The Cost: Value of
Refurbishment Solved
Maximising value is the key for vendors and buyers
through the remarketing process. Speed, cost, service and
price are all key factors in the value equation, and by listening
to their customers, SMA Vehicle Remarketing have developed a neat
and practical way to advance all of these value creators, with a
proactive cost: value refurbishment/preparation assessment of all
vehicles prior to sale.
Refurbishment or pre-sale preparation can add real value to a
used car as it comes into auction. Forecourt ready vehicles
commonly command a price premium because they offer buyers cash
flow advantages in their efforts to get stock to market faster, and
importantly ensure uncertain preparation costs (and delays) can be
avoided. However, the price premium gained needs to be
assessed against the cost of preparation. This is where the
new 'Forecourt Ready' appraisal from SMA delivers.
SMA has invested significant sums in creating state-of-the art
preparation and refurbishment Technical Service Centres at most of
their auction centre sites. Staffed by highly trained
technicians, the business is now able to undertake a full end of
life assessment of vehicles on arrival to establish the opportunity
cost of having each vehicle prepared for sale. The assessment
includes an estimate of cost and value, including time; not
ignoring the potential for enhanced and earlier 'first pass' sales
conversions.
The process encompasses a full fair wear and tear electronic
inspection carried out by trained inspectors with separate tactical
flagging. Recommendations are for work (or not) are based
upon current market conditions with vendors notified of the
cost/opportunity through SMA's fully automated SMA customer
portal. Through the portal, vendors are then able to
authorise agreed works to be undertaken. The whole process is
extremely rapid, ensuring that any time to auction is not
lost. Speed is also enhanced, simply because all repairs are
carried out through SMA bodyshops which are attached to the auction
sites. A full report of work undertaken is forwarded to the
vendor and to add further value, all paint work guaranteed for
life.
Commenting on the innovation, Managing Director Bob Anderson
observes;
"Like all the best innovations this is a very practical and
measurable one. Our investment in industry leading Technical
Services and people means that rather than simply flag the idea,
which we know many vendors are interested in, we can actually
deliver it. I think what I particularly like, is that it is
an innovation that truly lives up to our stated aim of being better
in a way customers have asked us to be better".