Many vehicle manufacturers stopped fleet orders in the winter of this year. Fleet Owners might not see fleet inventories available in any real numbers till late 2021/early 2022. If this has caught you off guard you are not alone – Here’s all you need to know about cut-off dates, why they are there, and what is different about this year:

What are Manufacturer Cut-Off Dates?

Every manufacturer has a date by which they stop accepting fleet orders.  In this case, early birds get the worms as there is typically more demand than supply available.  This year, instead of 2021 model year fleet orders being cut off in the spring, GM and Ford cut off most of their fleet capacity in January and RAM did so in February. 

Manufacturer Dates Matter If You Want To Take Advantage of Factory-Direct Prices

Bigger companies understand that the way to optimize every fleet dollar is to begin by acquiring new vehicles directly from the factory–as a fleet order. This ensures the vehicles you need are not over-equipped so low costs can be maintained.   Production capacity is limited because, in general, manufacturers want to produce well-equipped vehicles and drive more consumers to retail dealerships, which is more profitable than fleet sales.

Winter Cut Off Dates in 2021

COVID-19 has impacted many industries and the automotive industry is no different. In March 2020, many manufacturers closed their US factories not reopening until late April or May 2020. Many did not re-open to full capacity and have been scrambling to make up orders. Manufacturers are now processing orders placed from September 2020 – February 2021. 

The industry faced another constraint in January 2021 as a shortage of semiconductor chips was announced, which could impact production into the summer.   As New York Times Reported on January 13, 2021, “Strong demand for gaming systems, personal computers and other electronics by a world stuck indoors has sucked up supplies of semiconductors, forcing carmakers around the world to scramble for the chips that have become as essential to mobility as gasoline or steel.” 

So in 2021 manufacturers have had to shut production on some vehicles – yet again. 

Top Manufacturer Cut Off Dates Have Passed 

Acquiring New Vehicles Will Be Challenging in 2021 

If you usually purchase your vehicles from a dealership you might have never considered manufacturer cut-off dates before, however, this will impact supply across the board. 

1. Order banks will fill quickly by very large fleet orders for the 2022 model trucks when they open. 
2. Likely delivery on 2022 fleet orders for latecomers will be 6 + months after production starts. 

When Supply Cannot Meet Demand The Price Will Go Up:

1. Production compounds the existing supply shortage
2. Many consumers will pay over the window sticker to meet their needs
3. Dealership inventory will remain low throughout Q2 and maybe longer which means a change for many buyers.

2021 might not be the year to purchase new vehicles – Here’s What You Can Do

The key to securing the best deal is by factory ordering a vehicle that is equipped to meet your needs. For this, 2021 might not be the year in which you order a slew of new trucks, but instead might be the year you organize your fleet strategy – this includes:

1. Get Your Orders Ready: Identify your vehicle needs now so you are ready when order banks reopen
2. Identify Your Older More Costly Vehicles: Take a proactive step toward cost savings by identifying those vehicles that will become more costly to manage in the upcoming year.
3. Identify Creative Alternatives to Meeting Vehicle Needs: You might need a new vehicle this year but you don’t have to overpay. Research and identify alternative solutions such as short-term rentals.