DEPARTMENT OF PUBLIC WORKS: VEHICLE REMARKETING

 

3-I
DEPARTMENT OF PUBLIC WORKS: VEHICLE REMARKETING
Problem Identification:
The vehicle resale process is not taking full advantage of the broad market for used vehicles.

Recommended Action:
Revise the current process used to remarket used vehicles and equipment to ensure that the highest resale price is obtained. This includes evaluating seasonal opportunities that exist in the used vehicle marketplace.

Classification:
Revenue Enhancement

Functional/Operational Area:
Centralized Fleet Management Entity

Estimated Annual Impact:
$500,000

Estimated Implementation Costs:
None

Barriers to Implementation:
None

Projected Implementation:
90 days to evaluate and revise current practices

Next Steps:
Examine vehicle disposal and resale practices in other peer cities. Direct efforts to expand the list of potential bidders through targeted marketing efforts.

Analysis:
Vehicles are currently being sold in ‘lots’ (i.e.- several at a time). There are a limited number of bidders for any given lot. It appears that the same markets have been used for many years for the sale of used vehicles. The market has changed dramatically over the past five years necessitating a thorough analysis of the City’s resale/disposal function.

Approximately 300 to 400 vehicles are sold each year. This number does not include vehicles in the abandoned and seized vehicle lot. If vehicle resale proceeds can be improved by a modest $100 per vehicle, the expected annual increase in resale proceeds will approach $500,000.