Some councils who tend to keep their light commercial vehicles (LCV) and heavy goods vehicles (HGV) for longer periods are being forced to replace vehicles early to ensure they meet the Ulez emissions rules before the end of August.
SVA’s guide provides hints and tips on how to manage the current market where prices have risen by 10-20%. This includes setting the correct reserves and not just relying on the used value guides to ensure prices are optimised.
It also highlights the importance of local and national pre-sale marketing and how offering vehicles to an open market across both physical and online channels optimises values, especially for aging and damaged stock.
SVA managing director Alex Wright said: “Many councils are already starting to de-fleet commercial vehicles that will not meet the new TfL Ulez rules, to ensure they avoid being fined. We launched the online guide to help and support them at a time when market prices and the used value guides differ quite dramatically.
“The difference between a fleet’s written down vehicle values and the current market price can be very different, and they risk under-pricing their vehicles if they are not careful. Councils are managing public money and the more we can help them make for their vehicles the better it is for all concerned.”
Wright gives the example of prices SVA recently achieved for a London borough while disposing of non-Ulez compliant fleet vehicles. It achieved an average of 121% of CAP and 116% of their reserve prices on the sale of 13 vehicles. This generated an extra £20,000 for the council’s coffers.
Wright added: “By taking our advice and entering vehicles in our regular local authority special sale, the authority has benefitted from strong prices achieved through open public auction. The process provides the assurance that vehicles are not undersold if sold to local buyers.
“Buyers have always preferred to inspect ex-council and utility stock in person before they bid on vehicles which is why prices at auctions operating only online risk being compromised.”