New industry standards are required to handle increasing issues facing fleets from daily rental recharges, according to the Association of Fleet Professionals (AFP).
The organisation’s chair, Paul Hollick, said members were widely reporting what they believed were excessive bills for vehicle damage and late servicing, with the issue said to have worsened during the last couple of years.
Hollick said: “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.
“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.”
Hollick said there were several longer-term factors that could help explain the trend and the resulting potential for issues.
He said: “There’s been a big shift for rental fleets since Covid towards operating longer replacement cycles. This means inspection processes once applied to nearly new vehicles are now being used on those that are much older.
“Similar issues apply to maintenance. 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.”
Hollick said the AFP had begun talking to relevant organisations about how formal industry standards could be amended.
He said: “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. 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.”
Responding to the comments from the AFP, Toby Poston, chief executive of rental and leasing industry body the BVRLA, 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.”
