How Telematics Optimizes Loaner Fleet Management for Dealerships

Managing a loaner fleet can be a complex and costly task, with many variables to track. From monitoring mileage and servicing to recouping expenses, keeping everything in order can quickly become overwhelming.

This is where telematics steps in to provide significant relief. Acting as a fleet manager’s most valuable tool, telematics streamlines essential fleet operations, enhances cost recovery, and helps safeguard dealership assets. It automates key functions, allowing your team to focus on higher priorities. Say goodbye to outdated methods like whiteboard lists, paper forms, and non-integrated tools that drain time and resources.

The best part? Telematics offers a swift return on investment, delivering immediate cost savings that benefit your dealership’s bottom line.

Real-World Success with Telematics

Consider this example: A regional dealer group near Washington D.C. was losing $14,000 on fuel and $2,500 on tolls each month across their 150-vehicle loaner fleet. Two staff members were overwhelmed trying to reconcile repair orders, toll charges, and fuel expenses.

By implementing telematics, they optimized their fleet management processes and saw impressive results. Not only did telematics improve vehicle maintenance and increase uptime, but it also enabled accurate tracking of costs like unpaid tolls and fuel usage. The time required for toll and fuel repayments dropped from over 30 days to just 24-48 hours.

Their monthly investment in telematics? $3,750. Their net recovery each month? $12,750. Thanks to telematics, this dealership is on track to save over $150,000 annually.

Even smaller dealers with fleets of just 20 loaner vehicles can see significant savings by adopting telematics technology.

Getting Started with Telematics

Installing telematics is simple and straightforward, with devices that plug directly into any vehicle. Looking ahead, many OEMs are expected to integrate telematics into their vehicles, making the process even more seamless. Whether used as a stand-alone solution or in conjunction with existing fleet management software, telematics offers immense value to dealerships.

Maximize Cost Recovery

Telematics simplifies the reconciliation of tolls and fuel costs, enabling dealers to recoup these expenses faster and with greater accuracy. You can also set custom business rules for charges, ensuring you don’t get stuck with minor fees below a threshold that you define.

Additionally, telematics securely stores customer payment details, making it easy to charge for items like damages and tickets, even if they’re discovered after the vehicle has been returned.

Boost Fleet Efficiency and Protect Incentive Dollars

For dealerships participating in manufacturer programs, adhering to strict rules on mileage and vehicle usage is crucial. Missing these guidelines can lead to lost incentive dollars and lower vehicle residual values. Telematics can help by setting alerts for optimal fleet rotation and vehicle usage, ensuring compliance with OEM requirements and avoiding costly mistakes.

Safeguard Your Fleet

Telematics also provides proactive maintenance alerts to help prevent vehicle downtime. Regular maintenance reminders ensure that servicing happens on time, avoiding the rush of having multiple vehicles needing repairs simultaneously and reducing the risk of exceeding OEM mileage limits.

Real-time GPS tracking lets you know where each loaner vehicle is at all times. This can prevent unauthorized usage, such as when a customer takes the car out of state or uses it for ride-sharing services without permission. If an employee decides to take a loaner for a joyride, telematics will immediately notify you.

Telematics even enables remote audits, allowing you to monitor your entire fleet without manually checking each vehicle. This gives you a clear, real-time picture of your loaner fleet’s status and location without having to leave your desk.

By incorporating telematics into your loaner fleet management, you can not only streamline your processes but also significantly improve cost recovery, asset protection, and overall efficiency.

CHOOSING A TELEMATICS SOLUTION

Connexion Mobility is a smart, digitized telematics solution that eliminates the need for dealership employees to manually input fuel expenses or vehicle maintenance data into spreadsheets. It’s user-friendly, seamlessly integrates with existing back-office systems, and is designed to be affordable.

Even better, dealers can start using Connexion Mobility right away to unlock more value and profitability from their current loaner fleet and fixed-operations business. The easy installation, simplified management, and exceptional support provide dealerships with maximum return on investment.

Since Connexion Mobility is built on a flexible platform, it allows dealers to easily expand into additional service offerings such as valet service, vehicle-on-demand rentals, single-vehicle subscriptions, or multi-vehicle subscriptions. This makes it an ideal first step toward establishing extended mobility services, opening up new revenue streams, and future-proofing your dealership.

Let us show you how Connexion Mobility can be quickly implemented at your dealership and how it can help you stay ahead of the curve with advanced telematics solutions.