Does your business own a fleet of vehicles? According to an article in the Wall Street Journal, used car prices in the United States are up 29% year-over-year. This is a stark contrast from the traditional 30% depreciation that vehicles attain the moment they are driven off the lot.
What does this mean for you and your business?
First, you may want to consider postponing fleet purchases for a year or so until the shortage of microchips in the automobile market resolves and prices began to normalize.
Second, think about the fleet of cars you already have. If your business has vehicles sitting idle right now, you may be able to turn those unused assets into cash. Currently, dealerships are offering $3,000 or more above the original purchase price to buy back those cars. This is astounding considering that purchase price was the value of the car nearly two or three years ago.
If you have cars that are being underutilized, now is the time to sell them at a premium and take advantage of this phenomenon. This unique change in the demand for cars is an opportunity for your business to increase cash reserves and achieve your goals.