For Subscribers

Power in Numbers: The Benefits of Entering Fleet-Vehicle Territory If your business has as many as 10 vehicles, you've entered fleet-vehicle territory, a place with its own rules--and benefits

By Grant Davis

In 2007, Namasté Solar, a company that installs solar-power units, acquired a used Dodge Sprinter diesel cargo van. "We could run B20 biodiesel in it," says Max Christian, co-founder and COO of the Boulder, Colo.-based operation. "It got almost 25 mpg, which was much better than a Ford Econoline van, and at the time it was a unique vehicle. It fit our image, and it was the cheapest, best vehicle we could afford."

Flash-forward six years, and Namasté is maintaining a fleet of 10 Sprinters, four pickups and six Toyota Priuses. And Christian is in the process of formalizing the company's next generation of vehicles, weighing the pros and cons of leasing or buying cargo vans to help carry out roughly 300 installations a year.

Compared to the stressful, hard bargaining associated with consumer purchases from a dealer, the commercial fleet transaction is more relaxed, according to Isaac Bouchard, a broker with Preferred Auto Brokers in Englewood, Colo. "There's very little negotiating with the fleet sales manager at a dealership," says Bouchard, who also runs CarBuyingTipsGuide.com. "These guys get paid to move units, so the margins are tiny or even below invoice to begin with. As such, the process is more about a relationship than price--they're going to remember you when you roll over your fleet every three years and take care of you."

You don't have to buy 50 trucks or cars from a manufacturer to qualify as fleet. "A common oversight of small-business owners is to realize that they've crossed the threshold into the fleet-vehicle market," says Chris Brown, executive editor of Business Fleet. "Some manufacturers will qualify a business that purchases or leases 10 vehicles in a 12-month period. Cross this threshold, and you'll get fleet incentives from the manufacturer, won't have to pay advertising markups like retail customers do and, if you order the truck or van, you can spec it out exactly as you want and not have to pay extra for standard equipment that retail consumers are forced to buy."

For Namasté Solar, crossing this threshold is a blessing, since it'll reduce upfront costs on the biodiesel-powered Sprinter vans that have become a hallmark of the company. "When we were first deciding on what to buy, I was all about functionality," Christian says. "I didn't see why going with a diesel van and hybrid car really mattered beyond fuel economy. But I see now how our vehicles create a consistent message of sustainability that resonates with our customers and the community. My one piece of advice to anyone is: Don't undervalue the marketing power of your vehicles."

Grant Davis

Entrepreneur Staff

Managing Editor

Grant Davis is the managing editor of Entrepreneur magazine.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Buying / Investing in Business

Former Zillow Execs Target $1.3T Market

Co-ownership is creating big opportunities for entrepreneurs.

Making a Change

A One-Time Payment of $20 Gets You Access to 1,000+ Courses Forever

Curated, high-impact courses across business, tech, and more.

Business News

These Are the College Majors With the Lowest Unemployment Rates — and Philosophy Ranks Higher Than Computer Science

An analysis of employment data from the Federal Reserve Bank of New York shows that some humanities majors rank higher than STEM majors in employment prospects.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Science & Technology

How I Scaled from Side Hustle to 7 Figures Using 4 AI Tools (No Tech Skills Needed)

Scale faster, work less and grow a 7-figure business — no team needed.

Money & Finance

How Much Money Do You Need to Retire Comfortably in Your State? Here's the Breakdown.

Regardless of where you spend your golden years, it pays to be realistic about the cost of living.