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Fleets offer dealers the opportunity to increase service plan sales

“Most leasing companies adopt it on the basis that it reduces their rentals because it positively affects their SMR,” said Steve Chater, BMW general manager of product and market planning. “The majority also service their cars at our franchised dealers and this gives them a reason to continue to maintain that approach where they might have been looking at independents.

“This gives them the benefits when they come to remarket their cars.”

Chater suggests that leasing companies which purchase the Service Inclusive plan reduce their rentals by an average of £6-£10 per month.

Service packs can increase dealers' sales prices

BMW’s repatriation service, set up to tackle concerns about residual values in the face of the company’s strong growth in fleet, enables leasing companies to take advantage of BMW’s own remarketing process via its franchised dealer network.

“Dealers can sell cars for more money if they are with the service pack because they know the car has been regularly serviced at a franchised dealer,” Chater said.

“We know that this gives the consumer greater reassurance.”

Vauxhall said one of the benefits of using its service plans is “the knowledge that the Vauxhall retailer(s)/authorised repairer(s) undertaking the work conform to the Service4Fleet aftercare standards, and that vehicles will have a full Vauxhall service history to maximise their resale value”.

Vauxhall’s service plan includes all scheduled servicing costs, maintenance, repair of any mechanical or electrical failure, and parts that need replacement due to fair wear and tear, as well as free vehicle rental and full Vauxhall Assistance.

Ford has also recently extended its Blue Service aftersales package to fleet operators.

Škoda, Toyota and Lexus, Fiat and Mitsubishi are looking into a service plan offering for fleets.

Sharon Townsend, general manager – service at Mitsubishi, said: “We are starting to get interest from fleet managers and we are looking at this. Currently the plans are promoted only to the retail customer and there is a 93% uptake of service plans.

“I believe that fleet managers see a value in manufacturer servicing and using OEM parts. They need reliability in their vehicles and if servicing costs can be fixed upfront this simplifies the process for the end-user.”

How the Environment Agency uses service packs

The Environment Agency has taken up service packs on Mitsubishi L200s as the vehicles are outright purchased and travel only 12,000 miles a year.

“We have used service packs on and off for the past five or six years, if not longer,” said Dale Eynon, head of fleet operations at the Environment Agency. “We started using them on plant and then moved into vans. It’s a fixed cost so you know what you are spending and, generally speaking, you get a good deal.”

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