Vehicle preparation, return to lease and disposal
This issue now represents a significant cost for those fleets using contract hire. Total Motion has extended its vehicle preparation service to help minimise refurbishment costs at the end of a contract.
Before being returned, 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 concerning vehicle wear mean that more than 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 clients incurring this charge, we have established within our vehicle preparation centre a team which solely deals with the return of vehicles to the appropriate leasing provider.
The team has the latest equipment to carry out all types of repair and has electronic access to the fair wear and tear guides from all the leasing suppliers.
When a vehicle is inspected, our team members know exactly what is required to pass the end of life inspection.
Once it is known what work needs to be carried out, the team then chooses 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 exercise during the past 12 months have demonstrated that:
- 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 your costs and provide transparency on driver attitudes and actions. This data can also be used as part of any road risk or training programme.
Total Motion has an advanced disposal system consisting of our own vehicle retail site, trade buyer network, auctions and employee sales, to maximise returns.
Once a vehicle is deemed due for replacement, it is assessed by our disposals’ team to decide the most effective disposal route, considering its age, mileage, condition, history and current market conditions.
If the vehicle is not going to be sold to an employee then the vehicle is collected and prepared for disposal through our fully equipped facility.
During the past two years we have achieved between 115%-150% of CAP Clean – the industry’s independent condition and valuation benchmark – returning our clients in excess of 20% more than they would have got with alternative solutions/providers.