DMN identifies five costly end-of-contract mistakes
DMN has identified five of the most common end-of-contract mistakes that are costing fleet operators money on hand back.
It says the first is that drivers typically put the spare key in a ‘safe place’ never to be seen again. DMN warns that missing spare key can incur a charge from £250 upwards.
It also says that end-of-life inspections are now being aborted due to the car not being clean. A charge of £45 is commonplace. Ensure that the car is presented in a clean condition.
DMN has also urged fleet operators to ensure the service book is in the car and up to date and the dealer stamp is in place prior to any inspection.
Furthermore, an increasing numbers of cars now include a tyre inflation kit rather than a spare wheel. If it used or missing and not replaced, they face a charge of up to £120 for a full kit including the compressor.
Meanwhile, refitting the parcel shelf can cost upwards of £100 on hand-back.
Nick Chadaway, managing director of DMN, said: “These five key areas are nothing revolutionary yet continue to plague fleet operators with unnecessary hassle and costly end of contract outlays.
“With a little bit of foresight, and some simple processes in place, these leakages can soon be plugged and, ultimately, will save businesses vast sums of money and alleviate individual driver stress.’
DMN is advising fleet operators that one of the first areas to update is the company car driver handbook and highlight the five basic cost leakage points as those requiring ongoing consideration throughout the life of the vehicle.
On top of this, DMN is recommending fleets introduce a pre- end of contract inspection to help control hand-back costs.
Chadaway added: “An inspection, about two months out from end of contract gives the fleet operator additional insight as to any potential additional costs but also allows time to make an informed decision on the necessary course of action, and to ensure they have the usual suspects covered off.
“With replacement cycles continuing to lengthen, averaging from 37 to 42 months depending on sources, these type of end of lease challenges are only set to get increasingly complex for fleet operators so implementing change now will start to stem the flow for the future.”
