ONE of Australia’s leading fleet and lease management companies, FleetPartners, is creating a strong brand for its vehicle disposals through leading auction houses as a way of driving up clearance rates and improving returns from its used-vehicle portfolio.

The company’s general manager of operations Tony Willimas told GoAutoNews Premium that FleetPartners has deliberately set out to create a reputation with dealers for well-maintained, roadworthy, well-documented and quality stock and is linking that to hospitality and strong branding at exclusive events.

He said FleetPartners is finding that, by creating a Fleet Partners’ branded event in the prestige lanes at Manheim and at Pickles auctions, it sells more cars under the hammer on the day to dealers, both in lanes and online, because buyers have become confident of the veracity of the stock they bid for at a FleetPartners event.

FleetPartners sales manager of remarketing Andrew Chapman said that in a 15-year career at Manheim he “came to understand the power of selling to invited dealers in a closed network and how that strategy, well executed, can pay off in stock turn and more consistent returns”.

Mr Chapman said that FleetPartners was using the branded events to build relationships with buyers. It was attracting dealers by giving them exclusive access to a strong cross-section of ex fleet vehicles straight to market. He said that rather than have dealers fighting for what can sometimes be a mixed bag of stock in a public auction the atmosphere of the exclusive dealer sales created a more professional and business-like environment.

Mr Chapman said the first-ever branded event was a mega-auction at Manheim Altona in Melbourne’s north-west where Manheim was an early investor in a premium dealer-only Gold Class lane which has helped to establish Altona as the premium auction site in Australia.

Branded auctions are also held in Perth, Sydney and Brisbane.

FleetPartners’ invites its preferred dealers (those who provide the company with its new cars) and target franchise dealers but the auctions are open to all licensed motor car traders.

“We invite dealer partners to a function the night before our auction where we all enjoy a drink and people get to know each other. The next day we sell the cars and the dealers buy the cars. It’s that simple.

“We use the prestige ‘gold class’ lanes that Manheim have built because we want people to feel they are buying in a comfortable environment where buyers are interacting more with each other.” Dealers get national access to the auctions through online bidding.

Mr Chapman said one of the main benefits of running the auction under the FleetPartners’ brand is that clearance rates are very strong; indicating a keen support for the stock being offered.

He said that clearance rates at FleetPartners’ closed auctions have always been more than 90 per cent.

“There are few negotiations. The vehicles are all pretty much sold under the hammer because the competition is strong for the high standard of the cars we are offering.”
Mr Chapman said the demand comes from the provenance of buying an ex-Fleet Partners’ car because they are well-maintained, have full service books, are one owner and are ex-lease.

“Where we can we provide the service prints; usually on 95 per cent of the cars. The service prints are branded FleetPartners and dealers tell me they are using those when they retail the cars.”

He said vehicles typically come with a fresh roadworthy certificate which gives dealers confidence in the cars. There is less holding time on that car for the dealer. They can buy them and put them straight on to their yard.

“It does not have to go through the workshop and is available for sale from the day it arrives at the yard, Mr Chapman said. “It is a big advantage; particularly for dealers who have 60-day to 90-day stock policies.”

Mr Chapman said FleetPartners conducted similar branded auctions with Pickles last February.

“That was the first dealer-only auction for them. We got 179 cars sold from 179 entered,” he said.

By John Mellor