Association of Fleet Professionals (AFP) has cautioned that that increasing prices and discount rollbacks on new cars and vans are “damaging manufacturer-fleet relationships”.
AFP chair Paul Hollick stated that the issue has been brought up by an increasing number of members.
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Some of them said that they have seen price hikes affect over 80 different models on their choice lists during 2021, in some instances exceeding £10,000.
Hollick noted that long lead times on new vehicles have been widely discussed but price increases have received less attention.
“Clearly, we are living through a time when there is substantial upwards pressure on prices generally and we understand the many reasons why this is happening but some manufacturers are leaving fleets essentially unsupported, ignoring existing discount agreements and refusing to honour price protection pledges,” he said.
In many cases, prices are rising faster than they can easily track in order to keep their choice lists up to date, fleet managers told the AFP.
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By GlobalDataHollick said: “It is creating a situation where, if you manage to get a confirmed order for a vehicle, there is no guarantee you will receive it because a cancellation remains likely and, even if it does arrive after nine-twelve months, there is a strong chance that the price will have risen markedly.
“Fleet managers want to continue to nurture sustainable long-term business partnerships but this behaviour, by some manufacturers, is undeniably damaging for future relationships.”
The continually changing prices impact choice lists and could also lead to a situation where the chosen and the ordered vehicle becomes unaffordable for the employer.
“We would like to see pricing held for agreed periods of time by manufacturers and, once an order is placed, for that price to be honoured. Treating prices as something that be increased substantially without discussion is no way to treat major, long-term vehicle buyers,” the AFP chair said.
