Here are some things we have picked up over the last few years while
doing lease return inspections.
Here is a good idea! Why not negotiate the purchase price of your cars at the start of the lease(or now), this way, if your drivers know they can buy the car at CAPS book price for an average car, they will know that if they keep it in immaculate condition, they will be buying themselves a bargain,maybe they mite pass it on to father-in-law.
Offering Incentives
One national company we know of inspects it's
drivers cars every year and the drivers get a bonus (at around Christmas
time) if the cars are in good condition. One driver had a smart repair
done with us at a cost to him of £99inc, he then valeted the
van himself and received a company bonus of £271.
No doubt these bonuses are paid for by the savings the company makes
because it's vehicles are always returned in a good condition. It
works all ways around because the driver has an incentive to look
after his vehicle throughout the year, and the good looking van is
representing the company's image being sign written.
If your drivers are leasing their cars through your company, or contributing
in any way at all, we recommend that you charge them more, giving the
money back in bonuses rather than penalizing them at the end of contract.
This makes the glass half full rather than half empty for your employees.
With some cars incurring penalties for excessive wear and tear for
as much as £2000, if drivers are responsible, it may be as well
to offer a scheme where drivers pay into fund which can cover these
kinds of cases. You may think that anybody who incurs two thousand
pounds worth of damage deserves everything they get... but some people
do live where they have to park on busy streets, near schools or where
lots of people are passing by... or their work may mean they have to
visit these kinds of areas. It is usually the little knock, dents,
dings and scratches that mount up and can't be claimed on insurance.
No Claims Bonus
Drivers that are on the company insurance will often ask you for
a letter that demonstrates that they have had no (or few) accidents
so that they can get cheaper insurance on their second car. One
company we know had their insurance company write annually to all
their drivers with a statement of their no-claims. It is in the
insurance company's interest to offer your drivers deals on policies.
In turn it will be in your driver's interest not to make claims!
Managing drivers
Most companies are now passing the responsibility for the lease cars
onto the drivers. They may give them a Fair Wear and Tear guide,
tell them to adhere to it, and let them deal with the business of
lease return at the end of contract. Other companies are just picking
up the bill for lease return.
We don't think that either solution is ideal because both have their
problems.
The problem with picking up the bill is obvious... it costs you a
lot of money, especially as drivers have no carrot or stick to ensure
they look after vehicles.
Passing the responsibility on to drivers also has a drawback because
you can't suddenly learn the business of lease return at the end of a
lease, properly inspect the vehicle, arrange for repairs to be carried
out efficiently, properly and cost effectively, so what happens is
that they return cars and incur penalties. This can lead to high costs
for your employees who then get upset with you. These are the very people
you rely on to earn your company money.
Furthermore, the lease company
is not getting cars returned in the condition they would like, and they
are having to deal with your angry employees... which will hardly make
them inclined to give you good deals next time around. One lease company
we know has to deal with forty disputes per week from disgruntled drivers
- these are time consuming and costly. Another lease company we know
sacked a large organization because of the arguments about fair wear
and tear.
The only solution to this problem is to make drivers responsible
for their leased car, but to help them to do this. For the most part,
this help comes in the form of education on how to care for their cars
from the moment you hand over the keys.
The good thing about this is that most of the education can be done in
written form, so you only have to do it once, its just a matter of pointing
your employees to the information.
Even then some people will need a little help with the return process,
so it is useful to have a list of recommended companies in your area
where they can take their cars for professional help.
Excess Mileage Recharges
Lease companies make more recharges for excess mileage than they do
for excess wear and tear... for the company being charged they often
loose at both ends, while as part of their fleet is being charged
for going over the mileage allowance, the other part is coming in
well under, which in effect means you are paying for mileage that
you aren't using.
The best solution to this problem
is to keep careful track of your cars mileage and renegotiate if possible,
otherwise you can pool cars, swapping those with the highest mileage
for those with lowest halfway through the contract period. We realize
that having your drivers swap cars is not the easiest thing to do if
they are responsible for any damage, which is where we can be of assistance...
Driver-to-driver exchanges
To avoid one driver passing damage (as well as mileage) onto another
driver, we recommend treating any driver-to-driver exchange as if
it were a lease return, ensuring that each car is passed onto it's
new driver in an acceptable condition.
