As the effect of coronavirus on the UK economy really starts to bite, we are closely monitoring the impact on our clients and their industry sectors. Many of our local government and emergency services fleet managers are focused on maintaining their fleet availability and outputs to ensure essential services can continue, while also adapting to new tasks directly and indirectly supporting the public sector’s huge coronavirus response effort.
Fleet renewals and disposals are not high up their agenda currently. For our commercial clients the challenge is operational and commercial, with a sudden drop off in construction work, a surge in logistics effort and a fluctuating effect on waste management and highways operations. Behind this sits the need for businesses to stay solvent and to try to manage their assets against these rapidly-shifting industry dynamics.
We see the need for the vehicle resales and remarketing industry to be exceptionally agile to meet the broad range of its client needs. Expect to see a dramatic increase in online auctions; an increase in vehicle finance defaults; a drop in demand for some sectors and an increase in others; and the need to preserve resales companies’ capacity to surge to meet expected demand when the worst of the epidemic has subsided.
GPSV remains open for business and ready to support all our clients as they adapt to these unprecedented times.