MAXIMISING RESIDUAL RETURNS ON YOUR FLEET
Proven fully managed simultaneous multi channel e-retailing NOW marketing prior to lease end

Over the past few months readers of this column will have seen me promoting Carsite as a reliably successful remarketing partner who can take away much of the logistical pain around disposals and deliver higher returns. And I am especially proud of having achieved what I call the ‘Holy Grail’ of e-remarketing with our Preview and Postview systems, which achieve sales before cars have even returned from lease, or during the ‘dead’ time between sales after disposal. But this month I am going to take a breather and hand over the talking to someone who – unlike me – does not have a vested interest in promoting Carsite.

Tim Bowden is Head of Operations at Hitachi Capital Vehicle Solutions Ltd and he came to us looking to broaden the potential retail audience for Hitachi Capital’s end of contract vehicles. That resulted in the launch of an affinity e-retail site which went live in March 2007.

What were you looking to achieve when you approached Carsite?

Around 10% of our cars were already going back to drivers after termination and some to staff internally. However we were looking for a way of offering cars to the broader retail community but without becoming involved with the transactional side that retail sales would involve. We needed a partner with a strong track record in e-commerce solutions and not just a remarketing partner who also does e-commerce. We were looking for the ability to develop and manage systems that were tailored to our needs rather than just buying an ‘off the shelf’ system. Importantly we wanted a solution that would enhance and not compromise the Hitachi Capital brand because we are passionate about the quality we offer and our image. The skills and track record of the people behind Carsite provided a good blend to achieve that.

How have you experienced Carsite as an e-remarketing partner?

We wanted a service we could be proud to say we were offering, which would give people confidence to buy cars from us on a robust platform which would not compromise our credibility. It has worked well. We have consistently achieved a level of price premium over traditional disposal methods, after costs, that fully justifies the use of this sales channel. Our buyers have been reassured by all the testimonial evidence from previous customers that is offered on the Carsite website and even on the rare occasion when they have seen the car and then changed their mind, they have still gone on to buy another from us.

Have you sold any pre-termination cars via the Preview system yet?

Preview is working very well for us and in fact 10% of the cars offered via Preview in the first month have been reserved by buyers. This is great news because anything we can do to pre-sell cars minimises our stocking costs and enables us to increase the values we achieve. The introduction of Preview has also broadened the choice of vehicles we are able to offer, which makes the whole offering more attractive to retail customers. I have been pleasantly surprised at the number of people who have been prepared to reserve a car having looked at  the detailed description on the website, but without actually seeing it in person.