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WITH the volume of lease extensions coming to an end, voluntary terminations and repossessions expected to substantially increase as lockdown eases, fleet and remarketing decision-makers to prepare for the reality that completing vehicle repairs before resale may not be achievable.
According to MJB Automotive if the support chain has not returned to 100% operational and onsite smart repairs not feasible then fleets remarketing their vehicles could see significant losses.
Marcus Blakemore, founder and CEO of MJB Automotive Solutions and sole provider of PAVE in the UK said: “With a real focus on sale conversion rates, ensuring you understand the condition of your asset before its end of contract will maximise the opportunity to presell or ensure disposed of through the correct channel.
“Returning vehicles that cannot be upgraded in a timely manner will incur daily depreciation costs and tie up valuable cashflow, so it is vital to understand the condition of your vehicles and prepare appropriate actions to ensure efficient refurbishment and disposal.
Blakemore believes pre-inspections could provide the best line of defence against unwanted surprises concerning the condition of a used vehicle.
“By allowing drivers to pre-inspect vehicles prior to return, it allows fleet decision makers to plan vehicle repairs, especially if bodyshops are not operating at full capacity or are overwhelmed with work created by the lockdown hiatus.
“Fleet decision-makers will also have plenty of time to make an informed decision on the best disposal option prior to vehicle return and so reducing days to sell and hopefully clawing back some profit.
PAVE turns any phone into a professional inspection tool that allows drivers to undertake inspections from home as well as enabling fleet managers to make accurate appraisals of their vehicle’s current condition and make effective commercial decisions, which could help save time and money.