Fleet News

Insight: Uncovering the cost of switching leasing providers

“It should just be a case of exporting to a spreadsheet and then uploading it to the new system,” she says.

It’s advisable to keep reports from monthly meetings with the incumbent provider.

The provider may also decide to withdraw benefits. One fleet manager, who wished to remain anonymous, has found that her provider will no longer profit share.

“They’ve said ‘you’re not sole supply now so we’re not doing it’,” she says.

The issue is that she was not involved in setting up the contracts and nothing was put in writing about the profit share agreement.

“My advice to other fleet managers is make sure that they know what benefits won’t be available when they are on run out,” says the fleet manager.

“Or make sure it is written into the contract that they will still receive it on run out.”

Jenner says that while a customer should expect the outgoing provider to fulfil their contractual obligations, realistically they will not go the extra mile.

Once the vehicles are ready for return a further issue may arise: end of-contract damage charges.

“There will be companies that look at it as an opportunity to make money,” Currier warns. “But the customer should be protected by the BVRLA.”

Resolving damage issues

The anonymous fleet manager has had to deal with “spurious damage charges”.

In one instance, the provider tried to charge for a “poor smart repair” when the vehicle had never been for repair.
“When I challenged it they dropped the charge straight away,” she says.

Muir also had issues with high end-of-contract damage charges and had to turn to his new provider to resolve them.
Getting the new provider to manage the wind down of the contract is an option.

“We can help but we need a mandate from the customer to act on their behalf,” Currier says.

The anonymous fleet manager believes it can be worse to pass the management to the new provider because “no leasing provider wants to deal with another” and “it’s just putting an extra person in place”.

She also feels it is worth having discussions with the outgoing provider rather than simply letting things go.

Thanks to making some contacts at the incumbent provider, she has found relations have improved.

“Don’t just beat them up,” she advises. “Say thank you when they’re helpful.”

Regardless of whether the wind down is managed in-house or passed to the new provider, drivers need to be clear who to contact.

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