The current fleet shortage is an unprecedented crisis. The economic fluctuations following the 2008 Recission and September 11, 2001, don’t compare to what is happening to the market today. However, you can take actionable steps now to put your business in the best position moving forward.
The Current Market
The major difference between the current market and previous vehicle production declines is that previous declines were caused by uncertainty, which stopped consumer purchasing. This crisis is caused by a significant shortage of numerous vital car parts and an increase in demand.
In this blog, we have partnered with our preferred vendor Mike Albert to provide strategies to help your business during this fleet shortage.
Mike Albert previously published content for this blog on their website.
What Does This Shortage Mean for Your Company’s Vehicles?
You May Spend More Money
Vehicles prices for both new and used cars are rising, some 18% to 20% more than usual. Additionally, with material shortages, upfitting for vehicles has also seen an increase in prices.
You May Not Get the Vehicles You Need
Dealerships no longer have a reliable excess of inventory. Many have run out of new cargo vans and pickup trucks. This will naturally make finding the vehicles your company needs to complete its fleet is much more challenging.
You Won’t Receive the Same Incentives
If you are used to receiving incentives from manufacturers, this probably will not continue for 2021 and possibly 2022. Since manufacturers are selling through their inventory, there is no need to offer fleet incentives.
You May Focus More on Vehicle Maintenance
Since many businesses cannot purchase their desired fleet, they must prioritize staying up to date on preventive maintenance and repairs on their current vehicles.
How Can Your Vehicles Survive and Thrive During the Shortage?
Save Your Spot
If you have vehicles expiring now through August of 2022, you need to get in line ASAP.
Also, if you are expanding your business, it may be in your best interest to get a vehicle right away — even if it won’t be in use for a few weeks. While you may have to pay more now, if you wait too long, vehicles may not be available at all.
Free Up Cash
To free up cash for your business, it may be advantageous to taking advantage of a purchase leaseback program. In these programs, a fleet partner cuts you a check for the total value of your fleet before leasing your vehicles back to you at a lower monthly rate.
Learn About Proper Vehicle Life Cycle Strategy
A vehicle life cycle strategy refers to cycling out your older, higher-mileage vehicles in favor of newer, low-mileage vehicles. This is typically done when a car hits 145,000 miles.
However, with the current shortage of vehicles, it makes sense to hold onto vehicles longer. This may mean your vehicles are more likely to suffer a breakdown, making maintenance management more critical than ever.
Learn more about these strategies and how you can be proactive during the fleet shortage on Mike Albert’s blog at mikealbert.com/blog/fleet-affected-by-the-supply-chain-shortage-here-s-what-to-do.
Disclaimer: This content was provided in partnership with Mike Albert. It does not necessarily represent products or services accessible through BuyMax. To learn more about Mike Albert and its services, visit mikealbert.com.