Vans and damaged cars: saleable or a loss?
At OPENLANE, not only can you trade in passenger cars, but there is also a marketplace for vans and cars with damage. “The” opportunity for you as a fleet manager is to make these types of cars profitable too.
Residual value of LCVs
LCVs are the workhorses of a fleet. Their residual value can therefore drop considerably, especially when they have a lot of kilometers on the clock or show signs of wear and tear, but a number of factors can also influence the price positively. For example, according to Fleet Europe, colour and powertrain are potential profit centres. White vans, for example, always provide a higher residual value and those of electrified models also seem to be higher. This is because cities are increasingly invoking diesel bans and, more importantly, because the second-hand market still allows smaller companies to turn to electric vehicles.
A third factor driving up the residual value of vans is market tightness. For example, a number of brands have supply problems and others are in a transition period (usually within a partnership, as Volkswagen and Ford are currently rolling out), with the latest generation of LCVs still awaiting its arrival. The second-hand market may provide an answer to this situation, with more interested parties ensuring a higher price.
Finally, the period in which you sell your van is also important. For instance, a report by Ricardo Energy and Environment talks about an increased demand for used LCVs during the winter period, when we traditionally order a lot of parcels over the internet that obviously need to be delivered to our homes. As a fleet manager, renewing your van fleet at that time, in other words, is a good choice.
“Do I or do I not remove the stickers from my van?” is one such frequently heard question when selling a van, which is traditionally more often given a jacket in the company’s colours. Experience shows that it is best to remove the stickers. After all, you don’t want to see your former service vehicle appear on the internet in case of a traffic violation with your name and contact details on it. Moreover, it gives a shoddy impression, which can depress the price of your van.
Fortunately, when inspecting the vehicle, OPENLANE not only makes sure you know all the technical details, including any damage, but also that the stickers are professionally removed. Just keep in mind that depending on the quality of the stickers and the adhesive used, this may leave visible marks, such as paint or paint damage.
As a fleet owner, can’t find a buyer for your damaged vehicle on the local market? Then exporting via a partner like OPENLANE is often the best choice. And let that be one of OPENLANE’s strengths, where you can find a whole community of buyers of damaged cars. After all, especially in Eastern Europe, where labour costs are lower than in Western Europe, a damaged car can be a good investment. Repairing a damaged car is sometimes cheaper than buying one in good condition.
Information is hugely important here, though. Fortunately, at OPENLANE cars are inspected in advance, identifying visible defects, both technical and bodywork damage. This creates a bond of trust between buyer and seller, again good for the price of your car*. Moreover, you can fall back on a whole database of information, so you can ask for the right price for your damaged car to get the best price.
Conclusion: with the right partner and information, a damaged car is an opportunity rather than a loss. So don’t hesitate to sell it on OPENLANE’s platform too.
*: At OPENLANE Netherlands, you cannot sell a car that is not MOT-worthy, in other words has passed inspection.
Want to know more about how OPENLANE can help you sell your cars? We are ready to answer all your questions with no obligation. Contact us for more information.
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