Multi bid leasing is where vehicle lease requirements are brokered between different providers.
The solution is designed to give the best price on the day by taking advantage of prevailing market conditions.
Why Consider It?
In theory the solution will give you access to the best rates in the market at any one point in time so from a price control perspective this can be very appealing. Multi bid leasing can work very well where you are running a range of different vehicles or where you do not have a standard contract distance or duration. Access to special offers is also an important feature of this market.
Contract hire savings advertised by multi-bid providers range from £30-£50 per month region but the savings you will achieve will change according to the types of asset being leased and the holding period.
Whilst the prices achieved may optimised there are some drawbacks with this fleet management model.
You will not have access to the whole market
Not all providers will provide services in this sales channel. Some of the larger fleet management companies view the channel as too transactional and low margin. This means that although you will be comparing some providers you will not be comparing the whole market, in a similar way to some insurance providers not appearing on price comparison sites. Therefore, you may not have access to the cheapest prices available in the market.
Suppliers will view the multi bid market as a volume tap. Once volumes have been achieved for the month then pricing will be put up. This could impact on some or all suppliers during any given month.
Beware the additional costs
In a multi bid environment there are very limited contractual concessions from the vehicle funder. Some funders have been known to enforce significant end of contract charges for either excess mileage or damage to vehicles.
Multi bid can lead to additional internal administration. Credit underwriting and contracts will need to be signed for each funder and for each vehicle. Other areas such as maintenance of the motor insurance database, fines administration and maintenance services can add to the complexity of delivering the services.
How Can EVP Help?
Which strategy is best?
Multi bid might be the best solution but there are other alternatives. We can help you through the decision-making process to make sure you make the correct choice. We can dip test the market to use actual data to support the decision-making process.
Tell me how to do it
If you decide that multi-bid is the best solution, then we can help you implement a supply chain solution. This includes funders and supporting services covering every element of the process.
Do it for me
EVP can run the multi bid process for you. Driver policy choices are setup through an online platform which manages the quote and order process. You can utilise our network of supporting supply chain for other services such as risk management, daily rental and accident management.
We will actively manage your fleet supported by a reporting platform which consolidates data from across your supply chain.
For cash allowances or grey fleet drivers we can help with mileage capture and support the risk management of this driver population.
If you would like to know more about our multi bid leasing service then