For many fleet managers, multi-bidding is still the standard today. This means that before ordering the vehicle, certain key data are requested from several providers at the same time, and the offer with the best price is awarded the contract. Sounds very simple! But it’s not. At least not in its implementation. In order to carry out the procedure seriously and automatically, Excel tables with thousands of rows are required so that the Car Configurator also spits out the correct values for each model. These databases used to have to be updated every 6 to a maximum of 3 months. Complicated, but doable. Until now. Because current developments ensure that the usual multi-bidding system is disturbed – by these 5 factors:

1. The supply bottlenecks for the vehicles have created a seller’s market. Manufacturers consistently reduce discounts and subsidies, and parameters are constantly changing. What used to be valid when deciding on the vehicle sometimes no longer applies when the contract is concluded. The manufacturer and the state sometimes form an unholy alliance here: While one cannot deliver for months, the other lets the subsidy that you counted on expire. Here, too, you can say goodbye to the usual transparency.
2. Prices for vehicles are currently being increased almost monthly. Not only are the high prices themselves a challenge. But it is also getting increasingly difficult to provide the customer with a regular overview.
3. Wholesale contracts with all benefits will be terminated. The usual planning security has suddenly disappeared. It seems as if years of customer relationships no longer apply to some suppliers. So you have to approach every negotiation like a new customer.
4. Interest and residual values are regularly adjusted on the lessor’s side. The fact that the leasing rate specified in multi-bidding is still valid when the contract is activated can therefore rarely be expected at the moment. This new reality makes customer- friendly multi-bidding very difficult and reduces the required predictability.
5. Car policy regulations, which often specify reference rates, are also no longer as easy to implement as in the past. One example: If a VW Passat is chosen for an employee in the company car level of up to €600 in January, you may have to cancel it for that same employee in March because of a price increase. A company using company cars to motivate its employees can see the opposite occur: Demotivation.

Conclusion: It’s not getting any easier to carry out customer-friendly multi-bidding with binding results. While fleet managers used to plan for the long term and rely on certain experiences and agreements, the industry now has to learn to drive by sight. Long-term oriented, regulated multi-bidding must be restructured. So, flexibility replaces the security that currently does not exist.

Compared to the previous process, this is much more complicated but feasible – yet unfortunately, it also causes more stress and costs. Although this puts multi-bidding in good company with fleet management. There, as well, there isn’t much that will become more relaxed and cheaper in the foreseeable future. At least if you aren’t willing to give up the old ways and make a change. Our tip: Be brave. Break new ground. Crises always offer opportunities. We will be happy to advise you.