‘Cascade’ models, where vehicle disposals are staggered through different channels, are becoming more popular as online remarketing strategies become more sophisticated, said automotive technology company Epyx.
Large fleets disposing of thousands of cars and vans every year are become more trusting of automated methods of disposal, and cascade models are becoming much more widely used as a result, the company said.
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Vicky Gardner, head of remarketing at Epyx, said: “The cascade model has been around for some time but we have seen it gain definite momentum in the last year.
“Essentially, it means that a fleet has a structured approach to disposing of a vehicle, cascading it from their most preferred channel through a number of other suitable options.
“They may start with a closed, fixed price online sale for franchise dealers, then switch to a general online sale open to more buyers if a vehicle fails to sell and then finally, try a physical auction.
“All of this can be made to happen automatically in a platform like our 1link Disposal Network and we are seeing utilisation of these approaches increase at quite a pace.”
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By GlobalDataGardner said this example was at the simpler end of the spectrum and that, increasingly, cascades were being developed for different types and models of vehicle and for different condition grades.
“A lot of this is based on the large amounts of information that are now available regarding disposal results for different channels. The degree of granularity of this information plus its timeliness make it extraordinarily useful to managers disposing of vehicles.
“The chances of being able to identify the best channel through which to dispose of a specific car or van and then being able to design a cascade including other suitable channels is probably higher than it ever has been in the past.”
Last year, Epyx has launched a “pay-as-you-go” servicing, maintenance and revision (SMR) product for car leasing providers.
