Best Practice - Circle Leasing. Courtesy car leasing company · 2020. 8. 26. · Front brakes...

11
Best Practice A guide to best practice for your courtesy car fleet

Transcript of Best Practice - Circle Leasing. Courtesy car leasing company · 2020. 8. 26. · Front brakes...

Page 1: Best Practice - Circle Leasing. Courtesy car leasing company · 2020. 8. 26. · Front brakes £2.80 £67.31 Breakdown £3.13 £75.00 Typical additional costs £16.58 £397.87 Assess

Best PracticeA guide to best practice for your courtesy car fleet

Page 2: Best Practice - Circle Leasing. Courtesy car leasing company · 2020. 8. 26. · Front brakes £2.80 £67.31 Breakdown £3.13 £75.00 Typical additional costs £16.58 £397.87 Assess

Danny Harris FIMIFleet & Facilities Manager

Welcome to Circle Leasing’s Courtesy Car Best Practice Guide.As part of our commitment to help bodyshops save cost, we commissioned industry expert

to put together the industry’s most e rtesy

The Guide aims to provide you with cost-saving advice and helpful hints on every aspect of courtesy car management, covering delivery,

penalties through to preparing for end-of-contract.

Each section includes advice based on our extensive experience of supplying courtesy cars.

All the best.

ASSESS THE NEED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

O Before anything else O Assess the cost O Leasing - choosing the right contract lengthO Assess the suppliers O Assess the contract

TAKING DELIVERY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

O Do’s and dont’s

COURTESY CAR HANDOVER . . . . . . . . . . . . . . . . . . . 10

O Courtesy car policy O Documentation O Handover processO Checking the vehicle back in

MANAGING THE FLEET . . . . . . . . . . . . . . . . . . . . . . . . . 12

What you can do Useful information to help you manage

MANAGING FIXED PENALTIES . . . . . . . . . . . . . . . . . . 14

O Example of warning notice

PREPARING FOR END OF CONTRACT . . . . . . . . . . . 16

O What you can do O Why recharge? O Eliminate recharges

BEST OF THE WEB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

O Circle website We recommend you keep this guide in a safe place and refer to it often as it’s devised to save you time, money and a lot of hassle. And we’re always keen to share ideas, so please feel free to drop us a line to [email protected] with your favourite courtesy car management tips.

Introduction Contents

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handover, managing the �eet, managing �xed

IntroductionWelcome to Circle Leasing’sCourtesy Car Best PracticeGuide.As part of our commitment to help bodyshopssave cost, we commissioned industry expertRobert Hadfield to put together the industry’smost effective methods of managing a courtesycar fleet.

The Guide aims to provide you with cost-savingadvice and helpful hints on every aspect ofcourtesy car management, covering delivery,handover, managing the fleet, managing fixedpenalties through to preparing for end-of-contract.

Each section includes advice based on ourextensive experience of supplying courtesy cars.

All the best.

Danny Harris FIMIFleet & Facilities Manager

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ASSESS THE NEED . . . . . . . . . . . . . . . . . . . . . . . . . . 4

O Before anything else O Assess the cost O Leasing - choosing the right contract lengthO Assess the suppliers O Assess the contract

TAKING DELIVERY . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

O Do’s and dont’s

COURTESY CAR HANDOVER . . . . . . . . . . . . . . . . 10

O Courtesy car policy O Documentation O Handover processO

O

O

Checking the vehicle back in

MANAGING THE FLEET . . . . . . . . . . . . . . . . . . . . . . 12

What you can do Useful information to help you manage

MANAGING FIXED PENALTIES . . . . . . . . . . . . . . . 14

O Example of warning notice

PREPARING FOR END OF CONTRACT . . . . . . . . 16

O What you can do O Why recharge? O Eliminate recharges

BEST OF THE WEB . . . . . . . . . . . . . . . . . . . . . . . . . . 18

O Circle website

Contents

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Page 3: Best Practice - Circle Leasing. Courtesy car leasing company · 2020. 8. 26. · Front brakes £2.80 £67.31 Breakdown £3.13 £75.00 Typical additional costs £16.58 £397.87 Assess

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1 ASSESS THE NEED

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O

O

O

O

O

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O

O

O

“Your courtesy car fleet is a valuable business asset. Not only isit essential for bringing in insurance work, it also makes a majorcontribution to your company’s image.”Danny Harris FIMI, Fleet & Facilities Manager

Finding a reliable source of bodyshop courtesy cars is becoming more andmore difficult. Who do you turn to for objective advice? How many cars do you need? How much should you expect to pay? Are all contracts the same? Hereare the top tips to avoid being taken for a courtesy car ride…

1 ASSESS THE NEED

O

O

O

O

O

O

O

O

O

O

O

O

Before anything else

Talk to your work providers about thepotential number and value of jobsyou are likely to receive and be sure tofactor in potential monthly flucuationsin demand

Consider requirements for specialisedvehicles (eg. automatics, small vans)

Assess the duration and reliabilityof work provider contracts includingrenewal dates and notice periods

Look at your own historic patternsof work

Talk to your courtesy car supplier tosee if these trends are mirrored in otherbodyshops

Study market trends including claimsfrequency, insurer performance,insurers’ books and contract values

Make a realistic assessment of theanticipated frequency and duration ofloan periods

Research courtesy car vehiclemakes and models and specicationincluding anticipated customer profile,preference and demands

1 ASSESS THE NEED

O

O

O

O

O

O

O

O

O

O

O

O

1 ASSESS THE NEED

Finding a reliable source of bodyshop courtesy cars is becoming more and

need? How much should you expect to pay? Are all contracts the same? Here are the top tips to avoid being taken for a courtesy car ride…

Before anything elseO Talk to your work providers about the

potential number and value of jobs you are likely to receive and be sure to

in demand

O Consider requirements for specialised vehicles (eg. automatics, small vans)

O Assess the duration and reliability of work provider contracts including renewal dates and notice periods

O Look at your own historic patterns of work

O Talk to your courtesy car supplier to see if these trends are mirrored in other bodyshops

O Study market trends including claims frequency, insurer performance, insurers’ books and contract values

O Make a realistic assessment of the anticipated frequency and duration of loan periods

O Research courtesy car vehicle

preference and demands

O

O

O

O

PROS CONSLeasing - known monthly costs, works out less expensive per day, no residual value risk, leaves capital to be invested in the core business, can be used as rental income

Leasing - refurbishment costs, tied into a

values

Rental

no residual value risks, no paperwork, no ongoing maintenance.

Rental - costly, handing over the customer to

branding, car may not be on-site

Purchasedisposal timing

Purchase - huge capital outlay, depreciating asset on balance sheet, residual value risk, time spent negotiating with manufacturers and dealers, time spent disposing of vehicles

4 5

“ Yit essential for bringing in insurance work, it also makes a major contribution to your company’s image.”Danny Harris FIMI, Fleet & Facilities Manager

REMEMBER:Keep an eye on market conditions. Work providers are constantly responding to new consumer demands and this can impact on the size

REMEMBER:Make time to do your homework properly.All courtesy car contracts are by no means the same.

1 ASSESS THE NEED

Finding a reliable source of bodyshop courtesy cars is becoming more and

need? How much should you expect to pay? Are all contracts the same? Here are the top tips to avoid being taken for a courtesy car ride…

Before anything elseO Talk to your work providers about the

potential number and value of jobs you are likely to receive and be sure to

in demand

O Consider requirements for specialised vehicles (eg. automatics, small vans)

O Assess the duration and reliability of work provider contracts including renewal dates and notice periods

O Look at your own historic patterns of work

O Talk to your courtesy car supplier to see if these trends are mirrored in other bodyshops

O Study market trends including claims frequency, insurer performance, insurers’ books and contract values

O Make a realistic assessment of the anticipated frequency and duration of loan periods

O Research courtesy car vehicle

preference and demands

Assess the cost - Leasing, rental or purchase?O There’s a world of di rence between

leasing, rental and purchase of courtesy

shop and how much administrative and

onboard…

O Consider value for money including any hidden charges, not least your own administration

O Look at market conditions (eg. depreciation costs, trends towards vehicle upgrades, light van schemes, increasing numbers of total losses)

O Check your work pr ovider contracts for

and condition of loan vehicle required, transfer of insurance cover, recovery of

taking deposits)

PROS CONSLeasing - known monthly costs, works out less expensive per day, no residual value risk, leaves capital to be invested in the core business, can be used as rental income

Leasing - refurbishment costs, tied into a

values

Rental

no residual value risks, no paperwork, no ongoing maintenance.

Rental - costly, handing over the customer to

branding, car may not be on-site

Purchasedisposal timing

Purchase - huge capital outlay, depreciating asset on balance sheet, residual value risk, time spent negotiating with manufacturers and dealers, time spent disposing of vehicles

4 5

“ Yit essential for bringing in insurance work, it also makes a major contribution to your company’s image.”Danny Harris FIMI, Fleet & Facilities Manager

REMEMBER:Keep an eye on market conditions. Work providers are constantly responding to new consumer demands and this can impact on the size

REMEMBER:Make time to do your homework properly.All courtesy car contracts are by no means the same.

factor in potential monthly �uctuations

makes and models and speci�cationincluding anticipated customer pro�le,

ability to o�er a wide variety of vehicles- complete �exibility in �eet size,

- total �eet control, �exibility on

contract, no bene�t from upturns in disposal

a third party (their service re�ects on you), no

cars. Much depends on the pro�le of your

�nancial risk you are prepared to take

any speci�c stipulations (eg. type, age,

damages/�nes from drivers, policies re

more di�cult. Who do you turn to for objective advice? How many cars do you

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Assess the cost - Leasing, rental or purchase?

PROS CONS

There’s a world of difference betweenleasing, rental and purchase of courtesycars. Much depends on the profile of yourshop and how much administrative andfinancial risk you are prepared to takeonboard…

Consider value for money includingany hidden charges, not least your ownadministration

Look at market conditions (eg.depreciation costs, trends towardsvehicle upgrades, light van schemes,increasing numbers of total losses)

Check your work provider contracts forany specific stipulations (eg. type, age,and condition of loan vehicle required,transfer of insurance cover, recovery ofdamages/fines from drivers, policies retaking deposits)

REMEMBER:Keep an eye on market conditions. Work providers are constantlyresponding to new consumer demands and this can impact on the sizeand make up of your courtesy car fleet.

Page 4: Best Practice - Circle Leasing. Courtesy car leasing company · 2020. 8. 26. · Front brakes £2.80 £67.31 Breakdown £3.13 £75.00 Typical additional costs £16.58 £397.87 Assess

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1 ASSESS THE NEED

O

O

O

O

O

O

O

O

O

O

O

O

O

O

O

O

1 ASSESS THE NEED

O

O

O

O

O

O

O

O

O

O

O

O

Leasing - choosing the right contract length

Counting the cost of 24-month contracts- projected expenditure on a courtesy carin its second year

1 ASSESS THE NEED

Leasing - choosing the right contract lengthIf you opt for leasing, make sure you fully understand the implication of contract length. Below is a table outlining the true costs of longer contracts.

O Lease contracts are usually 12, 18 or 24-months

O The longer the contract, the longer the price guarantee, however

O

market conditions

O Any contract length over 12-months may mean the vehicle isn’t covered by manufacturer’s roadside assistance. You will also need to replace tyres, brake pads, and the car will invariably require

O The older the car, the more abuse it will su r. This will impact on customer perception of your business and potential

Counting the cost of 24-month contracts - projected expenditure on a courtesy car in its second year

Item Average per month Typical cost

Service £7.01 £168.30

Tyres £3.64 £87.26

Front brakes £2.80 £67.31

Breakdown £3.13 £75.00

Typical additional costs £16.58 £397.87

Assess the suppliers There are a few highly professional leasing companies in the market specialising in bodyshop courtesy cars, but there are some suppliers that are short term opportunists. These companies take advantage of the vehicle manufacturer spot-supply market and therefore o

O Consider whether you want to use a Broker or a Funder. A Broker can operate on behalf of a number of

a consistent level of service. On the other hand, a Funder will have access to all

can pool vehicle mileages and advise on

O For consistency and r eliability of supply and terms, work with a supplier on a long-term basis in the same way you do with paint companies and distributors

O Talk to other bodyshops about their supplier experiences

O What is the supplier’s pedigree? How long have they been in the market and do they really understand what you need from a courtesy car supplier?

O Order cars well in advance of the date they’re needed in order to ensure you get the exact model, colour and quantity you require

O Choose a mainstream make and model of vehicle to ensure good in-life backup

O Read supplier contracts, and then r ead them again.

O Don’t assume all contracts are the same, even from the same supplier

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Assess the contract - beware the small printNot all contracts are the same. Always read the small print carefully. If necessary ask for professional interpretation to avoid being caught up in end of contract penalty charges…

O Calculate true whole life costs allowing for any penalties

O Make sure you’re comparing apples with apples when comparing cost - remember, the longer the contract, the

costs

O particularly:

– contract term (some suppliers tack on an additional month’s payment)

– collection and delivery charges – mileage limits and penalties – servicing requirements – refurbishment policy (remember, the

longer the contract term, the more the vehicle is subject to abuse and potential damage costs)

– back up for breakdown, theft, total

other o

“ the service they receive. We know we provide value for money and excellent service.”Sonia Casey, Funding/Contracts Manager

Check features and bene�ts

1 ASSESS THE NEED

O

O

O

O

O

O

O

O

O

O

O

O

O

O

O

O

“Some people only look at the price they pay which often reflectsthe service they receive. We know we provide value for money andexcellent service.”Sonia Casey, Funding/Contracts Manager

If you opt for leasing, make sure you fully understand the implication of contract length. Below is a table outlining the true costs of longer contracts.

Lease contracts are usually12, 18 or 24-months

The longer the contract, the longer theprice guarantee, however...

The longer the contract, the less flexibilityyou have to adjust fleet size to reflectmarket conditions

Any contract length over 12-monthsmay mean the vehicle isn’t covered bymanufacturer’s roadside assistance. Youwill also need to replace tyres, brakepads, and the car will invariably requireits first service

The older the car, the more abuse itwill suffer. This will impact on customerperception of your business and potentialrectification costs

1 ASSESS THE NEED

Leasing - choosing the right contract lengthIf you opt for leasing, make sure you fully understand the implication of contract length. Below is a table outlining the true costs of longer contracts.

O Lease contracts are usually 12, 18 or 24-months

O The longer the contract, the longer the price guarantee, however

O

market conditions

O Any contract length over 12-months may mean the vehicle isn’t covered by manufacturer’s roadside assistance. You will also need to replace tyres, brake pads, and the car will invariably require

O The older the car, the more abuse it will su r. This will impact on customer perception of your business and potential

Counting the cost of 24-month contracts - projected expenditure on a courtesy car in its second year

Item Average per month Typical cost

Service £7.01 £168.30

Tyres £3.64 £87.26

Front brakes £2.80 £67.31

Breakdown £3.13 £75.00

Typical additional costs £16.58 £397.87

Assess the suppliers There are a few highly professional leasing companies in the market specialising in bodyshop courtesy cars, but there are some suppliers that are short term opportunists. These companies take advantage of the vehicle manufacturer spot-supply market and therefore o

O Consider whether you want to use a Broker or a Funder. A Broker can operate on behalf of a number of

a consistent level of service. On the other hand, a Funder will have access to all

can pool vehicle mileages and advise on

O For consistency and r eliability of supply and terms, work with a supplier on a long-term basis in the same way you do with paint companies and distributors

O Talk to other bodyshops about their supplier experiences

O What is the supplier’s pedigree? How long have they been in the market and do they really understand what you need from a courtesy car supplier?

O Order cars well in advance of the date they’re needed in order to ensure you get the exact model, colour and quantity you require

O Choose a mainstream make and model of vehicle to ensure good in-life backup

O Read supplier contracts, and then r ead them again.

O Don’t assume all contracts are the same, even from the same supplier

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Assess the contract - beware the small printNot all contracts are the same. Always read the small print carefully. If necessary ask for professional interpretation to avoid being caught up in end of contract penalty charges…

O Calculate true whole life costs allowing for any penalties

O Make sure you’re comparing apples with apples when comparing cost - remember, the longer the contract, the

costs

O particularly:

– contract term (some suppliers tack on an additional month’s payment)

– collection and delivery charges – mileage limits and penalties – servicing requirements – refurbishment policy (remember, the

longer the contract term, the more the vehicle is subject to abuse and potential damage costs)

– back up for breakdown, theft, total

other o

“ the service they receive. We know we provide value for money and excellent service.”Sonia Casey, Funding/Contracts Manager

Check features and bene�ts

1 ASSESS THE NEED

O

O

O

O

O

O

O

O

O

O

O

O

O

O

O

O

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Assess the suppliers

There are a few highly professional leasing companies in the market specialising inbodyshop courtesy cars, but there are some suppliers that are short term opportunists.These companies take advantage of the vehicle manufacturer spot-supply market andtherefore offer inconsistent, poor quality service...

Consider whether you want to use a Broker or a Funder. A Broker can operate on behalf of a number of different suppliers but may find it difficult to answer queries and to provide a consistent level of service. On the other hand, a Funder will have access to all vehicle details, will underwrite your fleet, can pool vehicle mileages and advise on fleet management

For consistency and reliability of supplyand terms, work with a supplier on along-term basis in the same way youdo with paint companies and distributors

Talk to other bodyshops about theirsupplier experiences

What is the supplier’s pedigree? How longhave they been in the market and do theyreally understand what you need from acourtesy car supplier?

Order cars well in advance of the datethey’re needed in order to ensure you getthe exact model, colour and quantity yourequire

Choose a mainstream make and modelof vehicle to ensure good in-life backup

Read supplier contracts, and then readthem again

Don’t assume all contracts are the same,even from the same supplier

Assess the contract - beware the small print

Not all contracts are the same. Always read the small print carefully. If necessary ask forprofessional interpretation to avoid being caught up in end of contract penalty charges…

Calculate true whole life costs allowingfor any penalties

Make sure you’re comparing appleswith apples when comparing cost -remember, the longer the contract, themore likelihood of higher rectificationcosts

Check features and benefitsparticularly:- contract term (some suppliers tack on an additional month’s payment)- collection and delivery charges- mileage limits and penalties- servicing requirements- refurbishment policy (remember, the longer the contract term, the more the vehicle is subject to abuse and potential damage costs)- back up for breakdown, theft, total loss management, parking fines and other offences

Page 5: Best Practice - Circle Leasing. Courtesy car leasing company · 2020. 8. 26. · Front brakes £2.80 £67.31 Breakdown £3.13 £75.00 Typical additional costs £16.58 £397.87 Assess

2 TAKING DELIVERY

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“Always use decals/stickers thatcan be easily removed without damage to the car’s bodywork - use a non-permanent adhesive. When removing stickers, make sure all glue remnants are removed.”Danny Harris FIMI, Fleet & Facilities Manager

“ IIf you have a log in to our courtesy car management tool, MyFleet you can register all your vehicles on the MID utilising a readily available downloadable document.”Mark Williamson, Marketing Coordinator

“Place warning stickers and

to discourage misuse of the vehicle. Many of our customers use stickers to promote their no smoking and no pets policies.

make drivers think twice before committing indiscretions.”Danny Harris FIMI, Fleet & Facilities Manager

“ It’s excellent marketing practice to

extension of your corporate brand image. same make, model and colour with your logo, phone number and web address increases the recognition of your business within the local community, and demonstrates quality and professionalism. Many of our customers take advantage of the fact that we have vehicles in the long-term to create a

that ensures their courtesy cars are an excellent marketing tool.”Mark Williamson, Marketing Coordinator

O

O O

O

O

O

O O

O

O

O

O

O

2 TAKING DELIVERY

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“Always use decals/stickers thatcan be easily removed without damage to the car’s bodywork - use a non-permanent adhesive. When removing stickers, make sure all glue remnants are removed.”Danny Harris FIMI, Fleet & Facilities Manager

“ IIf you have a log in to our courtesy car management tool, MyFleet you can register all your vehicles on the MID utilising a readily available downloadable document.”Mark Williamson, Marketing Coordinator

“Place warning stickers and

to discourage misuse of the vehicle. Many of our customers use stickers to promote their no smoking and no pets policies.

make drivers think twice before committing indiscretions.”Danny Harris FIMI, Fleet & Facilities Manager

“ It’s excellent marketing practice to

extension of your corporate brand image. same make, model and colour with your logo, phone number and web address increases the recognition of your business within the local community, and demonstrates quality and professionalism. Many of our customers take advantage of the fact that we have vehicles in the long-term to create a

that ensures their courtesy cars are an excellent marketing tool.”Mark Williamson, Marketing Coordinator

O

O O

O

O

O

O O

O

O

O

O

O

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Do’s and Don’ts

The courtesy cars have arrived, they’re bound to be OK. Customers are queuingin reception so let’s get the show on the road… Not quite so fast or straightforward- a little time spent now can save an awful lot of cost and administration later. Hereare the top tips for preparing your courtesy cars for service…

REMEMBER:As with body repair work, sound preparation is the key to avoidingcostly mistakes!

Don’t book a car out to customers onthe scheduled day of delivery in caseof delays

Check every car on delivery- colour- number plate front and rear- bodywork

Point out any damage/defects tothe delivery driver and ensure theyare recorded on the supplier’sappraisal form

Contact the leasing company togain authority to rectify any defects

Remove, label and store all removableitems including- wheel trims (replace with a budget alternative)- spare keys- manuals/book packs

Tag and record the master key

Top up fuel

Make sure the cars are well presented- add cheap floor mats- add easily removable internal stickers (eg. no smoking, no pets sticker on the dashboard)

Pick a corporate identity and stick to it- ensure decals are of the easily removable type

Log vehicles onto the bodyshopmanagement system

Register cars on Motor InsuranceDatabase - http://www .midupdate.com

Check your motor trade policy -if applicable, ensure individualregistrations are covered

Get staff to understand servicerequirements and breakdownassistance packages

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Page 6: Best Practice - Circle Leasing. Courtesy car leasing company · 2020. 8. 26. · Front brakes £2.80 £67.31 Breakdown £3.13 £75.00 Typical additional costs £16.58 £397.87 Assess

3 C OU RTESY CAR H AND OVER

Skimp on courtesy car administration and your whole business is in danger of being seriously undermined. Here are the top tips to ensure your courtesy car administration (and customers) stays on the straight and narrow…

D ocumentation Have clear documentation including:O Customer’ s name and permanent address

(and address at time of hire if di rent)O Date of birthO Bodyshop job/reference numberO Courtesy vehicle make/model/registration/

colour (and any vehicle substituted during period of agreement)

O Bodyshop staf f check out and in, signatures dated and timed including any extension to the original period of agreement

O Written description of damage to the vehicle out and in supported by a vehicle diagram

O Mileage out and in, total mileage travelled and number of days out with an explanation of the excess mileage charges applicable

O Check boxes for spare wheels and tools, radio/CD player, wheel trims (if left on), roadworthiness, controls of vehicles explained

O Fuel level indicator out and inO Insurance company/policy number/broker

and excess detailsO Level of deposit taken and method of

paymentO Driving licence details including any

relevant motoring oO Acceptance by customer of terms of

loan including all damage to vehicle,

charges, motoring omileage/late return penalties

O Customer’s signature, out and in

Checking the vehicle back inSome tips to avoid being caught out by customers…

O Take extra care when vehicles are returned after dark or in bad weather

O It’s easy to fast-track checking procedures when busy but recovering

O Be wary of returned vehicles parked tight up to a wall or close to other vehicles. This tactic is often used to conceal damage

O Be suspicious of any request for changeovers to take place outside of normal hours

O Always have a responsible member of sta receive the keys and complete the handover process

O Reverse the hand-over process. Spend time looking round the vehicle inside and out, noting any damage

O Always get customers to sign for any damage or extra charges they are responsible for

O m if the customer disputes the damage and gets their insurer involved.

account!

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REMEMBER:A customer’s signature is vital to ensure the document is legally binding.

“Many of our customers take a credit card swipe so they can recharge any damage caused to the courtesy car. As long as you have a tight audit procedure and charge for damage as you go along, there should be no need for the courtesy car to

Danny Harris FIMI, Fleet & Facilities Manager

“ Use the Circle End of Contract Pricing Matrix to justify recharges to policyholders who damage your cars. It shows them how much it will cost you if you return the car with the damage they’ve caused.”Danny Harris FIMI, Fleet & Facilities Manager

Courtesy car policyHave a clear courtesy car policy and rules covering:

O Insurance

O Deposits

O Fuel - full out/in or empty out/in

O Mileage restrictions and excess mileage charges

O Late returns

O Conditions - no pets, no smoking

O Foreign travel

O Right to withhold the loan

H andover processO Allocate a reliable, experienced

procedure

O Take the customer to the vehicle

O Spend time showing them round the vehicle

O Reinforce rules and responsibilities

O Explain handling characteristics of the vehicle

O Explain breakdown procedure and provide contact numbers

O Demonstrate top up points for fuel, water

O Explain location of nearest fuel

member if sta� to carry out the

3 COURTESY CAR HAND OVER

O

O O O

O

O

O

O

O O

O

O

O

O

O

O

O

O

O

O

O

O

10 11

REMEMBER:A customer’s signature is vital to ensure the document is legally binding.

“Many of our customers take a credit card swipe so they can recharge any damage caused to the courtesy car. As long as you have a tight audit procedure and charge for damage as you go along, there should be no need for the courtesy car to

Danny Harris FIMI, Fleet & Facilities Manager

“ Use the Circle End of Contract Pricing Matrix to justify recharges to policyholders who damage your cars. It shows them how much it will cost you if you return the car with the damage they’ve caused.”Danny Harris FIMI, Fleet & Facilities Manager

3 COURTESY CAR HAND OVER

O

O O O

O

O

O

O

O O

O

O

O

O

O

O

O

O

O

O

O

O

10 11

REMEMBER:A customer’s signature is vital to ensure the document is legally binding.

“Many of our customers take a credit card swipe so they can recharge any damage caused to the courtesy car. As long as you have a tight audit procedure and charge for damage as you go along, there should be no need for the courtesy car to

Danny Harris FIMI, Fleet & Facilities Manager

“ Use the Circle End of Contract Pricing Matrix to justify recharges to policyholders who damage your cars. It shows them how much it will cost you if you return the car with the damage they’ve caused.”Danny Harris FIMI, Fleet & Facilities Manager

3 COURTESY CAR HAND OVER

O

O O O

O

O

O

O

O O

O

O

O

O

O

O

O

O

O

O

O

O

10 11

REMEMBER:A customer’s signature is vital to ensure the document is legally binding.

“Many of our customers take a credit card swipe so they can recharge any damage caused to the courtesy car. As long as you have a tight audit procedure and charge for damage as you go along, there should be no need for the courtesy car to

Danny Harris FIMI, Fleet & Facilities Manager

“ Use the Circle End of Contract Pricing Matrix to justify recharges to policyholders who damage your cars. It shows them how much it will cost you if you return the car with the damage they’ve caused.”Danny Harris FIMI, Fleet & Facilities Manager

10 11

Skimp on courtesy car administration and your whole business is in danger ofbeing seriously undermined. Here are the top tips to ensure your courtesy caradministration (and customers) stays on the straight and narrow…

Courtesy car policy Documentation Checking thevehicle back inHave clear documentation including:

Customer’s name and permanent address (and address at time of hire if different) Date of birth Bodyshop job/reference number Courtesy vehicle make/model/registration/ colour (and any vehicle substituted during period of agreement) Bodyshop staff check out and in, signatures dated and timed including any extension to the original period of agreement Written description of damage to the vehicle out and in supported by a vehicle diagram Mileage out and in, total mileage travelled and number of days out with an explanation of the excess mileage charges applicable Check boxes for spare wheels and tools, radio/CD player, wheel trims (if left on), roadworthiness, controls of vehicles explained Fuel level indicator out and in Insurance company/policy number/broker and excess details Level of deposit taken and method of payment Driving licence details including any relevant motoring offences Acceptance by customer of terms of loan including all damage to vehicle, responsibility for parking fines, congestion charges, motoring offences and excess mileage/late return penalties Customer’s signature, out and in

Some tips to avoid being caught outby customers…

Take extra care when vehicles are returned after dark or in bad weather

It’s easy to fast-track checking procedures when busy but recovering costs later will be difficult

Be wary of returned vehicles parked tight up to a wall or close to other vehicles. This tactic is often used to conceal damage

Be suspicious of any request for changeovers to take place outside of normal hours

Always have a responsible member of staff available to receive the keys and complete the handover process

Reverse the hand-over process. Spend time looking round the vehicle inside and out, noting any damage

Always get customers to sign for any damage or extra charges they are responsible for

Stand firm if the customer disputes the damage and gets their insurer involved. It’s your car and your profit and loss account!

O Allocate a reliable, experiencedmember of staff to carry out theprocedure

O Take the customer to the vehicleO Spend time showing them round

the vehicleO Reinforce rules and responsibilitiesO Explain handling characteristics

of the vehicleO Explain breakdown procedure and

provide contact numbersO Demonstrate top up points for fuel,

water washer fluid and oil fillerO Explain location of nearest fuel

filling station

Handover process

Page 7: Best Practice - Circle Leasing. Courtesy car leasing company · 2020. 8. 26. · Front brakes £2.80 £67.31 Breakdown £3.13 £75.00 Typical additional costs £16.58 £397.87 Assess

4 MA N A G ING THE F L EET

`

What you can doO Ensure repair cycle times are kept

to a minimum

O Keep a constant check on factors that can affect cycle times (eg. estimating, parts deliveries, job schedules, customer requirements)

O Budget and monitor courtesy car costs thoroughly

O Identify courtesy car utilisation

O Make decisions about sourcing additional or replacement vehicles or other appropriate services (eg. public transport, taxis, alternative vehicle). Compare each with courtesy car costs to ensure alternative services remain competitive

O Don’t forget to ofrom courtesy car rental income received from retail jobs

O Identify whether your business is underperforming or outperforming the rest of the industry and identify reasons why

O Regularly review the value of work provider contracts in relation to the cost of servicing them

O Monitor lead times to ensure the courtesy

O appropriate action to minimise exposure

O Monitor vehicle mileages to ensure they stay within contracted parameters

O

12 13

“Monitor vehicle mileages keenly to ensure you’re not going to be hit with a bill at the end of contract for excess mileage. If all your courtesy cars are on 10,000 mile contracts, then you should expect each car to be doing an average of 830 miles per month. Imposing a 30 miles per day mileage restriction should help to achieve this. And remember, we operate a pooled mileage policy to help you balance over-mileage vehicles against under-mileage ones, saving you time and money.”Danny Harris FIMI, Fleet & Facilities Manager

REMEMBER:Courtesy car costs are directly linked to repair cycle times. The faster cars are repaired,

retain at the best of times. Here are the top tips to ensure courtesy cars don’t

4 MANAGING THE FLEET

O

O

O

O O

O

O

O

O

O

O

O

12

“Monitor vehicle mileages keenly to ensure you’re not going to be hit with a bill at the end of contract for excess mileage. If all your courtesy cars are on 10,000 mile contracts, then you should expect each car to be doing an average of 830 miles per month. Imposing a 30 miles per day mileage restriction should help to achieve this. And remember, we operate a pooled mileage policy to help you balance over-mileage vehicles against under-mileage ones, saving you time and money.”Danny Harris FIMI, Fleet & Facilities Manager

REMEMBER:Courtesy car costs are directly linked to repair cycle times. The faster cars are repaired,

12

As courtesy cars are a major monthly expense, managing the fleet in relationto overall bodyshop performance is crucial. Bodyshop profitability is hard toretain at the best of times. Here are the top tips to ensure courtesy cars don’trun away with your profits...

What you can do

Ensure repair cycle times are keptto a minimum

Keep a constant check on factors thatcan affect cycle times (eg. estimating,parts deliveries, job schedules, customerrequirements)

Budget and monitor courtesy carcosts thoroughly

Identify courtesy car utilisation

Make decisions about sourcingadditional or replacement vehicles orother appropriate services (eg. publictransport, taxis, alternative vehicle).Compare each with courtesy car coststo ensure alternative services remaincompetitive

Don’t forget to offset any contributionsfrom courtesy car rental income receivedfrom retail jobs

Identify whether your business isunderperforming or outperformingthe rest of the industry and identifyreasons why

Regularly review the value of workprovider contracts in relation to the costof servicing them

Monitor lead times to ensure the courtesycar fleet size is in balance with demand

Monitor fixed penalty notices and takeappropriate action to minimise exposure

Monitor vehicle mileages to ensure theystay within contracted parameters

Make sure the fleet is properly maintained

4 MANAGING THE FLEET

O

O

O

O O

O

O

O

O

O

O

O

12

“Monitor vehicle mileages keenly to ensure you’re not going to be hit with a bill at the end of contract for excess mileage. If all your courtesy cars are on 10,000 mile contracts, then you should expect each car to be doing an average of 830 miles per month. Imposing a 30 miles per day mileage restriction should help to achieve this. And remember, we operate a pooled mileage policy to help you balance over-mileage vehicles against under-mileage ones, saving you time and money.”Danny Harris FIMI, Fleet & Facilities Manager

REMEMBER:Courtesy car costs are directly linked to repair cycle times. The faster cars are repaired,

13

Page 8: Best Practice - Circle Leasing. Courtesy car leasing company · 2020. 8. 26. · Front brakes £2.80 £67.31 Breakdown £3.13 £75.00 Typical additional costs £16.58 £397.87 Assess

1 ASSESS THE NEED

O

O

O

O

O

O

O

O

O

O

O

O

O

O

O

O

5 MA N A G ING FIXED P ENALT IES

If you don’t manage penalties properly, then frustration and costs can soon mount. Always try to be proactive by educating customers about their obligations and remember, if you want to avoid escalating charges, choose a courtesy car supplier that keeps you informed of any penalties as and when they occur. Here are the top tips for handling penalties and other courtesy car charges…

O Choose a leasing company that helps you manage Fixed Penalty Notices without charging administration fees

O Ensure the leasing company agrees to: –

within 24 hours –

should be redirected to your business – provide you with written notice of any

O Make sure the customer who uses your courtesy car is aware that they are

– additional charges they attract while using the vehicle. These may include:

– Congestion Charges (currently only in central London, but likely to spread to other UK cities)

– – – – – fuel discrepancies – damage to courtesy car – excess mileage – late r eturns

O Encourage customers to pay Congestion Charges before they enter the zone

O at the point of issue

O Apply a sticker to the vehicle’s dashboard to remind customers of their obligations. See the box below for an example of appropriate wording

O

See opposite page for an example

O Take a refundable credit card deposit (£50 or the equivalent of the customer’s vehicle insurance excess) to be held

Example of warning notice

FI NES & FI XED PENALTIES

of the driver of this vehicle at the time of such o�ences occurring.

Our company maintains concise records on all users of our vehicles and so we will

that we handle.

Transport for London have introduced a daily charge for vehicles driven through, or parked on roads in, the Congestion Charging Zone during the hours of operation. The Congestion Charging Zone covers the most central, heavily congested part of London.

If you want to drive in the zone between 7.00 am and 6.00 pm Monday to Friday, excluding Public Holidays, you will have to pay the charge. Any charge that is not paid

administration fee.

NB: please ensure you quote the registration number of the courtesy car and not that of your own vehicle.

Charges and PenaltiesDaily Charge £11.50

Penalty Charge Notice I f Congestion Charge has not been paid when due, you will receive a PCN £130.00

How can you pay the daily charge?You can pay the daily charge at selected garages/retail outlets. You can also pay in advance on the TfL website at www.cclondon.com or by phoning 0845 900 1234.

14 15

EXAMPLEThis vehicle is the property of the bodyshop, NOT your insurer, and is provided as part of our service. Please take care of it.

Vehicles returned in an unacceptable condition will incur a valeting charge. You are responsible for all motoring o ences and charges such as parking, speeding and congestion charges. As such we are required to forward your details to the authorities, as and when required. Excess mileage charges may apply, please refer to our agreement for details.

This vehicle must not be taken outside of the UK. We do not allow smoking or animals in our courtesy cars.

will ultimately be paid by them, coupled with in-car warning notices, are good practices that will help to keep your administration down.”Sonia Casey, Funding/Contracts Manager

REMEMBER:Most insurers are happy foryou to take a refundable deposit to help you recover costs and penalties incurred by their policyholders.

time

5 MANAGING FIXED PENALTIES

O

O

O

O

O

O

O

O

14 15

will ultimately be paid by them, coupled with in-car warning notices, are good practices that will help to keep your administration down.”Sonia Casey, Funding/Contracts Manager

REMEMBER:Most insurers are happy foryou to take a refundable deposit to help you recover costs and penalties incurred by their policyholders.

time

14

If you don’t manage penalties properly, then frustration and costs can soon mount.Always try to be proactive by educating customers about their obligations andremember, if you want to avoid escalating charges, choose a courtesy carsupplier that keeps you informed of any penalties as and when they occur.Here are the top tips for handling penalties and other courtesy car charges…

Choose a leasing company that helpsyou manage Fixed Penalty Noticeswithout charging administration fees

Ensure the leasing company agrees to:– process any fines received by them within 24 hours– Notify the issuing authority that a fine should be redirected to your business– provide you with written notice of any redirection of fines

Make sure the customer who uses yourcourtesy car is aware that they areresponsible for paying any fines or– additional charges they attract while using the vehicle. These may include:– congestion charges (currently only in central London, but likely to spread to other UK cities)– parking fines– speeding fines– bus-lane fines– red-light fines– fuel discrepancies– damage to courtesy car– excess mileage– late returns

Encourage customers to pay CongestionCharges before they enter the zone

Encourage customers to pay for finesat the point of issue

Apply a sticker to the vehicle’s dashboardto remind customers of their obligations.See the box below for an example ofappropriate wording

Leave a flyer in the vehicle highlightingtheir fine and fixed penalty responsibilitiesSee opposite page for an example

Take a refundable credit card deposit(£50 or the equivalent of the customer’svehicle insurance excess) to be heldagainst fines, charges or minor damagerectification

EXAMPLE

5 MA N A G ING FIXED P ENALT IES

If you don’t manage penalties properly, then frustration and costs can soon mount. Always try to be proactive by educating customers about their obligations and remember, if you want to avoid escalating charges, choose a courtesy car supplier that keeps you informed of any penalties as and when they occur. Here are the top tips for handling penalties and other courtesy car charges…

O Choose a leasing company that helps you manage Fixed Penalty Notices without charging administration fees

O Ensure the leasing company agrees to: –

within 24 hours –

should be redirected to your business – provide you with written notice of any

O Make sure the customer who uses your courtesy car is aware that they are

– additional charges they attract while using the vehicle. These may include:

– Congestion Charges (currently only in central London, but likely to spread to other UK cities)

– – – – – fuel discrepancies – damage to courtesy car – excess mileage – late r eturns

O Encourage customers to pay Congestion Charges before they enter the zone

O at the point of issue

O Apply a sticker to the vehicle’s dashboard to remind customers of their obligations. See the box below for an example of appropriate wording

O

See opposite page for an example

O Take a refundable credit card deposit (£50 or the equivalent of the customer’s vehicle insurance excess) to be held

Example of warning notice

FI NES & FI XED PENALTIES

of the driver of this vehicle at the time of such o�ences occurring.

Our company maintains concise records on all users of our vehicles and so we will

that we handle.

Transport for London have introduced a daily charge for vehicles driven through, or parked on roads in, the Congestion Charging Zone during the hours of operation. The Congestion Charging Zone covers the most central, heavily congested part of London.

If you want to drive in the zone between 7.00 am and 6.00 pm Monday to Friday, excluding Public Holidays, you will have to pay the charge. Any charge that is not paid

administration fee.

NB: please ensure you quote the registration number of the courtesy car and not that of your own vehicle.

Charges and PenaltiesDaily Charge £11.50

Penalty Charge Notice I f Congestion Charge has not been paid when due, you will receive a PCN £130.00

How can you pay the daily charge?You can pay the daily charge at selected garages/retail outlets. You can also pay in advance on the TfL website at www.cclondon.com or by phoning 0845 900 1234.

14 15

EXAMPLEThis vehicle is the property of the bodyshop, NOT your insurer, and is provided as part of our service. Please take care of it.

Vehicles returned in an unacceptable condition will incur a valeting charge. You are responsible for all motoring o ences and charges such as parking, speeding and congestion charges. As such we are required to forward your details to the authorities, as and when required. Excess mileage charges may apply, please refer to our agreement for details.

This vehicle must not be taken outside of the UK. We do not allow smoking or animals in our courtesy cars.

will ultimately be paid by them, coupled with in-car warning notices, are good practices that will help to keep your administration down.”Sonia Casey, Funding/Contracts Manager

REMEMBER:Most insurers are happy foryou to take a refundable deposit to help you recover costs and penalties incurred by their policyholders.

time

15

Example of warning notice

FINES & FIXED PENALTIES

Our company maintains concise records on all users of our vehicles and so we willpersue any drivers who attempt to ignore any fines etc that are incurred. We alsoreserve the right to charge administration fees for any unpaid fines and fixed penaltiesthat we handle.

If you want to drive in the zone between 7.00 am and 6.00 pm Monday to Friday,excluding Public Holidays, you will have to pay the charge. Any charge that is not paidwill be notified to us and we in turn will persue you to meet any costs we incur, plus anadministration fee.

NB: please ensure you quote the registration number of the courtesy car and not that of your own vehicle.

Charges and PenaltiesDaily Charge £11.50

Penalty Charge Notice I f the Congestion Charge has not been paid when due, you will receive a PCN £130.00

How can you pay the daily charge?You can pay the daily charge at selected garages/retail outlets. You can also pay inadvance on the TfL website at www.cclondon.com or by phoning 0845 900 1234

Please be aware that all fines and fixed penalties are the specific responsibilityof the driver of this vehicle at the time of such offences occuring.

Transport for London have introduced a daily charge for vehicles driventhrough, or parked on roads in, the Congestion Charging Zone during thehours of operation. The Congestion Charging Zone covers the most central,heavily congested part of London.

Page 9: Best Practice - Circle Leasing. Courtesy car leasing company · 2020. 8. 26. · Front brakes £2.80 £67.31 Breakdown £3.13 £75.00 Typical additional costs £16.58 £397.87 Assess

6 PREPARING FOR END- O F- CONT RACT

One of the key features to look out for when sourcing a courtesy car supplier is end-of-contract transparency. Is the company upfront about the costs it will charge if a car is returned damaged or with missing items? Do they publish a pricing guide outlining how much it will cost to replace missing items or repair damage when the car is returned? Here are the top tips to avoid end-of-contract blues…

What you can doO Make sure your courtesy car supplier is

upfront about end-of-contract penalties before you agree to any contract

O Carry out an end-of-contract appraisal a week or two before the collection date giving plenty of time to rectify any faults or missing items

O Wash the vehicle (and allow it to dry) before appraising it

O Use an end-of-contract checklist to ensure you don’t forget anything

O Be as objective as possible. Treat the car as though you were buying it. Make sure the light is good so you don’t miss any defects

O Check every panel carefully, including the roof, bonnet and boot/hatchback

O Check the tyres (including the spare) for damage

O for scratches, dents and gouges

O Check screens including heating elements

O Clean and valet the interior

O Check interior for tears, burns, heavy stains or wear

O Inspect all controls, including audio equipment, for damage

O Have the car serviced if required

O Make sure you’re happy with the appraisal carried out by the collection driver - signing the form means you agree to the damage noted

O If you think scratches will polish out, polish them out before the collection driver arrives

O Repair the car to the same standard you would any other customer’s car

O Replace all items removed upon delivery

O Remember to use the ‘pot of money’ you’ve accumulated throughout the contract from customer contributions to damage recharges to pay for the car repairs

16 17

REMEMBER:As long as you have a procedure in place for identifying and recharging drivers who cause damage, the end-of-contract process should be cost-neutral.

“When returning any vehicles use our end of contract check sheet to avoid recharges. The check sheet can be downloaded from our website, under Library.”Danny Harris FIMI, Fleet & Facilities Manager

“Watch our online video especially created to provide you with a detailed process for checking end of contract vehicle appraisals.”Mark Williamson, Marketing Coordinator

Why recharge?Most bodyshops recognise the need to return their courtesy cars in good condition at the end-of-contract to avoid recharges. Here are some common reasons why recharges may be payable at the end-of-contract:

O If a vehicle is returned with damage over and above what is considered fair wear and tear, a recharge will result

O If a vehicle is returned with a

work is needed, a recharge will also result

O The most common problems are: damaged wheel trims/alloys, missing keys and damaged bodywork not repaired

O Other problems include: cigarette burns, panel dents and missing items

Eliminate rechargesO Remove new wheel trims when your

courtesy car is brand new.

O Replace with an inexpensive set if appearance matters. Then replace the originals when you return the car

O Tag the spare keys as soon as they arrive. Store them somewhere safe with the vehicle handbook

O Remove all signs of stickers and glue from bodywork before returning the car

O Repair any damage that falls outside fair wear and tear guidelines

O Always replace any missing items such as cigarette lighters, parcel shelves and wheel trims

O All in-life damage, providing correctly recorded, should be charged to the person damaging the vehicle - the policyholder

17

Why recharge? Eliminate recharges

Most bodyshops recognise the needto return their courtesy cars in goodcondition at the end-of-contract toavoid recharges. Here are somecommon reasons why recharges maybe payable at the end-of-contract:

If a vehicle is returned with damage over and above what is considered fair wear and tear, a recharge will result

If a vehicle is returned with a substandard repair and recification work is needed, a recharge will also result

The most common problems are: damaged wheel trims/alloys, missing keys and damaged bodywork not repaired

Other problems include: cigarette burns, panel dents and missing items

1 ASSESS THE NEED

O

O

O

O

O

O

O

O

O

O

O

O

6 PREPARING FOR END- O F- CONT RACT

One of the key features to look out for when sourcing a courtesy car supplier is end-of-contract transparency. Is the company upfront about the costs it will charge if a car is returned damaged or with missing items? Do they publish a pricing guide outlining how much it will cost to replace missing items or repair damage when the car is returned? Here are the top tips to avoid end-of-contract blues…

What you can doO Make sure your courtesy car supplier is

upfront about end-of-contract penalties before you agree to any contract

O Carry out an end-of-contract appraisal a week or two before the collection date giving plenty of time to rectify any faults or missing items

O Wash the vehicle (and allow it to dry) before appraising it

O Use an end-of-contract checklist to ensure you don’t forget anything

O Be as objective as possible. Treat the car as though you were buying it. Make sure the light is good so you don’t miss any defects

O Check every panel carefully, including the roof, bonnet and boot/hatchback

O Check the tyres (including the spare) for damage

O for scratches, dents and gouges

O Check screens including heating elements

O Clean and valet the interior

O Check interior for tears, burns, heavy stains or wear

O Inspect all controls, including audio equipment, for damage

O Have the car serviced if required

O Make sure you’re happy with the appraisal carried out by the collection driver - signing the form means you agree to the damage noted

O If you think scratches will polish out, polish them out before the collection driver arrives

O Repair the car to the same standard you would any other customer’s car

O Replace all items removed upon delivery

O Remember to use the ‘pot of money’ you’ve accumulated throughout the contract from customer contributions to damage recharges to pay for the car repairs

16 17

REMEMBER:As long as you have a procedure in place for identifying and recharging drivers who cause damage, the end-of-contract process should be cost-neutral.

“When returning any vehicles use our end of contract check sheet to avoid recharges. The check sheet can be downloaded from our website, under Library.”Danny Harris FIMI, Fleet & Facilities Manager

“Watch our online video especially created to provide you with a detailed process for checking end of contract vehicle appraisals.”Mark Williamson, Marketing Coordinator

Why recharge?Most bodyshops recognise the need to return their courtesy cars in good condition at the end-of-contract to avoid recharges. Here are some common reasons why recharges may be payable at the end-of-contract:

O If a vehicle is returned with damage over and above what is considered fair wear and tear, a recharge will result

O If a vehicle is returned with a

work is needed, a recharge will also result

O The most common problems are: damaged wheel trims/alloys, missing keys and damaged bodywork not repaired

O Other problems include: cigarette burns, panel dents and missing items

Eliminate rechargesO Remove new wheel trims when your

courtesy car is brand new.

O Replace with an inexpensive set if appearance matters. Then replace the originals when you return the car

O Tag the spare keys as soon as they arrive. Store them somewhere safe with the vehicle handbook

O Remove all signs of stickers and glue from bodywork before returning the car

O Repair any damage that falls outside fair wear and tear guidelines

O Always replace any missing items such as cigarette lighters, parcel shelves and wheel trims

O All in-life damage, providing correctly recorded, should be charged to the person damaging the vehicle - the policyholder

6 PREPARING FOR END-OF-CONTRACT

O

O

O

O

O

O

O

O

O

O O

O

O O

O

O

O

O

16 17

REMEMBER:As long as you have a procedure in place for identifying and recharging drivers who cause damage, the end-of-contract process should be cost-neutral.

“When returning any vehicles use our end of contract check sheet to avoid recharges. The check sheet can be downloaded from our website, under Library.”Danny Harris FIMI, Fleet & Facilities Manager

“Watch our online video especially created to provide you with a detailed process for checking end of contract vehicle appraisals.”Mark Williamson, Marketing Coordinator

Why recharge?Most bodyshops recognise the need to return their courtesy cars in good condition at the end-of-contract to avoid recharges. Here are some common reasons why recharges may be payable at the end-of-contract:O If a vehicle is returned with damage

over and above what is considered fair wear and tear, a recharge will result

O If a vehicle is returned with a

work is needed, a recharge will also result

O The most common problems are: damaged wheel trims/alloys, missing keys and damaged bodywork not repaired

O Other problems include: cigarette burns, panel dents and missing items

Eliminate rechargesO Remove new wheel trims when your

courtesy car is brand new.O Replace with an inexpensive set if

appearance matters. Then replace the originals when you return the car

O Tag the spare keys as soon as they arrive. Store them somewhere safe with the vehicle handbook

O Remove all signs of stickers and glue from bodywork before returning the car

O Repair any damage that falls outside fair wear and tear guidelines

O Always replace any missing items such as cigarette lighters, parcel shelves and wheel trims

O All in-life damage, providing correctly recorded, should be charged to the person damaging the vehicle - the policyholder

16

One of the key features to look out for when sourcing a courtesy carsupplier is end-of-contract transparency. Is the company upfront about thecosts it will charge if a car is returned damaged or with missing items? Do theypublish a pricing guide outlining how much it will cost to replace missing itemsor repair damage when the car is returned? Here are the top tips to avoidend-of-contract blues…

What you can do

Make sure your courtesy car supplier isupfront about end-of-contract penaltiesbefore you agree to any contract

Carry out an end-of-contract appraisala week or two before the collection dategiving plenty of time to rectify any faultsor missing items

Wash the vehicle (and allow it to dry)before appraising it

Use an end-of-contract checklist toensure you don’t forget anything

Be as objective as possible. Treat thecar as though you were buying it. Makesure the light is good so you don’t missany defects

Check every panel carefully, includingthe roof, bonnet and boot/hatchback

Check the tyres (including the spare)for damage

Inspect wheels and trims (if fitted)for scratches, dents and gouges

Check screens including heatingelements

Clean and valet the interior

Check interior for tears, burns,heavy stains or wear

Inspect all controls, including audioequipment, for damage

Have the car serviced if required

Make sure you’re happy with theappraisal carried out by the collectiondriver - signing the form means youagree to the damage noted

If you think scratches will polish out,polish them out before the collectiondriver arrives

Repair the car to the same standardyou would any other customer’s car

Replace all items removed upondelivery

Remember to use the ‘pot of money’you’ve accumulated throughout thecontract from customer contributionsto damage recharges to pay for thecar repairs

Page 10: Best Practice - Circle Leasing. Courtesy car leasing company · 2020. 8. 26. · Front brakes £2.80 £67.31 Breakdown £3.13 £75.00 Typical additional costs £16.58 £397.87 Assess

7 BEST OF THE WEB

The Circle website is designed to give practical information and advice - ultimately saving your business valuable time and money. Here are just a few reasons why you should visit www.circleleasing.co.uk

“ Our customers have their own exclusive password protected area of the website which includes further extensive courtesy car cost-saving advice and materials, including Fair Play - our guide to fair wear and tear

Mark Williamson, Marketing Coordinator

Brand new cars for 7-day delivery: check out our full range of cars, and their specs, for immediate deliveryTips of the trade: useful tips, advice and suggestions on managing your courtesy

Case studies:

for their businessNews: keep up with the latest news. What’s happening with insurers?

’ rcle?Breakdown Assistance contact details:

Free end-of-contract advice: suggestions, pointers and tools to eliminate those end-of-contract rechargesVideos: watch how you can avoid end of contract recharges by following a few simple tips and hintsLibrary:

sheet, Service check list or order some magnets to help you assess the size of any dents or scratches

7 BEST OF THE WEB

The Circle website is designed to give practical information and advice - ultimately saving your business valuable time and money. Here are just a few reasons why you should visit www.circleleasing.co.uk

“ Our customers have their own exclusive password protected area of the website which includes further extensive courtesy car cost-saving advice and materials, including Fair Play - our guide to fair wear and tear

Mark Williamson, Marketing Coordinator

Brand new cars for 7-day delivery: check out our full range of cars, and their specs, for immediate deliveryTips of the trade: useful tips, advice and suggestions on managing your courtesy

Case studies:

for their businessNews: keep up with the latest news. What’s happening with insurers?

’ rcle?Breakdown Assistance contact details:

Free end-of-contract advice: suggestions, pointers and tools to eliminate those end-of-contract rechargesVideos: watch how you can avoid end of contract recharges by following a few simple tips and hintsLibrary:

sheet, Service check list or order some magnets to help you assess the size of any dents or scratches

18

The Circle website is designed to give practical information and advice- ultimately saving your business valuable time and money. Here are justa few reasons why you should visit www.circleleasing.co.uk

Brand new cars for 7-day delivery:check out our full range of cars, and their specs, for immediate deliveryTips of the trade:useful tips, advice and suggestions on managing your courtesycar fleet and keeping costs under control from your fellow repairersCase studies:learn how Circle customers are making courtesy cars work profitablyfor their businessNews:keep up with the latest news. What’s happening with insurers?How will new laws affect your business? What’s new at Circle?Breakdown Assistance contact details:find all the manufacturers’ breakdown assistance numbersFree end-of-contract advice:suggestions, pointers and tools to eliminate those end-of-contractrechargesVideos:watch how you can avoid end of contract recharges by followinga few simple tips and hintsLibrary:find useful documents to help you take care of your fleet e.g. EOC checksheet, Service check list or order some magnets to help you assess thesize of any dents or scratches

7 BEST OF THE WEB

The Circle website is designed to give practical information and advice - ultimately saving your business valuable time and money. Here are just a few reasons why you should visit www.circleleasing.co.uk

“ Our customers have their own exclusive password protected area of the website which includes further extensive courtesy car cost-saving advice and materials, including Fair Play - our guide to fair wear and tear

Mark Williamson, Marketing Coordinator

Brand new cars for 7-day delivery: check out our full range of cars, and their specs, for immediate deliveryTips of the trade: useful tips, advice and suggestions on managing your courtesy

Case studies:

for their businessNews: keep up with the latest news. What’s happening with insurers?

’ rcle?Breakdown Assistance contact details:

Free end-of-contract advice: suggestions, pointers and tools to eliminate those end-of-contract rechargesVideos: watch how you can avoid end of contract recharges by following a few simple tips and hintsLibrary:

sheet, Service check list or order some magnets to help you assess the size of any dents or scratches

19

To discuss how Circle cantransform your courtesycar fleet into a valuablebusiness asset, give oursales team a call on

0800 505 3737

DisclaimerThis booklet has been produced forinformation purposes only. While everyeffort has been made to ensure thatthe information included is accurate,its reliability or completeness is notguaranteed. Photography featuredis for illustrative purpose only.

Page 11: Best Practice - Circle Leasing. Courtesy car leasing company · 2020. 8. 26. · Front brakes £2.80 £67.31 Breakdown £3.13 £75.00 Typical additional costs £16.58 £397.87 Assess

Circle Leasing LtdThe Barracks, 400 Bolton RdBury, Lancashire BL8 2DA

Telephone: 0800 505 3737Fax: 0800 505 3744

[email protected]

Follow us on Twitter: @circleleasing