July 7, 2022
For some organizations, remarketing fleet vehicles is merely an afterthought; simply viewed as a way to dispose of a unit at the end of its useful lifecycle and extract some resale value. However, for best-in-class fleet operators, the remarketing process is a vital component of minimizing their total cost of ownership (TCO) and their strategy for maximizing returns typically begins before the vehicle even hits the road.
With that in mind, Holman’s Danielle Lucas recently spoke with Work Truck to discuss how decisions throughout a unit’s lifecycle, particularly your maintenance strategy, impact the vehicle’s resale value. In the article, Danielle highlights the importance of embracing a holistic fleet management strategy as you look to maximize remarketing returns and lower your TCO.
“Remember, each phase of the unit’s lifecycle — buy, drive, service, and sell — impacts its resale value. Your maintenance strategy should be a particular area of focus. You’ll want to ensure you closely adhere to recommended preventive maintenance (PM) schedules for regular oil changes, tire rotations, brake inspections, etc..”
Danielle also notes that as your vehicles near the end of their lifecycle, if they show signs of excessive wear or neglect and need repairs to get them road ready for the next owner, it will detract from a unit’s resale value. That being said, Danielle also advises that some repairs or reconditioning prior to sale likely aren’t worth the hassle.
“You’ll want to avoid anything that’s merely cosmetic or superfluous, but we recommend that each unit be cleaned and detailed before the vehicle goes up for sale. The same can be said for add-ons such as toolboxes or roof racks. Repairing or replacing these minor components will have little impact on resale value.”
Finally, Danielle says it is also important to keep in mind that vehicles with specialized upfitting can be a remarketing challenge because they’re typically very expensive and only appeal to a limited number of buyers, further reinforcing the value of knowledgeable remarketing professionals.
“This is an area where it is especially beneficial to have a savvy remarketing partner. Your remarketing partner can help you develop a strategy to get these highly specialized units in front of the right audience to maximize the pool of potential buyers.”