How Well do you Understand Fleet Buying?
by Jim Peplinski Posted on Thursday, June 14, 2018
If you are looking to invest in a fleet of vehicles for your business, you may be thinking the answer is simple: go to the dealership, determine which vehicles and features you want, negotiate a deal, and job done! In reality however, there is much more involved in acquiring your vehicles. And with a lot of money on the line, it’s important to understand exactly what that means and how a fleet leasing company can help.
When to Order
Many people do not realize that the time of year that they place the order, relative to the model year of the vehicle, is very important. This is most relevant when it comes to resale and gaining maximum value for the vehicle when you choose to sell it. With that in mind, be aware that most model year changeovers happen in the third quarter of the year – July 1st to September 30th. If you wait and purchase after this time, you will have a new model year vehicle. When you sell or remarket it in three/four years’ time, it will be a more recent vehicle and you are likely to get a higher resale value for it. A fleet leasing company can help clients capitalize on the right acquisition time by implementing a vehicle cycling policy in line with the new model year.
When it comes to maximizing value in the vehicles you acquire for your fleet, there are a few things to keep in mind. First off, if you have five or more vehicles in your fleet, you are eligible for fleet rebates. If you have a larger fleet, your fleet leasing company can negotiate vehicle concessions direct with the manufacturer, earning you volume savings on select models. Be aware not only of the time of year you order, but also of current manufacturer’s and dealership incentives that may be going on at the time. Your fleet provider should ensure that you get the best discount available. When you work with a commercial leasing company, you also leverage their buying power, reducing overall acquisition costs and taking advantage of their preferred pricing with vendors and suppliers.
Choosing the Vehicles
While your main concern may be costs, it’s also important to consider what you are getting for that cost. Go into the purchase with the goal of getting the vehicle that meets your needs, not simply the cheapest one. Aim to have standardized features across your selection to make it easier for you to streamline your fleet. Work with your fleet management company to factory order to your exact specification, to ensure you are not paying for any extra options on out of stock purchases.
Jim Peplinski Leasing has everything you need when it comes to understanding fleet pricing and fleet management services so don’t hesitate to give us a call.