GL sticks it to the small guys BIG TIME!

I just got a Email from GL about 6 month Term Contracts on Vehicles and Trailers.30-100 Per month.ALL vehicles at 2 bases go in the contract.AKA,they are cutting US out of the loop and Kissing the big dealers rumps.Here are the links directly to the contract info below.Looks like vehicle sales WILL end on GL.Sorry bunch of #$%*(!@#$%&*!$#%&*

http://web.govliquidation.com/forms/RFP-VEHICLES_CAMP_BLANDING_2008.pdf

http://web.govliquidation.com/forms/RFP-VEHICLES_LE_JEUNE_2008.pdf


How nice of them.

What you said! Hopefully its not system wide.

I also got that E-mail. I wasnt sure what to make of it.

It's interesting and scary reading.

I wonder if there's any chance of putting any pressure on from the DLA side. GL is supposed to be getting the best possible price for these and I wouldn't think that this is defensible as the way to do that. I doubt that GLs wanting to lower costs is a matter of concern to the DLA or whichever agency gets the proceeds.

I also wonder if some election year pressure on our congressmen is in order?

Wonder if Robyn will have any comment on this?, but geez 4 to 5 % of current fedlog value......46000 dollar Deuce at current Fedlog price, 4.5%= 2070.00.....seems like a good deal for GL and the Gov......guess I need to find a new hobby....

Folks, things change. We used to be able to buy rifles from the Gov't too. They stopped that. folk's still buy rifles. This isn't the end of the world. There are many more deuces in private hands than in the gov'ts hands. Just gotta deal with it and move on. FL deuce sales are always very high anyway so I'll not be losing out on anything. If any of you are so taken back by this, pony up the ten grand bid deposit and bid on the contract. These trucks are stil being sold but to a dealer and I'll bet at a greatly reduced price. By the time the dealer sells them they won't be much more and you will have paperwork. Would you rather the gov't scrap them?

If you look at that contract... 30-100 trucks a month... Its a HUGE number... I think they are doing this in order to move off a large number of trucks they have in coming. I dont think this is going to become "the way" trucks are sold.. I just think they have more than the DRMO and GL lots can handle sitting in one place.

Its about space and logistics... Not f'in the little guy... but I do admit... Lots that big would bring a lot of 500-1000 dollar trucks! *sigh*

Kenny and Devilman are correct.

SS Group buy/contract! Here's our chance.

Its been said here this is to kiss the rump of big dealers. What big dealer is in Florida? In North Carolina?

If this was to kiss a dealer's rump it would be the trucks at Smyrna, Camp Shelby, in Pennsylvania or Virginia.

I am acquainted with some major dealers - including probably the biggest. 100 trucks a month from Florida to the dealer would require 50 truck loads, each round trip requiring at least two days. That means this would be more than the company truck could haul, even if there were no other pickups or deliveries to make. Contracted hauling is, for all practical purposes, as expensive for a dealer as it is for us. Several of the trucks recently offered at Blanding and LeJune personnally I would not have paid the freight on even if the truck itself was free.

I am sure that someone will bid on this contract - and get it - and the per unit price of the vehicles will probably be really low - but in the end it will be no more profitable for a dealer than buying them one at a time. And, one of the big dealers I am familiar with recently scrapped out over a hundred deuces - because there simply isn't much of a commercial market for trucks that small (compared to a five ton).

Rather than being driven by some sort of conspiracy to please big dealers (remember, simply put, why if GL pisses off Memphis, Clark, etc......what are the pissed off customers gonna do....start shopping at Wal Mart for trucks? - seirously, GL is virtually a legal monopoly)....I see this as being driven by the end of the line for the deuces, and the middle of the end of 800 series trucks. There are simply more trucks coming out of the system than DRMS, DRMO and GL can handle.

DD

I agree 100%

SHIPPING would kill any dealer. And a blind contract that a dealer would automatically buy any truck that came into GL possession would be extremely stupid on the dealers part. It does not take too many $5000 non-running/parts trucks until the dealers storage lot is filled with non-salable trucks. Their parking lots will be full & their wallets will be empty. 200 trucks would be $1,000,000! AND....they wont be able to use credit lines/loans to buy them....look at the news! All the big banks cant even get loans to stay open!

This could be a good thing. If any dealer jumps on this bandwagon....they could very easily go bankrupt. Which would reduce the competition for all of us.

The ONLY way that this new bright idea could possibly work, would be if the Govt sent the trucks directly to the dealer at the govt's expense (instead of moving trucks to various bases) & sold them for less than scrap value.

I've heard of Jeeps being taken off one ship, (government returning) only to be loaded onto another ship at the same docks bound for some country by dealers as "go-betweens". Don't know how true it is or is it an old wives tale.

Re: RE: GL sticks it to the small guys BIG TIME!

dm22630 said:

I agree 100%

SHIPPING would kill any dealer. And a blind contract that a dealer would automatically buy any truck that came into GL possession would be extremely stupid on the dealers part. It does not take too many $5000 non-running/parts trucks until the dealers storage lot is filled with non-salable trucks. Their parking lots will be full & their wallets will be empty. 200 trucks would be $1,000,000! AND....they wont be able to use credit lines/loans to buy them....look at the news! All the big banks cant even get loans to stay open!

This could be a good thing. If any dealer jumps on this bandwagon....they could very easily go bankrupt. Which would reduce the competition for all of us.

The ONLY way that this new bright idea could possibly work, would be if the Govt sent the trucks directly to the dealer at the govt's expense (instead of moving trucks to various bases) & sold them for less than scrap value.

Click to expand...

Plus they have to pay the sales tax, an added expense and more paperwork.

Can you imagine the logistics of getting them off base as previously mentioned. The best trailer can only handle two to three trucks at the most. Probably have to provide something to use for loading that can't leak fluids while it sits and then look at trucks that are parts trucks only (if they're included). Plus they might be trucks returning from overseas that are whipped from the sand ---

This is OBVIOUSLY a test of a possible market. I would assume that GL is trying this at 2 bases where major dealers buy a lot of trucks. It would make GL's life much easier if all truck sales went this way.....solely for the fact of reducing their workforce (no extra livechat, customer service, and EUC people to process/deal with "the regular guy").

4.5% of ORIGINAL cost is NUTS! But.....they are allowed to ask. I would be very surprised if ANYONE bid on that contract.

I.E. - A standard M105A2 trailer has a original cost of $8,524. The MINIMUM contract price would be $383.58 PLUS shipping! So how many $500 junk trailers do you really think that they will want? GL is doubling up on trailer sales due to the $150 minimum bid now. A lot of combo lots go for under $400.....so....hmm, $400 for ONE & you dont get to see it first, or $400 for 2 & you get to pick and choose.....hmmm.....

This idea will not last (at the 4.5% minimum).....If they had a 1% minimum, I might bid myself!

a group buy sounds about right

i am in, i have my eye on a deuce already, but another would not hurt, even if it was just a decent parts truck.....

this has to be looked at as an opportunity

How many scrap dealers are close to that location....................???????????

Being it is that close to the coast......Chinese steel companies?

Alot in NC, all the good things NC might bring the the furure to have them taken , I cant pay 20K for a truck I have to fix up.