Service levels from provider

“Our leasing providers’ service levels are not reactive enough and we have been stung with end-of-contract damage charges," Carl Nicholson, fleet manager, North Somerset Council

North Somerset Council, which has a fleet of 20 cars and 70 commercial vehicles, is phasing out its contract lease agreements because service levels cannot be guaranteed with its providers and significant discounts can be achieved by buying vehicles through framework agreements.

One issue Carl Nicholson has is that repairs are not carried out quickly enough.

“Our leasing provider doesn’t seem concerned about downtime and the associated costs,” he says.

“We had a faulty rear axle and it took a month to get it repaired because it sent it to a garage in another part of the country.

"We have no control over where it fixes vehicles, whereas if we manage things in-house we do.”

Tyres were also not replaced quickly enough.

“We would end up having to spend money getting the tyre changed ourselves because we couldn’t wait,” Nicholson says.

End-of-contract damage charges have been another issue with cumulative charges as high as £2,000-£3,000 for what Nicholson considers “minor damage”.

He has decided the council is better off owning vehicles and selling them at auction with minor damage.

The responses

GE Capital Fleet Services says: End-of-contract charges are often a way for some lessors to recover earnings on cheap initial lease rates and this approach is often used to attract customers by appearing to be better value than an incumbent provider or leasing competitor.

The reality is that it is the wholelife cost of the fleet, coupled with strategic cost-saving initiatives and productivity benefits, that is the true measure of value for money.

Zenith says: Providers should use mapping tools to find the nearest repairer, along with electronic authorisations and automated diarised chases for updates and completion of work. Onward mobility should be ensured using courtesy cars or pool cars where possible to minimise ancillary costs.

Downtime should be tracked and reported on.

In relation to end-of-contract damage, the provider should look at ways of working with customers to reduce the costs.

This could include smart repairs and raising awareness among employees of the implications of end-of-contract damage through workshops, random inspections or penalising employees who have damage due to driver fault or who fail to report damage.