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Having a fleet account set up with the different auto manufacturers can have it’s advantages. We will go over some of the best and worst parts of these programs from the big 3 domestic auto manufacturers (Ford, GM, FCA). Each of these manufacturers offer 2 different programs one for small fleets and one for large fleets. The requirements to quality are different for each and will be laid out later in this article. In general, the difference between the 2 is the amount of discount offered on vehicles. The small fleet program’s incentives are standardized for all companies with a fleet account number and the large fleet program’s incentives are customized and different for each company based on units purchased.
Who Qualifies?:
Keep in mind that these requirements change all the time and by the time you read this it may not be valid, but it should give you a good understanding in general. For the small fleet programs named FAN (fleet account number) by GM and FCA, and FIN (fleet identification number) by Ford, companies qualify that currently own or lease at least 15 vehicles or have purchased 5 vehicles in the last 12 months. GM is also offering FANs to companies that currently own or lease 5 medium duty trucks.
Large fleet programs are on a case by case basis but all must at least qualify for the small fleet discount and usually the manufacturers are looking for a commitment from the company to purchase at least 25 vehicles per year. These programs all have different acronyms, Ford’s is called a CPA, GM’s is a CAP, and FCA’s is called a VIP.
Fleet Discounts:
The first advantage most business owners find in a fleet account is special pricing and incentives. Small fleet discounts are a set amount and can sometimes be combined with other special offers like 0% financing or certain rebates to add aftermarket equipment. These discounts are not always better than purchasing a vehicle with the regular retail incentives and it is worth checking to see which discount is higher when you are purchasing.
Large fleet incentives work a bit differently and were designed to help large businesses budget for their fleet needs for extended periods of time. Not only do large fleets get larger discounts, but they also get protection from price increases throughout the lifetime of a model year. Auto manufacturers usually raise their prices several times on each vehicle produced as it gets later in the model year. We have found that this can be anywhere between 2-6 times during the model year cycle of a vehicle. Large fleet incentives usually protect against these increases and offer “start of production pricing”. This can save a lot of money later on in the model year. Keep this in mind when a dealer is offering $10,000 off a truck and through your fleet discount it is only $9,000 off, your starting price may be $1500 less and the bottom line would be better going fleet.
Fleet Service and Warranty:
Manufacturers all claim to have special service available for fleet customers. This upgraded service makes claims like “fleet specific service lanes”. The biggest issue I see with these claims is that the manufacturers have very little control over their dealerships’ service departments. Dealerships are independently owned and operated and the ownership and management of the dealerships have the ability to greatly affect the experience that companies have at their service centers. Although some brands have dealerships that meet the manufacturer requirements (usually a monthly fee and some training) for being official commercial sales and service centers, we have found that a relationship with the service center your business is using is much more important.
Currently the only manufacturer giving complimentary extended warranties to their fleet customers is GM. The fleet account number currently entitles you to an additional 40,000 miles of powertrain warranty. Making the powertrain warrant 100,000 miles vs 60,000 for retail purchases.
Conclusion:
Companies that purchase vehicles are going to find themselves in one of several categories. If you only have a couple of vehicles in your fleet, you will not qualify for the fleet programs. If your business qualifies for the smaller fleet programs from any manufacturer we recommend going ahead and setting up an account. This way you have the ability to compare fleet and retail pricing and choose the one that makes the most sense to you when purchasing a vehicle. If your company purchases enough vehicles every year to qualify for the large fleet programs, we recommend getting an expert involved and really analyzing the benefits and negotiating with the manufacturers to get the best deals. In most cases, signing up makes a lot of sense from a budgeting standpoint. This will allow you to come to a pricing agreement with a dealership that should be consistent throughout the entire model year. If your company has a huge fleet of 100+ vehicles, most likely the manufacturers are already reaching out to you to set up your fleet account or you have had fleet accounts for a long time already. These programs are changing all the time and we strive to keep you informed. This is why we recommend you sign up for our fleet newsletter and visit our website, as we pride ourselves in providing the information our partners need to best prepare for this ever changing world.
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