When the condition of the vehicle hurts – cleverly reducing the costs of damage

Damage at car
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Patrick Ineichen

CEO and partner procorp GmbH

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Damage to company vehicles during their service life is a cost block that should not be underestimated in all companies. From the point of view of total costs according to TCO, damage at the end of operation is one of them, because, as is well known, it is billed at the end. However, this cost block is usually not or only slightly controlled, although there are various possibilities for this.

Often the entire extent of damage only becomes an issue towards the end of the useful life or when a vehicle is handed over, for example due to a change of personnel.

With a causer-related settlement of depreciation, it becomes clear who was responsible for the damage and who must bear the costs. If the vehicle is sold again at the end of the term, unexpected costs may arise in the final settlement with the leasing company. This upsets the customer and can strain the partnership with the leasing provider.

When the condition of the vehicle hurts – cleverly reducing the costs of damage

The cause of these unpleasant discussions is obvious: it is the handling of the company vehicle and thus the behaviour of the user that influences the eventual value and smooth handover of the vehicle. If the lever is applied at this point, the effective basis for a sustainable reduction in costs and expenses is created.

Greater sensitivity, increased transparency, lower costs

If you want to positively influence driver behaviour, you should focus on raising the awareness of your employees. This enables clear control with unambiguous guidelines so that the process of claims handling can be optimized in terms of costs. From the employees’ point of view, reporting vehicle condition or damage should be quick and uncomplicated. The fleet manager, on the other hand, is dependent on the collection of all necessary data.

Digital reporting of vehicle condition

With a simple application on the smartphone, both the recording of the vehicle condition and the subsequent processing can be significantly simplified. The employees transmit the current vehicle condition at defined intervals. The app guides them through a predefined process so that the information necessary for a clear assessment can be stored in a central database. This virtually eliminates the need for time-consuming queries.

procorp fleet procurement
Software for tendering procorp fleet procurement

For the employees, the regular occupation with the vehicle condition, which only takes a few minutes, leads to a changed handling of the company vehicle. Any damage is recognized more quickly and can be attributed to the person who caused it. Time-consuming clarifications during the handover are a thing of the past.

Together with our partners, we can show you how easy it is to record the condition and what other advantages and possibilities for cost optimization result from this.

procorp fleet procurement – the software for the tendering of company fleets

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