Walk onto any automotive dealership lot, and you will notice one glaring truth: inventory is back!

OEM manufacturers have been playing catch up while most purchasers, whether retail (non-business use) or fleet, have leaned on the side of “bearish” for a lot of 2024, with uncertainties in the economy looming. Fleets delayed RFP requests, opting to maximize their current fleet for fulfilling route needs while avoiding excess overhead amid economic uncertainty.

Coming into 2025, we have seen movement in the other direction, and forecasts are high on demand for growth. If this includes your fleet, prepare for an experience that will feel much more like 2019.

From Shortages to Surplus: Fleet Buying Power Returns

To fulfill customer needs, dealers have gone from a period of purchasing inventory from one coast to another, which is an actual example of a typical strategy I had to use during the lowest inventory period. In contrast, most dealers now say they have too much inventory, primarily commercial upfitted inventory, and some of us dealers even have an aging surplus.

With any supply and demand market, the tides are returning to the consumer as dealers compete for customer acquisition and retention, with price being a top factor.

How does this affect your procurement strategy? It allows you to follow a procurement process that, for a few years, I am sure you have had to abandon. Specifically, being allowed to obtain quotes and select not only where to spend your budget but truly who to give your business to.

Plus, it's essential to find a dealer who prioritizes customer service and values the role they play in aiding how your fleet fuels company growth through:

• Employee acquisition and retention

• Cash flow management

• Life cycle management

• Vehicle maintenance

You don't need an order taker that sends you keys and an invoice. You need a fleet partner that acts as if they are a member of your company.

Why Now Is the Time to Reevaluate Your Dealer Partnerships

As a dealer, we have returned to an aggressive strategy by adding big discounts on top of factory incentives and encouraging sales staff to focus on volume and moving units. After all, we make money selling vehicles, not storing them. The banks come along for the ride with not all, but many, models receiving good promotional rates and programs again.

If your forecast is calling for a chance of new trucks, vans, or cars in 2025, take the extra time to evaluate your procurement strategy and your dealer relations.

The service the dealership provides your fleet is valuable, and the business you provide the dealership is valuable. Ensure you have a partnership that values that relationship and enjoy seeing new vehicles arriving on your lot again in 2025.