A significant cost for the company
At the end of a long-term lease, return fees represent a variable expense. At the end of the contract, they increase the Total Cost of Ownership (TCO) by 3% to 6%, ranging from €600 to €900 (Dekra estimate). SesamLLD, the trade association for long-term leasing companies, estimates that these unpredictable fees affect 95% of the 300,000 vehicles inspected each year, and that on average, nine damages are noted per vehicle. These substantial return fees are the primary source of complaints against leasing companies (OVE), embodying an ongoing battle between protests against inflated repair costs and reports of damage to the vehicle.
To resolve differing perceptions, rental companies have established a "standard return condition" that describes normal wear and tear on a vehicle based on its driving patterns and sets the limits of what is acceptable to the rental companies. This document from SesamLLD specifies, among other things, that the size of a €1 coin defines the size of acceptable dents and scratches on the bodywork; that scratches on the bumper must not exceed 5 cm, those on the rearview mirror 3 cm; and that the tire tread depth must not be less than 5 mm.
This standardization formalizes the possibility of charging the customer for even the slightest deviation. In return, rental companies have implemented deductibles spread over the entire duration of the rental agreement. The customer then finances, in installments, the risk of returning a vehicle in abnormal condition. While reassuring, this system will not cover the cost of the depreciation the user generates on their vehicle.
Helpful tips to avoid costs
Pay particular attention to classic examples of high return fees such as:
Bald tires, cracked windshields, scratched rims, missing hubcaps, peeling paint, missing spare keys, torn seats, dented bodywork, etc. Physical, aesthetic and above all visible damage, these damages can be repaired beforehand, and the costs of returning the vehicle anticipated.
The reduction in return costs is spread over the entire duration of the contract . From the outset, when choosing the financing option, it's essential to objectively consider how your business will affect vehicle usage. For example, purchasing a vehicle might be more advantageous for commercial vehicles used on construction sites. Furthermore, a regularly maintained vehicle will cost less than a final repair bill. The company could, for instance, ask each employee to send an annual photo of their vehicle and commit to carrying out any necessary repairs. Through proactive communication and a system of monetary (or non-monetary) rewards that motivate drivers to maintain their vehicles, this approach will encourage employees to be more involved in keeping them in good overall condition.
The FATEC solution: JUST REPAIR
To support businesses in this approach, FATEC has implemented a "Just Repair" service. Like a "doctor of minor repairs," Just Repair focuses on fixing basic bodywork damage not covered by insurance. Scratches, broken mirrors, scrapes against parking lot walls, 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 and return a vehicle in better condition.
PROCESS FOR OPTIMIZING REFURBISHMENT COSTS
The second part of this service involves a meticulous check of the consistency of the return documents . Even well-maintained vehicles can still be subject to return charges that are sometimes unjustified due to estimation errors or oversights. FATEC's technical team will then compare three documents: the return report, the post-return inspection report, and the rental company's invoice, which takes into account the deductible and depreciation, and verify that all elements are consistent.
The experts meticulously examine everything. Are the depreciation clauses, smart repair package, and depreciation schedule stipulated in the contract consistently applied? Do the billed hours for labor, straightening, and painting correspond to the manufacturer's rates? Are the elements acceptable for the standard condition upon return properly documented (with supporting photos)? Are the items on the invoice exactly the same as those recorded on the return report? By tracking down all errors in the return process, the counter-expertise can reduce the initial invoice by up to 40%. A factual and detailed report is then provided to the client to enable them to file a claim and negotiate with the leasing company.
Finally, when the vehicle is visibly damaged, repairs can be anticipated by scheduling a pre-return inspection a few months before the end of the contract. By sending photos of their vehicle to FATEC experts, the driver will be directed to approved body shops, which will use recycled parts if any components are repairable. In this case, the customer minimizes the risk of being overcharged during the return process and returns their vehicle in better condition.
“Our key words are control and advice. We check all expert estimates to provide the customer with a fair opinion on the return of their vehicle ” comments Jérémy Olinger, return expert at FATEC Group.
