Business Fleet Article -
[Cached Version]
Published on: 5/1/2001
Last Visited: 1/4/2010
"Many smaller companies aren't going to have someone on staff who knows how to buy cars correctly," said Jeff Barron, vice president and general manager of Ellis Brooks Leasing, Inc., San Francisco, Calif. "And that means not only correctly on specs, but how to buy them right Ñ what they should pay for a car on factory order on a fleet basis."
According to Barron, every good leasing company is buying the vehicles below invoice.
"We're getting the cars to our customers that typically are below what they could negotiate on their own if they just walk into a dealership," he told Business Fleet.
And when it's time to resell the vehicles, "A good lessor is going to help them pick and choose the right vehicles to minimize depreciation, with their experience in the used-car market," Barron said.
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According to Barron, many decisions by small companies to acquire vehicles are made out of pain: "Our truck just broke down; we need a new one.
Let's go out and get one tomorrow."
"Those are the kinds of decisions where usually you either pay too much, or you get the wrong vehicle," Barron said.
"Whereas if you've got someone watching your replacement cycle, your cycle of leases, they're ordering the vehicles three months before the current one expires, and they're getting the right specs and the right colors at the right season.
They're doing whatever upfitting is necessary before it arrives at your front door.
And they drop off the new one, pick up the old one, and off you go," Barron said.