What is auto remarketing and how does it work?

Summary: This post has elaborated on the meaning of auto remarketing in the present era that is growing more demands among the people. It has also explained the importance of auto remarketing solutions along with their work process.

What is auto remarketing?

To put it in simple terms, auto remarketing is a business that includes the selling of used cars. In other words, it is also termed the controlled disposal of the company, rental or fleet of vehicles that have reached the end of their terms.

Many people think that vehicle reselling and auto remarketing is the same thing but it's not exactly the same. The difference is that auto remarketing usually deals with a large fleet of vehicles, which includes large fleet operators. Moreover, an effective auto remarketing solution involves refurbishing and treading used vehicles again. Now you might think that why is auto remarketing so important? Well, here is why.

What is the importance of auto remarketing solutions?

¢ One must want to get the high price possible for the used vehicle he/she has. And remarketing is the best possible way to expose your used vehicle to get the highest possible return.

¢ Auto remarketing shortens your turnaround time. You might have seen cars not being picked for years after putting up for sale. In auto remarketing, the procedure speeds up.

¢ It moves your inventory cost-effectively and quickly which helps increase the value of the vehicle's portfolio.

¢ A lot of auto remarketing solutions include the development and implementation of an effective marketing strategy. As a result, the management of multiple providers becomes easy.

Now, you might wonder how does all this work? Well, here is how auto remarketing works.

How does auto remarketing work?

Choosing channel:

The first step is to choose a sales channel. For the information, one must choose a channel that will give the highest possible return. These days the number of sales channels has grown exponentially due to the internet and it has become extremely easy to reach out to one. It is possible to sell the vehicle locally at the right price, but with the help of the internet, you can get a wider number of interested buyers with a wider and higher range of bidding prices.

Another way is to participate in the national auctions; they clearly have a lot of advantages such as-

¢ Having a lot of auction sites situated across the country.

¢ Identify locations by using data to see where the vehicle can get high bidding.

¢ They handle the logistics of vehicle valuation, transportation to the auction location and inspections.

Tech to track:

After choosing a channel and giving the vehicle, all that is left is to wait for it to get sold. But you must track the progress of your vehicle till the day it gets sold. There are a lot of technologies provided by the channel to track the progress activities.

Improve vehicle remarketing strategies:

Throughout the process of remarketing, a lot of data are generated which is enough to provide a useful insight into the vehicle's remarketing strategy. A lot of tech such as vehicle remarketing software makes it easy to monitor the performance, trends and costs. This data can be used to improve the efficiency and maximize the sales price of the vehicle.

¢ Trends:

¢ It includes a comparison of different vehicle models along with days to sell. This helps to determine which vehicles are in current demand and thus command high sales prices.

¢ Correlation of geographic location with vehicles to determine the location where the vehicle will gain a higher value.

¢ Performance:

¢ Know which auction is providing a higher price consistently for the vehicle.

¢ Costs:

¢ What kind of vehicles goes for higher bidding in offline vs online auction?

¢ Which auto remarketing channel provides the best and which provides the worst cost to benefit ratio?

Conclusion

Overall, this post has given knowledge about the meaning of auto remarketing, its importance, and its working process. After reading this, you are now able to take the right step for the refurbishing and treading of used vehicles again. So, do not forget to consider the cost factors while thinking of treading and refurbishing used vehicles.

About Author

Brent Huisman has been in the auto finance industry for over 22 years beginning with GE Capital Auto Financial Services. From there Brent went to run part of the Remarketing and Loss Mitigation departments at Bank One which was later purchased by Chase Auto. Brent has also worked for KAR Auction Services as VP of North America Dealer Sales. Since 2007, he has worked on several retail and lease portfolios such as HSBC and Santander before running Repossession and Remarketing for Exeter Finance. Brent holds a BBA of Marketing from the University of Iowa as well as a MBA from Benedictine University from Chicago, Il.

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