Test Your Dealers: Do They Measure Up?

Selecting the right dealer to fulfill your needs is one of the best ways to ensure the efficiency and economy of your business fleet. But what are the criteria you should use when selecting or evaluating a dealer? Business Fleet talked with fleet operators and fleet dealers nationwide, and we learned there are at least six easy, objective ways to find if your dealer is right for you. 1. Commitment to Fleet Be sure the dealer you choose does not think of his fleet business as a part-time venture. Select a dealer with separate department and manager dedicated only to fleet customers. "Fleet is a commitment," said Don Fenton, vice president and director of sales at Piemonte National Fleet, Melrose Park, Ill. "It's a state of mind. And it starts with the dealer/owner. The dealer's commitment is the most important thing; does he really want to be in the fleet marketplace or not? "They have to have a designated fleet manager," Fenton told Business Fleet, "not a situation where when the switchboard rings and someone asks about fleet, 'Who's the fleet manager today? Well, give it to Bill, the sales manager'." According to Fenton, a true fleet dealership has a fleet department with a full-time fleet manager and the staff and equipment necessary to do the job. "You can't have a floating fleet manager," Fenton said. "You can't have a sales manager who's my fleet manager this week, and the used-car manager is my fleet manager next week. It's got to be a long-term commitment." "Call and find out who the fleet manager is," advised Sue Knutson, director of fleet at Napleton Cadillac, Park Ridge, Ill. "Don't let them give you a retail salesperson. Ask if there's a dedicated fleet department with a fleet manager. You want people who deal only in commercial sales." Nanci Barnhard, commercial fleet manager at Smokey Point Sales and Service, Arlington, Wash., said the benefits of dealing with the fleet department, as opposed to retail sales people, can be immediate and dramatic. "I'm working with a customer right now, where the prices she was quoted the very first time were on the showroom floor. And now, working with the fleet department, she's saving 20 percent! They're talking five vehicles here; 20 percent pays for one of them. "So many small fleets don't realize that many dealerships have commercial fleet departments," Barnhard told Business Fleet. "So many of them get caught up in the sales floor negotiation thing. They need to not be afraid to ask for the business card. The fleet commercial manager's business card is always going to say 'Fleet Commercial Manager'." 2. Professionalism The professional fleet dealer knows the product and knows how to get you the fleet incentive discounts and programs to which you're entitled. He or she will respond to your calls and questions in a timely and courteous manner. Fleet dealers understand their customers; they know what the customers want and they understand the fleet programs and how they can help the customer in a particular situation. "I appreciate that my dealer keeps me informed of special offers and financing rates," said Bryan Van Loo, who manages 50 vehicles for HVAC refrigeration and metal fabrication specialists Andgar Corporation in Ferndale, Wash. "Our dealer also contacts and meets with us regularly to discuss what our upcoming needs are," Van Loo told Business Fleet. "I look for a dealer that responds to our needs fairly quickly; showing the understanding that we are a hospital is important," said Vicky Aleandri, manager of the transportation department at Hartford Hospital in Hartford, Conn. "Not having a huge fleet limits our ability to swap vehicles when one is down." "One of the things that my customers really appreciate is quick callbacks, when questions are answered in a timely fashion," Barnhard said. "There are many programs like upfit programs and other things geared to the commercial fleet buyer, so you want to have somebody who stays on top of the rebate programs. You also want somebody who understands the product and is willing to sit down and listen to the customer's needs. You don't want someone who will slam the customer in something just to put them in something." "The dealership needs to be willing to find out exactly what types of incentives you'll be entitled to," said Knutson. "What kinds of special financing can be provided? Are you interested in commercial leasing or strictly purchasing? The dealership's fleet department and fleet manager can help guide them in these decisions." Kurt Andrews, who manages about 20 cars, minivans and SUVs as CFO of X-Ray Industries Inc., in Troy, Mich., learned the hard way that not every dealer will go out of his way to serve fleet needs. "I called one dealer up, and I wanted to get a heavy duty pickup truck," Andrews related. "I called one of the local guys here, and he's trying to tell me I had to take a Ford XLT, and that I had to have all this equipment on the truck that I didn't need because that's what he had in stock; he said that's the only way they build them. Well, I knew he was wrong," Andrews said. "I told him in my business, when I buy an XLT in looks like an XL within a year anyway," Andrews said with a laugh. "I'm not going to pay $1,800 extra just for a trim package that I don't need. So I called another dealer and got exactly what I needed." 3. Service Your dealer's service department can make you or break you; company vehicle downtime is an enemy of productivity and profits. A dealer who performs sub-standard repair work or increases your downtime is to be avoided. The importance of service can not be overemphasized. Look for a dealer with an efficient and up-to-date service department, parts department and body shop that will turnover your vehicles quickly and get them back out on the road making money where they belong. "You should make sure that someone is not only going to be there for the sale, but is going to be there for the duration," Barnhard said. "We look at the mechanics, and the working relationship with the service advisors," said Jeff Corey, director of operations at Serafini Transportation in Binghamton, N.Y. "If you don't have a good service advisor behind you at a dealership, your car sits and you don't make money. It adds up fast." "It's important for a dealership to have a good service record," agreed Israel D. Moore, who manages 21 vehicles as fiscal officer for Sumter County Opportunity, Inc., in Livingston, Ala. "How good are they as far as offering quality service and good turnover rates? How quickly can they service the vehicle and get it back to you?" "We happen to have our own in-house service department; however, through the warranty period, it's very important to me to be able to have good warranty service and someone that is at least reasonably convenient to do that, just to minimize downtime," said Tom Amer, fleet manager for House of LaRose, Inc., beverage distributors with offices in Cleveland and Akron, Ohio. 4. Pricing Not to be overlooked, of course, is pricing. A committed fleet dealer, as Don Fenton points out, must be willing to accept low volume dollars with high volume purchases. "You've got to get a really committed fleet department, where they're willing to say 'Hey, on local fleet, I'm going to make $400 or $500 per car'," Fenton said. According to Fenton, fleet buyers, when negotiating price, should work from invoice up or down depending on the size of their fleet, and never from manufacturer's suggested retail price (MSRP). "A good fleet operation, whether you're small or large, is not getting discounts off MSRP; you're getting a plus or minus from dealer factory invoice, based on your volume," he said. 5. Ability to Deliver Finding a dealer who can drop ship or courtesy deliver your vehicles to various points around the country can be very important for many small fleets. Basically, a drop shipped car is factory ordered through your dealer, with transport delivery to a location close to your driver. "In many cases the small fleets have people around the country," Fenton said. "They may only have 50 cars, but they might have two salesmen in Seattle, three in New York, and one in Dallas, and to go out and try to find dealers in each of those towns and get a good price is near impossible. So they're going to have to find a fleet dealer who can courtesy deliver and handle all the orders out of one location. They'll pay a consistent price and a professional dealer will be able to drop ship that car to any part of the country." To effectively handle drop shipping or courtesy deliveries, a fleet dealer needs to have contacts set up nationally, according to Fenton. 6. Stability/Reputation Delivering volume fleet can tie up a dealer's cash flow; you'll want a fleet dealer with financial stability and a solid reputation in the community. If you have cars on order and your dealer goes under, a lot of time, trouble and expense can be involved to replace those orders. It's an excellent idea to verify your dealer's reputation and financial background, Fenton advises. "The reputation of the dealer is important," agreed Moore. "I would also consider the community awareness of the dealer. Some of the dealerships we work with are very active in the community." Stability of fleet staff is also a consideration. "I think consistency of staff really helps fleet buyers make sure they're getting a good deal year after year," Barnhard said. "So your fleet sales person's stability on the job can be really important." Other Factors in Dealer Selection There are, of course, many other important factors to consider when choosing a fleet dealer. 1. Does the dealer typically have in stock the types of cars or trucks you use? This could be critical in an emergency purchase/replacement situation. 2. Is the dealer conveniently located for you and/or your drivers? This becomes an even larger factor when you take into account service after the sale. 3. How does the dealer handle used cars/trade-ins? If your purchase plan calls for leaving the used car with the dealer for bid or release to an auction, then the dealer is an important tool in your vehicle disposal process. 4. Does the dealer handle invoicing promptly and accurately? An improperly executed or delayed invoice can become a big headache to both the customer and the dealer. Such items as serial numbers, color, and key numbers must be correct.