Acquisition

Question 1

How to reduce acquisition costs

Answer 1

Factory ordering, relationships with multiple dealers/manufacturers, ensuring all incentives are applied

Question 2

Pros to Factory Ordering

Answer 2

Built to necessary specs (reduce unnecessary costs), take advantage of introductory pricing early in model year, cut out middle man (dealer) fees,

Question 3

Manufacturer Pool

Answer 3

Factory order pricing, inventory produced in advance specifically for dealers and fleet management companies, already made so shorter lead time

Question 4

Bailment Pool

Answer 4

Vans and Cab-Chassis trucks that require AME for completion

Question 5

Limitations of a local dealer

Answer 5

Only carry options from one manufacturer, cannot manage the processes and expenses related to running a fleet (limited to acquisition), stocked vehicles may have unnecessary options raising price

Question 6

Ship-Through

Answer 6

The manufacturer sends the vehicle to the AME vendor, the vendor equips the AME and sends back to the manufacturer who sends to the dealer for delivery

Question 7

Ship-To

Answer 7

The manufacturer sends the vehicle to the AME vendor, vendor equips and sends to the dealer for PDI