Focus on | Remarketing Time is of the essence
When presenting vehicles for resale vendors have to decide on the level of pre-sale preparation they are willing to undertake. This comes at a cost and will that investment be recouped? Tim Cattlin investigates.
T
ypically, when a contract-hired vehicle comes to the end of its first life, the lease company will
inspect the van and recharge the customer for any damage noted over and above certain guidelines. But, with the pressure being on to achieve the highest return at the lowest cost, some may be tempted to offer the vehicle for resale ‘as is’, accepting that the sum realised will be lower than if refurbishment had been carried out. But, to the trade buyer, there is a cost, not just for repairs, but for the time incurred when the vehicle is unavailable for sale. Auction companies see vendors take
different approaches depending on the vehicle’s age and other factors. As Victoria Slaney, regional LCV manager at Aston Barclay explained, “Whether to refurbish used vehicles before selling or send them straight to auction really comes down to the type of stock. For older, high-mileage vehicles, spending money on refurbishment doesn’t usually add much value. Buyers in this market expect some wear and tear and are prepared to take on any necessary work themselves, so cleaning them up won’t make a big difference in price”.
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But, for newer vehicles, a change in tactic can reap dividends, says Slaney. “Buyers looking at these expect a higher standard, and a bit of refurbishment can go a long way. Aston Barclay data shows that refurbishing LCVs adds on average, an extra £316 profit per unit compared to as little as a £92 investment, more often than not the returns are worth the additional input to increase the grade.” Alex Wright, managing director of
Shoreham Vehicle Auctions suggests that the best investment is in vehicles fitting a stock profile that is in demand. “In 2025 the hotspot for the market is three to four-year old LCVs in good condition and with a full service history. Tis stock is still quite scarce and so is in high demand and making strong money. If you are disposing of this type of stock at auction then you can afford to refurbish the vehicle before it goes under the hammer simply because you know you will get your money back and more.” Even colour should be taken into
account in certain circumstances, as Wright explains. “If a vendor is selling a non-white, particularly something in a metallic colour such as silver we would
recommend getting paintwork tidied up. Don’t forget higher spec vans like VW Transporters in metallic colours are often bought to be repurposed into a camper van so offering the vehicle in a good condition should generate more bids and a healthy sale price.” Although a vehicle with damage will
have a lower hammer price at auction, the cost of the repairs to put the van in a condition where it is ready for retail sale is not the only factor that influences a buyer. Many dealer groups have a 60 or 90-day stocking policy, after which the van has to be disposed of, usually back into the trade with a potential financial loss. Richard James, head of used commercial vehicles at Motus Commercials highlights this challenge. “Te clock starts ticking as soon as any invoice is passed to admin for payment. By the time that has happened, payment acknowledged by the vendor and delivery booked and actioned, it is rare to see a vehicle that isn’t already at least 14 days old. At that point, the pressure to market the vehicle is huge and where vans requiring paintwork cause us a huge headache as it is, then it’s all about getting images online. If the vehicle condition
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