Maximize Resale Value With Secondary Market Conditions
Understandably, most fleet operators place so much emphasis on the first three phases of a vehicle’s lifecycle – buy, drive, and service – that the final phase, sell, is often an afterthought. However, the remarketing process is a crucial factor in minimizing your fleet’s total cost of ownership (TCO). In recent years, the secondary market has been rather volatile and many fleet operators have struggled to navigate these unpredictable market conditions to maximize resale values.
With that in mind, Holman’s Jim Jackson recently spoke with Autosphere to examine the current state of the secondary market in Canada. In the article, Jim noted that demand for recently off-lease vehicles (three to four years old) remains strong, and these units continue to retain above average value. He also shared his perspective for the road ahead as fleet operators begin to plan for 2025.
“Moving forward, it is likely that the secondary markets overall will be more predictable, with the spring market being particularly robust. We are also closely monitoring interest rate trends. As interest rates decline, it will be a significant catalyst for the secondary market and will likely sustain strong resale values.”
Jim also said that in the current secondary market, vehicle condition is having a significant impact on resale value. To that point, Jim stressed the importance of ensuring vehicles are in good condition at the end of their lifecycle and highlighted how a strong remarketing partner can help optimize your liquidation strategy.
“Beyond maintenance and overall vehicle condition, fleet operators should align with a strategic remarketing partner who can offer insight on reconditioning options, market trends, pricing strategies, auction venues, etc. to help maximize resale values.”
Jim also offered advice for remarketing specialized commercial vehicles with upfitting, saying that Holman typically advises customers to sell these units with the upfit package included to increase resale value. To read the entire article, visit Autosphere.ca and learn how Holman’s strategic remarketing solutions can help strengthen your fleet budget.
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