British Car Auctions’ Duncan Ward explains how van operators can improve the residual values of their vehicles.
“Many corporate sellers have taken steps to improve the quality and sale-ability of their used vans and have seen improving residual values as a result of that good work. However, it is worth remembering that the second user more often than not simply wants a ‘van to do the job’ and is not necessarily concerned by the finer points of specification, economy, ‘green’ issues and technology-derived driving aids.”
“The first corporate owner will focus on ensuring that all the vehicles on fleet are fit for purpose, are presented in the appropriate corporate identity, and hit fuel efficiency and emissions targets, as you expect with a professionally managed fleet. However, the used buyer has a completely different set of aims and objectives.
“The second user will definitely value air-conditioning and a good retail colour, but will inevitably be less concerned with low CO2 technology or stability systems. Feedback from buyers attending BCA’s regular LCV Forum underline this, with the condition and presentation of LCV’s being critical to the initial buying decision, with mileage, specification, and the ‘pedigree’ of the seller also being important.”
“Remembering that the next owner of an LCV is likely to be a small business or sole trader then other factors also assume importance. The engine and payload is important to the building trade, for example, while plumbers and electricians will look for internal storage and racking and a small catering company may value a side loading door for local deliveries.”
“However, what all buyers universally agree on is the importance of colour, and BCA analysis suggests this is a significant price indicator. While auction buyers favour white, metallic silvers and greys, the simple fact is the first owner needs a distinctive corporate identity that is inevitably at odds with the needs of the used buyer.”
“Increasingly, corporate sellers are squaring the circle by using vehicle wrapping over a base colour to meet their corporate colour requirements, which means that professional pre-sale preparation is critical to success at remarketing time. The end product is a van presented in the original factory finish colours the used market wants with the additional benefit that the wrapping tends to protect the paintwork from chips, scuffs and other general wear and tear. Not only does this improve residual values but the corporate brand is protected from potential misuse further down the line. A real win: win situation!”
