Incentives Can Narrow the Fleet versus Retail Price Gap
Today there is a surprising and very welcome news report out of Detroit that says Ford may post their largest 3rd quarter profit ever. While many discussions will continue to be heard over the cause of this quick return to profitability, there are many equally important discussions to be had about the effects of this new status. The current situation does appear to be a result of Ford limiting the incentives offered to buyers, both fleet and retail.
One of the often overlooked opportunities for savings by fleet managers is the price comparison between fleet incentives and retail incentives. Far too often fleet managers are so engrossed in the daily operations that they fail to look at current advertisements or manufacturers websites to get the latest incentive information. Some may not even realize that the incentives can be very different depending on whether you buy as a retail customer from a dealer or are buying as a fleet directly from the manufacturer.
One recent case in my experience found that the retail incentives on a particular vehicle had been substantially increased since the beginning of the year when our 3rd party fleet management company negotiated their pricing. When I was looking to purchase over a dozen specialty vehicles, the retail deal through a local dealer was $2,000 better per vehicle, and that was with agreed on profit left in the deal for the dealer. Walking into a showroom and offering to buy over half a million dollars in year-end inventory makes a dealer pretty willing to sit and talk to you. Respecting their need to make a reasonable profit makes them respect you as a business person. Now we have a relationship that would never have been as meaningful if we simply bought through the fleet program.
Don't always assume that the deal made for fleet customers is the best option on the table. Today I saw light duty pickup truck incentives of $6,000 or no interest financing for 60 months. That may exceed what your fleet deal is through the same manufacturer. Take the time to look at all the options.
One of the often overlooked opportunities for savings by fleet managers is the price comparison between fleet incentives and retail incentives. Far too often fleet managers are so engrossed in the daily operations that they fail to look at current advertisements or manufacturers websites to get the latest incentive information. Some may not even realize that the incentives can be very different depending on whether you buy as a retail customer from a dealer or are buying as a fleet directly from the manufacturer.
One recent case in my experience found that the retail incentives on a particular vehicle had been substantially increased since the beginning of the year when our 3rd party fleet management company negotiated their pricing. When I was looking to purchase over a dozen specialty vehicles, the retail deal through a local dealer was $2,000 better per vehicle, and that was with agreed on profit left in the deal for the dealer. Walking into a showroom and offering to buy over half a million dollars in year-end inventory makes a dealer pretty willing to sit and talk to you. Respecting their need to make a reasonable profit makes them respect you as a business person. Now we have a relationship that would never have been as meaningful if we simply bought through the fleet program.
Don't always assume that the deal made for fleet customers is the best option on the table. Today I saw light duty pickup truck incentives of $6,000 or no interest financing for 60 months. That may exceed what your fleet deal is through the same manufacturer. Take the time to look at all the options.
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