As Covid-19 continues to make operating retail and service businesses a challenge, those who support them by financing equipment for everything from restaurants and bars to gyms and manufacturers, will be facing challenges of their own. No one wants their clients to have to close down or default on lease payments, but despite everyone’s best efforts, not every business will be able to make it through.
If you provide financing or leases to businesses like these and are faced with having to recover your assets because clients are no longer able to make payments, remarketing recovered assets can be a great way to get the best return on your investment. Letting these items sit in storage until a potential buyer comes along is not the best idea. To resell your assets at a competitive and profitable price, you will need to remarket them. But what is asset remarketing and how does it work? Do you really need a national repossession company to help you remarket your previously leased assets?
What is Asset Remarketing?
Asset remarketing is more complex and nuanced than simply reselling a used asset. Remarketing is rebranding an asset that has declined in value overtime in order to resell it at its highest price point to buyers who are already in the market for these types of assets. In other words, it’s not just reselling an item, but it’s marketing your asset in an appealing way to buyers who are interested and ready to buy your previously leased asset.
Not Everyone Looking to Buy Wants to Buy New
If we use cars as an example, obviously buying a new car has lots of advantages. But not every buyer is in the market for a new car for several reasons. Because a new car depreciates greatly once it leaves the dealership, some people looking to purchase a car prefer buying a used car straight off of a lease. They know they’re still getting a great deal by purchasing a gently used vehicle that will still be drivable for years to come. Remarketing an asset works much in the same way for large pieces of equipment. These buyers don’t necessarily need a brand new asset to be satisfied but are in the market for a gently used asset that will give them a lot of bang for their buck.
How Do I Decide What My Asset Is Worth?
To determine an asset’s highest price point at any given moment in time, one must know three things: an asset’s useful life, depreciation rate, and finally its salvage value. Each asset has what is known as a useful life. An asset starts to depreciate or lose value depending on its useful life or worth of the item over time. An item’s depreciation rate and useful life both help to determine an asset’s salvage value.
Simply determining your asset’s worth is not enough. If you never get your asset in front of the right audience, it will never sell. Going back to our car example, it doesn’t matter how much you remarket a car to a person without a driver’s license. If they have no need for it, they’ll never buy it from you.
Why Should I Use Asset Recovery Company to Remarket my Asset?
If you work with Asset Recovery Company, we will remarket your assets in a way that will earn you a profit. This separates us from the competition, very rarely will you find a repossession company that helps with remarketing. We will be able to put your assets in competitive auctions that will have the right audience. The potential buyers that attend these auctions will be interested in purchasing the types of assets that you have to sell. If these buyers are in the business of buying previously leased assets, they will know the salvage value of each asset and be more likely to purchase an asset that is not only priced properly but is remarketed to them in a certain way.
A repossession company like Asset Recovery Company will put you in touch with a network of auctioneers that will know exactly what qualities a previously leased asset should have and market according to this insider knowledge. For example, if a leased car was going to auction, remarketing the car would involve letting the potential buyers know what the car’s current mileage was, its accident history, repairs it’s had, the state of its engine, transmission, etc. We work with auctioneers that would remarket your asset in the similar way to buyers.
What Happens If I Don’t Use Asset Recovery Company?
If you don’t use an expert like Asset Recovery Company to remarket your asset, you may feel like remarketing your asset is a waste of time, money, and energy. Without knowing your asset’s useful life, depreciation rate, and salvage value, you may price your item too high or too low. Both of these actions can harm the potential profit you could make from remarketing your asset. If you price your used asset too high, no one will purchase the asset. You will have wasted your time, money, and energy marketing this asset to buyers who aren’t interested in an overpriced asset. If you price your used asset too low, you’ll sell the asset fairly quickly but it may not be worth the hassle of reselling. You may in fact lose money this way because it could cost more to market this asset than the low price you’ve sold it at.
Transportation is Key
A national repossession company will also know how to transport your item safely and efficiently to save you time and money. Moving large assets is no easy feat and damage to an asset can instantly cause it to lose value. In order for your asset to do the best at auction and be priced at its highest current value, you will need to ensure that it gets in front of buyers in its best state. A national repossession company will have the staff and the means to safely transport your asset anywhere in the nation to put it in front of the best group of buyers so that you can make the most profit at auction.
Once your capital investment has been returned to you, reselling an asset will be pure profit if you resell at a competitive rate. A trusted national repossession company, such as the Asset Recovery Company (ARC), can help you profit off of your asset with little time, money and energy wasted to do so. Contact ARC today to see how they can help you make the most out of remarketing your previously leased assets today.