Inspection specialist MJB Automotive Solutions has warned vehicle funders of a rise in the number of vehicles reaching the used car market and the financial impact of those sold in poor condition.
The organisation suggested that easing lockdown restrictions would coincide with lease extensions coming to an end, voluntary terminations and repossessions.
It added that repair facilities may not be fully operational at the same rate, which could lead to many ex-fleet and finance vehicles being sold in poor condition and losses for funders.
“With a real focus on sale conversion rates, ensuring you understand the condition of your asset before its end of contract will maximise the opportunity to presell or ensure disposed of through the correct channel,” said MJB’s founder and CEO Marcus Blakemore (pictured above).
“Returning vehicles that cannot be upgraded in a timely manner will incur daily depreciation costs and tie up valuable cashflow, so it is vital to understand the condition of your vehicles and prepare appropriate actions to ensure efficient refurbishment and disposal.”
He suggested that early inspections, prior to vehicles being de-fleeted, could allow fleets to plan for repairs “especially if bodyshops are not operating at full capacity or are overwhelmed with work created by the lockdown hiatus.
“Fleet decision-makers will also have plenty of time to make an informed decision on the best disposal option prior to vehicle return and so reducing days to sell and hopefully clawing back some profit.”
