Risk-Free Success: Abilene Public Works’ Auction Achievement

Offloading unneeded assets from inventory is a necessary part of Fleet Managers’ roles. Unfortunately, trade-in values don’t always meet expectations. 

The Challenge

The Abilene Public Works Department upgraded their 2013 Freightliner 108SD Vactor 2105 Plus Combination Sewer Cleaner Truck.  

• The original equipment manufacturer (OEM) offered $75,000 for the trade-in. 

• Another online platform promised $100,000 with several risks attached to the sale. 

Unsatisfied with the trade-in value and risks of fees and chargebacks if the online sale fell through, the department searched for an alternative option that would maximize the return on this asset while minimizing risks and cost. 

The Solution

Abilene Public Works decided to test the market by listing the truck on GovDeals, a government agency-specific online auction platform. By listing the truck with a reserve price of $100,000, the auction was conducted at zero cost or risk to the agency, ensuring that they would not incur any expenses regardless of the auction outcome. 

GovDeals also offers chargeback protection as part of its electronic payment collection service. This service indemnifies agencies from credit card fraud and chargebacks, ensuring financial security. It helps protect against illicit buying behavior, such as collusion or shilling, and prioritizes system security.  

The Results

After a four-week auction, the truck sold for $164,812.50! This resounding success was a nearly 65% increase in profit over the competitor’s offer amount and more than double the trade-in value estimate. This outcome provided Abilene Public Works with a substantial financial gain, demonstrating the effectiveness of using the right online auction platform to maximize asset returns. Utilizing a zero-cost, zero-risk auction approach can yield high returns as online auctions help realize the true market value of assets, often surpassing traditional trade-in values.

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