Managed Funding

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With the benefits of using a single or small number of finance/contract hire providers almost completely eroded “Managed Funding” delivers the solution.

Managed Funding is based around the core principals of sound and effective procurement.

This position has come about because of the change in trading conditions and financial markets since 2006, this volatility means most fleets are experiencing greatly increased leasing costs.
Furthermore it’s widely accepted this is the shape of the market for the foreseeable future so fleets need to take steps to deal with the change and the impact it has.

  • Reduce leasing costs.
  • Improve flexibility & control.
  • Enhance management performance.
  • Reduced Service, Maintenance & Repair spend and related costs.
  • Reduce resource and lower downtime.

Rather than using one provider/leasing company we work with a panel of up to 60 finance suppliers to deliver the most competitive funding arrangements for our clients.

To further enhance the benefits and to deliver the most focused service and continuity, the management and maintenance package is removed and dealt with separately meaning that no matter which finance/contract hire company is used all the maintenance, management and driver support remains the same and is within our control.

  • Contract Hire.
  • Sale & Leaseback.
  • Finance Lease.
  • Hire Purchase.
  • Hybrid Finance Lease.
  • Hybrid Hire Purchase.
  • Reduce costs.
  • Have greater control.
  • Improve driver choice.
  • Set up personalised management and support processes.
  • Support the drivers needs more effectively.
  • Create a positive & proactive atmosphere for the fleet.
  • If you awarded a tender to any six from the top 30 leasing suppliers in 2009, relatively your base funding costs to December 2013 increased by 27%.
  • No single lease provider can provide the lowest rate on every vehicle, regardless of the customer profile – the actual performance is around 38%.
  • Variances of as much as £161 per month on cars under £40,000 and £458 on cars up to £70,000.
  • Using Managed funding will reduce your leasing costs by at least £30,000 pa per 100 vehicles on the fleet.

How Managed Funding Works

Total Motion use whichever 1 from potentially 60 suppliers is the most competitive on each vehicle.

To facilitate this we have established supply relationships with each and every one of the UK’s finance and leasing suppliers.

Once a funding product has been selected we work to a set process, normally using either a hybrid finance lease or contract hire without maintenance.

  • Identify the appropriate suppliers and clarify the terms, conditions and credit facilities to create a core panel (normally 15-20 Suppliers).
  • Each time a vehicle is required Total Motion request a quotation from each member of the panel.
  • The most competitive quotation is verified and submitted to the client for approval.
  • Once approved, Total Motion order the vehicle and deal with all the administration.
  • When the vehicle arrives in stock Total Motion arrange the contracts and delivery of the new vehicle and collection of the existing vehicle.
  • All correspondence from suppliers comes to Total Motion.
  • Total Motion authorise and verify all supplier invoices.
  • Total Motion hold regular reviews with the panel to deal with any issues.
  • Total Motion manage and administer all new and existing contracts.
  • The suppliers have no direct contact with the client and every item of spend is authorised by Total Motion.

Managed Funding will deliver the lowest cost funding on every single vehicle both now and in the future and removes the need to “fix rates”.