Truck and Van Market Reality

by Jim Peplinski   Posted on Wednesday, October 27, 2021

To say 2021 has been a difficult year for global automotive supply chains would be a massive understatement. Local dealers, leasing companies, upfitters, etc. have not been immune to these impacts…in fact, they have borne the brunt of it with their customers. It’s not uncommon to drive by empty vehicle lots and see models that are typically plentiful that don’t exist at this point. Gone are the days of buying dealer stock, and factory ordering is harder now than ever. If you are lucky enough to find a vehicle, many dealers are now requiring you to pay the full MSRP or even MSRP plus additional fees.

Throughout 2021, many pundits predicted that the worst was behind us, and fall would bring with it an improvement in the supply chain. Unfortunately, that has proven to be false. So, what can you expect for the upcoming year? Here are the hard facts that we must come to terms with:

  • Most dealers will NOT sell to fleet clients. They are prioritizing sales directly to retail customers.
  • Some manufacturers are canceling orders that have already been placed for 2021 – many that they have had as far back as 8-10 months!
  • GM and some other major manufacturers already have all the 2022 orders they can handle. They are even advising dealers and customers that some of these orders will have to be cancelled due to a lack of availability.
  • First come, first serve will not hold true for 2022. Manufacturers are doing allocations, massaging numbers, denying, and cancelling orders.
  • If you didn’t have an existing fleet number for 2021, you will NOT be able to get one for 2022. Ford and Toyota have announced there will be no new fleet accounts in the coming year.
  • Most customers are having to order their 2022 model year trucks blindly, without even knowing what their fleet discount will be.

Imagine, you have been waiting on a 2021 order for almost a year…it has been cancelled…you can’t reorder…and you might not be able to get a 2022 model now either? If you were lucky enough to get your name on the list for 2022, you have no idea when you will get it and how much it will cost you. This is a situation many businesses are in right now.

Every manufacturer is facing its own set of challenges. Most are trying to re-stock their dealer network first and have said no to ANY rental orders for 2022. That means if you find yourself in a position where you can’t lease or buy, you won’t be able to rent either. Massive shortages of raw materials have also made it extremely hard to access some features. For example, it’s challenging to come by trucks with sunroofs, wheel well liners, tow packages, some drivers assist packages, spray in liners, etc. All of these items and more, are causing delays in the building and delivery process.

That being said, how can we at Jim Peplinski Leasing, help our clients navigate the process of ordering for 2022?

  • We are diligent about monitoring our orders weekly and make changes when new constraints arise. We are constantly adapting and modifying orders to get them built for our clients.
  • We placed orders for most of our clients on day one of every order bank opening for each manufacturer to ensure the best outcome.
  • Working harder than ever to meet our clients’ needs, we are also being realistic when setting expectations for what we can and can’t get and communicating this information clearly as it
    becomes available.
  • To be succinct, we have been able to assist where many others haven’t been able to. We expect to be able to continue with that trend.
  • Our goal is always to over-deliver. It’s important to us as a company that we are fair in both the good times and the tough times.

We won’t sugar-coat the fact that it is not a positive outlook for trucks and vans for 2022. Fleet vehicles will continue to be scarce, delayed, and expensive in comparison to past years. The used market will continue to be strong as this scarcity continues until global supply chains improve. The good news throughout all of this is we have your back. At JPLI, your business interests are always at the forefront of our efforts. We are doing everything we can to get you what you need, where you need it, when you need it.

  • Archives
    • 2022 (4)
    • 2021 (10)
    • 2020 (3)
    • 2019 (9)
    • 2018 (25)
    • 2017 (18)
  • Recent Posts
  • Popular Tags