AFP calls for new rental industry standards

The Association of Fleet Professionals (AFP) is calling for new industry standards to tackle increasing issues arising from daily rental recharges made to fleets.

AFP chair Paul Hollick says that members of the trade body are widely reporting what they claim are excessive bills for vehicle damage and late servicing.

He explained: “This is an area where there has always been some inevitable friction between fleets and daily rental companies, but our view is that there has undoubtedly been rising frustration during the last couple of years – and it appears to be worsening.

“At the heart of this lies what is seen as an unbalanced approach to inspections.

“A common complaint is that the handover process on delivery involves only a quick look at the car or van, while examination on collection is much more detailed and often identifies damage that may well have already been present.

“There is also a sense that when a vehicle on longer term rental needs servicing, efforts made to notify the fleet or driver are minimal while charges made for a late service are sometimes extreme.”

“Although we understand there can be strong penalties invoked by manufacturers for neglected maintenance, we know of one bill for £4,000 for a missed service, which is difficult to justify,” he added.

At least one AFP member employs two people full time largely to deal with damage and servicing recharges of this kind from daily rental companies, and they successfully fight claims often running into tens of thousands of pounds every month.

“This seems to us indicative of daily rental processes that really need re-examination,” said Hollick.

He acknowledges there are several longer-term factors that could help explain the trend and the resulting potential for disagreement.

“There’s been a big shift for rental fleets since Covid towards operating longer replacement cycles,” Hollick continued.

“This means inspection processes once applied to nearly new vehicles are now being used on those that are much older.

“We hear stories of the doorsills being inspected for small scratches on well-used vans that have been in service for many years and recharges attempted.

“More allowances need to be made for wear and tear on vehicles of this type.”

Similar issues apply to maintenance, according to the AFP. Hollick explained: “The previous fast-cycle model meant many daily rental fleets rarely had to deal with MOTs or servicing – the vehicles just weren’t generally old enough to need them – and processes for dealing with these key issues are still relatively new and sometimes variable in terms of quality and effectiveness.”

The AFP has started engaging in conversations with relevant organisations to discuss how formal industry standards could be amended in light of these concerns.

“Daily rental is an essential service for many of our members but there is a high level of ill-feeling around the whole issue of recharges at the moment,” said Hollick.

“Many fleets feel that they are effectively being forced into paying unfair recharges and having to spend much too long fighting them.

“They want to see an improvement in the situation and in initial discussions with industry bodies, it appears a positive approach is being taken to the concerns raised.

“Our hope is that this will lead to improved best practice guidance in the industry that will quickly have a positive impact on real world fleet experiences.”

The British Vehicle Rental and Leasing Association (BVRLA) provides guidance on fair wear and tear standards for vehicles, helping to define acceptable damage and maintenance expectations.

Toby Poston, BVRLA chief executive, said: “Vehicle repair costs and labour rates are increasing as vehicle technology, materials and construction methods evolve.

“The BVRLA doesn’t set rates for repairs but our corresponding Codes of Conduct state that members should be able to justify any costs with independent estimates or repair cost data.

“Our Fair Wear and Tear Standards also give an industry-wide benchmark that can be used for longer term arrangements.

“It is important that both the fleet operator and their vehicle provider are clear of their respective responsibilities.

“Condition checks should be carried out by both parties at the start and end of a contract, while the approach to in-contract maintenance should be agreed in advance.

“The split of responsibilities should be known and respected throughout the contract.

“ Where the vehicle provider doesn’t have access to the in-vehicle telematics to monitor when services are due, the fleet operator has a duty to ensure their drivers are taking responsibility for monitoring warning lights or in-vehicle messages and reporting them as necessary.”