The key to effective loaner management is being proactive, meaning you need well-established processes, policies, and personnel to ensure success. This approach allows you to spend more time focusing on your customers and less time managing loaner vehicle logistics.

Monitor Key Performance Indicators (KPIs)

Keep track of critical KPIs like Length of Loan, Utilization, and Cost Recovery:

• Length of Loan: If this is high, customers may be keeping vehicles longer than necessary after service is complete. Consider notifying customers earlier in the day to encourage timely returns.
• Utilization Rates: Low utilization might indicate that vehicles are not being prepped for new service customers fast enough. Implement a streamlined process for quick vehicle preparation and turnover.
• Cost Recovery: If cost recovery for items like fuel is low, there may be issues with accurately tracking fuel levels before and after each loan. Make sure your team is recording fuel levels at both the start and end of each loan to improve accuracy.

Manage Vehicle Age and Mileage

Plan ahead for vehicle disposals, ensuring that vehicles are removed from service several days before the expected disposal date. Avoid loaning cars that are nearing their disposal date to ensure compliance with manufacturer programs and maintain eligibility for incentives.

Proactive Loaner Vehicle Management

• Maintain Your Loaner Fleet: Set up a process for performing regular maintenance, addressing service bulletins, and handling recalls. This ensures that all vehicles are well-maintained and minimizes the chance of customers encountering issues with a loaner car.
• Track Cost Recovery Performance: Monitor fuel and toll expenses over a few weeks to identify which costs are incurred by customers versus those related to business operations, such as shuttle services. This can help you decide which costs to pass on to customers and which to absorb.

By staying on top of KPIs, proactively managing your loaner fleet, and monitoring cost recovery, you can improve overall efficiency and customer satisfaction.