Autorola Australia leads the way with upstream selling
Written by Autorola in category Autorola Group News
August 24, 2021
In some cases, vendors are being paid for vehicles before they have been de-fleeted, such is the competition for 2-4-year ex-lease cars between dealers. Two out of every three cars Autorola is now selling have gone through the upstream process.
Upstream selling is a win-win for all concerned
In the current climate where demand exceeds supply upstream selling is a win-win for all parties concerned. The vendor sells the used car quickly, the buyer has access to new stock before it hits the used market, and the fleet operator reduces costs in the form of reduced de-fleet charges being charged by the leasing provider.
Like many countries the used market in Australia is very strong as buyers switch their attentions to used cars as new car availability is being compromised by the global semiconductor shortage.
More vendors are switching to online remarketing
Many physical auctions have also been shut during large periods of the Covid-19 lockdown, while Autorola’s MarketPlace online platform has been trading throughout. Many more vendors have begun to appreciate the speed, convenience, and cost efficiency of online selling.
Autorola’s upstream selling process starts at between 25 and 90 days before a leasing vehicle comes to the end of its contract. Its nationwide network of inspectors contact the driver to inspect their vehicle to gauge its condition in relation to the leasing company’s de-fleet standards and cost matrix.
Each vendor runs the Autorola Fleet Monitor asset management system which manages all aspects of a vehicle fleet from the time a car is ordered and delivered to the time it is sold as a used vehicle. The system automatically informs the client of key timings within the vehicle’s life cycle such as when a vehicle reaches 90 days from the end of its lease.
Fleets take more of a strategic view
“Fleets are holding these inspections in very high regard as they are able to take a strategic view on the level of costs they are in for when they hand back a car to the leasing company. They can decide to spend money on repairing a vehicle prior to de-fleeting or whether they hand it back and get hit with the charges,” explained Philip Browne Autorola Australia’s country manager.
“In some cases, accident damage is being identified which is then being properly managed via an insurance claim. In the current climate dealers will pay more for used cars in great condition as they know that the car will be ready to retail when it arrives on site,” he added.
Used cars are sold 7-10 days before being de-fleeted
Once inspected and any damage is repaired then Autorola uploads the used car onto its online remarketing portal 7-10 days before it is de-fleeted. On receipt of cleared funds, the vehicle is de-fleeted and transported directly to its new owner.
As the focus by companies to reduce their impact on the environment upstream selling has a major part to play. Each vehicle on average is transported 141kms less by not being transported to a physical auction location. According to Impact Sustainability that equates to a saving of 92.08 CO2-e (tonnes) per 1,000 vehicles.
Online auctions reduce cost and CO2 emissions
“The distances between towns and cities in Australia is enormous and by not having to transport vehicles into physical auctions vendors are protecting the environment as well as saving money. The tide has finally turned towards online auctions and Autorola is well placed to serve the changing needs of the remarketing industry,” said Browne.
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