A new commercial vehicle disposal guide has launched to help fleets optimise their residual values as they transition towards an ULEZ-compliant fleet.
Published by Shoreham Vehicle Auctions (SVA), the new guide supports fleets that are having to replace vehicles early in line with the ULEZ expansion from 29 August 2023.
The guide provides handy hints and tips on how to manage the current buoyant market where prices have risen by 10-20%. This includes setting the correct reserves and not just relying on the used value guides to ensure prices are optimised.
It also highlights the importance of local and national pre-sale marketing and how offering vehicles to an open market across both physical and online channels optimises values, especially for aging and damaged stock.
The guide is aimed at all fleets, but particularly councils, which tend to run their vehicles for longer and may be more exposed to the ULEZ expansion.
“Many councils are already starting to defleet commercial vehicles that will not meet the new Transport for London ULEZ rules, to ensure they avoid being fined. We launched the online guide to help and support them at a time when market prices and the used value guides differ quite dramatically,” explained Alex Wright, SVA’s MD.
He added that the difference between a fleet’s written-down vehicle values and the current market price can be very different, and they risk under-pricing their vehicles if they are not careful.
“Councils are managing public money and the more we can help them make for their vehicles the better it is for all concerned,” he continued.
Wright gives the example of prices SVA recently achieved for a London borough whilst disposing of non-ULEZ compliant fleet vehicles. It achieved an average of 121% of CAP and 116% of their reserve prices on the sale of 13 vehicles. This generated an extra £20,000 for the council’s coffers.
“By taking our advice and entering vehicles in our regular Local Authority Special Sale, the authority has benefited from strong prices achieved through open public auction. The process provides the assurance that vehicles are not undersold if sold to local buyers.”
Wright also stressed that buyers have historically always preferred to inspect ex-council and utility stock in person before they bid on vehicles – and said this is why “prices at auctions operating only online risk being compromised”.
For a free copy of SVA’s Fleet Operator Vehicle Disposal guide, please click here.
