Fleet Management Europe Market Intelligence

*This report was last updated in Q4 2018. Please click on request customization if you are looking for an updated version of this report

Report Coverage

  • Market Overview and Preferred Acquisition Model
  • Pricing Model
  • Savings/Benefits of Consolidating OEMs
  • Key Negotiation Levers with OEMs

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Regional Market Outlook on Fleet Management in Europe

Organizations can lease vehicles in Western Europe, which is highly mature. They can evaluate the feasibility to adopt AFVs as most of the European countries have proposed fossil fuel vehicle ban in the near future

Large organizations lease vehicles in Western Europe. In Eastern Europe, preferred sourcing model varies by country. Reducing CO2 emission remains their primary focus in Nordic countries

Market Overview

  • Western Europe is a highly mature market with most of the global service providers providing end to end fleet management solutions
  • Eastern Europe comprises of both medium and low mature markets
  • Operational lease is the preferred fleet acquisition
  • Organizations are focusing on reducing CO2 emission by adopting alternative fuel vehicles
  • Countries like France, Norway, Germany are planning to ban diesel vehicles by 2025.
  • Organizations have started adopting alternative mobility solutions instead of company car fleet

Key Trends: Europe

Large global organizations are centralizing their fleet sourcing and management for having a better visibility over spend and increasing their efficiency

Data management and reporting , risk and safety will enhance the driver behavior and reduces the occurrence of accidents

Key Market Trends: Europe

Risk and Safety (vehicle, driver) 

  • Focus on creating and implementing vehicle safety measures, such as driver-assisted features (lane change, auto braking, rear cameras)
  • Driver related programs, such as driver training, mobile device usage restrictions, safety violation penalties, good driving behavior incentives, etc.

Data Management and Reporting

  • Increased use of data and analytics for vehicle usage/monitoring, driving patterns, maintenance diagnostics, Motor Vehicle Records (MVR), etc.


  • Adherence to scheduled and preventive maintenance programs for all vehicles, extended warranty purchase, full- service programs , and accident management services and replacement vehicle

Centralaization of Fleet Sourcing and Management

  • Large global organizations are looking at centralizing their fleet sourcing and management at a global level
  • It provides better consistency, visibility into the spend, enables better management and achievement of strategic focus

Cost Saving Opportunities and Negotiation Levers–LCs

Large global organization can negotiate on maintenance mark-ups. If they adopt open-ended lease model with gain sharing, they can negotiate to share 50 percent of the profit with them and wave off the mark-up on maintenance contracts.

In a leasing negotiation, if the buyer negotiates on reducing the management fees, suppliers typically increase their mark-up on interest to retain their profit. Hence, it is effective to negotiate on the mark-up on maintenance and discounts on value added services.

Negotiation Levers

Gain Sharing

  • In open-end leases, the LC agrees to pay a portion of its profits earned on resale of the leased vehicles to the lessee
  • If there is a gain share agreement, organizations can make 10 percent savings
  • All hidden costs can be negotiated during contract as supplier will be willing to disclose maintenance fees and interest mark-up
  • Gain sharing model is recommended in Europe as market risk is low in European countries

Deferment of Lease Rental Payments

  • For open-end lease contracts, organizations should bargain on ease of lease rental payments. i.e., in case of delayed payment for lease installment, they should not be charged of any excessive interest over and above the contracted terms
  • For close-end lease contracts, they should negotiate on the penalty charges applicable for delayed payments

Value-add Services

  • Negotiate for complimentary telematics devices and negotiate for GPS, RFID and smartphone enabled vehicles with existing lease rental payments and at no extra cost
  • Negotiate for complimentary driver training sessions, and different upgrades for the cars that are leased
  • Extended Warranty: For open-end lease contracts, in addition to the manufactures warranty the lessee should negotiate for extended warranty (bumper-to-bumper warranty)

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