Chrysler to cap rental fleet sales

[scottm]

Chrysler to cap rental fleet sales
http://www.allpar.com/news/index.php/20 ... leet-sales

To preserve residual values, Chrysler will put a limit on its sales to rental fleets. That’s the word from Peter Grady, Vice President Network Development and Fleet.

Speaking to members of the NAFA Fleet Management Association, in Detroit for their national trade show, Grady said the automaker does remain committed to strong commercial and government fleet sales, saying “Our growth will come from large commercial and government markets.”

Grady declined to give specifics about the nature of any cap; Chrysler has been one of the leading suppliers to rental fleets and derived 58 percent of its February sales from the fleet market. Other Chrysler officials have said they would like to see fleet sales accounting for about 25% of total monthly turnover.

Even though it was not a HEMI, I did enjoy the Charger I once rented.

[mart]

I think the problem is that rental companies buy
new cars - at a substantsial fleet discount for buying
in volume, and then only keep them for 4, 5 or 6
months maximum, before wholesaling them. The
nunber of these low-mileage, still 'almost new' used
cars getting dumped into the market, usually selling
at 2/3 or less than the price of a new car at a dealer
is hurting the dealer sales. At least with government
fleet and police sales, the cars the cars are kept for
at least 2 or 3 years - and sometimes longer - and
tend to be pretty well used up before they end up
on the used car market

mart
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