Contract hire fleets that take a with-maintenance option should keep an eye on their monthly rates as leasing providers consider shifting aftersales business to cheaper independents.

At present 80% of leasing and rental companies use franchised dealers for routine servicing, according to BVRLA research.

However, 57.9% forecast that more of their future work will go to the large independents, despite attempts by manufacturers to keep business within their franchised networks.

The research follows a Fleet News poll (February 18) which revealed that more than half of fleet respondents had already switched from franchised to independent, with another 24% considering the move.

“The main future forecast is for growth in the use of national independent networks,” said BVRLA chief executive John Lewis.

“These chains are satisfying customer service requirements and have better prices and offer centrally-controlled agreements.”

Figures obtained by Fleet News reveal a 15-20% saving at non-franchised repairers, equal to £150-350.

Fleets might get a better monthly rate by targeting providers that use independents for a greater proportion of their aftersales business.

However, the decision to switch is not fuelled entirely by price.

The main factor, cited by half of respondents, is a provider’s ability to offer national agreements which fix service levels and prices regardless of which outlet is used.
Only a handful of franchised dealers can offer a national network. Independent options include Kwik-Fit Fleet, ATS and Fleet News supplier of the year Nationwide Autocentres.

The next factor, cited by 21%, is customer service levels, followed by driver choice (14.5%).

Price is down at 5.3%, while short lead times on booking is 5.1%. Both are likely to be of great interest to fleets looking to reduce costs and vehicle downtime, however.
When it comes to out-of-warranty work, such as new exhausts, national independents carry out 25% of the work. Dealers still account for 65%; 10% goes to local independents.

Here, pricing is the key consideration for 26% of leasing companies.

Kwik-Fit Fleet typifies the value proposition. Managing director Mike Wise said: “In the first quarter of 2010 demand for fleet servicing increased 61.7% and the number of MoTs undertaken on fleet cars and vans by 56.2%.”

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