A substantial cost for the company
At the end of a long-term lease contract, the costs of return represent an item of expenditure that can be highly variable.At the end of the contract, they increase the TCO by 3 – 6% by oscillating between €600 and €900 (Dekra estimate). SesamLLD, the long-term leasing association, estimates that these unpredictable costs affect 95% of the 300,000 vehicles reviewed annually, and that an average of 9 damages are noted per vehicle. Colossal, return costs are the primary source of complaint to the rental companies (OVE), embodying a never-ending battle between protesting against overestimated repair costs and denunciation of damage to the vehicle.
To arbitrate on differences in perception, the lessors have
established a “standard return condition” which describes the normal wear and tear on a vehicle in accordance with its annual mileage rules and which sets the limit of the acceptable to the lessors.
This SesamLLD document describes, among other things, that the size of a €1 coin delimits the size of acceptable holes and dents on the bodywork; that the scratches on the bumper must not exceed 5cm, those on the mirror should not exceed 3cm; and that the tread depth of the tyres should not be less than 5mm.
This standardisation confirms the possibility of invoicing the customer for the slightest discrepancy.
In return, the lessors have set up allowances spread over the entire duration of the lease. The client then finances, in instalments, the risk of returning an abnormally damaged vehicle. Although reassuring, this system will not be able pay the price of the devaluation that the user generates on his vehicle.
Useful tips for avoiding costs
Pay particular attention to the true classics of expensive return fees such as: smooth tyres, cracked windscreens, scratched rims, lost hubcaps, chipped paintwork, missing duplicate keys, holes in seats, dented bodywork, etc. Physical, aesthetic and above all visible, this damage can be repaired beforehand, and return costs anticipated and avoided.
Reducing the cost of return is spread over the entire duration of the contract . When choosing the type of financing, it is important to look
objectively at the impact that is likely to have on the use of the vehicle.
For example, the purchase option may be more advantageous for commercial vehicles on construction sites.
On the other hand, a regularly maintained vehicle will cost less than a final repair bill. The company can, for example, ask each employee to send in a photo of his or her vehicle annually and to commit to making the necessary repairs. Proactive communication and a system of monetary (or non-monetary) rewards challenging drivers on vehicle maintenance, can motivate employees to get involved in maintaining their vehicle in good overall condition.
The FATEC solution: JUST REPAIR
To support companies in this process, FATEC has set up a “Just Repair” service.
As a “Doctor in Bobology ”, Just Repair is a service that focuses on repairing minor damage to bodywork that is not covered by insurance.
A scratch, a broken rear-view mirror, rubbing against a parking wall, etc.: There are as many opportunities to cause damage without an identified third party as there are chances of being billed at the end of the contract. Regular maintenance will spread out repair costs as damage occurs over time and keep a vehicle in better condition.
PROCESS FOR OPTIMISING RETURN COSTS
The second part of this service consists of meticulous control over the consistency of return documents. Vehicles, even when maintained, may still be subject to sometimes unjustified return costs due to errors in estimation or inattention. The experts in FATEC’s technical support centre will then reconcile 3 documents: the return certificate, the post-return expert’s report and the invoice from the lessor, taking into account any damage and the age of the vehicle, and check that all the elements are in agreement.
The experts go through everything with a fine-tooth comb.
Are the abatement, smart repair package and obsolescence grid clauses stipulated in the contract applied systematically?
Do the times charged for labour, straightening and paint correspond to the manufacturers’ scales? Are the admissible elements of the standard return condition respected (supporting photos)? Are the items on the invoice are they exactly the same as the items noted on the return report?
By hunting down all
the errors in the return process, the counter-assessment can reduce
the initial invoice by up to 40%.
A factual and detailed report is then provided to the client for allow them to lodge a complaint and negotiate with of the lessor.
Finally, when the vehicle is visibly damaged, repairs
can be anticipated by making a pre-return visit {15}a few months before the end of contract.
After sending photos of their vehicle to the experts at FATEC, the driver will be directed to an approved body repair workshop, which will use reusable parts in the case of repairable elements.
In this way, the client minimises the risk of being overcharged during the return procedure and returns the vehicle in better condition.
“Our watchwords are check and advise.
We check all the experts’ estimates, and provide the client with fair opinion on the return of their vehicle“, comments Jérémy Olinger, returns adviser at FATEC Group.
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