For the first time, UK lease and contract hire companies, which provide over 2.5 million company vehicles, will be offered a telematics service that, according to independent research, could save them over £120 per vehicle annually.

The research, when applied to top FN50 companies, shows that profit-per-vehicle could be increased by as much as 52%.

Traditionally it has been end-user fleet managers who have been the target of telematics providers.

However, a six-month Europe-wide research project by Frost & Sullivan shows that contract hire and leasing is a sector that has been largely overlooked by telematics providers.

According to the research commissioned by Eagle-i, lease companies can enjoy savings that come from using telematics data to improve service, maintenance, repair and residual value management as well as improving customer retention levels.

Providing a lease company with telematics data greatly improves the chances of its vehicles meeting their service schedules, which improves residual performance.Eagle-i is now approaching lease companies offering a new telematics package, which provides them with an asset management telematics solution, as well as allowing them to white label a portfolio of telematics services on to their customers.

ALD Automotive developed a similar product - ProFleet2 - in 2004.

However, it has never offered its telematics service to other lease companies, although it soon realised the added benefit it could give to its customers.

Unlike the Eagle-i model, ALD provides telematics as a cost-free benefit for its clients.

“Whilst we have considered offering ProFleet2 to other leasing companies in the past we felt that the benefits we derived from such a unique product would outweigh the advantages of having another player in the market offering it,” explained David Yates, ALD marketing manager.

Eagle-i also points out that its lease customers will be able to offer a portfolio of telematics services to fleet customers at a lower cost, as the hardware will already be installed.

“At a time when vehicle leasing companies are facing the prospect of a downturn in business volume, the outcome of the new research is likely to be music to the ears of many,” said Ian Walmsley, CEO of Eagle-i.

“The improvement in pre-tax profit per vehicle is shown to come from all types of vehicles – fleet cars and light, medium and heavy commercial vehicles – and calculated to come from lower costs of mileage capture and administration, better service anticipation and service monitoring, reduced maintenance costs, and more effective contract management.”

While ALD questions the predicted cost savings, it is in agreement that without such a solution, “future resale values are affected, routine repairs can become more complex and costly and warranty programmes can be invalidated,” said Mr Yates

Hitachi Capital Vehicle Solutions has already signed up to the new Eagle-i solution with two other major lease providers expected to sign in the coming weeks.