In addition to classic fleet management, one of CarNet’s strengths is to market vehicles in the name and on behalf of the customer at “best price” in the competitive process of the B2B exchanges while eliminating repair costs.
The vehicle is at the end of its life-cycle- which options are used in the market.
Guaranteed profit in the books
In the case of purchased fleets, the vehicles are often depreciated on a straight-line basis to a minimum residual value in property accounting. The person responsible for the vehicle gives them to a used car dealer when they leave the yard or hands them over to the dealer as a down payment when they are purchased new. This guarantees a profit in the books, but there is no competition of possible market prices.
Elimination of competition
Used vehicles are also gladly used as “exchange via Eurotax / auto-i-dat” for new purchases. A theoretical purchase price minus presumed repairs is applied. Since the supplier for the new vehicle is already fixed in this type of transaction, the customer deliberately dispenses with further market enquiries and merely realises a compromise between discounting the new car purchase and the sales proceeds when exchanging the vehicle.
Destruction of the purchase discount
In the case of leased fleets, the vehicles are often returned to the leasing provider, who has the repairs carried out in accordance with the SLA in order to sell them as 1A-Occassion in the Swiss used car market. These repair costs on return then often destroy the discounts previously negotiated by the purchasing department on procurement.
Cash is king
It still exists – the passion of the bazaar! One orders the used car dealers to the farm and negotiates the purchase price. A last free space within a systematized world with subjective feelings of success to have negotiated the best price hard.
The customer only uses local dealers without comparing offers on national and international level.
Implementation via the B2B competition procedure
CarNet always sells vehicles via the most effective channel according to an assessment by our experts.
At the end of the contract, the vehicle is bought out of the leasing company’s books, retrieved by a partner garage and expertised by a neutral expert.
In practice, vehicles that tend to require a high level of repair go into B2B competition. Any damage is not repaired, but the vehicle is published one-to-one on the online exchanges Autrada and CarAuktion with a total of 7500 licensed dealers. The bidders on the exchanges take into account possible repair costs by reducing the value of their offer. The vehicle is sold at Best Price. This helps the customer to eliminate high-priced repair costs when taking back vehicles and to solve maximum prices.
Vehicles with lower repair costs go directly to B2C sales through our Remarketing Center at one of our partners with a corresponding guarantee.
Not to be neglected in this procedure is the consideration of the ideal running time of a vehicle. CarNet endeavours to base a vehicle on the most cost-effective running time based on annual kilometres. This ensures that the conditions negotiated when the vehicle is purchased are not cancelled out by expensive repairs at the end of the contract or a poor sales price.
Increase in demand
We have noticed that COVID-19 has increased the demand and, accordingly, the price of used vehicles. On the one hand, the poor performance of the new car market, combined with the closure of various plants, means that hardly any new used vehicles are coming onto the market, while on the other hand, stocks of used vehicles are being reduced. In the medium term, this has an impact on demand – and thus also on the price of used vehicles.