Benefits of OEM telematics for rental and leasing fleets

Are you looking for a game-changing solution to enhance your fleet management processes? Then integrated OEM telematics data might be the right choice for your fleet. In this blog post, we'll look into the numerous benefits it offers specifically for rental and leasing fleets.

We would like to start off with where it hurts the most when looking at the total cost of ownership for a vehicle.

Asset depreciation, fuel, repair, maintenance, tyres and roadside assistance as well as insurance account for approximately +85–90% of the total cost of ownership of vehicles.

Therefore, we would like to share how you can better control and optimise these costs.

Save on cost and downtime with remote activation 

Fleet telematics hardware and installation cost as well as installation time can vary widely depending upon the fleet composition and fleet size. With integrated OEM telematics, there's no need for any hardware installation. These factors are a huge win in saving costs and time, especially for rental and leasing companies that have a high frequency of fleet renewal. This means you can streamline your operations without breaking the bank, freeing up your budget for other essential areas. 

In 2019, non-operational vans cost businesses 800 GBP daily on average in the UK.

OEM telematics also allows for remote activation, easily activating or deactivating telematics features without physically accessing the vehicles. 

This means more uptime for your vehicles and seamless rental or leasing experiences for your customers.

So you can say goodbye to vehicle downtime that disrupts your operations. 

Improve vehicle utilisation and reduce maintenance costs using vehicle-centric data

Now let's explore how these benefits translate into improved fleet management and customer satisfaction. By leveraging integrated OEM telematics data, you can optimise vehicle utilisation. Real-time insights on the location, condition and availability of your vehicles enable you to make informed decisions about deploying them. Minimise idle time and maximise your fleet's potential.

The ability to monitor and control vehicle utilisation allows for a twofold benefit to the fleet manager: 

• Maintaining an optimal utilisation rate across the fleet to minimise vehicle downtime — in 2019, UK businesses collectively lost 2.4 Bn GBP per year due to vans not being operational 
• Better control over the fleet vehicle/asset depreciation, particularly in Europe, where vehicle asset depreciation accounts for over +40% of the total cost of ownership with an average +20k euro spent to acquire a vehicle

Additionally, proactive monitoring of vehicle components and systems helps you identify maintenance needs before they escalate into costly repairs. 

Observations in multiple studies have shown that vehicle maintenance can account for approximately +10% of the total cost of ownership of a vehicle. As an example, this would roughly equate to a monthly cost of up to 100 euro for a Petrol C segment SUV in Germany; this doesn't include the cost of dispatching a replacement vehicle.

By addressing issues early on, such as planning preventive maintenance activities, you can significantly reduce maintenance costs and minimise vehicle downtime linked to unplanned reactive maintenance activities. This ensures that your vehicles are in top condition and always ready for rental or leasing.

Prepare for a seamless digital customer experience 

Speaking of readiness, using integrated OEM telematics data empowers you to provide an exceptional customer experience. Real-time information about vehicle location and availability enables you to respond promptly to customer inquiries. Say goodbye to long wait times and hello to a streamlined and convenient rental or leasing process. Satisfied customers are more likely to return and recommend your services, giving your business a competitive edge.

Ensure safety for your fleet and customers

Safety is paramount in fleet management, and integrated OEM telematics plays a vital role in enhancing it. By monitoring driver behaviour and vehicle performance, you can identify potential safety risks and take proactive measures to mitigate them. This proactive approach reduces the likelihood of accidents, safeguarding both drivers and vehicles.

Safe driving keeps insurance and accident repair costs low. These costs can account for up to 10% of the total cost of ownership — telematics in general enables the monitoring of driver behaviour, leading to a significant reduction in the number of accidents and improving your position on the bargaining table with insurers.   

Increase efficiency and reduce costs

Lastly, integrated OEM telematics data boosts your fleet's overall efficiency. With real-time information at your fingertips, you can make informed decisions about routing and scheduling to improve operational efficiency. Every mile and minute count, and with integrated telematics, you'll ensure that your fleet operates at its peak performance.

Informed transition to electric

With all this data at hand, you can furthermore utilise it to evaluate electrification.

Geotab helps with EVSA, analysing the data to determine the specific requirements of your fleet. In addition, there are recommendations for the introduction of electric vehicles based on the fleet's driving cycle. We measure the range of different electric vehicle models, financial savings and environmental benefits based on real-world electric vehicle performance metrics.

To sum it up, integrated OEM telematics data offers an array of benefits for your rental and leasing company fleet. From cost savings and a unified software platform to remote activation and no vehicle downtime, you can unlock improved vehicle utilisation, reduced maintenance costs, increased customer satisfaction, enhanced safety and boosted efficiency.

If you're ready to take your fleet management processes to the next level, consider Geotab's OEM telematics solution as an invaluable tool for your operations. Embrace this technology, and watch your rental and leasing business thrive.

Find more information about our solution here: https://www.geotab.com/uk/oem-telematics/

You can also get more access to hundreds of third-party solutions on Geotab Marketplace and extend functionality with Geotab's SDK: https://marketplace.geotab.com/