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Online Remarketing for Small Fleets: A Look Back at the Early Digital Shift

Small fleets once turned to online auctions, remarketing specialists, and Craigslist to sell vehicles faster, cut costs, and reach more buyers.

March 1, 2010
Online Remarketing for Small Fleets: A Look Back at the Early Digital Shift

 

Credit: Work Truck

8 min to read


Editor’s note: This article originally ran in an earlier era of online vehicle remarketing. The platforms, tools, and examples referenced reflect the options available at the time and are presented here as a historical look back, not current market guidance.

When the economy tightened and budgets got squeezed, business owners and fleet managers didn’t just cut costs. They started getting creative about how they exited vehicles, too.

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Back then, three options kept coming up for small fleets trying to move out-of-service units without getting stuck in a slow, expensive process: online auctions, fleet remarketing specialists, and Craigslist. The first two often helped reduce days-to-sale and the expenses tied to selling aging vehicles. The third, while no longer a go-to, offered a simple interface and a more retail-style transaction, assuming you were willing to do the work yourself.

Together, these options represented an early version of what many fleet pros now take for granted: selling vehicles online wasn’t “weird” anymore. It was becoming normal.

Small Fleet Solution #1

Tap into a large pool of buyers with third-party help for pricing and inspections and aim for a quick sale

In that era, millions of buyers logged on to online auction sites such as OPENLANE, GMAC’s Smart Auction, and Manheim’s OVE.com. For fleet managers seeking exposure to a large pool of potential buyers, online auctions became a go-to option, especially when time was short.

“You can sell the car and get the proceeds while the engine oil is still warm,” said Steve Kapusta, director of operations for Smart Auction.

Auction platforms also started rolling out tools that helped sellers line up vehicles with current market values. OVE.com provided online access to Black Book and Manheim Market Report data. Smart Auction offered tools that let sellers enter a VIN and mileage to pull a vehicle sales history report.

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Kapusta described a setup his sellers often used at the time: a list price and a “buy it now” price, but no reserve.

“A lot of consignors put a vehicle out there for $10,000 and a ‘buy it now’ of $10,300 or $10,500,” he said. “If your floor price is $10,000 and only one person bids on it for $10,000, it’s sold. You can’t put it on there for $8,000 when you want $10,000. First bid can buy it.”

Listings were often free, but fees varied by platform and could fall on either the seller or the buyer at the close of a deal. Some auctions were online-only; others were extensions of brick-and-mortar operations. Most also offered third-party services such as inspections and certifications, which helped reduce buyer objections and build more confidence, especially when sellers were entering markets they weren’t used to selling in.

Nagi Palle, vice president of analytics for OPENLANE, said his company offered sellers the choice of ordering an inspection through the site or using their own service.

“We’ve found that every seller has their own expectations,” Palle said. “If they want to use the service of their choosing, we can accept data from just about any inspection company.”

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One major draw at the time was cost avoidance. Vehicles sold online didn’t require transportation to a physical auction lane. And once a unit was sold, buyers increasingly had access to more shipping options, including providers that partnered directly with auctions to win business. 

Shipping quotes could appear instantly from competing transportation companies, and transporters were starting to stitch together multi-source shipments beyond their traditional routes.

For sellers, that meant it could become more economical to move smaller batches to more locations, even farther away.

It’s worth noting that these were still wholesale transactions, and sale prices typically reflected that reality. But for many fleets, the tradeoff worked: less effort, quicker turnaround, and fewer costs tied to the sale.


Small Fleet Solution #2

Use a custom site to sell vehicles to employees or outside buyers at a better-than-wholesale price

Another option that gained traction during this period was working with companies that built customized online remarketing sites for fleets. These services often included many of the same benefits as online auctions but could be tailored to employee sales, dealer consignment, or other approaches, depending on a fleet's needs.

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As technology improved, fleets gained easier access to maintenance history, condition reports, photos, and online purchasing steps, all in one place.

And while this kind of remarketing support used to feel reserved for large fleets, smaller fleets began using it more often, too.

Ron Shoemaker, president of Flexco Fleet Services in Westerville, Ohio, said his company tailored services to each fleet, regardless of size.

“For all fleets, including small fleets, we facilitate employee sales,” Shoemaker said. “If the driver declines, we outsource the condition report to a third-party vendor and place the vehicle on a proprietary website.”

“There are several advantages to partnering with our company instead of putting your inventory on Craigslist or eBay,” said Steve Bender, national corporate fleet remarketer for Largo, Fla.-based Fleet Street Remarketing.

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One of the big benefits frequently cited was reducing depreciation by minimizing days-to-sell, while also eliminating downstream expenses such as auction costs. Employee sales also offered an added perk to workers who wanted first dibs on a known vehicle.

Another often-mentioned advantage at the time was reduced liability exposure, including protection against potential negligent-entrustment claims arising from the new buyer.

“We protect the company selling the vehicle and the buyer, who is usually their employee,” Shoemaker said. “We take liability and exposure out of the equation wherever possible.”

Established remarketing firms also brought experience with vehicles that didn’t fit the “clean sedan” mold, including upfitted work trucks and public-sector units.

At Flexco, Shoemaker described a program designed for fleets that needed quality used vehicles.

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“Many small companies simply don’t have the budget to buy new,” he said. “Our ‘Refleeting’ program is a concierge service that can find good used vehicles for fleets and even specialty vehicles for short-term projects.”

Small Fleet Solution #3

Take the do-it-yourself approach to sell vehicles at a near-retail price with no fees

Craigslist, founded in 1995, grew from a small San Francisco Bay Area events guide into the world's largest-volume classified ad source. Vehicle listings were free, and Craigslist didn’t charge either party at any point in the transaction.

The tradeoff was time and effort. Sellers handled emails and phone calls personally, and Craigslist was rarely the fastest route to a sale. Still, plenty of business owners found the DIY work worth it, especially if they were aiming for a near-retail price.

For veteran hotelier Larry Hall, time wasn’t the main driver. Based in San Diego, Hall owned and operated six hotels in five states and used Craigslist to sell out-of-service utility vehicles and tow trucks. Whether selling hotels or vehicles, he preferred to run a “Dutch” auction.

“I research similar vehicles for sale and set my asking price higher than the others,” Hall said. “Then, each week, I knock it down until the vehicle sells. I advertise the fact that I’m doing this right in the description. The concept has been around for 500 years, but it still works.”

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One of Hall’s listings at the time was a 2004 Ford E-350 cargo van upfitted with a Knapheide utility body. He listed it above the closest value he could find online and noted it would drop by $250 each week until it sold. He also included a detailed description of performance, appearance, options, and cargo and towing capacity.

“I value my time, and I value the prospective buyers’ time,” Hall said. “My advice is, don’t leave anything out.”

How Did People Sell Vehicles on Craigslist? A Snapshot from an Earlier Era

Craigslist’s interface was plain and limiting even then, but it moved a lot of vehicles, including those sold by small businesses. These tips reflect common advice from that period, though many sellers today also use additional platforms, safer payment tools, and different listing strategies.

Posting services and analytics

For busy sellers, posting services such as PostShark.com were used to get around re-posting frequency restrictions, post more and larger photos than Craigslist allowed, and filter spam and scam replies. Pricing ranged from $3 to $19.95, depending on the service level.

To research other car sales postings, Craigslist offered an RSS feed to bring specific matches to your desktop (for example, “Ford F-150 in Tulsa”). Craigslist noted its RSS feeds were for personal use only and not for commercial use without a license.

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Craigscounter (craigscounter.com) gathered data about ad visitors to show how effective an ad was. Tools included maps of visitor locations, unique hits, and competitor search features tied to search terms and price ranges.

Safety and security

  • Verify the buyer’s street address and phone number. Be wary of buyers willing to purchase sight unseen and of buyers located overseas.

  • Do not transfer title until you have payment in hand at the agreed-upon price.

  • Before depositing a certified check, verify its authenticity with the issuing bank and confirm that it will guarantee payment.

  • Be suspicious of payments made through a “friend” or “agent,” or of a plan involving an overpayment with a refund request.

  • To avoid responsibility for tickets or accidents after the sale, attach a release of liability form to the pink slip, fill it out with the buyer’s info, and mail it to your DMV.

  • While shipping vehicles was common in online auctions, it was also a common scam angle on Craigslist. Sellers were advised not to offer to arrange shipping.

Listing and selling

  • If you had time, pricing about 10% above value gave “haggle room.” If you were in a hurry, pricing about 5% below book value could move it faster.

  • Use guidebooks like KBB and Edmunds to peg “private party value.”

  • Be specific in the title and description. List features in detail and include defects.

  • Including a phone number helped avoid slow, back-and-forth email for serious buyers.

  • Photos mattered. Sellers used photo-hosting sites like ImageShack, Flickr, or Photobucket to get around the old four-photo limit.

  • If asked to drive the vehicle to a buyer, sellers were advised to wait until the buyer could come to them.

  • Modifying and reposting every two to three days was considered essential to stay visible. Some sellers used reposting services such as craigslist-poster.com for a fee.

Originally posted on Work Truck Online

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