At the very end of a lease vehicle’s life cycle, it gets remarketed. Remarketing is usually not the last thing on your mind, but it is definitely worth taking a closer look. After all, it does impact your vehicles' monthly budget.
Business Lease sets a unique example. It sells 83% of its ex-lease stock via its own remarketing channel; Cars & Care. That benefits everybody – including fleet owners and their drivers.
A prompt offboarding of lease vehicles gets priority so that swift de-registration can be done. Once de-registered, the car can be prepared for transportation to one of our Cars & Care used car sales centers. This streamlined supply chain process has led to cost improvements, benefiting our valued customers.
Business Lease operates a Cars & Care used car sales center in each one of its markets across Central Europe carrying its own logo and website, and professional staff dedicated to remarket only Business Lease ex-lease vehicles.
Keeping things in-house has a number of advantages for customers, not the least of which is cost. Cutting out the middleman means no fees and commissions to the aforementioned third parties. In-house remarketing also reduces transportation and storage costs. That also makes it easier for us, to wait a bit longer for a better price.
Besides a swift offboarding-process, we are also learning more and more about the car market itself. Data about vehicles that are up for sale, continuously provides us with up-to-date insight about vehicle resale values and developing trends. This expertise, together with efficient processes and the resulting cost reduction in remarketing, allows Business Lease to be very competitive in its lease offerings to clients.
To sum things up; more market data, improves resale value, which directly benefits the monthly lease rate of our customers.
It is a unique situation as most lease companies remarket their vehicles via third parties and often sell them in bulk. About 5 years ago Business Lease made the strategic decision to keep remarketing in-house and sell the ex-lease vehicle to individuals. It was made with the ambition to keep the process ‘lean and mean’ – and this worked out well.
Business Lease’ focus on remarketing has several advantages for its customers. One is the automatic offer made to lease drivers. Three months before the end of the vehicle’s contract term, the driver is offered the opportunity to buy the vehicle.
Drivers making that choice represent 5% of the total volume of remarketed vehicles.
So far it’s been a remarkable success. Before, Business Lease sold about 80% of its ex-lease vehicles via those third parties. Now, Cars & Care handles that same share – much higher than most other lease companies.
As used vehicle prices stabilize, this offer will gain in popularity, and the share of vehicles acquired by their drivers is likely to increase further. Being able to offer all your employees (not just your lease car drivers) such an attractive offer is an advantage to any company – as cars are an important tool in the war for talent.
If you keep your remarketing in-house instead of relying on brokers, you’re in full control not just of the timing and pricing, but also of the quality of your remarketing activities. That last part means that Cars & Care cares just as much as Business Lease itself about the proper inspection, cleaning, and if necessary, repair and certification of its ex-lease vehicles before they are off to the next owner. Cars & Care offers a complete history of use and documented mileage for all cars it sells.
Contact us today to learn more about how we can help you optimize your international fleet and bring employee satisfaction to a higher level!