A NEW White Paper has been launched by Burton-on-Trent broker, CBVC Vehicle Management, entitled The Benefits of Multi-Bid Vehicle Funding.
Written by independent consultant Keith Allen, formerly the managing director of ARI Fleet and ALD Automotive, the White Paper examines why multi-bid fleet acquisition policies are now a crucial method of cost savings for fleet managers, particularly in the current post-pandemic business environment.
The White Paper examines the pros and cons of different business contract hire fleet acquisition methods but concludes that multi-bid is the most effective method to keep downward pressure on fleet costs.
It says that using such a method can lead to leasing rate reductions in the order of between £20-£50 per month and reduced exposure to risk.
The benefits of multi-bid is that fleet renewal requirements are put before a panel of funders and the cheapest on the day wins the business. It means that fleets always benefit from the best value, delivering significant cost savings.Mike Manners, managing director, CBVC Vehicle Management
Author of The Benefits of Multi-Bid Vehicle Funding, Keith Allen, added:
“Relying on one provider puts you at risk of ‘rate creep’ along with exposure to their risk profile. Both factors can severely impact business contract hire rental rates. By spreading your risk over a panel of funders eliminates these risk elements.
“Using a fleet management provider that has the ability to deliver multi-bid acquisition, provides one point of contact but transparent pricing, reduced lifecycle costs and enhanced service levels.
“If you are running a fleet of say 400 vehicles, then over a four-year term you could potentially be saving more than £380,000 based on a cost saving of £20 per month per vehicle by adopting a multi-bid approach to procurement. The benefits to your company’s bottom line cannot be ignored. And nor should they.”
Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.