Acquisition Flashcards
what are the three main ways that we reduce the cost of acquiring vehicles
relationships with manufacturers and dealers, factory ordering and incentives
what process produces average savings of $1200 per vehicle
factory ordering
Three examples of how the process of factory ordering generates savings on the price of the vehicle
avoiding unnecessary equipment, ordering early in the model year to avoid price increase, avoiding dealer markups
what is a bailment pool
pool of vans and cab-chassis trucks held on the lot of an AME vendor. factory order pricing applies
CAP, CPA, and VIP are all examples of what
confidential incentives
provide an example of an incentive that can be combined with either a retail or a fleet incentive
association, private offer, volume discount, loyalty rebate, commercial credit
what is a fleet identification code
codes used by the manufacturers to track which fleet buyers are purchasing their vehicles
what team at fleet ops handle for our clients the compliance issues related to acquisition
licensing and titling team
what are two limitations a self managing fleet can experience when acquiring vehicles from the same dealer
limited to vehicles from one manufacturer, dealers cant provide the full range of fleet management services.
two examples of manufacturer incentive requirements
purchase volume, garaging address, association membership, fleet fix, customer type, eligibility period
what would be important if you owned a business and were managing a fleet of vehicles
getting a fair deal, a well managed system for acquiring and equipping vehicles, easy process for everyone
what are the limitations for using the same dealers over and over again
owner never knows if they are able to get better deals from other manufacturers, dealers may not be offering the best buy, unnecessary equipment raising the cost, dealers can’t manage all the expenses and operations of the fleet
what do you still have to do if you buy from a dealer?
negotiate buys, pick up vehicles, cut checks, still have to work with AME vendors, manage license-and-titling
what are the main cost-saving benefits of factory ordering vehicles
vehicles can be assembled with only needed equipment and options, eliminates the dealer markup and early ordering locks lower intro pricing
what is a manufacturer pool
inventory produced in advance specifically for dealers and fleet management companies
what are the three main types of incentives available to commercial fleets
retail, fleet, and confidential incentives such as CAP, CPA, AND VIP
Which incentive typically has the highest monetary value and why
confidential incentives because they are tied to volume commitments
retail incentives are typically higher than fleet incentives at the end of the year why?
higher retail incentives offset the higher vehicles prices, current vehicles are worth less because they are a model year older, dealers want to clear out their older vehicles to make room for the new model year
what types of incentives can you combine?
association programs or private offers, volume discounts, loyalty rebates, commercial credits,(aftermarket or uplift incentives
If a customer is slow to realize what we do for them how would you explain it
offer most cost effective options available, factory order vehicles equipped as needed, research and apply for all incentives, acquire vehicles to meet immediate or short term needs, coordinate AME, handle all the payments and paperwork
What is a CAP agreement
competitive assistance program (gm and toyota)
what is a CPA
competitive price allowance (ford)
what is a VIP discount
Volume incentive Program (FCA)
who offers a Rick agreement
nissan
true or falso. retail and fleet incentives cannot be combined
true
can confidential incentives by combined with any other incentive
no
what are association programs
given to association members meeting specific criteria
what are volume discounts
rebates given for buying additional vehicles
what are loyalty rebates
rebates given for repeat business
what are commercial credits
available to customers who install commercial ame on their vehicles
what is a fleet incentive also called
street incentive
fleet identification codes FIN FAN CID CERTIFICATION CODE
FLEET IDENTIFICATION NUMBER (FORD)
FLEET ACCOUNT NUMBER (GM, FCA)
CUSTOMER IDENTIFICATION NUMBER (TOYOTA)
CERTIFICATION CODE (NISSAN)
WHAT IS SHIP THROUGH
THE MANUFACTURER SEND THE VEHICLE TO THE AME VENDOR AND THE VENDOR RETURNS IT EQUIPPED TO THE MANUFACTURER FOR DELIVERY TO THE VEHILCE
WHAT IS SHIP TO
MANUFACTURER SENDS THE VEHICLE TO THE AME VENDER AND THE ACCOUNT TEAM ARRANGES DELIVERY TO THE DEALER
