Top 11 tips for optimised disposal profits

By Alex Wright, MD, Shoreham Vehicle Auctions

The team here at SVA has experienced a number of real life situations in 2024 where there was plenty of potential to push up profits during 2024. We continually work with our retailer vendors to optimise sale values of used car and LCV stock – and here are some ideas that can help make a difference to your bottom line.
Some issues re-occur year after year, but they can help retailers generate more cash. Two of the main ones are making sure the electronic service history accompanies the car and that the vehicle is road ready to go to its new owner.
If the car has illegal tyres or is minus its latest MOT, the new owner will have to invest time and money in the car before they can park it on their forecourt. Remember, time equals money and hassle for retailers – and its easy for them to walk away from a vehicle.
Many of the items we see regularly will take just a few minutes to fix or will need following up with its previous owner or information checked on Government websites. Investing this time will increase thousands of pounds for proactive dealers.

1 Spare keys
These are becoming more expensive to replace and, if a customer offers a part exchange without a spare key, the retailer should reduce the price they are prepared to pay the part exchange customer accordingly as it will worth less at auction.

2 Service history
More and more cars have an electronic service history so make sure you get this printed off by the driver selling you their car. On high mileage and high value cars having proof of a full-service history could increase values by several hundred pounds.

3 Does it drive well?
With part exchanges getting older (often up to 10 years) retailers should make sure they drive a vehicle before sending it straight to auction. That way, they can gauge its true condition and if there are any issues – however small – make sure they are included in the sale details when it goes under the hammer.

4 Got the latest V5?
When a vehicle is taken in part exchange it’s easy to be handed an old V5. Check the V5 is current and wait until you get the correct paperwork before selling the vehicle at auction, rather than risk compromising bids and values.

5 What about a valid MOT?
If a vehicle arrives at SVA without an MOT, the test will be conducted on site before it is offered for sale. By spending between £50-60 on an MOT can increase a vehicle’s value quite substantially, even if it does come with a couple of advisories. That transparency means the buyer can adjust their bid accordingly to get the car retail ready.

6 Total loss
Has the vehicle been declared a total loss sometime in the past? If so, these cars are still saleable but must be declared by the auctioneer when they are sold.

7 Legality of tyres
If the tyres are not legal, a vehicle has to be offered at auction as a non-runner, which will reduce its value and compromise the number of bids – especially if the new owner uses plate drivers to move their auction purchases. Buyers will have to buy and fit a new tyre on that vehicle before it can be driven.

8 Any missing parts?
A vehicle can be sold minus a part, as long as the missing component is declared on the sale notes. Be aware that buyers are currently avoiding vehicles that need parts or paint as it can delay putting a vehicle on a forecourt by weeks, as parts are out of stock and bodyshops extremely busy. Get a vehicle repaired and painted before it goes under the hammer to optimise values.

9 Is there a pre-existing recall in place?
Recalls are easy to track nowadays and its worth checking and getting these resolved before they are entered for a sale.

10 Be clear about the specification
The MINI was one of the first cars where drivers could bespoke the spec of their car – and, generally, higher spec vehicles are worth more money. That scenario might require a little detective work, but it will help increase the value of a vehicle. The same goes with LCVs that have air-con, metallic paint, sat nav and reversing beepers – they are worth more money at auction.

11 Does your vehicle suffer from Covid spec?
In 2021 and 2022, vehicles were being produced missing key components such as satellite navigation and electric windows. Retailers should be up front if these items are missing as buyers will want to reduce their bids according to the vehicle’s condition. You also don’t want to sell something that mis-represents a vehicle as it can easily damage a dealer vendor’s reputation at auction.