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Past Issues

June 2005

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UsedTrucks

SAB goes the auction route

Following a pilot project which saw asset disposal returns in excess of 40% of current disposal methods, SA Breweries has appointed Tirhani Auctioneers, a 100% black owned company, as its Asset Disposal Professionals to dispose of its trucks and forklifts via auction when renewing its fleet.

An obviously delighted Tirhani Mabunda, CEO of Tirhani Auctioneers, said that apart from SAB, more and more companies are realizing the benefit of using a professional asset disposal company like Tirhani Auctioneers to help them improve returns during the closing stages of the asset management process.

"Strategically planned auctions immediately realize true value for assets, reducing holding costs, eliminating further depreciation and thereby improving profitability for corporate fleet operators. Auctioneering is an innovative disposal method that brings buyers together simultaneously with a common purpose and in that way realises market related prices, ensuring quick and efficient disposal," he says.

According to Mabunda, relying on returns provided by the trade when acquiring new vehicles leaves fleet operators "at the mercy of manufacturers which," he says, "often provides dismal values compared to selling assets in a free market where the laws of supply and demand take over giving true asset value returns."

He says his company has a large database of willing buyers for commercial vehicles (particularly trucks), plant and machinery.

"Auctioneering is a transparent process and has become an exciting alternative to traditional methods of disposal where there is no competition to stimulate prices and obtain true market related values for used assets."

As is stated elsewhere in this feature, the dynamics around the used truck market have changed dramatically. Mabunda's comments certainly prove this to be true.