For years, traditional vehicle auctions were the default solution for selling ageing or surplus fleet vehicles. However, a growing number of businesses are turning to asset disposal specialists for a more streamlined, profitable, and sustainable approach.
Kevin Gardner, Commercial Manager at BPI Asset Disposal Solutions, a specialist in liquidation and bankruptcy auctions in the UK, explains why this shift is gaining traction and what it means for fleet managers navigating a challenging market.
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Meeting the rising demand for used vehicles
“The demand for used commercial vehicles continues to grow as businesses increasingly value their immediate availability and lower capital investment,” explains Gardner. “We’re also seeing a rise in the availability of used fleet vehicles coming to market, as reflected by a 21% increase in new LCV registrations and a 2.6% rise in new HGV rigid registrations in Q2 of 2023 alone. This influx of newer models naturally leads to older vehicles being sold.”
While global commercial vehicle fleets are projected to expand by a third by 2050, the UK faces unique production challenges. A sharp 59.3% drop in domestic commercial vehicle production in May 2023, reported by the Society of Motor Manufacturers and Traders (SMMT), has complicated fleet managers’ ability to acquire new stock. Supply chain delays have made the used vehicle market — and the services of asset disposal specialists — an increasingly critical lifeline.
Streamlining the selling process
Fleet managers often contend with tight deadlines and limited resources when disposing of surplus vehicles. Traditional methods, such as dealer partnerships or auctions, are time-consuming and complex. Asset disposal specialists, however, offer a more efficient alternative by handling everything from valuation to logistics.
By leveraging global buyer networks and advanced online auction platforms, these specialists ensure sellers achieve maximum returns while expediting the process. Features such as “sell from site” options eliminate the need to transport vehicles to auction houses, further reducing costs and logistical headaches.
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By GlobalDataA boost for sustainability and the circular economy
The UK government’s push for zero-emission vehicles has added another layer of complexity to fleet management. With initiatives like the Zero Emission Vehicle Mandate requiring 70% of new vans to be zero-emission by 2030, businesses face pressure to modernise their fleets.
Asset disposal specialists help bridge this gap by extending the lifespan of older vehicles. Through repurposing and resale, they contribute to the circular economy, giving assets a second life while supporting businesses’ sustainability goals. For eco-conscious customers, this bolsters the company’s reputation as a responsible operator.
Maximising returns through tailored strategies
Unlike traditional auctions, which often take a one-size-fits-all approach, asset disposal specialists customise their strategies based on the type of vehicle and market demand. Whether it’s tractor units, refrigerated trailers, or converted LCVs, they ensure each asset reaches the most appropriate buyers, often achieving higher returns.
Gardner notes the importance of this targeted approach: “Accurately valuing vehicles and creating tailored marketing strategies are key to ensuring maximum returns. It’s not just about selling vehicles—it’s about placing them strategically with buyers who can maximise their utility.”
Generating cashflow and supporting growth
For many businesses, selling underutilised vehicles is a critical way to unlock cashflow. The revenue generated can be reinvested in new assets, driving operational improvements. With transactions often completed within weeks, asset disposal specialists help businesses avoid the inefficiencies of idle vehicles while freeing up valuable space and resources.
As Gardner summarises: “Asset disposal specialists do more than just remove unwanted vehicles; they strategically place them with new owners, generating cashflow, supporting sustainability, and contributing to the circular economy. With their expertise, businesses can enhance operations, meet sustainability goals, and maximise the value of their assets, all while enjoying a streamlined and efficient process.”
By embracing this modern approach to fleet management, businesses can better navigate market challenges, improve their sustainability credentials, and optimise their financial performance.
