Hyundai Looks To Reduce Dependance on Fleet Sales

“It looks like a rental car” it is never used as a positive term. That is because rental cars have gotten a bad reputation, with the models sold usually being stripped out, low price specials. Fleet sales – whether to rental car companies, corporate fleets or government operations, generally have a negative impact on public perception. A

That contributes to lower desirability and resale value, which helps create downward spiral with leasing and the like. It generally is a bad deal unless managed effectively, although some manufacturers are happy to take sales wherever they can get.

Suddenly General Motors, Ford and Chrysler aren’t pushing cars out to fleets by the hundreds of thousands.

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According to Automotive News, Chief Executive Officer John Krafcik wants to reduce Hyundai’s dependence on them. Krafcik says he wants to sell 32,000 fleet vehicles this year. That would peg sales for 2012 at 713,000 units, a 10 percent overall gain from last year and a retail unit swing of 100,000 cars.

That’s a lot of increased retail going on. Being a Hyundai dealer is a good thing to be right now. Apparently, Hyundai has a problem with capacity though; an inability to make enough cars and get them to dealers. Dealers are reportedly running low on inventory. One of the most interesting tidbits in the article has to do with MSRPs though. It isn’t any secret that most people do not pay MSRP for a car. You can haggle and get a better deal, it’s all part of the experience.

So much so in fact, that the average industry discount is a hefty 10 percent off MSRP. At Hyundai, it is at just 3.5 percent. Pretty interesting, and it shows the Hyundai is closer to pricing cars at a level the market thinks is appropriate right now. The next few years will be key as we see how Hyundai aims to sustain the impressive growth it has seen so far.