You may want to stipulate monthly contract reviews and to measure the provider’s performance by using key performance indicators (KPIs). But set a realistic number.

Belcher says: “Remember that KPIs are meant to be key indicators so there should be no more than 10 otherwise there are too many for the customer to manage with any degree of comfort.”

SLA/KPIs will vary depending on business requirements, but common ones to set are turnaround times and response times for requests.

Phil Cottee, head of bid and implementation at LeasePlan, says: “We’ve experienced targets as diverse as no more than three telephone rings before a query is answered, rental vehicle delivery within two hours and responses to order queries within two hours.

“SLAs will vary in the LCV market, where considerations like off-road time have added importance due to their direct commercial impact.”

Invoicing is one area you might want to set SLAs. For example, you may want to stipulate that invoices for vehicle damage are issued within 30 days of the vehicle being returned.

Bannon once received an invoice for several hundred pounds for damage to a car that had been returned to the leasing company 12 months before.

When it comes to ordering vehicles it’s important that quotes are given on a like-for-like basis.

“If you’re doing multi-sourcing you need to be able to benchmark quotes so it needs to be on your terms,” advises Bonney.

When making your requests, bear in mind that there may be a price attached.

“The more you ask for, the more it may cost you,” warns a fleet manager.

Buried within your agreement could be unexpected charges or restrictions. Here are the common ones to look for and what you could negotiate instead

Early termination

What is it? Various situations could mean you have to terminate the contract early or reach a settlement with your provider – the driver might have left the company or the vehicle might have been written off.

What’s the cost? There are a number of methods for calculating early termination. The simplest method is based on the rentals payable and the point at which you terminate.

For example, 18 months’ rental may be due for early termination in the first 12 months of the contract. Alternatively, the early settlement might be based on a percentage of future rentals.

For example, if you terminate in the first 12 months it may charge 60% of future rentals, if you terminate in the second 12 months it is 50% etc. Some providers may use a ‘breakeven’ method.

If the vehicle has been written off in an accident, find out if the insurance provider will settle this.

How can you reduce early-termination charges? It might be possible to agree a set number of early terminations a year without charge.

What’s the alternative? Generally it is cheaper to reallocate the vehicle than send it back to the leasing company early. You will need to consider how many drivers you have that require a vehicle at the time or whether you have any new employees starting in the near future.

Also consider whether the vehicle could be used as an alternative to short-term hire. What condition is the vehicle in? How old is it and how many miles has it done?

One issue you may come across with reallocation is that drivers might dislike being issued a used vehicle so some companies offer a financial incentive.