Businesses have the option of buying or leasing fleet vehicles from their local car dealership or going through a fleet management company. But a third, and often more viable option for small fleets, is working with a national fleet dealership.

According to Russ Cass, fleet director of Piemonte National Fleet in Chicago, “I believe that we fill the gap between the regular line car and truck dealer and the larger fleet management companies. Most dealers don’t handle fleet because they feel it isn’t worth their time or it scares them to deal with tighter margins. The big fleet management organizations usually ignore the smaller- to mid-size fleet client because they believe the smaller volume isn’t worth their time. We believe these are the customers who need our help the most.”

“Compared to local dealerships, we are experts in the fleet side of the business, so we know what our customers need,” says Mike Lureau, director of fleet sales for Elmhurst Lincoln-Mercury in Elmhurst, Ill. “At most dealerships, there is a high turnover of salespeople. Our staff has been here a long time, so clients deal with the same person.”

At Pacifico Marple Ford based in Philadelphia, President Joe David Pacifico says his staff is “extremely customer relations-oriented and very hands-on, like a small, local bank.” Compared to most fleet management companies, “Pacifico Marple Ford is much smaller, so our lower overhead allows us to price competitively.”

Reducing Fleet Paperwork

National fleet dealers offer many niche programs to customers that some dealers aren’t knowledgeable about. 

“We can find the best rebate, the best financing, and the best add-on services for the customer,” Pacifico says. “We also offer a more personalized service without the extra monthly expense,” says Cass.

• Most large fleet management companies charge a monthly service fee per vehicle they manage.

• National fleet dealers don’t charge additional fees after the sale.

• Operating expenses are generally lower due to smaller staff sizes.

The national fleet dealer can also handle tax, title, and licensing. This especially saves time when a fleet is scattered across several states, each with different rules.

From the Factory to Your Door

At Piemonte, 95% of vehicles sold to national accounts are factory ordered. By factory ordering, clients receive vehicles with exact specifications, avoid local dealership advertising fees, and apply fleet incentives at purchase, reducing costs and taxes. 

The national fleet dealer then "drop ships" the vehicle to a dealership near the buyer’s location, which may be many states away. The vehicle is prepped and cleaned at the dealership before being picked up by the driver.

After the vehicle is built and shipped, the drop-ship dealer receives the car or truck, while all of the paperwork is sent to the national fleet dealer, which then handles tax, title, and license paperwork.

Dealing with the Local Dealer

Some fleets may hesitate to pick up a car from a local dealership where they didn’t purchase the vehicle, even though the dealership receives a fee for handling the drop ship. 

“This does happen occasionally,” says Cass, “so we are very careful in trying to choose dealers who want the fleet business.”

Dealerships have many departments involved in courtesy deliveries, including service, mechanics, and office staff, so the fee compensates them for their work. Additionally, dealers receive manufacturer credit, except for the initial sale. Drop-shipping can also provide dealerships an opportunity to offer service, maintenance, and warranties to fleet clients.

National Fleet Dealer Clientele

At Piemonte National Fleet, most clients are small- to mid-size companies that need assistance in controlling fleet costs. 

“They may not have a full-time fleet buyer who knows what special manufacturer programs are available. We can help them find extra discounts or product availability,” says Cass.

Pacifico Marple Ford’s fleet clients are categorized into three markets:

• Commercial (local and national)

• Daily rental operators (corporate or licensee)

• Government (state and local)

For the rental car industry, they mostly sell sedans, SUVs, and mini-vans. For commercial clients, mid-size sedans or light-duty trucks are popular, while government buyers often require everything from sedans to work trucks.

Sixty percent of Piemonte National Fleet’s business involves truck sales, often customized with aftermarket truck bodies and equipment to meet client needs.

Leasing Options and Vehicle Choices

While most fleet clients prefer to buy their vehicles, national fleet dealers offer leasing options and can recommend manufacturer lease programs. Napleton Marple Ford even has a leasing division, Marple Fleet Leasing. Many national fleet dealers are multi-franchise, offering a wide selection of vehicles. Napleton Fleet Group, for instance, sells everything from Audi to Subaru, giving clients more choices.

Overcoming Resistance to Change

A major challenge national fleet dealers face is changing customer mindsets. Many are accustomed to purchasing from local dealerships. Lureau explains, “We educate potential clients on how we work, how easy the process is, and how cost-efficient it is. We also offer referrals.”

Cass and his associates visit most of their clients across the country annually, building stronger relationships. Industry shows also provide opportunities to meet with clients.

Remarketing Rewards

Eventually, fleets need to be turned over, and national fleet dealers offer remarketing programs to complete the “cradle-to-grave” service. Piemonte National Fleet partners with an organization that offers traditional used-vehicle disposal as well as employee sales via the Web. Many drivers want to purchase their old company car, and this program offers favorable pricing.

Elmhurst Lincoln-Mercury also offers remarketing through wholesalers and auctions, allowing company employees to purchase vehicles with extended warranties and financing. Pacifico Marple Ford recently formed an alliance with Fleet Lease Disposal (FLD), adding employee sales capability and state sales tax credit in 38 states.