Is your fleet looking worn out and tired? It may be time to look at disposing of your current vans and upgrading your fleet to save yourself time and money.
With the right disposal method, significant costs can be recovered from your initial investment that you can use towards new vehicles.
In this blog, we highlight the issues of ageing vans and the best disposal options for your business.
Issue of aging vans
It’s no secret that an ageing fleet or an old van can be more expensive to run than a newer equivalent. Recent MOT test results between 2018 to 2019 show the initial failure rate for commercial vehicles was a huge 42.2%.
However, ageing vans don’t only cost more to maintain. An ageing van will give off a negative first impression, which could be the deciding factor in winning or losing customers. Every time you drive your van you are representing your company brand.
Other notable drawbacks of ageing vans include:
- more likely to break down
- more likely to emit higher pollution
- less fuel-efficient
The appropriate disposal method will depend on whether you own your vehicle(s) or not.
The best refresh or disposal option available depends on the condition of your vehicle, the amount of time you are looking to spend, and how much cash you are looking to get.
Scrapping your vehicle
If your vehicle has reached the end of its useful life, failed its MOT, or it requires expensive repairs, it can make sense to scrap it at an Authorised Treatment Facility (ATF).
Auctions are usually the go-to quick option, particularly if you are a large fleet operator. An auction provides bidders with a platform to purchase unwanted vans. The bidder will evaluate the vehicle’s condition, depreciation, commission, and the overall buoyancy of the LCV market before making a purchase.
Van Monster Remarketing provides an exclusive e-auction site. As the UK’s dedicated LCV Auction platform, the Van Monster Remarketing App has been developed specifically to help fleet operators sell older vehicles easily and conveniently nationwide. Using the online portal makes it quick and simple to reach a nationwide audience, with the added bonus that the vehicle you’re selling doesn’t need to leave your site until the transaction has completed.
Operators of smaller fleets usually prefer selling their vehicles privately. If they’re able to wait for the right buyer and negotiate on price, selling privately can yield a good financial return.
If time was no problem, many fleets would probably benefit from selling their vehicles privately. In practice, any financial gains need to be offset against the time it takes to prepare, market and sell the vehicle yourself.
Selling privately is not always an appealing option, particularly if you are a large fleet or don’t have a lot of spare time.
Many dealers offer the service of putting your vehicle against the value of the vehicle you are purchasing. Part-exchange can be extremely convenient, but only in rare cases will you get the full value of your vehicle.
Van hire or leasing
A major advantage of vehicle hire or leasing is that you save a lot of time and hassle in disposing of your vans. For those that have chosen to lease, or contract hire a van, it could be as simple as handing back your keys at the end of your lease or hire period.
In addition, you can eliminate vehicle depreciation costs, free up capital to invest elsewhere into the business, and generate less admin work for yourself.
How can Northgate help?
We Buy, You Rent is the Northgate solution that makes it easy to get rid of the hassle of old vans altogether.
Our We Buy, You Rent service is the easy way to sell your old and tired vehicles for a fair market price. You can use this cash to put towards new rental vans, with the specification and hire terms to suit your business needs.
Here’s how it works:
- We buy your existing fleet for cash
- You choose your replacement vehicle
- You choose a hire option – 12months+, Flexible Hire, or a combination of both.
Since there’s no deposit necessary* with our hire options, all the capital generated from selling your old vehicle(s) can be freed up to reinvest in your business.
Full disclaimer: This is Northgate’s bespoke solution to the hassle of refreshing your fleet.
Do you have old vans you're looking to sell to rent new ones? Contact us today.
*Subject to credit checks