Tapping into New Markets

The global recession of the past few years and the continuing uncertainty caused by the UK’s faltering return to growth, have changed the way that people buy everything from everyday essentials to big ticket items such as cars. Businesses have had to face up to the new economic realities, not only reviewing their own business practices but also adapting to the new buying habits of their customers.

Just like every other industry and business sector, vehicle re-marketing is changing, with many vendors such as rental and contract hire companies adapting their de-fleeting cycles as a result. At the same time car retailers large and small have been reviewing their stock requirements as the needs and spending power of their own customers have changed.

“The market may well be different now but that doesn’t mean there isn’t a solution that meets the needs of vendors and retailers alike – and that’s where we can help,” explains David Grice, grs Procurement Director. “Because we sell vehicles to a network of 6,500 franchised and independent retailers across the country and understand precisely what their requirements are, we can use this knowledge to find solutions for vendors.

“In other words, we use our up-to-the minute industry expertise and extensive database to find a market for vendors’ vehicles which matches the prevailing market conditions.”

One example of this is the way in which many leasing and hire companies are making their existing stock work harder for them by extending their de-fleet cycle from the traditional six or 12 months to 18 months or more. While this makes good financial sense during the lifecycle of the vehicles, at face value this could present more of a challenge when it comes to disposal. However, grs has been able to identify, and tap into, a growing market for vehicles of this age, as retailers too adapt to the market conditions.

“What retailers are telling us is that many of their own customers’ needs have changed,” says David. “Whereas in the past they may have bought a six or 12-month old vehicle, they’re now looking for one that’s around 18 months old instead. What hasn’t changed is the need for good quality, low or average mileage vehicles, but many people are looking to spend a bit less than they may have done pre-recession.”

Continues David: “Our unique relationship with retailers has enabled us to present this opportunity to vendors, while our Cold Meece logistics centre enables us to store up to 4,500 vehicles at any one time. Combine these two elements together and it means we not only have the capacity but also the appetite to buy vehicles all year round, to ensure a continual supply to our retail customers.”