Vehicle Preparation & Disposal.
This issue now represents a significant cost for fleets who use contract hire. Total Motion have extended our vehicle preparation service to help minimise refurbishment costs at the end of a contract.
Prior to their return all vehicles go to the Total Motion Vehicle Preparation Centre where they are prepared for inspection and collection by the leasing provider, saving our clients around 30% per vehicle.
The changes introduced by the contract hire industry around vehicle wear means that over 93% of vehicles being returned generate an end of life charge.
The reasons for this are:
- Missing keys or handbooks.
- Maintenance failure.
- Damage or neglect.
To avoid this we have established within our vehicle preparation centre a team who solely deal with the return of vehicles to the appropriate leasing provider.
The team is equipped with the latest equipment to carry out all types of repair and have electronic access to the fair wear and tear guides from all the leasing suppliers. When a vehicle is inspected they know exactly what is required to pass the end of life inspection. Once the work required has been established the team choose the lowest cost option for the client.
To ensure the performance of this system we select a basket of vehicles each quarter which are assessed by the team and then returned to the provider without any work being done. This allows us to check the accuracy and interpretation of our inspections and to check the rates charged by the providers. Clients are asked to volunteer vehicles to be chosen.
The results of this during the last 12 months demonstrate:
Our inspections were 99.4% accurate.
Our costs were 46.3% lower than the lease provider’s costs.
The largest variance was 66.4%.
Using the End of Life process will reduce costs and provide transparency on driver attitudes and actions. This data can also be used as part of any road risk or training program.
Total Motion have an advanced disposal system comprising of our own vehicle retail site, trade buyer network, auctions and employee sales, to maximise returns.
In practice once a vehicle is deemed due for replacement it is assessed by our disposals team to decide the most effective disposal route considering:
- Current market conditions.
If the vehicle is not going to be sold to an employee then the vehicle is collected and prepared through our fully equipped facility.
During the last 2 years we have achieved between 130%-150% of CAP clean, returning our clients over 20% more than the alternative solutions/providers.