Lower production volumes in the US and the increase in repossessions are leading to an increase in the handling business for remarketed vehicles.
“Last year they were about 42m used cars that were traded in the US. That is pretty significant if you think that its about 10m for new cars,” said Ellen Fontaine, General Manager, Strategic Planning and Marketing, for Vascor, the APL Logistics/Fujitrans joint venture which offers 3PL services in the Americas.
While North American production volumes are forecast to drop to 8.1m units, down by nearly half on 2007 figures, approximately 1.7m vehicles were repossessed in the US last year.
Repos are up in the US... We believe there are opportunities there as well,” said Fontaine.
Vascor is answering the trend with a new remarketed vehicle marshalling service to complement its existing provision for factory new vehicles. It is the first such service offering geared toward pre-owned vehicles in the company’s 22-year history.
The intention is to have several regional facilities located throughout the US depending on where there is a need,” she told Automotive Logistics. “The first one is in Southern California and the second one in Southern Florida. We are in the initial stages of putting this programme together but the intent is to offer these facilities where the higher volume locations are, scattered throughout the US.”
VASCOR has marshalling yards for new vehicles in the US, Canada and Mexico. The company will provide the same fenced, lit and paved marshalling facilities with dedicated loading and unloading areas for the remarketed cars as it does for its established business.
“A lot of consumers are seeing advantage to the certified pre-owned vehicles …they consider them a better deal, they believe they’re getting a better car, they’ve been inspected and so forth,” said Fontaine. “From that perspective those volumes are stable. And because there are less new cars coming out the residual values have tapered off and they are not falling like they were.”