Vehicle inspections deemed vital for preserving fleet asset value
Garasi.id believes vehicle inspection services can help companies maintain optimal resale value of their fleets while reducing potential losses from operational vehicle depreciation.
The automotive company, specialising in car maintenance, used car sales, and vehicle warranty and inspection services, stated many companies retain vehicles for too long merely because they are considered ‘roadworthy’.
However, vehicle asset values decline monthly, while ownership costs rise once vehicles reach four to five years of age.
“Many companies only sell vehicles when costs are high and values have plummeted. However, with vehicle inspections, businesses can obtain accurate data, enabling quicker and more profitable decisions,” said Garasi.id CEO Ardy Alam.
Garasi.id noted that vehicles aged four to five years require more frequent servicing, increased replacement of fast-moving parts, and higher risk of major breakdowns. Annual service costs, previously around Rp3 million to Rp5 million, can escalate to Rp10 million to Rp15 million annually.
According to Garasi.id, delaying the sale of a vehicle by one to two years can result in a loss of Rp30 million to Rp50 million per unit, not including additional maintenance costs.
Showrooms are the most common choice due to convenience: faster transactions, no need to find buyers, suitable for large fleet sales, and simpler administrative processes.
However, showrooms purchase vehicles not for use but for resale. They require profit margins, refurbishment costs, stock-holding expenses, and risk buffers for unsold units.
As a result, showroom purchase prices are almost always below market value. Hence, some companies attempt direct sales to end users for higher prices.
However, potential buyers typically scrutinise vehicle conditions in detail, including accident history, flood damage, engine status, and service records.
“Many companies don’t lose money because the vehicles are in poor condition, but due to lacking professional data to prove their condition. This leads to persistent price reductions during negotiations,” Ardy said.
Garasi.id offers vehicle inspection services covering up to 170 checkpoints, including engine, transmission, electrical systems, suspension, vehicle structure, and signs of past accidents or flooding.
Through its vehicle inspection service, Ardy said Garasi.id assists companies in making measured, transparent, and data-driven asset disposal decisions to maintain optimal vehicle value before it depreciates significantly.