With any supply and demand market, the tides are returning to the consumer as dealers compete for customer acquisition and retention, with price being a top factor.
Walk onto any automotive dealership lot, and you will notice one glaring truth: inventory is back!
OEM manufacturers have been playing catch up while most purchasers, whether retail (non-business use) or fleet, have leaned on the side of “bearish” for a lot of 2024, with uncertainties in the economy looming. Fleets delayed RFP requests, opting to maximize their current fleet for fulfilling route needs while avoiding excess overhead amid economic uncertainty.
Coming into 2025, we have seen movement in the other direction, and forecasts are high on demand for growth. If this includes your fleet, prepare for an experience that will feel much more like 2019.
From Shortages to Surplus: Fleet Buying Power Returns
To fulfill customer needs, dealers have gone from a period of purchasing inventory from one coast to another, which is an actual example of a typical strategy I had to use during the lowest inventory period. In contrast, most dealers now say they have too much inventory, primarily commercial upfitted inventory, and some of us dealers even have an aging surplus.
With any supply and demand market, the tides are returning to the consumer as dealers compete for customer acquisition and retention, with price being a top factor.
How does this affect your procurement strategy? It allows you to follow a procurement process that, for a few years, I am sure you have had to abandon. Specifically, being allowed to obtain quotes and select not only where to spend your budget but truly who to give your business to.
Plus, it’s essential to find a dealer who prioritizes customer service and values the role they play in aiding how your fleet fuels company growth through:
You don’t need an order taker that sends you keys and an invoice. You need a fleet partner that acts as if they are a member of your company.
Why Now Is the Time to Reevaluate Your Dealer Partnerships
As a dealer, we have returned to an aggressive strategy by adding big discounts on top of factory incentives and encouraging sales staff to focus on volume and moving units. After all, we make money selling vehicles, not storing them. The banks come along for the ride with not all, but many, models receiving good promotional rates and programs again.
If your forecast is calling for a chance of new trucks, vans, or cars in 2025, take the extra time to evaluate your procurement strategy and your dealer relations.
The service the dealership provides your fleet is valuable, and the business you provide the dealership is valuable. Ensure you have a partnership that values that relationship and enjoy seeing new vehicles arriving on your lot again in 2025.
About the Author: Sheldon Haynie is the fleet director of Roseville Chevrolet. He is an experienced fleet sales professional with positions held throughout the automotive dealership, fleet management company, and fleet electrification sides of the industry. He works with fleet operators every day on managing their fleets through proper vehicle procurement, funding options, and life cycle strategies for fleets of all sizes.
This article was authored and edited according to Automotive Fleet’s editorial standards and style. Opinions expressed may not reflect that of Automotive Fleet.
