New industry standards are needed to tackle increasing issues arising from daily rental recharges made to fleets, says the Association of Fleet Professionals (AFP).

Members of the industry body were widely reporting what they believed were excessive bills for vehicle damage and late servicing, said chair Paul Hollick.

“This is an area where there has always been some inevitable friction between fleets and daily rental companies but our view is that there has undoubtedly been rising frustration during the last couple of years – and it appears to be worsening.

“At the heart of this lies what is seen as an unbalanced approach to inspections. A common complaint is that the handover process on delivery involves only a quick look at the car or van, while examination on collection is much more detailed and often identifies damage that may well have already been present.

“There is also a sense that when a vehicle on longer term rental needs servicing, efforts made to notify the fleet or driver are minimal while charges made for a late service are sometimes extreme. Although we understand there can be strong penalties invoked by manufacturers for neglected maintenance, we know of one bill for £4,000 for a missed service, which is difficult to justify.

“At least one AFP member employs two people full time largely to deal with damage and servicing recharges of this kind from daily rental companies and they successfully fight claims often running into tens of thousands of pounds every month. This seems to us indicative of daily rental processes that really need re-examination.”

Paul said there were several longer-term factors that could help explain the trend and the resulting potential for disagreement.

“There’s been a big shift for rental fleets since Covid towards operating longer replacement cycles. This means inspection processes once applied to nearly new vehicles are now being used on those that are much older. We hear stories of the doorsills being inspected for small scratches on well-used vans that have been in service for many years and recharges attempted. More allowances need to be made for wear and tear on vehicles of this type.

“Similar issues apply to maintenance. The previous fast-cycle model meant many daily rental fleets rarely had to deal with MOTs or servicing – the vehicles just weren’t generally old enough to need them – and processes for dealing with these key issues are still relatively new and sometimes variable in terms of quality and effectiveness.”

Paul said that the AFP had started engaging in conversations with relevant organisations to discuss how formal industry standards could be amended in light of these concerns.

“Daily rental is an essential service for many of our members but there is a high level of ill-feeling around the whole issue of recharges at the moment. Many fleets feel that they are effectively being forced into paying unfair recharges and having to spend much too long fighting them.

“They want to see an improvement in the situation and in initial discussions with industry bodies, it appears a positive approach is being taken to the concerns raised. Our hope is that this will lead to improved best practice guidance in the industry that will quickly have a positive impact on real world fleet experiences.”