Orders on the increase as business recovery continues
21 April 2010
Businesses have started ordering news cars again, fleet and business sales are on the rise and there is growing evidence that the economic recovery is becoming more firmly established. That’s the view from Fleet Alliance where new car orders are 27% up for the first quarter of this year.
According to Fleet Alliance managing director, Martin Brown, the supply of finance to businesses is starting to become freer and is evidenced by more companies looking to buy new cars again.
“We are receiving greater levels of enquiries from companies operating 100-plus fleets than this time last year,” he said.
“Overall credit seems to have eased and the credit underwriting process is a little smoother than in 2009. All in all, the signs for the first half of 2010 are encouraging, and certainly more positive than 12 months ago.”
And with a 21% increase in fleet sales in March, year on year, it does appear that there is increased fleet and business confidence.
However, in signing contracts for new cars, companies should not be persuaded to place all their eggs in one supplier’s basket or to select vehicles purely on their monthly rentals. A single supply agreement can never offer the most cost effective option, and can be open to abuse further into the contract.
The more sensible and cost efficient solution is modern competitive tendering which compares real time prices from a panel of different suppliers and then selects the most competitive on behalf of the fleet customer.
This process is time as well as cost efficient, and managed effectively, has been shown to drive down fleet funding costs by as much as 8-10%.
Fleet Alliance works with a panel of six or seven different vehicle funders, to ensure that when a fleet client requires a new car or wants to replace an existing one, only the cheapest quote currently available on the market from its preferred suppliers is the one put forward.
And by carefully managing and overseeing the competitive tendering process on behalf of its fleet customers, Fleet Alliance is able to select the very best prices, based on what can often be daily price swings in the market.
“Modern competitive tendering is slick, measurable and auditable and is based on prices that are valid today, rather than yesterday. It is by far the most effective method of sourcing new vehicles for businesses of all sizes,” added Martin Brown.
21 April 2010
Businesses have started ordering news cars again, fleet and business sales are on the rise and there is growing evidence that the economic recovery is becoming more firmly established. That’s the view from Fleet Alliance where new car orders are 27% up for the first quarter of this year.
According to Fleet Alliance managing director, Martin Brown, the supply of finance to businesses is starting to become freer and is evidenced by more companies looking to buy new cars again.
“We are receiving greater levels of enquiries from companies operating 100-plus fleets than this time last year,” he said.
“Overall credit seems to have eased and the credit underwriting process is a little smoother than in 2009. All in all, the signs for the first half of 2010 are encouraging, and certainly more positive than 12 months ago.”
And with a 21% increase in fleet sales in March, year on year, it does appear that there is increased fleet and business confidence.
However, in signing contracts for new cars, companies should not be persuaded to place all their eggs in one supplier’s basket or to select vehicles purely on their monthly rentals. A single supply agreement can never offer the most cost effective option, and can be open to abuse further into the contract.
The more sensible and cost efficient solution is modern competitive tendering which compares real time prices from a panel of different suppliers and then selects the most competitive on behalf of the fleet customer.
This process is time as well as cost efficient, and managed effectively, has been shown to drive down fleet funding costs by as much as 8-10%.
Fleet Alliance works with a panel of six or seven different vehicle funders, to ensure that when a fleet client requires a new car or wants to replace an existing one, only the cheapest quote currently available on the market from its preferred suppliers is the one put forward.
And by carefully managing and overseeing the competitive tendering process on behalf of its fleet customers, Fleet Alliance is able to select the very best prices, based on what can often be daily price swings in the market.
“Modern competitive tendering is slick, measurable and auditable and is based on prices that are valid today, rather than yesterday. It is by far the most effective method of sourcing new vehicles for businesses of all sizes,” added Martin Brown.
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