Question 3

Is disposal of vehicles at auction the most cost effective route?

Please reply in the comments box below.

  1. Eric Bristow says: November 17, 2015 at 6:13 pmReply

    This response is probably rather late but I think it may be better late than never.

    I have 3 routes for disposal. The first would be a private sale to an employee or someone associated with them. This is by far the least problematical and quickest. We offer LCVs at a CAP average value and cars at a CAP clean value. Usually, either of these is far more attractive to the purchaser than buying off the forecourt. Payment is immediate and there are no transport costs or auction fees.

    Our second route for disposal is a local trade sale. From the beginning, the sale price has been set as it would have been for a private sale. This would be irrespective of the condition of the vehicle. Generally speaking, the condition would be far better than the BVRLA ‘wear and tear’ assessment however there would be the few vans that weren’t in as good a condition as the majority. This was irrelevant – the trade purchaser would have to take the rough with the smooth. It hasn’t stopped the sheepskin coat & trilby brigade from trying to negotiate, but we have stuck firm. The benefit of this type of disposal is the immediate return of revenue and the lack of fees as above, but for a greater volume of vehicles.

    The third route for disposal is via an auction house. Currently we use two. One is a single outlet based in the Midlands, the other is a national. With the independent auction house, we have found that the industry market trends are more apparent. So we are able to make the best choice between the two depending on whether it is a Bull or Bear market. Each have the facility for the seller to view the auction on-line in real time. The independent tends to work harder for the sale, If the vehicle didn’t meet its reserve, then usually they will negotiate with the two parties to secure a mutually beneficial sale.

    As a final word of caution. It is essential that if you have a high number of similar specification/model vehicles to dispose of – then you route them through one of the national auction houses and insist that they are spread out around the UK.