Fleet News

Fleets pay price for failure to clean up

FLEETS are losing out on maximum residual values for their end-of-contract cars because they are failing to embrace new refurbishment techniques, a new survey suggests.

The findings show that 73% of fleets operators who own their own vehicles are averaging less than CAP Clean in the auction houses.

It believes 20% of those have averaged less than 90% of CAP Clean, a further 13% achieved 90% to 94% and another 40% achieved 95% to 99%.

Companies that lease vehicles are also being charged more than £100 per vehicle for refurbishment at the end of the contract, with 45% paying out more than £150 on average and 13% more than £250, according to the survey carried out by smart repairs company Dent Wizard.

However, it also claims fleets are improving their record on residual values and recharges as a similar study carried out by Dent Wizard two years ago showed 80% of fleet operators were achieving less than CAP Clean. It also believes fleet operators are paying less on recharges than two years ago.

The improvements coincide with a gradual change in attitude towards the use of the latest smart repair techniques among fleet operators. Currently, for instance, 34% use paintless dent removal (PDR) on their vehicles – compared to 18% two years ago.

'On this evidence, fleet operators are slowly learning the lessons of refurbishing their vehicles prior to resale or return,' commented Dent Wizard UK managing director Quintin Cornforth. 'The tragedy is that it is taking so long and that, in the meantime, they are losing so much.

'The industry view is that for every £100 spent on smart repairs prior to resale, the vendor can expect to make £300 in return, representing a clear profit of £200 on each vehicle sold.

In this respect, the good news is that more and more dealerships and auctions are offering their fleet customers a smart repair service from which they are able to benefit.'

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