TFS commits to retaining the residual values set at the launch of a new model for the first six to nine months to give continuity and customer confidence. But it believes the pricing guides understate the impact of its five-year warranty.

Gillies and Fisher both sit on a residual value committee which meets regularly to review the products, debate particular values and benchmark against the industry.

“Our residual value process has become far more sophisticated because of the data that is now available,” says Gillies.

“The whole process is based on the best market and product information. We have a pretty good idea of how our three-year-old product is going to do today.”

Price is also an important part of being successful, Gillies admits that it all comes down to the competitiveness of the marketplace and a one price rule doesn’t always fit.

“We price for the opportunity, you have to be very competitive to be successful in the marketplace. You have to have the right offering in place to win new business,” he says.

Factfile

Managing director Doug Gillies
Time in current role 41 months
Joined company 1982
General manager – Lexus, fleet and national accounts Mike Fisher
Time in current role 12 years
Joined company 1989
Contract hire fleet size 27,369
Non-contract hire fleet size 160,720 (includes all retail and fleet finance cases)
Target Increase its live book by 20% (2014 v 2013)