Profitable Auto Industry - What Does It Mean For Fleets?
Today's story from Just -Auto indicates that the majority of manufacturers and supporting suppliers are reporting strong earnings in the third quarter and will likely post healthy profits for the year. What does this mean for a fleet manager and this years business?
Right now, it may mean you need to manage inventories intelligently. There is little movement on the job front and there are a limited number of buyers in the retail market yet. With credit still a little tight and consumer confidence slowly rising, the market is still lukewarm. This will maintain a strong used vehicle market with prices somewhat inflated to recent history. New incentives are available but not excessive in most cases. Manufacturers are hanging onto profit and limiting inventory rather than flooding the market at this time.
Knowing the used market is strong right now may make this an advantageous window to replace some of the older units in your fleet. Getting good resale at auctions or selling yourself will help defer some of the costs. Cash is king again and talking to local dealers about deals on multiple vehicles may offer competitive opportunities when compared to current fleet incentives. That topic was discussed on this blog recently in greater detail.
Look over your vehicles and see if you have anything that you can replace that is being phased out or is being subsidized by the major manufacturers. Just because they are offering the cash on something you personally may not want to own, it may be a practical application for a fleet vehicle and you can pick something up that is being replaced with a newer upgraded model.
End of year is still a good time to buy, whether fleet or personal. With the market still in flux, it pays to do a review and see if there is anything that you can benefit from while the industry finds it's "new normal."
Right now, it may mean you need to manage inventories intelligently. There is little movement on the job front and there are a limited number of buyers in the retail market yet. With credit still a little tight and consumer confidence slowly rising, the market is still lukewarm. This will maintain a strong used vehicle market with prices somewhat inflated to recent history. New incentives are available but not excessive in most cases. Manufacturers are hanging onto profit and limiting inventory rather than flooding the market at this time.
Knowing the used market is strong right now may make this an advantageous window to replace some of the older units in your fleet. Getting good resale at auctions or selling yourself will help defer some of the costs. Cash is king again and talking to local dealers about deals on multiple vehicles may offer competitive opportunities when compared to current fleet incentives. That topic was discussed on this blog recently in greater detail.
Look over your vehicles and see if you have anything that you can replace that is being phased out or is being subsidized by the major manufacturers. Just because they are offering the cash on something you personally may not want to own, it may be a practical application for a fleet vehicle and you can pick something up that is being replaced with a newer upgraded model.
End of year is still a good time to buy, whether fleet or personal. With the market still in flux, it pays to do a review and see if there is anything that you can benefit from while the industry finds it's "new normal."
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