The new model car year begins as one with high optimism for continued strength in the fleet and leasing business. While it may be a match for 1965 in terms of volume for total registrations it would appear from our research that a large amount of cyclical sales are in the offing during the ‘66 model year.
The already spectacular growth of new car registrations in fleet and leasing is still soaring, making the industry benchmark of 15% per year continued growth seem on the low side. During 1963 R. L. Polk counted some 516,000 new cars that were registered by fleets buying ten or more during the year. In 1964 this figure rose to 590,000; and while the largest fourth quarter in history is predicted for the next three months, there is little question that total year-end fleet sales will be well in excess of 600,000.
These figures have more of a direct meaning when you find that one out of every twelve new cars enters our market. Ours is a dynamic automotive market that offers your own marketing group a unique opportunity to influence the volume purchases in vehicles, parts, accessories, fuel and lube, shop equipment and management services.
By identifying this newly developed market and offering the means to reach every car fleet in the country buying or leasing ten or more new cars provides automotive marketers the access to 2,200,000 high mileage cars traveling at a rate of 28,400 miles each year ... or three times the national average. Our research shows that the average trade-in is 31.2 months. This time-mileage factor compounds the need for constant and professional maintenance for the valuable revenue earning drivers, regardless of the fleet. These are the reasons supporting the fact that 88 % of our fleets report operating a service facility.
The interest generated in this expanding market place has given us an enviable advertising growth record. After running 191 pages of paid advertising in our first full year (1962) we have increased to 278 pages in ‘63, 352 in ‘64 and current indications are that about 440 pages will be tallied in 1965. Among these satisfying statistics are some important factors. While replacement parts and accessories represent the largest segment of our advertising we continue to present more car and air conditioning ads than any other non-dealer publication; and more leasing advertising than any other publication.
The success that has been earned has supported our stepped-up investment in research, editorial coverage, merchandising and most importantly circulation. This planned direction benefits both reader and advertiser alike.
If you and your marketing people have not recently reviewed the total aspect of automotive media and the specific prominence of the car fleet market through AUTOMOTIVE FLEET, I would like to extend a personal invitation to do so. A proper evaluation and subsequent program can lend strong sales support in this vital car fleet and leasing marketplace.
