A new breed of streamlined vehicle inspection services is estimated to be adding in excess of £500 per vehicle to the fleet owner supply chain according to DMN.
DMN – the vehicle movement people – has calculated that for every fleet vehicle it processes using its new Inspect & Collect service, it could potentially be adding £500 back into the value chain for fleet operators. The value creation stems from a combination of accurate insight, consistent methodologies and real time data management.
End of vehicle lease costs
With end of lease repair costs in the region of £300 per vehicle; delayed vehicle collection costing upwards of £10 per day; and a near £300 premium on vehicles sold at the first time of offering at auction – vehicle inspection and collection services have a vital role to play in stemming leakage from the fleet owner value chain.
‘Time is money when it comes to vehicle asset management,’ explained DMN managing director, Nick Chadaway. ‘We understand that the biggest challenge for fleet owners is the speed it takes to get the vehicle inspected from the end user, collected and then delivered into the auction or remarketing site. This has real cost of anywhere between £10 – £30 a day attached, depending on the type of vehicle, meaning it could be costing businesses anywhere between £300 to £1,000 per month.’
Vehicle damage accurately recorded and processed
Nick continued, ‘The other major challenge is ensuring vehicle damage is accurately recorded and processed, in order that excess costs can be charged to the driver. Typical damage such as a couple of scuffed alloy wheels, and a small dent repair, could cost anywhere in the region of £300 to rectify highlighting just how key accurate and transparent inspections need to be.’
And with 75% of major fleet and leasing company returning stock sold through auction, Nick also points to the National Association of Motor Auctions (NAMA) insight which suggests there is a £289 premium on the value of vehicles sold at the first time of offering, reinforcing the need for accurate, speedy and transparent processes.
True enabler in reducing frictional cost
‘Inspect & Collect is a true enabler in reducing frictional cost within the fleet owner supply chain and helping to streamline what has traditionally been a dysfunctional series of loosely linked events,’ said Nick.
‘The reality is that £500 per vehicle is a modest value to place on a process which is becoming increasingly important for vehicle asset managers as the leasing market continues to grow and competition advances.’
Seamless vehicle inspection and collection
DMN’s Inspect & Collect service, which uses the company’s MIVIS real time automotive solutions App, offers a seamless vehicle inspection and collection solution to fleet operators across the UK. The App allows DMN trained personnel to image any vehicle damage, obtain a signature at the point of inspection and immediately remove a vehicle from the client’s location in one seamless transaction. The service includes a real time, fully configurable damage and charge matrix, and ensures all inspections are date, time stamped and geotagged.