The Benefits Of Multi-Bid Funding
Total Motion developed the concept of multi-bid funding in 1994, and since then it has been adopted and copied by the fleet management industry the world over. It is easy to see why when you look at the many benefits, and the fact it can save you £20 to £50 per month on the cost of leasing one vehicle. And if you are running a big fleet, you don’t even need to do the maths to envisage the huge savings this can make over the lifetime of a vehicle lease.
So we thought it was about time we shouted about our multi-bid funding concept a little bit more and outlined the very clear advantages to it.
What is multi-bid funding?
Multi-bid funding is a procurement method where a fleet management company takes the fleet renewal requirements of a business to a panel of funders and seeks the best deal on the day. This is a way of taking advantage of current market trends, seeking fully transparent pricing and benefitting from enabling experts to handle the bidding process for you.
The benefits of multi-bid funding
The main benefit, of course, is that you are always enjoying the best value car leasing deals and therefore experiencing significant cost savings. The panel of funders are competing for your business and hence you enjoy the fruits of that.
Other benefits include:
- One point of contact: utilising the services of a fleet management company means you don’t need to get involved in the bidding process, which can involve multiple contracts, dealing with different invoices and building different relationships. Multi-bid funding means you maintain your current relationship with the fleet management company, and have one point of contact, but enjoy the benefits of cheaper car leasing for your fleet.
- Expertise: using this procurement method means you are utilising the experience of experts in this field, and hence can be assured you will be getting the best prices available.
- Reduced lifecycle costs: multi-bid funding means you have cost optimisation for new vehicles and also have a consistency of pricing, which helps when setting budgets each year. There is also a benefit in moving from one funder to another with each car leasing deal. As we see in other walks of life, such as insurance, staying with one supplier often leads to ‘rate creep’, which means that over time the funding company may become less competitive because they prey on your loyalty. Moving to a new funder each time means you are a new customer each time.
- Enhanced service levels: your fleet management company will ensure they are only agreeing deals with approved leasing companies.
- Reduced risk: it is often found that certain leasing companies have good relationships with certain vehicle manufacturers, and not with others. This doesn’t necessarily expose you to the best deals available. So undertaking the bidding yourself might mean you are tied to BMW or Volkswagen, for example, when there are better deals to be had with other vehicle brands. Multi-bid funding opens up the market for you and means you can get the deal that best suits you, not the vehicle leasing company.
Cost-effective fleet management with Total Motion
Ultimately, multi-bid funding is about efficiency, in terms of communication and administration, but also relating to the financing of your business. It is clear that the larger your fleet, the more benefit you will gain from multi-bid funding, and a £20 cost saving per month over a four-year lease can save considerable amounts of money for a large fleet of vehicles.
Speak to Total Motion – the pioneers of the multi-bid funding process – and we can work with you to get the best car leasing deal for your business.