is the delivery of the car, which can be either at home or at the dealership/car rental shop that handled the service.
These basic operations could be complemented by additional services such as: assistance with price negotiation, after-sales support, or management of documentation required for different operations.
The challenges of remarketing cars
Given the benefits and necessary steps, it is critical to consider the challenges that may arise once the process is set in motion. Although it is a widely used practice in the automotive industry, there are some elements that could make the process tortuous and not bring the desired results.
Among these we have:
- deciding the best price based on the market: the main challenge lies in the volatility of the market itself, which makes it extremely complex to define the value of a car at any stage of the process, as this could change within a short time;
- identifying the right market for vehicle sales: it is important to perform in-depth analyses to assess which niche market might be most suitable for the sale of your used vehicle, also in relation to demand levels and prices set by competitors;
- assessment of reconditioning costs: refurbishing the car could be extremely expensive compared to the final gain, especially if you do not take into account the availability and possible cost of the necessary spare parts.
Escargo, thanks to its highly qualified team and a complex of partners throughout the country, offers a 360° service that can help you get the most out of your used cars and support you in all stages of remarketing.
Are you ready to put your used car fleet back on the market? Contact us to find out how we can help you.