The microchip shortage is not expected to abate until late 2022, or into 2023. Wheels Donlen continues to monitor the situation and proactively support our clients in the navigation of the current market conditions. Below are some pre-emptive stock purchase recommendations that fleets can take to manage vehicle acquisitions under these unique conditions.
- Keep your existing inventory for as long as possible. If you are not willing to pay over MSRP for your desired specs, the out-of-stock option is a good one right now. Otherwise, factor higher dollar amounts into your budget because we are seeing upwards of $3,000 to $5,000 over client price caps. We have also seen dealers not honor fleet sales and fleet incentives.
- Be flexible on your features and options. Consider what you absolutely must have versus what you could you do without to get your vehicle.
- Provide multiple acceptable color choices. You can indicate which color is preferred as well as alternative choices.
- Make sure you approve purchases quickly to secure quoted vehicles. When clients take longer than 24 hours to approve, the located units may no longer be available.
There are also other alternatives to acquisition. Some organizations are using reimbursement, and others are considering short term and longer-term rentals. You can also analyze utilization and swap high mileage vehicles with lower mileage vehicles to even out the overall mileage accumulation across your assets.
We’re here to help you through these unprecedented market conditions so make sure to contact your account team for support and advice.