Local government is more budget-conscious today than ever before. Teachers, firemen, police, garbage collectors – many of the public service branches of local and state government are feeling the pain of limited budgets. One way municipalities are cutting corners for positions and branches who need cars, trucks, or vans is by using the COSTAR program, where available. COSTAR is a program that provides local and state procurement entities and their members to purchase items with a contract in order to receive competitive pricing. COSTAR vehicle dealers can honor these contracts and provide the purchasing agencies more choices and better volume discounts than they would receive if purchasing vehicles on their own.
To explain further, let’s say an automobile seller decides to become a COSTAR vehicle dealer. The seller is then allowed to sell cars that are to be used by local or state government. If someone is a local or state employee buying a car, truck, or van for work related purposes, they may also have the ability to make the purchase with government-approved funds. Granted, stipulations may differ in various locations or within each municipality participating in the program, so it’s best to gather all the information necessary before deciding to sign on for this program. The COSTAR vehicle dealers program, similar to other fleet-purchasing plans, can not only save agencies money, but it can also be more convenient and allow for buying under contract instead of dealing with paperwork headaches like purchasing multiple items from multiple suppliers.
Along with cost savings and convenience, purchasing multiple vehicles as a fleet helps companies to track usage of vehicles and buy new ones at reduced costs when they are ready to upgrade. This keeps entities like government agencies well-equipped with reliable, fuel-efficient transportation. It also allows for more finance options and flexibility. As many people are aware, government agencies are required to meet many stipulations and require a lot of manpower and administrative tasks. When using a program like COSTAR for fleet purchasing, paperwork and red tape decreases because contracts are issued for the purchase. If an agency were to buy a car or another vehicle one-off or outside of a government contract, it would be a far greater undertaking.
As for the businesses themselves, COSTAR vehicle dealers enjoy several advantages via this program. First, within a city or local agency, large quantities are purchased, putting more money in the pockets of the dealers. Additionally, these dealers provide service and repair to the cars, trucks, or vans as part of their contracts, bringing even more revenue to them. Word of mouth in the community also helps them to sell to private citizens. In addition, the service and repairs are done by the dealer, and some dealers offer fuel reward programs as part of the contract, too. When it comes to buying large fleets, government agencies know where they can go for quality and efficiency, making sure they stay on the job and on the road.