TTAC: The Truth About Honda’s Fleet Sales
#16
Lexus Champion
When our company went to buy trucks for our drivers, they ended up with the Ford F150s even though they could have gotten Toyota Tundras. Whoever gives the best bottom price wins our money. I doubt management cares too much about what the drivers think of the trucks. As long as they run, the finance guys don't care.
What about reliability, serviceability and maintainability? Don't fleet managers look for vehicles that are reliable, and are easily (and cheaply) serviced? Not necessarily applicable to rental car fleets (which are typically sold off relatively quickly), but applicable to corporate and government (including police car) fleets.
#17
Lexus Champion
Says the salesman.
spwolf is exactly right.
Additionally, fleet sales are generally low grade trims, which can drag down the average resale values when the cars return/go through auction, which impacts your retail consumer who might be buying the higher grade trims. And having people experience your low grade trims in rental fleets can hurt your brand perception.
spwolf is exactly right.
Additionally, fleet sales are generally low grade trims, which can drag down the average resale values when the cars return/go through auction, which impacts your retail consumer who might be buying the higher grade trims. And having people experience your low grade trims in rental fleets can hurt your brand perception.
I reported to a manager who told me he bought a Ford Taurus (the 'original' model, not the Ford 500/Taurus) because he spent so much time on the road driving rental cars that he decided to buy a car he had become familiar with.
#18
Lexus Test Driver
Sent from my Nexus 4 using IB AutoGroup
#19
well, Taurus was supposed to be Camry killer and even got few car of the year awards from american press :-)
#20
Lexus Fanatic
Originally Posted by Hoovey2411
Nothing wrong with fleet sales. A sale is a sale. Not sure why some people get so wound up on that
Originally Posted by spwolf
you get much less money from fleet sales than sales to private buyers, this is why auto industry distinguishes between them. Having large fleet sales at large discounts means you make less money. Usually happens when you cant sell your built up inventories, a problem that big 3 have right now actually.
#21
When our company went to buy trucks for our drivers, they ended up with the Ford F150s even though they could have gotten Toyota Tundras. Whoever gives the best bottom price wins our money. I doubt management cares too much about what the drivers think of the trucks. As long as they run, the finance guys don't care.
#22
The original 86 model Taurus was the top selling car in America for several years before the Camry took the title. And it did win tons of awards. You must be referring to the second generation model.
#23
It could also be that your manager was someone who simply saw a vehicle as an appliance, and thus purchased one that he felt familiar with.
#24
Rookie
iTrader: (15)
What about reliability, serviceability and maintainability? Don't fleet managers look for vehicles that are reliable, and are easily (and cheaply) serviced? Not necessarily applicable to rental car fleets (which are typically sold off relatively quickly), but applicable to corporate and government (including police car) fleets.
#25
Moderator
iTrader: (16)
Says the salesman.
spwolf is exactly right.
Additionally, fleet sales are generally low grade trims, which can drag down the average resale values when the cars return/go through auction, which impacts your retail consumer who might be buying the higher grade trims. And having people experience your low grade trims in rental fleets can hurt your brand perception.
spwolf is exactly right.
Additionally, fleet sales are generally low grade trims, which can drag down the average resale values when the cars return/go through auction, which impacts your retail consumer who might be buying the higher grade trims. And having people experience your low grade trims in rental fleets can hurt your brand perception.
That is a great point nor do I argue it.
The thing is, there is no right answer. Both those for and against fleet sales have valid points
#26
I spent a lot of time in rental cars in past years, so I know that Hondas are pretty rare among rental car companies - I believe Hertz is the only major that operates a wide range of them. Enterprise/National/Alamo only offer a Honda in their "Premium" category, which, despite the name, most people certainly won't pay a premium for. AFAIK, Budget/Avis don't offer any Hondas at all.
I guess a lot of the fleet sales described in the article are to Hertz or corporate fleets.
I agree. And plus, doesn't it make sense that a car with stronger fleet sales is one that rental car companies demand? Rental car companies definitely pay attention to customer feedback on the available cars.
I guess a lot of the fleet sales described in the article are to Hertz or corporate fleets.
I agree. And plus, doesn't it make sense that a car with stronger fleet sales is one that rental car companies demand? Rental car companies definitely pay attention to customer feedback on the available cars.
Civic is an intermediate, same as Corolla.
#27
Pole Position
Nobody ever said Honda had zero fleet sales. Even after reading the article that Mike posted, it's clear that Honda still has a tiny fraction of Toyota's fleet sales. It doesn't matter how they're doing it, but it doesn't appear to me that Honda is doing anything "deceptive". American Honda Corporation doesn't have a fleet department, that's a fact, not a deception on Honda's part.
A sale is a sale, there's no arguing that, but when you want a clearer picture of how the retail consumer votes with their own dollar, you have to take fleet sales out of the equation. In other words, how many consumers are purchasing the car for themselves with their own hard earned money? In this case, the Accord almost ALWAYS comes out ahead. That's a clear indication to me that consumers prefer Accord over Camry, always have.
A sale is a sale, there's no arguing that, but when you want a clearer picture of how the retail consumer votes with their own dollar, you have to take fleet sales out of the equation. In other words, how many consumers are purchasing the car for themselves with their own hard earned money? In this case, the Accord almost ALWAYS comes out ahead. That's a clear indication to me that consumers prefer Accord over Camry, always have.
#28
Lexus Fanatic
iTrader: (20)
At Enteprise, the Accord is a "premium" car. It's a humongous joke and nobody is fooled, but it is. Simply because the acquisition costs are higher so they price it higher to make up for it. The Camry is a fullsize. Which is also bogus, because it's a midsize car.
Civic is an intermediate, same as Corolla.
Civic is an intermediate, same as Corolla.
but there is merit to the point made that rental cars do expose people to brands they would otherwise NEVER be exposed to. and while fleet cars sold to rentals often have either lower or odd trim levels, they still can make a positive impression. i've had many surprising (positive) driving experiences with rentals, and a few not so positive (never want to drive a pontiac grand am ever again although of course since that's long gone that's not likely, lol). in recent years i drove a hyundai in costa rica, a skoda in england, and a citroen in ireland. all good fun and positive experiences for different reasons!
#29
Lexus Champion
At Enteprise, the Accord is a "premium" car. It's a humongous joke and nobody is fooled, but it is. Simply because the acquisition costs are higher so they price it higher to make up for it. The Camry is a fullsize. Which is also bogus, because it's a midsize car.
Civic is an intermediate, same as Corolla.
Civic is an intermediate, same as Corolla.
The acquisition cost of the Accord may be higher because the Enterprise location had to buy their Accords retail, from a dealer, rather than wholesale, directly from Honda.
the whole rental car industry vehicle classification is a joke.
but there is merit to the point made that rental cars do expose people to brands they would otherwise NEVER be exposed to. and while fleet cars sold to rentals often have either lower or odd trim levels, they still can make a positive impression. i've had many surprising (positive) driving experiences with rentals, and a few not so positive (never want to drive a pontiac grand am ever again although of course since that's long gone that's not likely, lol). in recent years i drove a hyundai in costa rica, a skoda in england, and a citroen in ireland. all good fun and positive experiences for different reasons!
but there is merit to the point made that rental cars do expose people to brands they would otherwise NEVER be exposed to. and while fleet cars sold to rentals often have either lower or odd trim levels, they still can make a positive impression. i've had many surprising (positive) driving experiences with rentals, and a few not so positive (never want to drive a pontiac grand am ever again although of course since that's long gone that's not likely, lol). in recent years i drove a hyundai in costa rica, a skoda in england, and a citroen in ireland. all good fun and positive experiences for different reasons!
I have found that most (if not all) car rental agencies classify their cars one size larger than the commonly-known classifications. So a Corolla is an intermediate car and the Camry is a full-size car in rental car-speak.
I too have had impressions made or broken from rental cars. The early-1990s Grand Am felt like it was built from cardboard, it was so flimsy; I have not driven a rental GM car since and I don't miss them. The late 1990s Ford Contour was so gutless (or at least very reluctant to downshift) that I made up my mind then never to rent "intermediate" cars again, only "full-size" cars with larger engines.
But the new Ford Fusion I drove recently (with the 2.5-litre engine, I believe, not an EcoBoost engine) was so smooth and refined that it changed my mind about the Ford Fusion -- perhaps the hype I have read about it is at least partially true.
I find myself wishing that rental agencies carried more Japanese cars, so I could try them out before deciding on my next car. I find the Camry was much more popular as a rental car in the late-1980s / early-1990s than they are now. I have not myself driven the current-generation Camry as a rental (only rode in Camry rentals) and never see late-model Accord rentals.
Last edited by Sulu; 02-28-14 at 08:04 AM.
#30
Lexus Fanatic
iTrader: (20)
I too have had impressions made or broken from rental cars. The early-1990s Grand Am felt like it was built from cardboard, it was so flimsy; I have not driven a rental GM car since and I don't miss them. The late 1990s Ford Contour was so gutless (or at least very reluctant to downshift) ...
But the new Ford Fusion I drove recently (with the 2.5-litre engine, I believe, not an EcoBoost engine) was so smooth and refined that it changed my mind about the Ford Fusion