The way defleeted cars are remarketed is undergoing a paradigm shift from physical auctions to online as Covid-19 lockdown measures are eased and wholesale activities recommence.
With auction halls still closed, ADESA UK said it has been receiving high levels of enquiries from finance and leasing companies drawing up strategies to enable them to defleet the high volume of end of contract vehicles created by the lockdown.
“The Covid-19 pandemic will usher in far reaching behavioural changes across all sectors with companies implementing new ways of conducting business as part of their return strategies,” said managing director Jonathan Holland.
“In remarketing we are seeing a paradigm shift with online viewed as the most expedient way to defleet, eliminating the multiple physical touchpoints encountered in the traditional auction process.
“The immediacy of online remarketing also reduces the vendor’s exposure to risk through book drops and removes the need for storage charges; cost saving considerations which will be even more relevant as the lockdown is eased,” he added.
The move to online will provide a faster, safer and more convenient alternative to attending physical auctions for dealers.
“Social distancing restrictions are likely to remain in place long after lockdown orders have expired, which may impact physical auction operations in the UK. Digital buyers can fully avoid congregating in busy auction halls when they can transact online from their businesses.
“Industry watchers have long talked about a future shift from physical to digital. We have already witnessed the early signs of this in new and used car sales and the high level of consumer activity online during the lockdown.
“Once businesses start reopening, we will see an acceleration of this trend with online remarketing emerging as the default choice of vendors and buyers,” finished Holland.