Leasing and fleet management companies should embrace digital transformation or face the consequences of rapidly increasing de-fleet costs, according to Pave.

Increased automation for vehicle inspections can deliver improved efficiency, accuracy and consistency

The team at the AI-based inspection platform, which automatically inspects and appraises vehicles in real-time, say that the automotive sector is grappling with rising business costs and other challenges, such as the ZEV mandate and the volume of EVs into the remarketing sector.

And the company is urging businesses to increase automation for vehicle inspections to gain from improved efficiency, accuracy and consistency, enabling data-driven decision-making insights, improving customer satisfaction and speeding up the defleet process to improve days to sell.

Phil Deegan, UK head of business development at Pave, said: “AI has the potential to transform end-of-lease inspections in the fleet management industry.

“Despite rising business costs, NI contributions and tighter consumer spending, there is still potential for growth with more cost-driven payments. Integrating AI-driven inspection tools, such as Pave, can significantly streamline operations, reduce costs, and enhance customer satisfaction, ultimately leading to a more profitable and sustainable business mode.”

Phil Deegan, UK head of business development at Pave

According to Deegan, pivoting to AI for damage analysis and condition reporting will enhance transparency, speed and trust in the buying and selling process.

Other AI vehicle inspection benefits for leasing companies include:

• Reduced time and labour costs along with higher throughput.
• Minimised human error, ensuring consistent and accurate inspections across all vehicles.
• Early issue detection, identifying minor damages early on and preventing costly repairs and disputes.
• Data-driven decisions, generating valuable data for informed maintenance, replacement and operational decisions.
• Customer satisfaction through real-time inspections and independent transparent reporting, allowing the driver time to make informed decisions, which builds trust and reduces disputes with lessees.
• Reduced unnecessary vehicle movements, significantly supporting sustainability objectives.

Deegan concluded: “The best way for contract hire and leasing companies to face the challenges head-on, in this current climate, is to embrace change and adapt.

“Data-driven decision-making has always been the most effective way to manage any business. Adopting Pave’s AI inspection technology to gather this intel earlier in the process will enable any leasing and fleet management company to harness the full potential of this latest innovation.”