The real value of residual underwriting

“It’s very easy to do things a particular way because that’s the way they’ve always been done,” says Julian Pullen, Procurement Manager at grs. “But when it comes to de-fleeting vehicles we would always recommend taking a look at other options that may help to reduce risk and increase value.”
One way of achieving this is to look at alternative, or additional, disposal routes as part of a multi-channel remarketing strategy, such as residual value underwriting.
“It can help to reduce risk, eliminate uncertainty and speed up the de-fleet process,” says Procurement Manager Julian Pullen on the benefits of this approach, which gives vendors such as rental, contract hire companies and other fleet operators a guaranteed amount for their vehicles when they come off-fleet. This enables them to forward plan with greater confidence.
“Residual value underwriting can give fleet operators far greater operational security, as we provide the underwriting and take the problem off their hands,” continues Julian.
“Let’s say an operator has 20 Honda Civics coming off-fleet in six months’ time. We could provide a guaranteed price for those vehicles today which transfers the risk from the vendor to grs, providing far greater financial security.
“It’s always a good time to talk to us about it,” continues Julian, explaining that many rental companies and fleet operators are likely to have brought new vehicles on to their fleets following the registration plate change on 1st September. “Residual value underwriting is so beneficial because it enables operators to buy their new fleet based on the value of their existing vehicles, and there’s much to be said for the security that brings.”
Such forward planning can pay dividends in the long run, especially when market conditions are uncertain or volatile, or when values are depressed. When faced with such difficult conditions it may appear tempting to keep running vehicles for longer than originally planned, yet the additional maintenance costs such as servicing or a new set of tyres – not to mention those costs inherent in having a vehicle off the road – are likely to outweigh any benefits.
There are other advantages too; for many operators space is limited, which can create problems when new vehicles are delivered. “The handover period can be tricky and we can help ease the fleet change process. We will collect vehicles quickly, freeing up parking space, and either settle finance agreements or deposit funds straight into the vendors bank account. An all together quicker and less painful process than alternative routes to market such as auction or direct vehicle by vehicle sale”.
For more information on the benefits of residual value underwriting, or to talk through your specific requirements, please contact Julian Pullen on 01743 281814.

Making life as easy as possible for retailers

Newly promoted to the position of Sales Manager, Dean Richards talked to re:market about his new role and how grs is aiming to make life easier than ever before for retailers across the UK.
“I always wanted to join a company where I’d have the opportunity to work my way up,” says Dean Richards, who arrived at grs straight from college six years ago. Starting out as a sales executive, he has indeed worked his way up, becoming an account manager in the south east before being appointed Sales Manager earlier this year.
Since taking on the role, Dean has overseen a restructuring of the six-strong team of account managers which has seen them move away from having geographical responsibilities, to looking after a selected portfolio of clients instead, wherever they may be based.
Explaining the changes, Dean says: “Building relationships is key both for us and our customers, as it’s vital that we really get to know them and understand their businesses. As a result, we have been looking to match account managers to customers, rather than taking a geographical approach.
“We are a relationship business as much as anything else, and by getting to know our customers even better will help make sure work in partnership with them to develop the full potential of their businesses.”
What this means in practice is that some retailers may recently have been introduced to a new account manager who they are also likely to meet soon, if they haven’t done so already. As well as encouraging the account managers to take to the road to meet with customers on a regular basis, Dean is also keen to invite retailers to visit grs – to make their own inspection of Cold Meece logistics centre, which is capable of storing up to 4,500 vehicles at any one time.
All vehicles are thoroughly inspected and prepared for sale at the purpose-built 36-acre site, which also features a state-of-the-art photographic suite where they are photographed inside and out on a 360 degree turntable. The high quality images are then posted to the grs website, which can then be used by retailers to order stock. The online resource can even become an extension of a retailer’s own stock, with the images helping to close sales up and down the country.
“Our aim is to make life easier for retailers and taking a look around Cold Meece is a great way of demonstrating how we’re able to achieve that,” says Dean, adding that retailers of any size are able to benefit.
“Whether retailers buy one or a hundred vehicles from us, they can all tap into our extensive stock and the expertise of our team, who can provide advice and guidance on makes and models which are selling particularly well at any given moment.”
He concludes: “What’s more, they can all be assured of quality, consistency and speed, as we aim to deliver vehicles within two days of receiving cleared funds. That’s important, as it enables retailers to have the vehicles they’ve bought on the forecourt and ready for sale as quickly as possible.”
If you would like to know more or are interested in visiting Cold Meece, please contact Dean Richards on 01743 281818.