Remarketing Strategies to Maximize Retention Values Brent Garrett, - PowerPoint PPT Presentation

Remarketing Strategies to Maximize Retention Values Brent Garrett, CarLotz Aaron Montgomery, CarLotz Paul Seger, VP Asset Remarketing, GE Capital Fleet Services

The Big Picture About GE Capital Fleet Services… • Commercial car and truck financing & fleet management • 1.4MM vehicles worldwide • 65,000 customers • 2,500 employees • 70,000 fleet vehicles remarketed annually nationwide • 40,000 third-party vehicles remarketed annually 2

The Big Picture Wholesale market continues • to deliver strong prices overall Inventory expected to grow • significantly More cars may mean negative • pressure on wholesale prices Smart remarketing strategies • will be critical Economies of scale support • retention values Source: Manheim Consulting 3

Remarketing Tactics – Auction Best practices… Right vehicle, right market • Create community of auction buyers • Proactive marketing / promotions • Buyer incentives • Early run time / premium lane • positioning On site representation • Six Sigma-level measurement and • analysis of metrics 4

Remarketing Tactics – Auction, cont. Best practices… Smart repairs / reconditioning Clean, drivable, de-identified • Auction certification, when appropriate • Aim to spend $1 to earn $3 • Robust online sale venues OVE.com, Simulcast, • DealerBlock Test alternative channels, such as CarLotz 5

Discussion Topics Sales Remarketing Inventory Channels Tactics Mix Value Proceeds + time + effort + risk = VALUE 6

Remarketing Objectives • Proceeds • Time • Effort • Risk • Compliance with Policy or Law Of course all five are important… but how do they rank in your organization? 7

Remarketing Channels Channel Benefits Examples • Transport • On-site recon Speed & Auction Efficiency • Capacity for broad range of asset types • Reach of promotions and online influence 24/7 • In-lane no sales national Online buy-now • Concentrated asset influx exposure Retail Potential • GE Fleet Services exploring retail (direct-to- for higher channel options consumer) sale price 8

Remarketing Channels - Comparison Risk Channel Value Speed Convenience Control X Donate/Scrap Wholesaler Auction Trade-In Employee Sale Retail/Consignment 9

Remarketing Tactics Remarketing tactics begin during the vehicle selection process… • Vehicle Selection (Yr, Make, Model & Trim) Buying • Equipment / Aftermarket add-ons • Purpose Using • Total Cost of Ownership • Reconditioning Selling • Channel 10

Remarketing Tactics - Buying Acquisition considerations include… • Make/Model/Trim • Year • Equipment options • Aftermarket add-ons 11

Remarketing Tactics - Utilizing Utilization considerations include… Business purpose • Term • Maintenance schedule • Corporate branding • Employee recruiting • Redeployment • Use & Care policy • 12

Remarketing Tactics - Selling Reconditioning / channel considerations include… Getting the best ROI for reconditioning efforts • Selecting the right remarketing channel / partner • Understanding the corporate use & care policy • 13

Remarketing Tactics – Reconditioning Reconditioning considerations include… It Depends: Do • CEL Value Large Dents • Transmission & Dings Full • Body Work Blown Wash/ Detail Windshield Fuse Vac Replacement 2 Sets Heated Warm Windshield of Keys Seats A/C Repair Torn Seats Broken Replace Owners Sunroof Brakes Floormats Manual Nav / Small Satellite Dents Don’t Radio & Dings Cost 14

Remarketing Tactics – Retail Choose a partner with aligned incentives • Invest moderately in reconditioning • Price aggressively and adjust regularly as necessary • Listen to the market • Employ multi-site selling strategy if possible • 15

Remarketing Tactics – Retail Tips & articles for selling vehicles privately • http://www.edmunds.com/sell-car/10-steps-to-selling-your-car- • pg8.html http://blog.swapalease.com/11-photos-that-will-never-sell-your-car/ • 16

Learn more: RemarketingByGE.com Fleet.CarLotz.com Thank you for your time. Please complete and submit your evaluation forms!