A common complaint we hear from fleet customers is their incumbent vehicle leasing provider has decreased their service levels but increased their lease rates. The partnership starts well with competitive pricing, but can deteriorate when clients feel stuck with lease renewals that result in increased monthly rental costs, a reduced level of service and unexpected end of lease charges for over budget kilometres and vehicle wear-and-tear.
There is a better way.
By using an independent Fleet Management Organisation (FMO) you can build long-term and valued relationships with your vehicle financiers, have bargaining power in your lease negotiations, as well as benefit from consistent fleet management services and software solutions.
As an independent FMO, clients can trust Fleetwise to provide impartial advice focused on their best interests. When it comes to vehicle leasing, Fleetwise does not derive income from funding vehicles, making it well placed to work with your chosen finance partner(s) and well aligned to your organisation’s goals.
It’s simple. Fleetwise's job is to help minimise your monthly rental on lease vehicles, whereas your vehicle lease company is focused on maximising your lease costs, their core business revenue.
Why Use an Independent Fleet Management?
An independent FMO provides consistent fleet management services across the entire fleet regardless of whether clients prefer to own, lease, or have a mixed ownership model. Because there is no conflict, an independent FMO can work with leasing companies to consolidate information, request quotes and help clients evaluate leasing options.
Consolidation of information is particularly useful where clients have multiple financiers. Working with multiple financiers can be difficult because of different contact points, processes, service levels and fleet data. Because conflict exists between the two competing companies, consolidation is left to the client who has to grapple with pulling together multiple sets of fleet and lease information, as well as educating drivers about different contact points depending on the vehicle they are driving.
As an independent FMO, Fleetwise consolidates information and provides a consistent services and solutions for your organisation and drivers. Importantly, you have the flexibility to finance vehicles through multiple partners without disruption to the day-to-day operation of your fleet.
Why having Vehicle Finance Flexibility is Important
Whether you are considering leasing now or in the future, having a fleet management approach which ensures competitive lease pricing on an ongoing basis is critical to keep your fleet running costs to a minimum. Using an independent FMO and finance partner ensures that lease rates are determined objectively, free from internal biases, and conflicts of interest that might arise if both services are provided by the same company.
Splitting these functions also provides you with the flexibility to look outside your current finance arrangements, or work with multiple finance partners, which is important because lease pricing varies materially between companies due to various internal and external contributing factors. Some of these factors include timing relative to lease company volume performance targets, internal risk (number of vehicles of a particular model on their books), and concentration risk (timing of end of lease disposals of specific models into the market, potentially creating a market oversupply and consequential residual value loss).
By considering these factors and maintaining independence from funding agents, Fleetwise is able to provide leasing solutions that avoid the typical behaviour of pricing low to win business and then building in profit over time.
Improve the Efficiency of your Vehicle Finance with a NMOL
Using a Non Maintained Operating Lease (NMOL) as opposed to a Fully Maintained Operating Lease (FMOL) significantly improves transparency and provides additional opportunities for fleet cost savings. Under a NMOL, the provision of fleet management services and solutions are transferred from the lease company to the independent FMO, enabling a consistent management approach and giving the clients the flexibility to use a mix of finance approaches to fund their vehicle fleet.
The monthly amounts budgeted for maintenance, registration and fees in the FMOL are removed, resulting in a lower monthly rental under a NMOL. Clients then accrue for maintenance and registration costs in the same way as tyres and other fleet expenses. Fleetwise then pay and pass on the monthly costs in a consolidated invoice.
The key advantages of using a NMOL approach include:
- Cost efficiency - NMOLs allow clients to pay only for the maintenance actually incurred. This minimises your monthly lease costs and, additionally, means you no longer have to manage budgets and allowances embedded in your lease.
- Transparency - Maintenance costs are clear and are passed on at cost, avoiding hidden fees and ensuring that any savings generated are for the sole benefit of the client. Additionally, any mid lease km recalculations are easier to audit.
- Consistent Fleet Management - NMOLs provide uniform fleet management practices, simplifying oversight and reducing administrative burden.
How Fleetwise can Help
Fleetwise is New Zealand's leading independent FMO. Since 1995, we have been providing our clients with market leading fleet management services and software solutions, whilst supporting clients implement the most efficient vehicle leasing arrangements, including:
- Seamless Renewals - helping clients with renewal quotes in advance, ensuring competitive pricing and avoiding last-minute surprises.
- Comprehensive Reporting – providing clients with access to a consolidated lease dashboard to monitor all lease contracts and track costs, minimising risks of excess kilometre charges and other penalties.
- Flexibility and Control – helping clients maintain flexibility in lease arrangements to adapt to their changing business needs.
Want to find out more about how the Fleetwise team can support your fleet journey? Be sure to reach out to our Sales Team today.