When it comes to vehicle funding, managed funding is widely regarded throughout our industry as the best option on the market.
Total Motion was at the forefront of its development in the 1990s and we continue to promote its many benefits to our clients.
Managed funding is based on the core principles of sound and effective procurement – cutting your cost base while at the same time enhancing your fleet’s efficiency.
- Reduce leasing costs
- Improve flexibility and control
- Enhance management performance
- Reduce service, maintenance and repair (SMR) spend and related costs
- Reduce resource and lessen downtime.
Changes in trading conditions and financial markets since 2006 have made managed funding an even more attractive choice.
Market volatility means most fleets are seeing a hike in their leasing costs so are keen to find new ways of reducing this spend where possible. And, with markets set to remain unpredictable for the foreseeable future, fleets need to take steps now to deal with the changes and their impact.
We can help by offering businesses much greater funding choice. Rather than using just 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. This means that no matter which finance/contract hire company we use, all maintenance, management and driver support remains the same and is within our control.
- Contract Hire
- Sale and 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 its drivers’ needs more effectively
- Create a positive and proactive atmosphere for the fleet
- If you awarded a tender to any six in the top 30 leasing suppliers in 2009, relatively your base funding costs to December 2013 increased by 27%
- No single lease provider can give you 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 valued at under £40,000 and £458 on cars worth up to £70,000
- Using managed funding will reduce your leasing costs by at least £30,000 per year per 100 vehicles in the fleet
How managed funding works
Total Motion uses whichever company among a potential 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.
This is how the Total Motion managed funding process works:
- We identify the appropriate suppliers and clarify the terms, conditions and credit facilities to create a core panel (normally 15 to 20 suppliers).
- Each time a vehicle is required we request a quotation from each member of the panel.
- We verify the most competitive quotation and submit it to the client for approval.
- Once approved, we order the vehicle and deal with all the administration.
- When the vehicle arrives in stock, we arrange the contracts, the delivery of the new vehicle and collection of the existing vehicle.
- All correspondence from suppliers comes to Total Motion.
- We authorise and verify all supplier invoices.
- We hold regular reviews with the panel to deal with any issues.
- We manage and administer all new and existing contracts.
- We authorise every item of spend. Suppliers have no direct contact with clients.
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.