Telematics could cut costs of courtesy cars
Technology could reduce the duration of courtesy car loans by 25% on average.
This is according to research carried out by accident aftercare and vehicle management technology provider AX.
The research revealed that drivers given courtesy loan cars typically returned vehicles half a day sooner when telematics was installed alongside the use of it’s real-time loan car management system.
The trend was seen across large dealer groups and individual retailers, and in every case resulted in improved utilisation of vehicle fleets, allowing dealerships to either increase the maximum number of courtesy loans – to increase revenue – or reduce the number of courtesy cars on their books to minimise costs.
Vince Powell, managing director of AX Innovation, said: “This new study reveals some genuinely intriguing and helpful insight which should help dealers evaluate their courtesy car strategy. Combining telematics with day-to-day vehicle management tools clearly impacts loan periods, and the effect is quite powerful.
“When customers know there’s telematics on board, they tend to return cars half a day sooner. It seems that the subtle psychological shift means they only keep a car for as long as it’s required.
“Ultimately it is good for them because of the added safety and security, but also an opportunity for dealers to reconsider vehicle deployment.
“While telematics reduces courtesy car loan duration, we suggest using it in the opposite way to support sales with extended test drives. The insight generated from a test drive helps the sales team ensure the customer is buying the right car for them, improving trust and helping turn strong leads into sales.”
