We are delighted to have our second Guest Blog on the website from Neil Birkbeck and Mark Pritchard ofCompareMyFleet.com.
New CompareMyFleet.com research reveals major differences between quotes
Businesses could save thousands of pounds on their fleet costs simply by shopping around for the right supplier.
New research by procurement specialists, CompareMyFleet.com, has revealed wide varieties in monthly rental costs across a range of vehicles, contract lengths and mileages, depending on the provider.
Recent market quotes obtained by the company’s experts found the difference between the highest and lowest rates – for identical vehicles – varied by an average 27% and in some cases rising to as much as 52%.
CompareMyFleet.com director Mark Pritchard said: “Our analysis shows that the monthly cost of a vehicle varied by an average 27% – so a company that doesn’t compare the market is likely to be overpaying by a significant amount of money. On a fleet of 50 typical vehicles this could mean overpaying by a sum of £48,600 per year – or more than £145,000 over a typical three-year contract.
“Clearly it’s not just about price – and we take care to make sure our clients are aware of the key terms so that they find the right supplier for their needs – but these price differences show why companies must compare the market.”
The research also revealed that no single contract hire and leasing company was consistently the cheapest or the most expensive.
Across the range of quotes obtained from some of the UK’s largest contract hire and leasing companies, there was always at least a nine per cent difference between the highest and lowest rental fees – excluding maintenance costs.
Fellow CompareMyFleet.com director Neil Birkbeck said: “Our research highlights the value of using independent expertise to trawl the marketplace and uncover the best lease rates. We were surprised at the discrepancy in monthly rates even on mainstream company cars and vans.”
For example, the research uncovered a massive £108.61 – or 49 per cent – monthly price difference for a standard Ford Focus 1.6TDCi Edge on a two year/50,000-mile contract, depending on the supplier.
A company making the switch from the most expensive (£328.74) to the cheapest provider (£220.13) in this scenario would save £2,606.64 per vehicle over the operating period.
Similar savings can also be achieved on premium-badge cars. For example, quotes on a BMW 116d Sport five-door automatic over three years/60,000 miles varied from £281.50 to £379.36 a month – a 35% difference. This equates to savings of more than £3,500 over the operating life of the car by switching to the cheaper provider.
However, the most extreme differences were found in the van sector, with monthly lease rates for a Ford Transit Custom 270 SWB ranging from £286.98 to £436.32. The average quote of £349.89 was still 18 per cent above the lowest.
And even where the rental difference recorded was only 9% – on a Mercedes-Benz ML250 CDI BlueTec – this still equated to potential savings of £2,700 over the contract period.
Mr Pritchard said: “The vehicle leasing market is extremely complex in terms of selecting the right vehicle and the right services at the right price, while also taking into account discounts and rebates available.
“Within a couple of days, CompareMyFleet.com clients receive a report containing quotes from the top leasing companies on a per vehicle basis in a consistent and easy to compare format enabling them to make a fully informed choice that also contains key potential supplier terms.
“Our clients are consistently amazed at the wide range of lease rates being quoted by major leasing companies for what is the identical car or van.”
Using CompareMyFleet.com, Nick Coleman, director of Marlow-based healthcare procurement specialist ProCure Health, cut the rental on his new BMW 116 2.0D Sport by £54 a month on a three-year/60,000-mile contract. This led to a saving of almost £2,000 over the car’s three-year operating lifecycle.
He said: “I thought I was getting a reasonable price from my leasing company until I used CompareMyFleet.com and was astonished at how much I could save. For example on the car I wanted, quotes ranged from £281 to £379 a month on 1×35 terms.
“Most prices were around £340 per month but CompareMyFleet.com found a vehicle from a top 10 leasing company for around 20% less than that. The company also made it easy to compare the key terms offered by each supplier so I could make an informed decision.
“Running a small business, I don’t have time to look at lots of quotes. We have a further six cars in our fleet and as they come up for renewal we will definitely be using CompareMyFleet.com again.”
The CompareMyFleet.com service is free to end-users with the company charging the successful leasing company a small fee per vehicle supplied.
By Neil Birkbeck and Mark Pritchard of CompareMyFleet.com.
Whether you’re taking on a fleet for the first time, or re-evaluating costs, experts at CompareMyFleet can help you save money and get the best leasing deal for your business needs. For more details or other ways to save money on fleets contact Neil on 0845 3025899 or 01256 688758.[/message]