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Daily rental industry learning value of ready-to-retail defleeting, says Meridian

Daily rental industry learning value of ready-to-retail defleeting, says Meridian

The daily rental industry is learning the value of defleeting stock in ready-to-retail condition in order to maximise returns, according to Meridian Vehicle Solutions
 
Phil Jerome, managing director, at Meridian Vehicle Solutions, said that the sector was increasingly putting more effort into ensuring cars were sold in grade one or two condition.
 
He explained: “Daily rental cars have traditionally not been that highly sought after by the trade. Their condition was often variable and there was even a widespread stigma among used car buyers about ex-rental vehicles because of the imagined abuse they received.
 
“However, the image differs from the reality. The truth is that, for several years, major daily rental companies have been putting much more effort into their defleeting operations, especially when it comes to common issues such as minor bodywork and trim damage, but even over the last year, there have been noticeable advances in preparation.
 
“Additionally, smaller operators have started to catch up. Just two-three years ago, it used to be that if a batch of ex-rental cars from different companies came up for auction, they tended to be a pretty mixed bag. Now that is no longer the case. They will be of a good standard.”
 
Mr Jerome said that Meridian, as a medium term rental business typically offering contracts of one-six months, was a good example of the trend in action.
 
He said: “Most of our vehicles are sold to franchise dealers and, although they might typically have covered anywhere from 5,000 to 20,000 miles, we ensure that they are presented in a condition that is virtually indistinguishable from new.
 
“For this reason, we have a strong reputation among dealers for supplying stock that can be placed straight onto their web sites and forecourts. This is especially true among manufacturers in which we specialise, such as Volvo and Mercedes.
 
“While we differ in operational terms from a daily rental company, we are a good example of the kind of ready-to-retail defleeting that is now common across the rental industry.”

Mr Jerome said that Meridian, as a medium term rental business typically offering contracts of one-six months, was a good example of the trend in action.
 
He said: “Most of our vehicles are sold to franchise dealers and, although they might typically have covered anywhere from 5,000 to 20,000 miles, we ensure that they are presented in a condition that is virtually indistinguishable from new.
 
“For this reason, we have a strong reputation among dealers for supplying stock that can be placed straight onto their web sites and forecourts. This is especially true among manufacturers in which we specialise, such as Volvo and Mercedes.
 
“While we differ in operational terms from a daily rental company, we are a good example of the kind of ready-to-retail defleeting that is now common across the rental industry.”