Tapping into a new market – commercial vehicles create vantastic opportunity

We've always got a huge selection of vans

The shortage of stock which is driving up car prices is having the same impact in the commercial vehicle market – creating real opportunities for retailers.

Like cars, the focus needs to be on quality, with van buyers increasingly attracted to premium brands such as VW and Mercedes to help set their businesses apart from the crowd, while the likes of air conditioning and electric windows also growing in popularity.

“Good quality commercial vehicles are scarce and profit margins probably higher than they’ve ever been,” says David Fildes, 

grs Commercial Vehicle Specialist.

By sourcing commercial vehicles directly from major fleet operators and hire companies across the UK, grs is able to stock a wide range of makes, models and prices, all of which are available for retailers to view online 24/7.

“In addition to having one or two vans alongside cars on their forecourts, they have access to many more on our website, which can help them find the one that exactly meets the customer’s business needs,” continues David. “And because a van is a work tool, it’s not an emotional purchase in the same way as a car, so people are more likely to make a commitment without sitting in it and driving it first.”

As a result, increasing numbers of retailers are seeing the grs website as their own shop window to help secure sales – a process facilitated by the high quality images and detailed vehicle descriptions. “Across the industry, van descriptions are far less detailed than they are for cars, photography tends to be poor or non-existent, and important documents such as service histories are often missing,” says David. “However, at grs we treat commercial vehicles exactly the same way as cars and never compromise.” What that means is market-leading images of every commercial vehicle inside and out taken on the company’s 360 degree turntable, accompanied by detailed descriptions. And because grs buys direct from major fleets and lease hire companies, the vehicles are normally accompanied by all the important paperwork. “The provenance of commercial vehicles is extremely important to us – and our customers,” he says. “If something is missing we will always try to track it down, as we know it makes a difference to their profit margins – and that’s what really matters.”

According to David, buying vans is no different to cars, with end customers looking for good quality, low mileage vehicles. “Businesses looking to economise by downsizing may move from a Ford Transit to a Vauxhall Vivaro, while those people setting up on their own may well opt for small or mid-sized vehicle – which are also most likely to appeal to retailers who want to place a van on their forecourt alongside cars,” says David. “By diversifying their stock, commercial vehicles are helping retailers to attract new customers by tapping into a market they may not previously have considered. They’re well worth a look this year.”

Putting vendors in control with a smart approach to repair and refurbishment

“We are right at the cutting edge of repair technology,” says Mark Holliday, Technical Services Manager at grs. “We’re continually investing in the latest tools and techniques and are working at the very highest levels.”

As soon as vehicle inspections are completed and the level of work to be undertaken has been agreed with the vendor, Mark’s 50-strong team swings into action, working in two shifts across a total of 16 hours a day. Offering a comprehensive repair and refurbishment service for any make or model of vehicle on-site, the workshop plays a key role in the grs de-fleeting service. Laid out on a production line basis for maximum efficiency, repairs can be completed on up to 50 cars in a single day ensuring vehicles are ready for sale as quickly as possible.

Vehicles are logged into the workshop using a bespoke computer system which ensures the team knows the exact location of each one and how far through the repair process it is at any time. They then make their way through an ‘active grid’ which begins with panel repairs and moves on to preparation, painting, refitting and polishing, culminating with a stringent quality control check.

The workshop team uses the latest technology including the Miracle system which enables larger dents to be repaired without the need to replace whole panels – creating impressive results while at the same time keeping costs as low as possible. Scratches and smaller dents are treated using the revolutionary SMART (Small Medium Area Repair Technique) approach which can also reduce time and costs by focusing on the area that needs to be fixed, rather than repairing a larger surface area.

Yet investing in the latest technology and the most up-to-date techniques is only part of the story – grs also continually invests in training. “As a result, we’re able to take these techniques to an extremely high level,” says Mark. “We surpass our own expectations and those of vendors, who are often astonished by the results.”

Mark goes on to say that his technicians are not motivated by doing a good job – but by doing the best work they possibly can. “They’re continually pushing the boundaries and have a real sense of professional pride. There are very few people able to match the work they do.”

Once repairs have been completed, vehicles are cleaned or can receive a full valet, depending on the vendor’s requirements. With room for 4,500 vehicles on-site they can also be stored or prepared for dispatch on a transporter. “What’s important is that vendors are completely in control, as they decide how much or how little work they want us to do,” concludes Mark. “What’s more, we’re able to achieve top quality results cost-effectively because of the smart way in which we work – which really does represent the best of both worlds.”

An inspector calls – the role of the inspections team in driving vendor value

Adrian Holz

A keen eye for detail and an encyclopaedic knowledge of a wide range of vehicles are both essential attributes for members of the grs inspections team, which plays a key role in ensuring maximum value for every vehicle de-fleeted through Cold Meece. 

Both speed and efficiency are vital components of the process, which begins with vehicles being assigned a unique barcode to track their progress through the site. “As soon as a vehicle arrives at Cold Meece, the clock starts ticking, so there’s no time to waste,” says Adrian Holz, Vehicle Inspections Manager, whose eight-strong team aims to have the process completed in just four hours. “The inspection is an important part of de-fleeting so we never rush, but from the vendor’s perspective the sooner it’s completed the better. Our unique combination of highly trained experts and streamlined processes ensure there’s no delay,” he continues.

A thorough interior and exterior examination is carried out inside a purpose-built inspection tunnel, with any defects such as scratches or dents carefully logged to build a detailed description of each vehicle. The inspectors then recommend the level of refurbishment and repair work required, which will depend on a number of factors including the vehicle’s age and mileage, along with guidelines set by each vendor. “We either work to a pre-agreed set of standards or use our own judgment to assess the amount of work required,” explains Adrian. “We are the vendor’s eyes and only recommend essential work which will add to the value of the vehicle.”

The inspectors also use their in-depth knowledge of vehicle specification to note any other factors which might boost the sale price for vendors, such as the addition of audio systems, sat navs, alloy wheels or run-flat tyres. “Our inspectors are familiar with the manufacturer specification of a wide range of vehicles, though we also have access to reference guides and online resources if we need them,” says Adrian. While the latest systems and processes play an essential role in ensuring quick turnaround times, there’s no substitute for the experience and expertise of the team, according to Adrian Holz.

“They understand cars,” says Adrian. “They know what to look out for and what needs to be done. It’s not about trying to make cars perfect by removing every single scratch or chip – it’s about doing what’s necessary to achieve the best possible price for the owner. “That’s exactly what my team does and I believe they’re the best in the business.”

Efficiency, flexibility and quality – de-fleeting at its best

It’s often said that time is money, a phrase which could have been coined specifically for the motor industry, where the spectre of depreciation follows every vehicle from the moment it first leaves the factory.

“It’s no exaggeration to say that every hour of every day makes a difference to a vehicle’s value, and that’s precisely why we think in terms of hours rather than days when de-fleeting vehicles on behalf of our clients,” says Theo Kortland, Managing Director of grs.

In translating this thinking into action, grs has developed arguably the most efficient and sophisticated de-fleeting operation in the industry, combining cutting-edge technology and processes with the very best people.

Based close to the M6 at Cold Meece in Staffordshire, every aspect of the 36-acre logistics centre has been designed with efficiency in mind, bringing a fresh approach to the traditionally time and labour intensive de-fleeting process. Every aspect can be undertaken on-site – from arrival and inspection through refurbishment and repair to preparation and collection or dispatch.

“Cold Meece has been designed on a production line basis, to make the de-fleeting process as quick and cost-effective for clients as possible. Time really is money and we ensure that neither are wasted!”

In addition to efficiency, flexibility is also important, with vendors able to make use of as many – or as few – services as they need. They can also define the way in which they work with grs. Continues Theo, “The flexibility of our Cold Meece operation puts vendors in the driving seat, as they can specify the precise services they need to meet the needs of their businesses.”

Quality is another given at Cold Meece. Bespoke hand-held technology and computer systems unique to grs ensure the flow of vehicles around the facility, while cutting-edge techniques employed by highly skilled technicians produce stunning results when repairs are required. “Our job is not only to de-fleet vehicles, but also to maximise the value of each one,” says Theo. “By continually investing in the most efficient systems and using the latest SMART repair processes for example, we can not only increase the speed but also reduce the cost of de-fleeting, both of which help to achieve the best return for our clients.”