RECOVERY VEHICLE ‘CASH CONVERTERS’!
When times get tough, businesses have to change to meet new demands and those with the flexibility to change rapidly and meet new demands are the most likely to survive and thrive. For recovery operators this may mean changing the specification of fleet vehicles, and while there’s no shortage of new or second-hand trucks to buy, selling vehicles that are surplus to requirements back into the trade is not always so easy. When the market is quiet, dealers are less keen to take on additional stock, but unless unwanted vehicles can be sold on, it means capital is tied up in redundant stock and it adversely affects the company’s cash flow.
In the current economic climate, most businesses are looking at ways to increase efficiency. L & M Autos in Basingstoke contract out recovery vehicles. Managing director Roy Gove commented “We have a customer who keeps 2 Renault slide backs permanently on site. They wanted to upgrade the specification, so I called Recovery World to see if they could help. They had a slide bed with an extra spec lift in stock, which meant we didn’t have the usual 6 – 8 week wait for a custom build. Recovery World bought the two Renault slide beds on the spot, so the deal was easy and straight forward. Within the week, my customer had their new truck delivered. They can now carry two vehicles, but only need one driver, so they are delighted with the cost savings.”
Harry Patterson is the 22 year old managing director of Aberdeen based CARS Recovery and in just 18 months has built the business from 8 to 24 vehicles. He commented, “We now have the largest share of the market in the area and a reputation for reliability, so we need to make sure all our vehicles are to the highest standards. When we upgrade, all I have to do is ring up Recovery World, and they do the rest. They not only give us good value and service with the trucks they sell, but they buy or part-ex the older vehicles we’re selling, and they give us a fair price. It’s very straight forward and there’s no delay so we can get on with what we do best, servicing our customers and building the business.”
One of the effects of the recession has been a rise in the number of car finance defaults and a corresponding increase in repossessions or ‘snatchbacks’. The nature of this type of work is that keys are not always available, so when it comes to recovering the car, a slide bed isn’t practical and a damage free lift recovery truck is usually required to avoid vehicle damage.
As an Authorised Treatment Facility (ATF) T & S Threadgold Ltd of Northampton have several damage-free lift trucks which they use when requested by the police to impound untaxed and abandoned vehicles. These are kept pretty busy, so the increase in car repossessions called for an additional truck which could recover vehicles without damage.
Managing director Steve Threadgold commented “Like many other operators, we found agency recovery work had got quieter in the last few months, but this was more than made up for with the extra workload on snatchbacks. As we had crew cab slidebeds not earning their keep, it only needed a phone call to Mac at Recovery World and he not only purchased our slide beds straight away, but he sourced the new vehicle we needed. Being able to change our stock of vehicles quickly and easily means we can keep up with changing trends and maintain the high levels of service for new and current contracts.”
The Government’s new scrappage scheme has helped the sales of new cars, but it has also meant a corresponding increase in the number of vehicles requiring disposal. Threadgold added, “Since the scrappage scheme started we were being asked to recover vehicles over a much wider area. To be more efficient, we really needed to be able to carry more than one vehicle each journey. A call to Recovery World and they bought one of our Renault crew cab slide beds, and replaced it with a day cab truck which had a slide bed and an extra spec lift. Overnight we doubled our scrappage recovery capability without increasing the overhead.”
Threadgold summarised, “Things are changing all the time in this business, so we need to be able to change vehicles quickly. From experience, we know that Recovery World takes all the hassle away. They hold good stocks of new and used vehicles, but more importantly, they buy our used trucks straight away without any hassle so we’re not stuck with idle vehicles and it keeps our cashflow positive.”
ends
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More about Recovery World
Recovery World was established in January 2001 to supply both new & used vehicles to the UK & Europe. With now over 150 vehicles on the site at any one time it has to be the largest collection of recovery vehicles in Europe if not the world. The Recovery World website has become a community focus for all those involved in the vehicle recovery industry, not just for vehicle sales, but a central information point. The forum is very active with drivers and operators able to air their views and opinions and maintain contact with each other.
Visit www.recoveryworld.co.uk
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