Costly End of Contract Vehicle Lease Charges
For professionals who work hard to meet or beat their budget, nothing is more upsetting than an unexpected expense that puts them over the line. For fleet managers, that expense is common, and generally comes at the end of the lease contract with out-of-pocket charges for damages, missing logbooks or lost keys, tyres that aren’t appropriate for the vehicle or wear and tear that goes beyond the ordinary. Almost half of companies that lease vehicles end up being charged for these types of items, and the end result is staggering: in the year 2012, end-of-contract charges added 45 million pounds to the original fleet budgets according to a recent survey.
How to address the issue? Communication and driver education has been the key for companies that have fixed the problem – that, and making individual drivers responsible for the costs that they’ve incurred on behalf of their company.
Fleet management consultants advise that companies check in with drivers intermittently, inspecting the vehicles for damage that could be repaired prior to vehicle turn in and making drivers aware of what constitutes unusual wear and tear. Reminders about excess mileage and individual drivers being responsible for logbooks and keys has also been helpful. Some companies issue videos and intermittent email notices defining end-of-lease costs, and encouraging their drivers to come forward at the time that damage takes place or at the time of a loss so that costs can be reduced.
Leasing companies are also stepping in, aware of the ill feelings that are being raised by high damage costs. Many are offering periodic inspections, allowing for the opportunity to fix damages or clean up a car in the midst of the lease. They also encourage companies to allow themselves time for their own inspection about a month before the turn in date in order to allow time to take care of potential problems.
Foray Vans offer flexible and competitive van contract hire and leasing deals on the full range of Ford Commercial Vehicles.