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Ogilvie Fleet adopts transparent approach to end-of-contract charges

Ogilvie Fleet has introduced a new, transparent policy for defleet company car and van damage charges by telling customers what they will be at the outset of the contract.

The company operates a standard fixed cost end-of-contract damage recharge cost matrix that customers leasing company cars and light commercial vehicles sign up to in their master hire agreement.

And if a customer returns a vehicle that is charge-free Ogilvie Fleet now sends the fleet manager a congratulatory email thanking them and the driver for returning the vehicle in “good clean condition”.

Regardless of make or model of car, the company only charges £75 to return a door panel, front wings or rear quarter panels to the BVRLA “fair wear and tear” standard, and £120 for a bonnet, boot lid, tailgate, bumper or roof.

Similarly for light commercial vehicles, sample recharge prices include: £75 for door panels and front wings; £120 for side sliding doors, large side panels or bonnet, tailgate and bumpers; £250 for a roof.

Other charges include: alloy wheel refurbishment £35, full valet £40 and windscreen chips (maximum three) £40.

Ogilvie Fleet operations director Jim Hannah said: ‘Our standard end-of-contract damage recharges are substantially less than would normally be expected and we know that such repairs could not be completed by a customer at these prices. Our pricing matrix is widely accepted as fair and reasonable within our customer base.’

Critically, today Ogilvie Fleet has a virtual 100% acceptance rate on end-of-contract charges applied compared with a query/rejection rate of 44% prior to introduction of the matrix.

To further improve customers’ experience of Ogilvie Fleet, its new “thank-you email” has won client support.

Hannah said: ‘A leasing company’s operations department can frequently be the bearer of bad news whether that is in respect of maintenance or end-of-contract charges. However, we believe that it is also important to communicate good news to customers.’

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Natalie Middleton

Natalie has worked as a fleet journalist for nearly 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.