So says Interactive Fleet Management, part of The Grosvenor Group, which warns that in the current market suppliers are targeting fleets with loss-leading prices that are unsustainable and will inevitably increase.

Operations director Jayne Pett said that many fleets use a basket of vehicles to benchmark prices across a number of companies based upon a fixed term and mileage. While this is a sensible approach, there can be problems further down the line.

'Once that initial review is completed, and a contract hire supplier appointed, it is rare for those precise vehicles on those actual periods and mileages to be ordered. After all, drivers cover different mileages, manufacturers bring out new or upgraded vehicles and the whole basis for that original price comparison moves quite quickly.

‘At this point, price increases can go undetected unless you continue to benchmark based upon the vehicles you are actually ordering. However many fleet operators don’t continue to benchmark regularly enough because of the level of administration and overall hassle-factor.’

The firm says that multi-bid contract hire solves this problem because it not only provides ongoing price comparisons on an order-by-order basis, it also means companies enjoy the full benefits of multi-supply and the peace of mind that prices are not rising. And because this is all managed on their behalf, they also gain from the simplicity of a single point of contact.

‘Multi bid contract hire is on the up,’ said Petts, ’because it’s a service that ticks all the boxes with many fleets because they benefit from having their fleet managed by a single supplier, but they also enjoy the financial rewards of gaining the best prices on a day to day basis across a range of high-quality contract hire providers.’