SMR from independent garages – both contract hire and purchased fleets

Pros

• Cheaper than using franchised dealers
• Repairs carried out more quickly
• Closer contact means greater accountability

Cons

• Still have to use dealers for warranty jobs
• Less suitable for large, nationwide fleets
• Requires more administration to manage

Case study: Rick Young, fleet manager, Wakefield and District Housing

Fleets are increasingly looking to buy their service, maintenance and repair needs from non-franchised dealers.

It can prove to be the most financially sound proposition for organisations based around a central location.

They benefit from using the best independent garages which work to the highest standards while using labour rates – and frequently parts prices – below those of many franchised dealerships.

This option is unlikely to work for larger fleets – unless the independent garages are of sufficient size to handle the contract – or those with a nationwide presence, although a mixed solution of both independent and franchised repairers may be the best option.

And warranty issues must also remain at the forefront of fleet managers’ minds.

Wakefield and District Housing (WDH) has a ‘with maintenance’ contract but negotiated terms that allow it to stipulate which garages it uses.

Cost was a key reason but, as fleet manager Rick Young explains, not the only one.

“We see ourselves to be at the heart of the community here in Wakefield,” Young says.

“And by stipulating which garages are used, we were able to ensure that the money spent on this aspect of the contract remains in this area.”

Young personally vets each of the four independently-owned garages as well as the franchised dealership which successfully tendered for WDH’s service, maintenance and repair contracts.

What’s more, he continues to hold regular meetings with each of them to ensure that all parties – including Lombard from whom its 360 light commercial Citroëns are leased – are happy with the arrangement.

Young personally manages the contracts of these suppliers of conversions, racking, telematics, vinyls, service and maintenance, glass repair, tyres and accident management – all of which sit outside the leasing agreement.

WDH pays a monthly fee for the service but Young schedules all the appointments while Lombard ensures that costs are adhered to and invoiced accordingly.

“The garages we work with all take pride in their job, provide us with one-to-one attention and, as a result, we’ve consistently had a 100% hit rate on maintenance for the past three years,” he says.

“We place a premium on our employees’ safety – and we believe that this is the best way for us to achieve this.

“It’s also more cost-effective as we now have on average one-and-a-half hours less downtime from maintenance issues every time a vehicle goes for a six-month service than we did up until five years ago when we adopted
this approach.”

Until 2007, the fleet was taken to a franchised dealership decided by the leasing company.

And parts of WDH’s service and maintenance policy could be evolving again.

“One of the things that I feel we could improve on is getting better value for money on taking our vehicles, which are under warranty, to an authorised dealership,” he continues.

“We are looking at several options including upgrading one of our independent garages to dealership status to repair those vehicles under warranty.

“But it won’t happen unless it’s the most cost-effective solution from our perspective, while also being beneficial for those Wakefield garages we work with.”

Is it right for you?

Leasing companies are already using more independents, but requires fleet manager to go solus independent. Option for large fleets might be mix of franchised and independent.