Due to ongoing supply and production issues, companies are finding it difficult to upgrade to new vehicles for their fleet. As a result, they are compelled to extend leases beyond the initial 3 or 4 year contract.
While leasing companies are allowing customers to extend their contract, the same doesn’t always apply to the maintenance contract. Many leasing companies are now refusing to extend maintenance contracts into a fourth or fifth year. As a result, customers are now concerned about being responsible for increasing maintenance costs on high mileage, aging vehicles.
SMR spend is already increasing
There has already been an increase in service, maintenance, and repair (SMR) spend on fleet vehicles over four years old. In fact, research by fleet software firm, Epyx, found that the proportion of spend has risen from 28% in 2018 to 43% in 2022. Additionally, the average SMR invoice price for vehicles over four years old is 24% higher than those aged below four years.
So, companies now have the challenge of maintaining fleet vehicles without the comfort of a reliable service for a fixed monthly cost.
The supply situation does not seem to be improving any time soon, and with more and more initial contracts coming to an end, fleet customers need to find a solution for a vehicle maintenance plan to keep costs down.
Car and van shortages lead to high maintenance costs for fleet customers. CLM Fleet Management has a solution.
CLM offers Pay as You Go maintenance management, so you can book in SMR services with our experienced fleet maintenance control team as and when you need it.
We have access to over 7,000 garages and tyre agents across the UK, enabling us to efficiently manage your SMR requirements. Our dedicated fleet control team run external price checks to ensure we offer competitive pricing, enabling you to make considerable savings.
Our best-in-class technology means that booking is as straightforward as possible, to ensure that you can get back on the road as soon as possible. If required, we can also arrange for alternative transport.
PAYG Maintenance Success Story
For one of our customers, CLM transitioned 99% of the fleet to PAYG maintenance with a saving of £120,480 during the life of the contract.
Who are CLM Fleet Management?
CLM Fleet Management is an independent fleet outsource specialist and a leader in the provision of corporate fleet management services in the UK.
We continuously strive to be innovative and create new fleet strategies that suit our clients’ specific requirements and business needs. We continue to make savings and efficiencies for our clients by:
- Maintaining close control of fleet expenditure
- Providing fleet policy frameworks
- Ensuring industry leading compliance and health & safety conformity.
- Offering panel funding which drives a significant reduction in vehicle contract hire rental costs.
- Providing storage, reallocation, inspection, and logistics support
- Continuing to make significant investments in web-based technology; not only to provide online management information tools, but also assist our clients’ communication channels.
Ready to opt for Pay As You Go Maintenance Management? Contact us to get started.