Auction houses have been labelled the dinosaurs of the used car industry in the past, being grouped together in perception terms with clichéd second-hand dealers and the image of old-school sheepskin coats.
But you don’t have to look far to realise that that isn’t the case.
The amount of technology underpinning the process of shifting vehicles – within auction companies and elsewhere – has come on an awfully long way, driven the industry forward and created new market niches – all of which is much to the benefit of the fleet operator.
BCA’s operations director, Simon Henstock, believes that some of the biggest technological advances in the auction and remarketing fields surround business data and marketing analytics: “The use of business intelligence data and analytics is becoming more widespread and demand for this data will inevitably grow.
“This includes looking at a wider range of data to inform reserve price setting, such as daily, condition-adjusted vehicle valuations (rather than the traditional monthly data), vehicle demand data (which channel the vehicle might best sell in, which sales to enter it in) and utilising consumer data such as retail market pricing and demand information.
“There is also data around the benefits of vehicle preparation, mechanical checks, vehicle movements and other activities in the remarketing process. These factors are all gaining importance with vendors.”
Sign of the times
Jon Mitchell, sales director of online remarketing firm Autorola, says mobile apps and tablets are now playing a bigger role with both buyers and fleet sellers: “More and more buyers are using mobile applications to source information when buying vehicles, while our sellers are using them to log online to see how their vehicles are doing when they are on the move.
“[Businesses] renewing their websites over the coming months should be set up so they can be automatically accessed with an iPad, iPhone or tablet.”
From the leasing companies’ perspectives, the online side has had the biggest impact in recent years. Hitachi Capital’s strategic remarketing and supply manager Scott Holland explains: “The biggest technology development in remarketing is the rise of online-based systems to help sell vehicle stock.
“Having a picture of the whole market allows online traders to accurately assess the current market and what sort of premium they could make on a sale. There was a time when traders saw online remarketing as a risky option, but now with experience, improved images and availability of vehicle data, there is confidence and trust in buying a vehicle you haven’t seen in person.”
Holland doesn’t agree that handheld devices will necessarily revolutionise the industry, though. He believes they do have a benefit, but they won’t change the stock you’ve got to sell.
“Any additional way to acquire stock is welcome, but ultimately vendors only have the stock they have to sell – having different ways to purchase won’t change what is available to buy,” he says. “Apps will allow new and perhaps less-experienced individuals to enter the market, though, and more buyers in any market will likely lift prices.”
As worthwhile as it is to have heaps of gadgetry and technology at your fingertips, as a fleet operator you’re likely to be more interested in the speed of shifting defleeted stock and the return you’re going to get, rather than the trickery surrounding it.
So do fleets care about all the tech that’s on offer when it comes to remarketing cars?
Mitchell believes there’s a lot of interest from corporate sellers around the difference between physical sale prices and how those compare with digital sales. “Fleets are interested in how online remarketing prices vary with those at physical auction,” he says. “Time and speed of disposal is the biggest concern for asset owners, so anything that speeds up the sale process has to be good news.”
Autorola also claims that there is an eco-friendly element to selling cars online. The firm’s Australian arm calculated that an average truck will travel 88 miles less if it is sold online, cutting CO2 emissions by 92g/km per vehicle and shaving cost off fuel and/or transportation bills in the process.
Holland agrees that operators have something of a one-track mind with defleeting stock, but the technology available helps them to generate better values, so it’s in their interests to buy into it.
“Apps will open the market up to more buyers and this will help with the ultimate aim of quickly identifying vehicles they want to buy. It’s important that fleet vehicles are visible to these buyers,” he says.
“Fleet operators are only interested in getting the best price for their vehicles, and so online appeals, as buyers can be anywhere in the country versus physical auctions that can only attract a local audience. This all helps to not only get better prices but also ensure the vehicle stock turn is improved and the number of days they are in stock is reduced.”
Henstock thinks there’s an important element to moving with the times that requires fleet operators to approach online selling appropriately, otherwise they will be left behind, and stand to lose out on the RV and quick sales benefits that new technology brings: “The critical factor for online success is to have the tools and processes that make buyers feel as comfortable buying via their laptop or mobile device as they do seeing the vehicle being driven through an auction hall.
“Consumers will ignore a vehicle on a retail website if it is not pictured to a good standard, and trade buyers will inevitably do the same, particularly if they are buying online. Consumers expect the ability to research their purchase online and then the transaction to be simple, quick and without hassle. In a nutshell, this is about being ‘easy to do business with’.”
The residual value expert’s view
Rupert 
, chief car editor at Glass’s, says moves are afoot within the remarketing industry to implement a series of direct-to-sale platforms: “There are indications that some remarketing and valuation providers are looking at provision of systems that will take vehicles from defleet. straight through to the remarketing channel, whether wholesale- or retail-based. These are likely to be done using just one handheld device and will link with selected remarketing partners.
“These platforms will become available later in the year subject to adoption by appropriate partner businesses to ensure they are relevant and effective.”
He also believes that online used car sales will continue to grow for the foreseeable future, but they will eventually reach a plateau and level out against physical sales.
“At some point the growth in online sales will slow and a plateau will be reached since physical auction will always have a place for certain types of cars, but we are some way from this point.”
Pontin adds that tablets will be the way forward for sellers and buyers, and that fleets would be wise to keep an eye on the way the technology that underpins the remarketing industry develops because it can actually help them generate more money from their vehicles.
“The future will be tablet-based for both buyers and vendors,” he says. “Ease of use and simplified operating platforms will mean these are likely to become industry standard as older equipment requires replacing.
“The business sector would be wise to keep abreast of the changes in technology and platforms in what is a constantly evolving arena. Use of multi-function tablets to handle stock management, appraisal, purchasing and remarketing will reduce costs and change current often desk-tied tasks to enable greater flexibility. Knowledge and use of different sales channels is essential to ensure the best return on their inventory.”
