Fleet
Sales and Fleet Subsidies
Most Importers and Overseas Manufacturers do not provide
Fleet subsidies. There are one or two exceptions where a subsidy
is provided subject to very strict conditions. For all intents and
purposes only the local manufacturers (Toyota, Holden, Ford,
Mitsubishi) pay Fleet subsidies to Dealers. The intention is to maintain high sales in order to keep the production line running at optimum capacity.
Subsidies vary from Make to Make and model to model. Subsidies
also depend on the Fleet size. Manufacturers use different
means and terms to classify Fleets. Toyota uses the term Bronze,
Silver and Gold; Ford uses General Fleet and National Fleet
to classify Fleets and Holden and Mitsubishi use their own
terminology. Fleet subsidies are generally speaking small
by comparison with the overall margin available. Typically
a fleet subsidy varies between $350 for a small car, for a
small fleet and $3000 for a large vehicle, for very large
fleet.
The Manufacturer may publish a list of suggested Fleet discounts.
Such lists are only as their name indicates suggested recommendations. They are in no way binding on the dealer. Virtually all dealers are independent of the manufacturer. They are simply retailing the product of a certain make.
A Dealer will usually add the Fleet subsidy to the normal
profit margin and than calculate the amount of “Fleet
Discount” he may wish to pass on to the Fleet owner.
It is common that where a vehicle is not registered in the
name of the company that has been granted fleet status that
the company must provide a letter certifying that the registered
owner is a full time employee and uses the vehicle primarily
for business. Dealers are being audited by Manufacturers to
ensure that the system is not being rorted.
For further information contact www.carsolutions.com.au or
write to info@carsolutions.com.au
April, 2006
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