The disposal of fleet vehicles is an area which is likely the bane of the fleet manager. It is, after all the hour of reckoning, quite literally.
Fleet disposal is the time when ‘’remembered but unreported’’ damage comes to light (and resents another bill), refurbishment costs accumulate and resources to handle resale tend to put a strain on day-to-day business operations as staff are called in to assist with getting rid of vehicles through labour-intensive channels.
The fleet manager is well and truly exposed at this time, and that’s not a comfortable place to be at the best of times. Savvy FM’s though, would recognise that micromanaging fleet vehicle disposal is not overly productive, and letting someone else do the hard stuff is a much better use of their time.
And just quietly, outsourcing to experts in the field of vehicle disposal is much more than a way to CYA (cover your assets).
It is actually smart and strategic to engage the services of people who know what they’re doing; according to general manager of Manheim NZ, Brad Gardiner.
“We’ve found many fleets in New Zealand are very good at saving money when it comes to vehicle acquisition, but few know how to capitalise on their investment when it comes time for those vehicles to be moved on.
“A little bit spent on the vehicle at the end of its useful life with your company can actually result in a better price from a buyer.”
It’s not at all surprising that Manheim knows how to maximise profitability when it comes to vehicle disposal, given the company’s long history, national and international footprint in the field.
What? You didn’t know Manheim was big? Here it is in a nutshell: Manheim is one of the automotive divisions of Cox Automotive.
Cox Automotive, along with Cox Communications and the Cox Media Group are subsidiaries of Cox Enterprises Inc, one of the largest privately-owned companies in the US, employing 55,000 people and generates around $21US billion in revenue. And Manheim is part of that picture.
So for those thinking Manheim was “just another auction house’’, well, think again.
While the company here has its primary operations base in south Auckland’s Wiri, it has centres in Wellington and Christchurch along with 27 partner sites throughout the country, which offer all the services of the larger facilities.
Manheim operates on the same principles as its Cox Automotive parent, whose mission is “to make buying, selling, owning and using cars easier for everyone,” and it’s this point where the fleet manager should sit up and pay attention.
Up until comparatively recently, Manheim was the disposal partner for larger fleets and rental car companies, typically using traditional auction processes to do this.
Over time, Manheim has expanded is auction channel to include a ‘’Buy Now” operation, where the public can come in and utilise all the product offerings of a typical car dealership – finance, warranty et cetera – but with lower prices than full retail.
In more recent times, Manheim has partnered with car distributors represented here to redirect vehicles off fleets and back into the dealership network of that company through specific dealership auctions for on sale to the public.
And this is significant because it demonstrates how effective Manheim is when it comes to disposing of vehicles. And if distributors are outsourcing to Manheim for disposing of their own vehicles, doesn’t that speak to Manheim’s expertise? And shouldn’t you, as your company’s fleet manager, be considering the same?
“Our service is a complete end-to-end process,” says Brad. “And vehicle disposal is a process. Once you elect to use our services and experience, we work with you at whatever level you want us to work at with you.
“If you for example, just want the vehicle(s) gone, hey, we’ll cut you a fair market value cheque right there and take the vehicle away. If you want to be a bit more strategic about it, we can take you through the best process(es) for the desired result.”
As part of that Manheim might suggest spending a little bit to gain a lot, but the specialist disposal company can also handle all legal compliance – rego, RUCs, WoF or Cof – so you don’t have to, valuations, inspections, grooming, decal removal and transportation, but all the time working with you as a partner, so you control the process based on Manheim’s recommendation and input.
All of which sound much more palatable than a kick in the asset when it comes to potentially mismanaged vehicle disposal.
Rather than lose when it comes time to move the fleet on, it’s much better to partner up with an expert to ensure your company wins.
