License and Title Registration News

Our on-time renewal rate has improved quarter over quarter in 2021 and steadily increased to 94% through June. As we continue to stabilize our License & Title program through initiatives like our Keystone project, we’re working towards steadily increasing this percentage.

  • Each month, the most common reason for late renewals is due to LeasePlan not receiving the necessary state-required documents within the time frame needed to renew. 
  • We recommend working with your account team to review the tags nearing expiration report weekly. This report is designed to give you a full view into the status of all vehicles with a registration expiring within 90 days. This ensures you’ll be informed at the driver-level, and if there’s an issue or missing state requirement, we can partner to proactively work with the driver before expiration.

    You can find this report in the fleet reporting tab in ePlan. Email us at customer1st@leaseplan.com for a demo or more information.

Here are some of the states where we’re currently seeing DMV delays or supply chain impacts: 

  • Arizona – ADOT confirmed that they have resolved the aluminum shortage that caused a temporary halt in license plate production. As of June 25th, they reported they’re now producing and delivering license plates in the normal 4–6 week timeframe.
  • Colorado – Routt County is currently processing registrations received on 6/8/2021.
  • Delaware – the city of Dover is currently processing registrations received on 5/23/2021.
  • Hawaii – currently processing registrations 4 weeks behind. This is a particularly difficult situation as HI inspections are only valid for 30 days. We’re working extremely closely with this vendor to get renewals completed within the window.
  • Kansas – Johnson County is currently processing registrations 4 weeks behind.
  • Maryland – currently processing registrations 4-6 weeks behind.
  • Massachusetts – currently processing registrations 1 week behind.
  • Mississippi – Yazoo County is currently processing registrations at least 6 weeks behind.
  • New Jersey – currently processing registrations 3-4 weeks behind.
  • Oregon – currently processing registrations received on 6/28/2021. Additionally, they have issued a 6-month grace period on expired registrations for the rest of 2021.
  • Tennessee – Shelby County is currently processing registrations 8-10 weeks behind. Davidson County is currently processing registrations 6 weeks behind.
  • Texas – Tarrant County in the DFW area is currently processing registrations 3 weeks behind. Harris County in the Houston area is currently processing registrations 10 weeks behind.

Did you know: LeasePlan services renewals for over 3,000 counties nationwide, and many states have differing requirements or procedures by county. 

Additionally, accurate driver data is key in having a smooth registration renewal experience. Make sure driver information is up to date in ePlan including:

  • Driver address
  • Driver phone number
  • Driver email address (this one is extra important as we're updating our registration renewal communications to be 100% digital in the coming months)

If a vehicle is temporarily out of service or has been reassigned, it’s important to let us know!

Out of Stock Ordering

We continue to see a decline in the number of unsold new vehicles available. The end of June brought a record low of 1.13 million vehicles available – down 64% from 2020 and 70% from 2019.

Below you can see the average day supply for vehicles by make. This may be helpful when expanding to like models across other brands.

In addition, July brought a record average listing price for new vehicles – exceeding $41,000 for the first time. 

Our #1 recommendation is to prepare to order as soon as the 2022 Model Year opens, so that you can avoid the state of the stock market.

If you have to purchase a vehicle through the out of stock process, these tips will be crucial to locating a new vehicle:

  • Be flexible – We suggest being as open as you can be with all options, trim and color. Stick with only your "absolute must have" in terms of required safety measures. Make sure you share everything you're open to with your account team so that they can expand the search from the start.
  • Expand your budget – Within the past month we’ve seen dealer quotes go from $2,500 to, in one case, $5,000 over MSRP and most dealers aren’t honoring fleet agreements at all. 
  • Prepare your drivers to travel – 1 in 10 vehicles are being purchased across state lines and half are being purchased over 25 miles away. Being willing to travel can also help to increase options.
  • The most important thing... be patient. Given all of these impacts, we’re seeing the time to locate increase to about 4 weeks.

Remarketing

July isn’t just bringing a record high listing price for new vehicles; we’re also seeing a spike in the resale market unlike any we’ve seen in U.S. history.

We predict the returns to continue rising through the end of the summer and stay strong through the end of 2021, which is just another reason to start planning and ordering for Model Year 2022 now. 

  • Meet with your client success partner to talk through how you can best take advantage of the resale market this year. There may be benefits to ordering vehicles now that you would typically wait until the end of the year or early next year to order.
  • Ordering early will also mitigate the risk of extended lead times or cancelations that some vehicle manufacturers are predicting which could impact the returns you see on your current fleet. 
  • As we saw last year, we can expect order cut off and closure dates to come much earlier than anticipated and with little to no notice.
  • To follow along with ordering windows that are now open or opening soon, download our manufacturer dates guideline below:
Manufacturer Dates

Out of Stock Ordering

With the average days’ supply at dealerships across the country going from 65 to under 30 (and under 10 for high demand vehicles), finding vehicles on retail lots just got a lot harder.  

It’s been reported that we can expect to see about 1.2 million fewer new vehicles built this year. The impact that this supply vs. demand challenge is having on new and used vehicle prices are at historic levels. List prices are up 25% year over year on average, with pricing for trucks up 44%. 

If you have to purchase a vehicle through the out of stock process, here are some tips that may help:

  • Be flexible – We suggest being as open as you can be with all options, trim and color. Stick with only your "absolute must have" in terms of required safety measures. Make sure you share everything you're open to with your account team so that they can expand the search from the start.
  • Expand your budget - We are seeing retail prices upwards of $2500 over MSRP and most dealers aren’t willing to sell vehicles at fleet pricing right now. Be willing to pay transport fees, etc.
  • Prepare your drivers to travel – 1 in 10 vehicles are being purchased across state lines and half are being purchased over 25 miles away. Being willing to travel can also help to increase options.
  • The most important thing... be patient.

License & Title Registration News

Here are some of the states where we’re currently seeing DMV delays or supply chain impacts: 

  • Arizona – the worldwide aluminum shortage caused a temporary interruption in the production of AZ license plates. This will impact initial registrations, state changes and replacement plates. Customers who ordered plates after May 21 will begin receiving most specialty plates the week of June 7, with standard plates beginning to arrive the week of June 14 from the ADOT fulfillment center. For more information, you can read the full press release on the ADOT website.
  • Delaware – the Dover DMV location is currently processing registrations received from 4/28/2021.
  • Hawaii – currently running 4 weeks behind in processing. This is creating a particularly difficult situation as HI inspections are only valid for 30 days. We are monitoring extremely closely with this vendor to get renewals completed within the window.
  • Idaho – Ada County is currently processing registrations received from February 2021.
  • Kansas – Johnson County is currently processing registrations received from 5/12/2021.
  • Maryland – currently running 4 to 6 weeks behind.
  • Massachusetts – is currently running 3 weeks behind, on average.
  • Mississippi – Yazoo County is currently running at least 6 weeks behind and is processing registrations received from 4/15/2021.
  • New Jersey – currently processing registrations from 5/23/2021.
  • Oregon – currently processing registrations received from 1/20/2021.
  • Tennessee – Shelby County is currently working on units received 5/3/2021.
  • Texas – Harris County is currently processing registrations 12 weeks behind.

Because we’re seeing so many different delays from state to state and county to county, there’s no “one size fits all” recommendation. We will be keeping you updated monthly on the locations with known delays so you can prepare your drivers. 

We recommend working with your account team to review the missing and expired registration report weekly so you're informed on what is nearing expiration and we can partner to better manage exceptions – like a driver that’s missing their inspection. 

If you would like a demo or more information on using this report please email us at customer1st@leaseplan.com 

Additionally, accurate driver data is key in having a smooth registration renewal experience. Make sure driver information is up to date in ePlan including:

  • Driver address
  • Driver phone number
  • Driver email address (this one is extra important as we're updating our registration renewal communications to be 100% digital in the coming months)

If a vehicle is temporarily out of service or has been reassigned, it’s important to let us know!

Factory Ordering 2022

The essential parts needed to build vehicles are harder to come by these days and we don’t forecast the pressure lifting anytime soon. The semi-conductor chip shortage is forecasted to last through the remainder of 2021 and possible into the first quarter of 2022. Read more about the chip shortage and its global impact here.

The best way to combat the reduction of new vehicles produced and available is to start planning and ordering for 2022 now. 

  • Meet with your client success partner to be prepared for Model Year 2022 early. Start planning now so that you’re ready to place orders as soon as the banks open.
  • In some cases, you may need to use estimated pricing. It will, however, be important to get your orders in as soon as it opens.
  • Look at your current fleet and identify vehicles that are in good mechanical shape and can run for an additional 8 to 12 months.
  • Think about like models across brands that may have better production cycles.
  • The order cut offs and closure dates continue to be fluid and come with very little notice. We should not be surprised to see OE’s pull cut offs and cancel orders before December and January again.
  • Take care of the fleet you have. Preventative maintenance is key at a time when you need every vehicle you have healthy and on the road.