Search
Close this search box.
Sign up for our weekly Newsletter

How competitive tendering can help your business

WITH so many contract hire quotations on the market, how do you know you are getting the best price on your quotation? Fleet Alliance managing director, Martin Brown, explains how competitive tendering can cut through the quote clutter to the best price.
136_CompTendering155x246
Competitive tendering: eliminates search for the best price from different small fleet leasing companies

Share

8 December 2009

 

Businessman notes down a series of different contract hire quotations
Competitive tendering: eliminates search for the best price from different small fleet leasing companies

By Martin Brown, managing director, Fleet Alliance

 

IF YOU are simply bewildered by the sheer volume of different quotations from different small fleet leasing companies then you are not alone.

It’s an issue that faces many small businesses: for the very same vehicle, there is the widest spread of monthly car leasing rates in living memory.

Competitive tendering, however, can help your business select the most cost efficient leasing rates and drive down the funding costs of your company’s business cars.

Never heard of competitive tendering before?

Competitive tendering can help you save money on your business cars by selecting only the most cost effective rates from a panel of different leasing suppliers.

Many leasing companies have been under severe pressure due to falling residual values and the withdrawal of large-scale credit finance caused by the credit crunch.

This has resulted in spreads of up to o £75 per month for the same car from different suppliers. It places the onus on small businesses to only select the most price efficient quotations for their company cars.

Competitive tendering can help you save money on your business cars by selecting only the most cost effective rates from a panel of different leasing suppliers

However, this can be very difficult, if not impossible, for those companies which rely on just one leasing supplier.

The answer lies in the time honoured mantra of not having all your eggs in one basket, and using a panel of leasing suppliers to provide quotes for each new car that you add to the business.

By having multiple sources for vehicles, rather than a single source of supply, businesses are not dependent upon one leasing company and not at risk from excessive price rises and fluctuations.

Under a traditional single supplier leasing agreement, there is little competitive pressure to ensure the keenest prices, and over time leasing rates may start to creep upwards as residual values or interest rates change.

Competitive tendering, on the other hand, creates competition between large, professional leasing companies, leading to the lowest possible cost for your business cars.

At Fleet Alliance, we work with a panel of six or seven different vehicle funders. This ensures that when a business client requires a new car, or wants to replace an existing one, only the cheapest quote currently available from its preferred suppliers is the one put forward.

And by implementing competitive tendering on behalf of its business customers, we can select the very best prices, based on what are often daily price swings in the market.

Competitive tendering offers business customers the best of all worlds and removes the need for them to do all of the hard work themselves. This includes the benefits of a single point of contact, plus the lower total fleet costs that competitive tendering undoubtedly generates.

Share this article

Facebook
Twitter
LinkedIn
WhatsApp
Reddit
Email

Want more motoring news?

Sign up here for our free weekly serving of motoring.

Sign up here for our free weekly serving of motoring.

Ralph Morton

Ralph Morton

Ralph Morton is an award-winning journalist and the founder of Business Car Manager (now renamed Business Motoring). Ralph writes extensively about the car and van leasing industry as well as wider fleet and company car issues. A former editor of What Car?, Ralph is a vastly experienced writer and editor and has been writing about the automotive sector for over 35 years.

Latest news

Top