Seven Tips to See Commercial Fleet Vehicles in whole new light

Commercial Fleet Financing, Inc. is celebrating our 20^th year in business and is a proud recipient of the 2014 Inc. 500/5000 fastest-growing private companies in America.  With over $100,000,000 in annual funding of commercial vehicles like box trucks, cargo vans, big rigs, tow trucks, dump trucks, and construction equipment, we know a few things about financing commercial fleet vehicles.  Today, I would like to share some of what we have learned to make your business better.

First, take a step back and begin to THINK ABOUT THE AUCTION DIFFERENTLY.   Most of the dealers that we have as clients are at the auction each and every week with one thought on their minds, buying inventory that will sell quickly.  As you might have learned through life experience, doing what everyone else is doing in the exact same fashion is not the best way to stand out.  Our most successful dealers attend the auction looking for vehicles that draw attention to their lot.

Equipment like tow trucks, cargo vans, and box trucks are often passed over.  However, many of the small business owners that you are already selling vehicles to have a need for equipment like this in addition to what they’re already purchasing from you.  If you have worked hard to earn the business from a client on their personal car, why not provide them an opportunity to come back to you for their company vehicle needs as well?  Become their one-stop-shop and bring them a full suite of solutions.

Secondly, FOLLOW THE MONEY…AND IT COULD LEAD YOU TO USED FLEET VEHICLES.  What is the best way to win an auction bid at a good price?  Buy with lesser competition.  The good cars will always have plenty of competition, driving prices higher.  The key is to focus on where the competition is not as steep.  Commercial fleet vehicles typically have very few bidders at a traditional auto auction.  When a commercial vehicle runs down the block, use this to your advantage to find real bargains that can be turned into profits.  Jump on these deals!  Remember that used cargo vans or small box trucks can be used by a multitude of small business owners.  Consider plumbers, electricians, painters, landscapers, courier or package delivery companies, etc.  The list goes on and on.  These service providers are always in the market for this type of vehicle and will pay top dollar to find good used equipment for their business.  Turn your bargain find into big profits for yourself as well as a needed solution for your clients.

Third on my list of seven steps is to remember that COMMERCIAL VEHICLE BUYERS GENERATE REVENUE FROM THEIR EQUIPMENT.  IT’S NOT JUST AN EXPENSE TO THEM.  If you take nothing else from this article, understand this piece as it is mission-critical.  There are two completely different mindsets as well as cost associations for your buyers.  When you sell a car to your typical buyer, it is an expense.  However, when you sell a commercial vehicle to your business buyer, it is a tool for revenue generation which is paramount to their survival as well as their success.  For instance, a landscaping business physically cannot operate without a truck to haul lawnmowers and weed eaters.  This enables you to show your commercial buyers the revenue-generating value proposition vs. arguing the pure monthly expense.  Give your fleet salespeople the tools they need to speak mindfully on how the commercial vehicle will increase the buyer’s revenue and profits instead of just focusing on and selling against the cost.  Revenue and profit generation can be a greater motivator than the fear of an expense.

As a Fourth recommendation, I would ask you to LOOK FOR UNIQUENESS IN THE COMMERCIAL FLEET VEHICLES YOU BUY.  Earlier in our discussion, we began talking about standing out and drawing attention to your lot.  Well, that differentiation should continue in the respect that, when buying this type of inventory, uniqueness equals big profits.  I’m not talking about crazy paint and tires, I’m talking about functionality to help the buyer make more money.  A plumber needs shelving inside the cargo van.  A painter needs roof racks to hold the ladders.  A landscaping company needs ramps to roll the lawnmowers in and out of the truck.  If you can provide a business with a READY TO WORK truck, they will buy it and pay more for it.  Provide them with their unique solutions.

Fifth on the list: TALK YOUR USED CAR MANAGER OFF THE ROOF.

Our dealer clients tell us that the primary reason they don’t buy commercial vehicles is that their used car managers hate them.  Most used car managers will make the same arguments such as:

• How are we going to run it through the shop to make ready?
• How does this affect my floor plan?
• Who is going to finance this?
• We don’t have a warranty program for this vehicle!
• My salespeople are not trained on how to sell it!

Their arguments are based on truths.  In reality, commercial fleet vehicles are different and you need to take the time to talk to him/her through it.  Take a personal and professional approach.  Show your used car manager the gross, the potential to serve the same client, and the marketing opportunity to draw attention to your dealership.  Illustrate the opportunities for them personally as well as professionally while highlighting the benefit for the dealership.  If that doesn’t work, ultimately, you let them know that as the owner your main objective is doing what is best for the dealership’s bottom line and that is exactly what you intend to do.

Sixth on my list is to know that FINANCING IS AVAILABLE FOR USED COMMERCIAL FLEET VEHICLES

Although the lending market for commercial vehicles is smaller than autos, and many of your current lenders don’t like them, you can get great financing…you just have to look for it.  This is where we come in.  At Commercial Fleet Financing, Inc., we offer our clients a NO AGE RESTRICTION PROGRAM.  While it may sound crazy it’s true.  We will finance any commercial vehicle, regardless of the year model, as long as the applicant meets our credit box.  You can and should expect the following financing options for commercial vehicles:

• 1-page credit application only up to $100,000. No tax returns or financial statements needed.
• $0 down payment options.
• No max advance amounts.  Because commercial vehicles are harder to value, most finance companies don’t have max advance rates.  If the customer is willing to pay your price, and the credit qualifies, most commercial vehicles finance companies will fund 100% of the purchase price.
• TTL can be rolled into the financed amount
• Ability to approve, contract and fund the deal in the name of the corporation vs. the individual
• 2-hour credit approvals
• Funding within 1 day
• MOST COMMERCIAL VEHICLE FINANCE COMPANIES WILL DO ALL THE PAPERWORK FOR YOU!

Last, but definitely not least, as seventh on the list, I would ask that each and every one of you REMEMBER THE HARD TIMES…THEY WILL RETURN AGAIN.

I’m an eternal optimist, but even I have a hard time forgetting the tough times from 2008 and 2009.  Despite the good economic times, we are experiencing now, we must realize that we will face difficult times again.  With this in mind, let’s prepare for them now.  Doing things today that could help lessen the impact of a future recession is just smart business.  Developing a commercial fleet vehicle strategy and partnering with a strong lender could end up being the insurance policy that does just that for your dealership, your employees and your customers.

We built our business through rough patches as well as a lot of trial and error.  My purpose in sharing all of these thoughts with you today is to lessen your burden and provide some key concepts that just might change your future.