Car Buying

What is Fleet Pricing on New Cars

What is Fleet Pricing on New Cars?

You are responsible for ordering vehicles to restock the depleted inventory that keeps your cab drivers on the road. Many of the cars in the fleet have become obsolete, from guzzling too much fuel to breaking down often during daily runs. How do you replenish the cab company’s fleet and save money at the same time?

The answer is take advantage of fleet pricing on new cars.

Overview of Fleet Pricing

Whether you are the fleet manager for a cab company or are responsible for maintaining an extensive truck inventory for a construction firm, you should learn about fleet pricing on new cars. Fleet pricing represents a discounted price per vehicle for the purchase of multiple vehicles. Look at fleet pricing as the automotive version of the bulk purchase discounts enjoyed by retailers such as restaurants and grocery stores. Companies from a wide variety of industries benefit from fleet purchasing and pricing, including police departments and car rental companies.

Benefits of Fleet Purchases for Businesses

The obvious benefit for businesses that make fleet purchases involves the savings produced by ordering cars in bulk. A dealership might discount each vehicle in a fleet by 10%, if the buyer orders 20 vehicles. In addition, the professionals responsible for maintaining sufficient vehicle inventories save time by purchasing the vehicle from one dealership. A fleet manager calls in an order and waits for the return call from the dealership that the fleet of vehicles has arrived. Instead of contacting multiple dealerships to make vehicle orders, businesses contact one dealership. In many cases after the first order, all a fleet manager has to do for future orders is to submit an order electronically via email to a secured portal controlled by the auto dealership.

Benefits of Fleet Pricing for Car Dealerships

Auto dealerships make up for discounted new vehicle prices by selling many more cars at one time. For example, a car rental company orders 15 sedans at the non-discounted price of $18,000 per vehicle. The car dealership generates $270,000 in sales. Let’s assume the dealership offers a 10% discount if a fleet manager orders 20 sedans. The news sales figure is higher at $324,000. The fleet manager saves time by having to deal with just one buyer to move 20 sedans.

General Requirements

Auto dealerships require different criteria for buyers to enjoy the financial benefits of fleet purchasing. The differences stem mostly concerning the minimum number of vehicles dealerships require for businesses to benefit from discounted fleet pricing. The size of a fleet can range from five cars for a police department to hundreds of vehicles for a large car rental company wanting to replenish its vehicle inventory. For repeat customers, many dealerships lower the minimum number of vehicles required for fleet purchasing.

A Few Tips for Fleet Managers

Fleet managers do not want to negotiate the discounted price of a fleet sold by a dealership. If you are responsible for maintaining an adequate number of vehicles for your business, make sure to work with dealerships that have established dedicated fleet departments. A dedicated fleet department should be more efficient to help your company save money and time on a fleet purchase.

Here are some other tips for businesses in search of the right car dealership for a fleet purchase:

·      Apply for a fleet number
·      Focus on the invoice, not the individual sticker price
·      Finalize purchase price, then offer trade-ins
·      Capitalize on manufacturer incentives
·      Ask the dealer to waive the dealer fee

The last two tips can save businesses more money. Although fleet discounts and manufacturer incentives are often mutually exclusive in the purchase contracts proposed by car dealerships, it never hurts to ask for a lower car price because of one or more manufacturer incentives. Ask the fleet manager to run different pricing scenarios that combine different discounts and manufacturer incentives.

Typically running between $100 and $600 per car, the dealer fee is used by car dealerships to account for the costs of back office support, as well as other types of administrative costs. Some dedicated fleet departments automatically waive dealer fees, especially for repeat customers. As with manufacturer incentives, it never hurts to ask a fleet manager to waive the dealer fee.

 

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