By Richard Mallek, Director of Business Development/FLD Remarketing
December – it’s a month that everyone looks forward to. This year, that’s probably even more true, as the world does its best to move past Covid to experience the joy and familiarity the holidays bring.
In the fleet space, as in most industries, December is a time to not only put the finishing touches on the previous eleven months, but to get one’s “ducks” in a row for the year ahead. Right sizing fleets. Planning strategy. And getting excess inventory off the books.
At FLD, December has been an especially busy time ever since we first pioneered the space nearly 45 years ago. That’s because as the only remarketing provider that gives customers a quote – and gets them paid – in less than a week, we know fleets will turn to us to get their transactions wrapped up quickly, and them prepared for the year ahead.
With that in mind, we wanted to remind everyone that there’s not only plenty of time to get your used vehicles sold and paid for this year, but lots of reasons why 2021 might be the best year in history to get that done. Here’s why:
Historically High Prices
With access to new vehicles limited, FLD is paying historically high prices for used assets. In some cases that means paying sellers as much – or more – than they paid for their vehicles new. But regardless of how high these prices are now; experience tells us that this situation won’t last forever. If your fleet has used vehicles or equipment, it no longer needs, there’s simply never been a better time to sell high and take advantage of used vehicle pricing that we likely won’t see again in our lifetime. And with FLD’s experience and pedigree, we have the expertise to offer higher prices than you’ll get at an auction or dealership.
Get Them Off the Books
As any fleet pro knows, a vehicle owned on January 1, is a vehicle it has to pay fees and taxes on the following year. In most cases that amounts to several thousand dollars. Higher in the case of vehicles with sophisticated upfitting, even vehicles a fleet no longer wants or uses. By selling to FLD in one seamless, simple transaction, fleets can avoid paying unwanted – and often exorbitant – costs, putting money back in their pockets and helping them start the new year off right.
Right Sizing Your Fleet
Right sizing a fleet in the age of Covid can be a risky proposition. At a time when fleets have little idea when they’ll have access to new inventory, it can be hard to know exactly when – or even if – to sell. But as anyone who’s been around fleet for long can tell you, situations like this have a way of changing quickly, and the reality is that being stuck with too many vehicles can be as challenging as having too few. And with manufacturers trying their hardest to overcome chip shortages and supply chain issues, the reality is that access to new vehicles may come sooner than later. When it does, fleets need to be prepared to move quickly, something that’s easier if they’re not stuck with aging vehicles that can be expensive to maintain, transport and store.
Access to Liquidity
Improving liquidity and gaining fast access to cash is critical for any business, but for fleets it can be especially important. Especially given the fact that getting paid for remarketing vehicles can be a risky and lengthy process. One that can take weeks – if not months – especially if a fleet is remarketing through traditional channels, which requires sellers to wait for the process to unfold before they get paid. By remarketing with FLD, fleets can sell their vehicles in hours and get paid within a few days, leaving them better prepared to take advantage of what comes next.
Disposing of Damaged or Inoperable Vehicles
One of the reasons FLD stands above traditional remarketers is our ability to purchase any vehicle or piece of equipment in any condition – period. Even vehicles that are completely inoperable or damaged beyond recognition. If your fleet has vehicles like this there’s no sense letting them take up space or ringing up additional costs in 2022 when FLD will haul them away, make you an offer, and purchase them in days for more money than you thought possible.
Here’s hoping your fleet operation – and truly everyone in your life – has a wonderful and joyous holiday season and a great start to 2022. It’s been our pleasure serving you in 2021 and remember: if you’re ready to sell used assets – and get paid for them – by the end of the year, FLD is ready, waiting and honored to help.
Richard Mallek is Director of Business Development for FLD and a 12-year veteran of the fleet industry. If your fleet is ready to sell – and get paid for – used assets before the end of the year, you can reach him at Richard.Mallek@FLDInc.com, or by calling us at 1-800-754-1522 anytime.