NCHRP Research Report 1074: Maximizing Proceeds from the Fleet Asset Disposal Sales Process describes approaches to selling surplus vehicles and equipment that can increase realized prices and net returns to a state department of transportation (DOT). Accompanying the report is a spreadsheet-based tool for comparing potential returns from various sales channels. The report and accompanying resources will be of interest to fleet managers and others responsible for decisions about the disposal of fleet assets.
State DOTs own and manage fleets of vehicles and equipment. An important part of fleet management is the process of disposing of fleet assets once vehicles and equipment reach an age, level of use, or condition that limits usefulness for state DOT operations. Once the decision is made to dispose of these assets, a key objective is to maximize net proceeds from the sale. Fleet assets can be sold using various sales channels, including live auctions of a wide range of equipment at a centralized location, specialized offerings at regional or local venues, and online auctions operating on a continuous basis. The process used for bids and pricing can also vary: bids can be sealed or open and public, or the selling agency can establish a reserve or minimum bid. Time of year for a sale is a further consideration because the seasonal nature of construction activities and macroeconomic cycles can affect the number of buyers and the prices they will pay. Some state DOTs use purchase-based methods to manage fleet disposal, such as guaranteed buy-back and trade-in programs.
An important consideration for agencies is how best to market and present fleet assets. For example, reconditioning, repairing, or repainting equipment to prepare it for sale can increase sales prices, but that increase must be balanced with the costs for preparation. Some buyers may be attracted to sales where equipment is bundled into larger lots. Other types of buyers may be interested in certain categories of vehicles or equipment, such as only lightduty vehicles or non-self-propelled equipment. Understanding the interests, preferences, and needs of buyers is important to ensure that a state DOT is effectively marketing and conducting disposal sales so as to maximize proceeds.
Under NCHRP Project 13-09, “Maximizing Proceeds from the Fleet Asset Disposal Sales Process,” Mott MacDonald was tasked with developing a manual for state DOT fleet managers on strategies for preparing, marketing, and selling surplus equipment and vehicles to maximize proceeds. The research team reviewed the research literature on buyer behavior, sales practices, and factors that determine sales prices. The research team also conducted a national survey to collect information on current fleet asset disposal practices among state DOTs. A Delphi panel of industry experts was convened to gain additional perspectives.
NCHRP Research Report 1074 documents the results of these activities and provides insights on buyer behavior and effective marketing strategies. To support implementation of the research, a spreadsheet-based tool is available for separate download. The tool provides information on advantages and disadvantages of various sales channels depending on the asset type, condition, and remaining life of the asset. The tool also allows a fleet manager to compare the potential returns from various sales channels and estimate the benefits and costs of developing an alternative sale channel. The report is accompanied by a set of presentation slides summarizing the project, a fact sheet about the project, and a memorandum describing activities to promote the adoption and implementation of the research. The tool, presentation slides, fact sheet, and implementation memorandum are available on the National Academies Press website (nap.nationalacademies.org) by searching for NCHRP Research Report 1074: Maximizing Proceeds from the Fleet Asset Disposal Sales Process.
