End-of-contract damage charges are a frequently contentious issue for customers, but Ogilvie Fleet says that in 98% of cases where a cost was incurred it was accepted by clients.
In the remaining 2% of cases – amounting to around four or five vehicles a month – Ogilvie Fleet discusses the damage charge with customers and agrees a fee acceptable to both parties. That compares with a query/rejection rate of 44% prior to introduction of the transparent policy a decade ago.
Ogilvie Fleet operates a standard fixed cost end-of-contract damage recharge cost matrix that customers leasing company cars and light commercial vehicles sign up to in their master hire agreement.
In the event of a charge, the fleet manager is sent the vehicle appraisal document and appropriate photographs.
In 2014 a total of 61% of Ogilvie Fleet’s defleeted cars and vans attracted no end of contract damage charges. The average cost per vehicle across the 39% where damage charges were levied was just £259 while the average charge across all defleeted vehicles was only £100.
Ogilvie Fleet operations director Jim Hannah said: ‘Our pricing matrix is now widely accepted as fair and reasonable within our customer base because our standard end-of-contract damage recharges are substantially less than the cost of having the repairs carried out by the customer…’
What’s more fleet managers who return a vehicle that does not incur a damage charge receive a “thank you”’ email from Ogilvie Fleet.
Despite a greater number of older vehicles now returning due to fleet replacement cycle extension as a consequence of the tough economic climate faced by many businesses in recent years, average damage charges have been held at what Ogilvie Fleet believe are industry-leading low levels:
Hannah said: ‘Given the increased age and mileage of vehicles being returned I think we are being more benevolent towards customers in terms of end of contract damage charges. It would be natural to assume that older vehicles would incur higher charges, but we want to be fair and reasonable to customers and we are more lenient towards vehicles that are four, five or six years old and have clocked up high mileages.’
