BestCar is an online vehicle sourcing tool from OptiFleet designed to simplify the vehicle buying process for New Zealand businesses.
It is the only tool of its kind in New Zealand, allowing businesses to engage with dealers and distributors nationwide.
BestCar allows your business to have total transparency of the procurement process and receive a comprehensive, best practice
sourcing service in a fraction on the time it would normally take.
BestCar captures your fleet fit for purpose requirements and allows the dealers and distributors to bid competitively.
BestCar captures the total cost of ownership and factors such as safety and sustainability relating to the vehicles
throughout their lifetime allowing your business to make an informed decision in a timely manner.
OptiFleet is New Zealand's leading fleet lifecycle management consultancy. OptiFleet offers world-class solutions to help New Zealand businesses, big and small, get their vehicle fleets moving in the best direction for their business.
The BestCar procurement process is a six-step process from set-up to sign-off as follows:
1. We gather your requirements
BestCar gathers your business fleet requirements, such as driver specifications, finance requirements, tax and depreciation rates, ownership and lease options, aftermarket accessories, order timing, delivery timing and location. Redundant vehicles can also be considered for trade-in or disposal.
2. Review your opportunity
A draft sourcing opportunity is created and sent to you for review. Once agreed, your business approves the opportunity and agrees to the BestCar terms and conditions.
3. Opportunity live
BestCar releases the opportunity to the dealers and distributors and they have full access to review and respond. BestCar is effectively a closed tender box and supplier pricing is not visible until the opportunity expires.
4. Bid Analysis
The total cost of ownership is calculated for each vehicle class, using the competitive pricing provided by the dealer or distributor. The bid data is collated and sent to you.
5. Order Review
This is the time to check or change your fleet requirements if needed. Dealers or distributors are shortlisted in this phase and best and final pricing is sought prior to you placing your order. Your business may test drive vehicles during this time. You review and accept the bid.
6. Order Sent
The order is finalised and a copy is sent to the successful dealer or distributor. You will get notified that your order has been sent.
Choosing the right vehicle for your fleet comes down to more than just purchase price. Looking at the total cost of ownership could make a big difference to your bottom line and your carbon footprint. This tool makes it easy for you to compare the cost of buying, running and on-selling new vehicles, whether they are electric, hybrid, petrol or diesel, and helps you decide which one is right for you.
TCO modelling encourages you to consider safety, sustainability, dealer support, warranties, and running costs when purchasing vehicles. A vehicle with a low purchase price may not have the lowest cost over life for many reasons including poor fuel economy, high service costs and insurance premiums and poor residual value.
OptiFleet powers BestCar’s total cost of ownership calculator. This calculator is publicly available on the EECA website.
The decision to lease or own can be difficult to assess if you don’t have access to the right information. Knowing the total cost of ownership versus the total cost of lease for each potential vehicle is critical, along with considering how you intend to use the vehicle.
Our lease vs ownership modelling is offered through OptiFleet and can advise you on the best option for your company. The following table provides some of the factors to weigh up when considering leasing vs ownership.
|
Ownership |
Leasing |
| Ownership |
The vehicle is owned by your business and you can decide how long to keep it.
You can depreciate the vehicle. There are tax costs and tax savings associated with FBT, the asset, running cost and the finance and interest charges |
The vehicle is your responsibility but you don't own it. You have full use but must return it at the end of the lease. You do not have the right to buy it at the end of the lease however the lease provider may choose to offer it to you at a cost nominated by them. The lease charges are viewed as an operational cost and therefore are subject to tax savings based on normal company tax laws. |
| Up-front costs |
The retail price less any supplier concessions, plus on road costs (typically initial registration, road user charges if diesel, and fuel), and any factory options or aftermarket accessories. You will be able to claim back GST. |
Lease payments are typically paid in arrears. All on road costs, including aftermarket accessories, should be included but could be charged with the first month’s instalment to reduce FBT exposure. |
| Monthly payments |
Loan payments typically include the entire purchase price of the vehicle, plus interest and other finance charges, taxes, and fees less the deposit. |
Lease payments can be lower than loan payments because you're paying only for the vehicle's depreciation during the lease term, plus interest charges (called rent charges), taxes, and fees. |
| Early termination |
You can sell or trade in your vehicle at any time. If necessary, money from the sale can be used to pay off any loan balance. You may incur some early termination costs associated with the loan. |
If you end the lease early, early-termination charges are typically 100% of the balance of the contract unless a lower value is negotiated with the supplier at the beginning of the contract. |
| Vehicle return |
You can sell the vehicle privately, via auction or trade it in. |
When you return the vehicle at the end of a lease, you will be expected to pay any end-of-lease refurbishments costs greater than the agreed wear and tear items. You may be charged for any service work not under taken throughout the life of the contract. |
| Residual value |
You can protect your investment by turning the vehicle over sooner and maintaining a higher residual value. |
The residual value is built into the lease and the effect is reflected in the monthly lease rate. |
| Distance travelled |
The lower the kilometres you travel, the greater the residual value and conversely the higher the kilometres you travel this will reduce the residual value. |
All fully operational leases are governed by time and distance.If you exceed the agreed terms you will most likely be penalised. |
| Excessive wear and tear |
You are not under contract for costs associated with end of life wear and tear, however the condition of your vehicle will have a dramatic effect on its residual value. It is recommended the vehicle should be presented with no visual panel damage, well-groomed interior, current compliance and a full service history to achieve maximum market value. |
You will be responsible for the condition of the vehicle and you will be expected to pay all costs to bring the vehicle into an acceptable state. |
| Modifications |
You can modify your vehicles as you choose however your choices may limit the residual value at the end of life. |
The lease provider will expect the vehicle to be returned in as new condition subject to fair wear and tear. All costs to return to its original condition will be met by you. |
OptiFleet is transforming how New Zealand businesses approach the purchase, operation and sale of their motor vehicles by bringing together the disciplines of best practice fleet management and procurement.
Economic
The organisation manages its fleet to optimise the lifecycle costs of each asset. Running costs for each asset are known. It has robust processes for supplier, contract and cost management and leverages current market intelligence in the sourcing and disposal of its assets. The fleet management model is cost effective for the fleet’s size and complexity.
Safe
The organisation’s vehicles are safe (appropriate weightings are given to NCAP rated vehicles when sourcing and old or unsafe vehicles are disposed of). It has comprehensive safe driving policies, undertakes accident and infringement analysis to reduce future risk and has a comprehensive programme for driver assessment and education.
Sustainable
The organisation’s vehicles are fuel-efficient (appropriate weightings are given to vehicles with good fuel economy and old or inefficient vehicles are disposed of). GPS technology is used to analyse shortest routes. Policies outline fuel-efficient driving techniques and drivers are instructed on these principles. Carbon footprint is actively managed.
Suitable
The organisation maintains fit for purpose specifications that accurately reflect business and user requirements, and these are provided to vehicle suppliers when sourcing. Fleet size and distribution is optimised. Sourcing, management and disposal practices appropriate to meet business requirements and fleet size and complexity, are in place.
Compliant
The organisation complies with all relevant laws and regulations relating to its fleet. Vehicle registrations, WoFs, COFs and RUCs are renewed prior to their expiry. Drivers are conversant with the motor vehicle policy; non-compliance issues are infrequent and managed. Vehicles are serviced in accordance with manufacturer specifications.
Reliable
The organisation adheres to industry recommended replacement cycles for vehicles and has an acceptable average fleet age. Warranties are valid for all vehicles. Vehicles are sourced with regard for known reliability statistics for the make and model. Full service records are maintained for each asset and unreliable vehicles exited from the fleet.
Transparent
The organisation uses fleet technology (such as GPS tracking and pool booking systems) to provide real-time visibility of asset performance, this information along with other fleet management data is used to produce regular fleet performance reports. Issues are anticipated and proactively managed. Exceptions are dealt with promptly.