SPARKS, MD- PHH Arval, a subsidiary of PHH Corporation marks the 10-year anniversary of its retail marketing program, a used-vehicle sales channel. Since its inception in 1995, PHH's retail program has placed tens of thousands of fleet vehicles directly on retail used-car lots around the country. The results:
On average, on a comparable vehicle and mileage basis, retail sales have exceeded wholesale values by $400 on the low end, to over $900 on the high end.
PHH's success rate in selling vehicles on the retail lot has been more than 75 percent.
Retail sales, as a percentage of all vehicles sold by PHH (excluding wrecks and salvage sales), have climbed from 5 percent at program inception to more than 25 percent today.
PHH's retail marketing program is still the only such program offered in the fleet management industry, according to PHH Arval.
“Initially, people were concerned about increasing the days to sell on these vehicles. But when you compare the cost of a few additional days to sell ($20-$30 opportunity cost) vs. the 75% chance of receiving $400 or more for the vehicle, the decision became a no-brainer. We now have 100% availability of this program for all PHH clients,” According to William Cieslak, vice president of vehicle operations at PHH Arval.
PHH Arval offers its used-vehicle sales services, which include a wide variety of remarketing channels including retail sales, as a stand-alone program or as part of a comprehensive fleet program.
Originally posted on Fleet Financials