Forum Discussion
ksss
Jan 24, 2019Explorer
Well we can only speculate how the dollars work.  It has been like this for a quite awhile.   I can only assume this business model makes sense for them, they certainly wouldn't do it if it didn't.  They are in this business to maximize money.  I wish I had fleet number that I am positive of.  Could save a lot money.
I would say that there is a difference between fleet sales and fleet sales to Gov., municipalities and so forth. There is very little money in Gov. sales. Like less than $50.00 to the dealer. Here in Idaho there is what is called a State bid. Other public entities can buy on the State bid (negotiated price). To give an idea of how cheap these are, one county near me buys a new Duramax Crew Cab every year. They buy this LT duramax crew cab 4X4 for about 45K. They drive it for a year and trade it in. The trade in value is higher than the cost of the next years Duramax. So the dealer PAYS them for their trade. How much depends of course on the amount of miles and condition but because the Gov price is so low they can continue to drive new pickups and get paid to do it. Taxpayers are happy, the County is happy and of course the dealer has a low mileage trade that they can make money on. Pretty sweet deal for all involved.
The regular fleet sales to businesses like I said are reduced by 5K or so (seems to fluctuate) off the sale of a 70K pickup. So there is a considerable difference between different types of fleet sales.
I would say that there is a difference between fleet sales and fleet sales to Gov., municipalities and so forth. There is very little money in Gov. sales. Like less than $50.00 to the dealer. Here in Idaho there is what is called a State bid. Other public entities can buy on the State bid (negotiated price). To give an idea of how cheap these are, one county near me buys a new Duramax Crew Cab every year. They buy this LT duramax crew cab 4X4 for about 45K. They drive it for a year and trade it in. The trade in value is higher than the cost of the next years Duramax. So the dealer PAYS them for their trade. How much depends of course on the amount of miles and condition but because the Gov price is so low they can continue to drive new pickups and get paid to do it. Taxpayers are happy, the County is happy and of course the dealer has a low mileage trade that they can make money on. Pretty sweet deal for all involved.
The regular fleet sales to businesses like I said are reduced by 5K or so (seems to fluctuate) off the sale of a 70K pickup. So there is a considerable difference between different types of fleet sales.
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