Ed Bobit's Publisher's Page

My mail bag probably is not much different than yours. It regularly brings in the brickbats along with the bouquets. Occasionally, we find that someone takes some important time to analyzer topical questions that have been raised within the industry.

My October editorial apparently rang a few bells and one of the more articulate letters that came in follows:

Dear Mr. Bobit:

I enjoyed reading your Editorial in the October issue of Automotive Fleet. The business of predicting the future is always risky-particularly when it involves how much used cars will sell for at some future date.

You pointed out your frustrations in determining what would happen to the used car market because of the price freeze, import levies and expected reduction of the excise tax. We as "counselors" to our lessees, find this same frustration to be true. In late August and early September, we were recommending that our "professional fleet administrators" who operate fleets of vehicles for their company begin immediately an intensive campaign to bunch together all of the vehicles they would require between now and next February. We recommend that orders be place immediately with us so that they could:

(1)   Take advantage of price freeze and get delivery of 1972 cars at 1971 prices.

(2)   Remove from service as many used cars as possible, as early as possible before the used car market drop in mid-October.

We found many fleet administrations could not follow these suggestions because:

(1)      Many companies replace on a time or mileage basis, and any deviation from this policy requires approval of top management people who react slowly to change.

(2)      Accurate records pertaining to vehicle mileage, condition and other pertinent details of the fleet are not utilized for maximum benefit.

The "strong need for better research" in predicting the results of new elements introduced into the market area for the lessor and the lessee is extremely difficult when the end results are based on how much the used car will sell for in the open wholesale market. This even holds true for what the used car market will be for intermediate size cars when the law of "supply and demand" has had a chance to exert its grip on this type of car with 50,000 miles two years from today. We too would like to find a magic formula that will predict the future.

You indicated in your editorial that you found "more companies than expected" in your recent search for lessees that have gone from leasing to company ownership or have transferred to another leasing company. We believe the reason for this is "disenchantment" with the performance of some of the pitfalls for a company that leases their vehicles from a leasing company that they know nothing about. We know the names of major companies who have suddenly found themselves in a very embarrassing situation because the lessor was going out of business due to poor management-poor rates, poor service and the inability to know the leasing business.

We suggest that some research be done by the lessee on the lessor prior to signing a contract. We even prepared a book tiled "How to Succeed in Leasing your Automobile Fleet." On pages 27 through 30, we titled the section "When comparing leasing companies, consider moving cautiously if the leasing company..." (Which went on the mention the things to look for when negotiating the contract with the lessor.) It is available from Leaseway at no charge to qualified fleets. The purpose naturally is reverse selling, but, the points are well founded; and if a checklist of this sort is used before a lease is signed, I'm sure you would find more satisfied companies, leasing their automobiles today.

A company such as Lease way that knows its business, knows its market and understands its lessees, finds it doesn't lose many accounts to other leasing companies or back to corporate ownership. We treat each of our lessee's problems seriously and try to provide them with the type of service that will maintain customer satisfaction.

I didn't mean to get carried away, I just wanted to pass on to you my thoughts regarding the vicissitudes that affect all of us in this business.

Very truly yours, John Bradshaw, Vice President, Leaseway System Corp.

Reader Bradshaw has on obvious understanding of our market as well as an admirable pride in his own company. We hope that he is typical of the concerned, interested and knowledgeable leaders who serve the fleet business and influence the future of the legions within our marketing parameters.