Circle Leasing - The UK's No1 courtesy car leasing specialist

Welcome to 'Tips of the Trade' where you'll find useful tips, advice and comment from other repairers on running a courtesy car fleet. Unbiased and honest, it aims to offer all repairers practical suggestions on how to improve your courtesy car arrangements.

Got a tip you'd like to contribute?
To submit a comment to 'Tips of the Trade',
please email: tom@circleleasing.co.uk

Tip: A tip for a watertight courtesy car operation
From: Andy Walters and Earle Evann, Rainbow Bodyshops Ltd

			We look after our own vehicles very well. Customers are charged if they cause any damage or incur traffic fines. Our managers are responsible for courtesy cars at the end of the day and any rectification or unrecoverable costs come off individual managers' bottom lines. This has proved an excellent way of ensuring our courtesy car operation is as watertight as it can be!

Tip: Establish clarity from day one
From: Gary Marshall, Managing Director - Marshall Panelcraft

			We ensure we get a credit card swipe before a car goes out and we establish clarity right from the start. In my experience people's personalities can change come the end of a job when there's money involved, so we do everything to avoid misunderstandings. In any business where money is involved, establish clarity from day one. That applies particularly in our sector where it's a distress purchase situation and a customer may well resent having to pay an excess and using what they might see as an inferior replacement car with our name on it. Every job has to generate a profit is our philosophy. Simple as that.

Tip: Repairers should retain control of distribution
From: Les Clark, Partner - Rally Repaints

			I feel strongly that repairers should retain control of distribution, as they're best positioned to do that. After all, the repairer - not the insurer - is the one who knows about capacity, work flow, staff holiday and forward planning. If insurers try to get involved in distribution then it potentially adds cost and confusion with regard to workshop loading, parts problems and other unforeseen difficulties. Certainly our policy is to sort out damage straightaway. In our experience, as soon as a car picks up any sort of damage, subsequent users will behave as though it doesn't matter if it picks up a few more knocks. Put the service book and spare key away somewhere safe as soon as the car arrives. The spare key is only needed when someone locks the keys in the boot - and it happens. Also, be wise to the things people will try to get away with. If a car is parked tight against a wall, it's a fair bet someone's trying to hide something.

Tip: Make customers more aware of responsibilities
From: Philip Brailey, Motor Damage Supplier Manager - Allianz Cornhill.

			I think repairers should focus on improving the all-round administration processes connected with courtesy cars. Some could also make a better job of explaining the provision processes a little more clearly. I think there are still occasions when a repairer hands a customer the keys to a courtesy car that's parked in the corner of the yard. No inspection, no explanation. So there needs to be a robust system to ensure the customer is aware of what he's getting and what his responsibilities are while he has that vehicle. A Repairer's representative and the customer need to go round the courtesy car together to ensure there's no damage, to check there's enough fuel, and even to agree on the right kind of fuel! Well kept records and an easy-to-follow audit trail are definitely at the top of my recommended checklist!

Tip: 10 Top Tips for Courtesy Car Management
From: Paul Glover, General Manager - M&M Vehicle Repairs Ltd.

			Make sure the courtesy cars are well presented Pick a corporate scheme and stick to it Have clear documentation Constantly monitor the number of cars available Keep damage records Check each car thoroughly before returning it Make sure that the insurance has been properly transferred Plan your fleet size carefully Choose only 12 month contracts Don't forget to register them on the MID!

Tip: Prepare in advance for extra courtesy cars.
From: Andrew Walsh, Managing Director - AW Repair Group Ltd.

			If you think your courtesy car needs are going to grow in the near future don't wait until you are desperate for the additions. Make deals with the suppliers now and ensure you have a written commitment stating the number of vehicles you have been authorised. In some cases it may be worth using the same supplier for all the vehicles. Then, when it comes to renewal they are already one step ahead and have made provision for replacements if you require them, saving you the task.

Tip: Look at whole life costs and vehicle quality.
From: Nick Orr, Financial Director - Howard Basford Ltd.

			We try and look at whole life costs, taking into account the wider contract issues. It is easy to be influenced by lower monthly rentals, but any superficial benefit can be lost through onerous charges and penalties for damage, administration and so on, particularly at the end of term. Clearly cost will be the major factor in deciding which vehicles should be on fleet, but we are also conscious that there is a big difference in quality within the small car options. We see the quality of the courtesy car as being a big influence on how customers perceive our brand.

Tip: Lease don't buy.
From: Tony Parish, Managing Director - Alton Cars Ltd.

			Do not opt to buy your fleet! There are too many headaches. Leave it to the likes of Circle Leasing. That's what they do best, and repairing cars is what we do best. Don't always assume that customers require a car. Always try to plan ahead and stay abreast of market conditions - it only takes two insurers or two motor manufacturers to merge to affect your business mix. Buy a decent bodyshop management system to measure KPIs including cycle times and courtesy car utilisation. Don't leave de-fleeting to the last moment - it can cost. Finally, have regular planning meetings with your courtesy car provider to discuss potential peaks and troughs and business growth.

Tip: Keeping courtesy cars in good condition keeps costs down.
From: Dave Perkins, Joint Managing Director - Cosham Bodyshop Ltd.

			Knowing the fixed costs and knowing there will be no administration charges helps us manage our fleet. We like Circle Leasing because we have never had a bill for an administration charge from them. Otherwise it's amazing to see how quickly those £40 add-ons for parking tickets or speeding fines just pile up. We also take our responsibilities seriously to keep the courtesy cars in good condition, so we very rarely need to budget for any repair work. In fact, we have never had a bill from Circle for recharging, and in the past year we've had no more than £1,000 from other companies for recharges. That's because we check the cars over. We sign every car in and out, and charge everyone a £50 deposit for use of the car. This can be held to cover the cost of any minor damage.

Tip: Make sure customers know they're responsible for damage.
From: Richard Thorogood, Managing Director - JD Automotive Ltd.

			First of all, nominate a member of staff with specific responsibility for courtesy car administration, and make sure they have the time and resources to do the job properly. This is what we've done. Secondly, ensure you have detailed check-in and check-out procedures in place, with sound documentation. Lastly, and most important of all, take credit card details to focus every customer's mind to being responsible for any damage. No credit card, no car - simple as that.

Tip: Find a reliable supplier
From: Charlotte Smith, Company Secretary - Coachwork Renovations Ltd

			We see the most important part of our success is finding a reliable company that delivers when they say they will. Even more important, they should not pretend they have cars if they don't really have them. Another key part of our success is precise administration at our end. With issues like congestion charge fines, it's important to have agreements with customers absolutely straight. If the paperwork's right you can reclaim all the fines, as well as charging for damage and excess mileage. If it's not right you haven't a leg to stand on. It really saves time and money to do it properly. Have efficient staff controlling your courtesy car operations. Always question end-of-contract charges and administration costs up front to save yourself the unpleasant surprise of £25 for every letter about a parking fine or in excess of £300 for a missed service. Some providers certainly put their percentage on and don't tell you anything until it's too late.

Tip: Ten Top Tips for Courtesy Car Management
From: Austen Ward, Operations Director - The Speed Group

			Ensure vehicles are presented clean to customers and returned in the same condition. Have a strict policy with no smoking and no pets in the cars. Insist on pooled mileage. Use mainstream manufacturers with good dealer support networks. Keep a track on all courtesy car movement. Lock away all the spare keys and service books. Remove anything that's removable. Have a one year contract on vehicles to prevent high running costs. Keep up to date with fines and penalties Advise all customers that a second excess may apply if a vehicle is damaged.

Tip: Make the most of pooled mileage
From: Mike Cavanagh, Managing Director – Cavanaghs Ltd

			Insist on pooled mileage, we make the most of it and it is vital to us. Also keep every car up to spec and put any damage – however small – right straight away.

Tip: Staff morale, diversification and courtesy cars
From: Sue Jennings, Partner – Bell's Accident Repair Centre

			Finding the best staff is always a challenge, so it's vital to ensure we take on apprentices with good potential, and keep them with us as they gain experience. The process is time-consuming but vital. Another key aspect of our success is team morale. We do a lot more now to keep staff informed and make them feel more part of the business. Diversifying has also helped. Bodywork still accounts for the biggest part of our business, but we have branched out into servicing and valeting on site. Let's make as much as we can on a car while it's with us. Where courtesy cars are concerned, really and truly, find one company. In my experience it is so much easier.

Tip: Listen, understand, share… and use Circle
From: Paul Marden and Ian Clark, Joint Managing Directors –

Seward Accident Repair Centres Ltd

			A willingness to listen and to understand what our work providers' requirements are. Today it's not enough to repair cars competently. Insurers expect and demand far more than just a repair process. We are happy to have an open book policy, to share management information and we also have the flexibility to operate different repair models if required to do so. We continually review our results with our work providers which helps to establish a long term working relationship. Also use Circle and adhere to all their processes. You don't get any problems at all if you do that. They are very reasonable in following BVRLA guidelines in terms of what's reasonable damage and what's not.

Tip: Get your facts right and back up damage
From: Barry Whittles, Managing Director–

Just Car Clinics plc

			Hand out the vehicle in a presentable manner and ensure the customer knows he is responsible. Take a credit card swipe. When they check back in don't be scared to confront them over damage. Have all your facts written down and standard forms in place so you can back up everything.



		Client Log-in
		Username Password Forgot Password? What's This?



		Courtesy Car Pricing
		November 2008 Courtesy Car Pricing Communication Request your copy here



		Need courtesy cars?
		View our latest range of brand new vehicles Many available for delivery within seven working days

Circle Leasing.

Europa House, Barcroft Street, Bury, Lancashire BL9 5BT

Telephone 0870 757 0226

Fax 0870 751 9871

mail@circleleasing.co.uk

Registered Office: Moorlands, 89 Chapeltown Road, Bromley Cross, Bolton, Lancashire BL7 9LZ

Registered in England

4442693

VAT No. 784 2221 32