Fleets are being advised to protect themselves against service centres that overcharge.

With it becoming more common for company vehicles’ lives to be extended to four or even five years, the opportunity for unscrupulous service and maintenance centres to take advantage increases.

Most manufacturers’ warranties expire after three years and maintenance becomes more of an issue as a vehicle ages.

Many fleet managers feel they can protect themselves by specifying a maintenance-inclusive contract – according to the BVRLA 90% of leased fleets do.

The BVRLA said its members can offer advantages of scale by negotiating on behalf of fleets.

“Because of the scale of their operations, our members are able to agree very competitive prices on maintenance and repair work,” said Jay Parmar, BVRLA head of legal services.

“Garages know that they also employ technical experts who have the knowledge and expertise to approve invoices and highlight anything that looks questionable.”

The Fleet Confidence Survey

However, according to an exclusive Fleet News survey, over 40% of fleets that currently have service-inclusive contracts are now considering dropping this option.

When asked whether they would consider taking the service element out of their contract hire agreement, 41% said ‘yes’.

There is a feeling among those surveyed suggesting that lease companies are also overcharging for maintenance and servicing inclusive contracts.

Colin Kemshead, operations manager at Foundation Piling, said opting out of a service-inclusive contract is “a great way of saving money, if you know what you are doing”.

Graham Hine transport manager at the University of Warwick added: “Why pay up front for something you don't need for a while?

"With variable servicing and extended manufacturer warranties, why pay over the odds for service costs especially when every penny saving is being squeezed out of transport costs!”

This suggests that fleet managers are questioning the value of the services offered by their lease provider and are deciding that it is better for them to take their chances and manage service and maintenance costs themselves.

But it may be a case of out of the frying pan into the fire.

"With a lot of garages you've got to be very careful when reading the bills.

"A lot of garages replace things that don't need replacing,” warned Rob Paddock, distribution and logistics manager at the Commercial Group.

“I'm a vehicle specialist so I've got knowledge of what needs replacing and what doesn't."

This is a view shared by Stuart King, quality manager at PRP Optoelectronics.

“They have to be watched like hawk, consumables are a favourite add-on, also washer fluid,” he said.

“I always fill before going in for service just to check their trustworthiness.

"Automatically it seems they charge you for fluid - just minor item of trust but an indicator!”

Striking a balance

While difficulties with service centres are being identified by fleet managers, they must also ensure any damaged vehicles on their fleets are repaired to their pre-crash condition.

With pressure on costs, it is often financially wise to use independent centres for repairs as well as servicing.

Until recently there were few guarantees that such centres have the equipment or the skills to repair today’s highly technical vehicles.

And these centres are under intense pressure - for the third year in a row they are reporting a drop in volumes of work.

This could tempt them to overcharge, putting additional strain on fleet managers.

“We self-insure and most of our damage is own fault,” explains Gary Black, group fleet manager, Inspired Gaming Group.

“So any damage we pay for.”

But with bodyshops using estimating software that, according to Black, often includes recommending replacing parts that do not need replacing, fleet managers have raise question.

“I am not suggesting vehicles go out with damaged parts not replaced,” said Black.

“I haggle but it is very difficult if they say something needs replacing.”

Black, who manages a fleet of 500 cars and vans, said managers need to keep a close eye on bills.

“I see and sign off every invoice, I also talk to the garage about every job,” he said.

“But there are a lot of companies that don’t have that luxury and I imagine they are getting fleeced left, right and centre.”

Fleet managers have been thrown a lifeline with the BSI and Thatcham-developed PAS 125 certificate.

The independent certificate guarantees that repairs carried out at approved centres are to the manufacturer’s original standards.

The scheme has also now been extended to cover servicing.