Fleet News

Mismanagement costing industry £150m a year

LEASING and rental companies have been accused of wasting £150million through mismanagement of vehicles when they reach the end of contracts. By failing to maximise residual values at a time when used car prices are under pressure, the industry has become its own worst enemy, according to Simon Kerr, who is now halfway through a two-year tenure as chairman of the British Vehicle Rental and Leasing Association.

Kerr launched the attack at Fleet Show 2000, saying: 'People are failing to pay enough attention to the price of the vehicle at the back end of the contract - it is threatening to make a mockery of the sector. I would like our members to raise their eyes above their navels and focus on making profits rather than on increasing volumes. We are suffering at the moment from a residual value downturn that is being worsened by mismanagement and a lack of attention to the quality of the product.'

Kerr urged members to pay closer attention to publications such as CAP Black Book, using it as a tool to maximise resale values. He said: 'That book is a guide built on the data from buyers. If you're not paying enough attention to it you may as well buy a girlie mag.'

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