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ACFO Conference 2013: Expect rise in fixed-cost service plans
Date: 28 May 2013 | Author: Jack Carfrae
ACFO conference delegates were told to expect a rise in fleet national pricing and fixed cost service plans from car manufacturers, leading to hotter competition from the leasing sector.
According to Steve Huddart, SMR leader at GE Capital, fixed manufacturer pricing plans are putting the squeeze on leasing companies to offer more competitive alternatives.
"In future, I think we'll see more manufacturer service packs. There will be a point in time where everybody does fleet national pricing or a service pack.
"The challenge for us is how we save customers money when the manufacturers are already doing that."
Huddart said that the trend for longer warranties from manufacturers gave leasing companies greater opportunities to reclaim costs for their customers.
"You need to know when you should be challenging - what can you recover costs for? We'll see more extended warranties in future and this gives us the opportunity to recover as many maintenance costs as we can."
