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 this can be very appealing from a price control perspective. In addition, multi-bid leasing can work very well when you run a range of different vehicles or do not have a standard contract distance or duration. Finally, access to special offers is also an essential 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 you are leasing and the holding period.
Limitations to Multi-bid Leasing
Whilst the prices you achieve may optimise, there are some drawbacks to 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.
Therefore, although you will be comparing some providers, you will not be reaching the whole market similarly to some insurance providers not appearing on price comparison sites.
Therefore, you may not have access to the lowest prices available in the market.
Suppliers will view the multi-bid market as a volume tap. Once volumes have been achieved for the month, prices will increase.
This could impact some or all suppliers during any given month.
Beware of the additional costs.
In a multi-bid environment, there are minimal contractual concessions from the vehicle funder. Some funders will enforce costly end of contract charges via excess mileage or damage to vehicles.
These additional costs can easily outnumber the savings from the initial vehicle rental leasing to a higher overall total cost of ownership.
A multi-bid can lead to additional internal administration. For example, credit underwriting and contracts will need signing for each funder and 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, 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 set up through an online platform that manages the quote and order process. In addition, you can utilise our network of supporting supply chains for other services such as risk management, daily rental and accident management.
We will actively manage your fleet supported by a reporting platform that 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 please contact us.