The New Vehicle Acquisition Process: Why Now is the Time to Be Proactive

Global events of the past few years have drastically affected nearly every part of life, including the automobile and fleet industries. Changes in manufacturing processes, global supply chain issues and demand far outpacing supply have shifted how business is conducted. For your fleets, these changes can significantly impact operations if not properly planned for..  

Vehicle Order Banks

Historically, auto manufacturers would give plenty of notice when announcing order banks’ opening and closing dates for various models. While shifts sometimes occurred, the process stability left fleets with ample time to plan and submit orders for the upcoming model year. However, this type of predictability is no longer the case.

Global events such as chip and part shortages, supply chain issues, and factory shutdowns have resulted in a sharp decrease in production from nearly every manufacturer. As a result, order banks that typically would be open for months are now unpredictable. In some cases, fleet dealers submit tens of thousands of orders within minutes of the order bank opening. We even saw the order banks for GM Trucks open and close within 24 hours. 

This shift means that fleets must be far more proactive than in the past. Planning and forecasting now must become a top priority. It’s not enough to conduct business as usual and anticipate that orders will be filled. Orders will need to be planned out and submitted to your account manager well before order banks open. Even a slight delay can potentially have a massive impact on vehicle allocation.

Vehicle Delivery

Once you’ve submitted your orders, with ample lead time, you should expect delivery in the usual timeframe, correct? Unfortunately, that is no longer the case. 

Not only has the order bank operation changed, but there have also been changes in order-to-delivery time. Delays in the manufacturing process due to part or labor shortages, increased freight time both by boat and rail, and increased lead times from vehicle upfitters have all increased delivery timeframes.

Driving Forward 

Your Motorlease Account Manager is here to help you anticipate and plan for these changes. Vehicle replacement cycles may need to be adjusted to accommodate the new course of business. By being proactive and working far enough in advance, the Motorlease team can devise a strategy to move forward with minimal disruption to your operations.