Arval has developed a new dashboard tool that makes it easier for customers to manage contract terms and ‘recontract’ where necessary.

Shaun Sadlier, head of consultancy at Arval

Developed in response to customer demands for greater flexibility over changes to original contract terms, the tool enables a more flexible approach when it comes to managing contract duration and mileage, dubbed ‘recontracting’ by Arval.

Shaun Sadlier, head of consultancy at Arval UK, explained: “This can sometimes refer to simply lengthening or shortening contracts or changing the mileage parameters. More often, though, it refers to the way that we monitor whether vehicles are, over time, staying within the expected parameters of their lease contract and, if it is clear that they aren’t, suggesting options to the fleet operator.

“For example, if a customer has taken a 36-month/75,000-mile lease and, after 12 months, it is clear that a car or van is more likely to total 60,000 miles, you can look at perhaps increasing the length of the contract or reducing the annual mileage allowance.

“Similarly, if it became obvious that you were going to overshoot the mileage by some distance, there is the option to reduce the contract length or increase the payments. All of this can be done in conjunction with other in-contract measures such as swapping cars across the fleet to balance out mileage extremes.

“This more flexible approach is good for both us and our clients. End-of-contract surprises benefit no-one and allowing customers access to better total cost of ownership and fleet budget control is crucial.”

Sadlier said that, historically, recontracting often meant reviewing and analysing large amounts of data, but that the company wanted to make it clearer and more accessible with the introduction of the new dashboard tool.

“We will always provide consultative support where it is needed, helping customers to work through the implications of contract changes, but we believe that the kind of openness this technology creates will be widely welcomed.”

The dashboard tool has already been trialled with some customers and received very positive feedback; it’s expected to become increasingly popular as more and more fleets needed to be agile with their fleet contracts.

“The fact is that we, as a company, work less and less in a world where the initial lease agreement is the final word. We increasingly provide an approach where there is a higher degree of contract flexibility to meet customer needs over time.”