Managing fleet disposals for your business

07/02/20238 minutes read

Fleet disposal is a popular phrase used by fleet managers and with good reason. It’s a crucial part of a vehicle’s lifecycle – but what is Fleet Disposal and why is it so important?


Officially defined as the process of an organisation removing vehicles from its fleet that have come to the end of their contractual or operational life, fleet disposal can be as easy or difficult as you make it.


An ageing fleet negatively impacts your business in several ways. Older vehicles have a greater risk of breakdown and thus require more regular servicing and may not comply with modern legislation such as Ultra Low Emission Zones (ULEZ) or Clean Air Zones (CAZ) as they generate more emissions.



Benefits of a fleet disposal policy

The development of a fleet disposal policy has a significant impact on your business, both financially and operationally. Once your policy is in place, training should be provided for staff knowledge to understand and adhere to the policy.



Why you need a fleet disposal policy

Now, you may be thinking: Why do I need a fleet disposal policy? I can just sell the vehicles myself. You absolutely can, but that approach comes with some major disadvantages, especially with the big two commodities - Time and Money:


Time – As anyone who has tried to sell their personal vehicle will attest to, the amount of time and effort spent going through those processes is exhausting. And that’s just one vehicle, imagine an entire fleet!


Money – Advertisement and sales go hand in hand. Nowadays, with the improved camera capabilities of mobile phones and the emergence of platforms such as Auto Trader or Van Monster Remarketing, taking, and uploading images of the vehicle yourself sounds simple. Until you account for the size of your fleet and the time that admin takes away from more prominent tasks of your business. Time is money, right?  So, you pay an external agency to take care of that for you, adding an additional expense to your business.


Why go through all that stress when a fleet disposal policy gives you a consistent approach to disposing of ageing vehicles and updating your fleet for the best financial return with no hassle?



Common methods of fleet disposal

If your fleet is leased, it will be returned to the leasing company at the end of its contractual life.


However, if your business owns the vehicle, options for disposal include selling to neighbouring organisations or at a physical or e-auction. E-auctions are used by many organisations and this method provides an opportunity to gain a fair price and save time on advertising, storing vehicles, hosting open days, and managing bids.


Further options include part-exchanges where the value of the vehicle is put up against the vehicle you are purchasing. Although a convenient option, it is rare you will get the full value of your vehicle.


Additionally, if your vehicle has reached the end of its useful life, failed its MOT, or requires expensive repairs, it can make sense to scrap it at an Authorised Treatment Facility (ATF).



Fleet Disposals with Northgate

When under pressure to reduce operating costs for your business, short-term savings are key. A popular method is to extend the life of your vehicles for further use before the costly journey of upgrading your fleet.


We have a better idea.



We Buy, You Rent

We Buy, You Rent is the Northgate solution for you should you require a quick effortless transaction to sell your old and tired vehicles for a fair market price with minimal involvement, allowing you to put your newfound cash towards your business and hire new vans, with the specification and hire terms to suit your business needs.


Alternatively, we can purchase your vehicles at a fair market price and rent the same vehicles back to you, allowing you to boost cash flow whilst maintaining business continuity if there is a longer lead time on a new Northgate hire.



Van Monster Remarketing

On the other hand, through Van Monster Remarketing, you can choose to allocate your vehicles to our online auction, set the reserve price yourself and experience the convenience of viewing your vehicle on auction 24/7.


You'll have hundreds of potential buyers at your fingertips thanks to our strong nationwide motor trade relationships and unlike traditional auctions, you can choose to sell alongside other vendors e.g., Northgate, or build your own branded sale.


We've created a dedicated team who specialises in providing the help and support you might need, available to every customer no matter your fleet size.

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