Fleet vendors are incurring extra costs
Fleet vendors are incurring additional costs by setting reserves at ‘CAP Clean’ for cars which fail to meet the correct condition criteria.
That is the conclusion of research by CAP comparing the typical condition of cars sent for disposal at auction with reserve prices set by fleet vendors.
Based on a clear set of vehicle condition criteria, CAP Clean is widely viewed as the key performance benchmark for disposal prices across the industry.
But some fleet vendors expect to receive CAP Clean values for cars which clearly fall below the required condition standards.
Researchers from CAP examined cars at a randomly selected major auction site. The condition of every vehicle was assessed and compared with the condition criteria published in CAP Black Book, which defines clean, average and below average.
Of the 300 vehicles on offer, 29 per cent were in CAP Clean condition while a further 25 per cent were just below clean, but above average, condition.