Card Set Information
6 daily duties of fleet captian plan?
1. Burn the daily
2. TAG contracts with lofrs, recalls, pulls
3. clean and stage units available for rent
4. call on our out of service units to decrease down time
5. execute a lofr plan (call pitcrew, dnr 2000+)
6. secure company assets (pick up all drops)
Why is fleet captain important to business?
Be efficient, safety, accountability, protect our assets.
What does the RPM report measure; and what are our goals for each?
1. measures recall and PM report, updates every 2 hours, recall score, lofr score, avg shop days
2. goals for RPM
: 100% completed, 0 score
: city: <8% active, <50 score miles; dia: <4% active, <25 score
-avg shop days
: < 5; shop early in week w/ damage sheets
Why is preventative maintenance (lofr's) so important?
1. helps decrease breakdowns (helps esqi)
2. Prevents larger and costlier repairs (decrease expenses)
3. Helps maintain our resale pricing (better inventory adj)
4. Maintains factory warranty
5. Decrease our unlimited liability exposure (especially breaks and tires which are 99& of our claims)
Explain how preventative maintanence is charged to your branch, and why is it designed that way?
1. Spread over the region by % of fleet at your branch
- Encourages sharing and not cutting back to help costs - Encourages safety
- (LOFR, Brakes, Tires, Bulbs, Blades)/(Fleet)
- Corrective Maintenance may make one branch PM higher than another
: Engine replacement and negligence caused maintenance failure
Two main accounts for PM?
- Body and Corrective Repairs
-Hits bottom line 100% that month for the branch -Hub caps in windshield wipers
- Blown engines due to poor maintenance
- Windshield repairs
- Preventative Maintenance/LOFR
a. Spread over the area
b. LOFRs, breaks, tires, light bulbs
How missed damage charged to branch?
- Hits branch in one month
- Encourages good trunk to trunk training and execution
What car related problems increases our liability exposure, and why?
: decreased stopping distance
: less traction and control
: unlimited liability, want employees and customers safe, must be done within 30 days of activation, company image
4. Safety features
: mirrors, lights, windshields, wiper blades
What 5 items need to be cheacked by our Car preps before every rental?
2. Washer Fluid
Explain how we handle long-term rental contracts (mileage, preventative maintence, damage, recalls, etc.)?
1. Set expectations up front
2. Come back every 30 days to rewrite, check for damage
3. Will need to have lofrs done on own or get switched out
- Must bring in receipt for Lofr so we can put in USG (or fax)
- May get service at one of our accounts and they can charge us
Accounts in Business MGMT?
: Customer Satisfaction (qsp dia), only use when closing a ticket, not becuase a customer won't pay
: Bad Debt - Writing something off when the contact has already been closed, balance due over 90 days, prevent through underwriting/callbacks, chargebacks, bounced checks, forced charges
: Cash box over/under
What is IPC?
Income per car (IPC) = C&I + Net Other
= (Overall Avg Rate)(Days Earned)(Days in Month) + (Net Other)
What is break even point?
BEP= IPC-OP = TOT REV - OP
How can you affect controllable costs:
: don't spend more than what's being purchased; get cars returned with extra gas
2. Bad debt
: proper underwriting, proper cash qualification, callbacks
3. Uninsured losses (safe employee driving, don't miss damage, catch conversions, detect fradulence with proper underwriting)
4. Customer Sat
: maintains callbacks so guests are aware of charges and no surprises; don't wrtie off because someone won't pay for the rentail and don't want to hit bad debt)
5. Emp. hours
: watch 47.5; lunches, flexing - gain more cars to spread cost.
Net Other: revenue generated from sale of DW, PAI, SLP, GPS, Child Seats
C&I + Net Other:
- 3 things to drive revenue
: rate (max rate, charge fees for extra drivers, fee for over 300 miles, controlling 47.5 ee hrs), days earned, run tight
- sell up, sell waive, sell out
Gross costs, i.e. Direct Costs are?
All things directly related to keeping cars on road (TIMIDMF):
-Taxes and license
What goes into Interest as a direct cost:
Cost of borrowing from corporate to finance operations; corp buys our cars outright and we borrow from them.
What goes into Maintenance as a direct cost?
VR dept spreads to region to encourage regular maint and sharing cars
: LOFRs, brakes, tires, corrective maintenance, negligent repairs.
What goes into Insurance as a direct cost?
Daily Rental Liability charged by Corporate based on three-year history of losses incurred.
What goes into Depreciation as a direct cost?
2% Enterprise historical decrease in value per usage and mileage (0.2% credit at end), largest gross cost; days in month may chage it being exactly 2%, Colorado has nicer cars and higher depreciation
What goes into MIsc. as a direct cost?
Drop fees, keys, windshields star repairs, hub caps, mirrors, tow charges, breakdown switches, roadside services, if positive than earning money from drop fees.
Fleet growth does not decrease misc exp.
What goes into Fuel as a direct cost?
gas spent - gas collected.
: 10 airport
: 1-2 city
What are UN INS?
: uncollected loss not related to a rental; OX/MX will hit branch in one month.
1. Employee losses (branch emp damages car)
2. Lot Damage (inclement weather or vandalism)
3. Conversions (unverified fraud, entire depreciated wholesale value of car expense to branch that mo)
4. Employee liability (branch emp damages property
5. Missed damage (undocumented damage, largest un ins)
GOAL IS 9-10
What is Travel & Entertainment (T&E)?
Employee lunches, marketing lunches, happy hours, manager meetings
Goal is 2
What is Customer Satisfaction (Cust Sat)?
Amount writting off to 0531 or QSP to ensure completely satisfied customers.
High customer satisfaction means low ESQI
Goal is 3.
What is Bad Debt?
Money owed to us not paid withing 90 days of closed contract; includes bounced checks and chargebacks for the month; refunding after has closed to Cash; fees to collection agencies
What goes into Branch overhead?
Supplies, uninsured losses, data processing, phone, postage, janitorial, building and eequipment, rent
Decreases as fleet grows
What goes into NET PROFIT?
Net Profit = OP + Veh Adj
: FLIP profit plus 0.2% depreciation adj.
What are controllable costs?
1. Uninsured losses
3. Bad debt
4. Customer Sat
How do you prevent chargebacks?
1. Card matches the driver
2. Swipe or proper imprint
3. Obtain proper authorization amount
4. Inform customer that they are responsible if they 3rd party does not pay
5. Obtain a signature on the first day of rental
6. Indicate clearly on the contract if different forms of payment will be used in conjuntion to close the rental.
What are some reasons for chargebacks?
1. Missing contacts is #1 (organize while on rent and send away after one week of closing)
2. Cardholder and renter are different people
3. No authorized dollar amount
4. No imprint or swipe
5. Charged card 90 days after contract closed
6. Improper authorizations (must wait 24 hours to swipe a second time)
7. Cannot prove 3rd party defaulted
How do we react to robbery attempt?
1. Call police
2. If present, comply
3. If away, contact higher ups
4. Employee Safety is #1
When can we close pend/incomplete return contracts?
1. Waiting on extension
2. Waiting of RO/PO
How can we refund closed contracts?
Only mgr can do in-town; CRI @ DIA.
Earned profit that turns into Bad Debt once refunded.
What is the expectation for number of days to pull a unit once activated?
Why is there a set number to pull a car and why is it important to pull quickly?
Cars are our heaviest depreciating asset; pulling in 5 days lets us sell the car for more money and pay less interest (price dwindles as timeframe lengthens)
What is the last car rule?
If another branch has a car and there is a customer at your counter, they must give up the car.
Why is there a last car rule?
If no sharing, than a false image of needing to buy new cars is created.
A branch keeping cars to themselves has a major impact on fleet planning and money.
Increase IPC and Net Profit to have fewer cars for the same amount of customers
Otherwise, we pay interest and depreciation on units we do not need.
Five steps to Activate Delete Plan are?
1. Run daily each morning
2. Isolate deletes not on rent and move to own area of lot with keys held aside
3. Mark contracts and all callback reminders to UCS on rent.
4. As cars return, get unit Rental Ready and damage free - add to keys held aside and lot area
5. If we must re-rent UCS, email and explain why to REmarketing.
What two departments make up FLEET?
: Selling deletes as quickly as possible, as much money as possible, and expand the buyer base.
: Handles all NCS ordering, allocation, and registrations for the Group.
What is the affect of non rental ready to UCS lot on your branch?
If damaged, 3-5 days of additional downtime and the car is flipped back to that branch to sit on the depreciation while its being fixed
Rental Ready is crucial to not waste time, money, interest, depreciation (sell for $500 less; 200-600 range)
Who is responsible for checking pull car before it leaves the lot?
Fleet captain, asst mgr, and branch mgr
What is a Fleet Plan?
Submission to corporate of projected fleet needs - what to buy and delete in order to maximize days earned and net profit - based on current grouth pattenrs and market conditions
How can an accurate fleet plan benefit a branch?
Provides proper fleet mix and maximizes revenue while keeping costs minimal.
Ensures fleet dept is pulling units at the optimal time to maximize inventory adjustment.
What are 3 things a branch can do to positively affect forecsting?
Maintain rate integrity between car classes
Maintain Last car policy
Build strong upsell culture
Follow through on marketing schedules.
What is the grace period for temp tags?
What is the grace period for expired Colorado plates?
What should be in glove box of every car?
Current registration and insurance.
Who is responsible for plates?
Consequences of wrong plates on cars?
Increaed cost to correct (time and personnell to acquire)
Lost revenue from inability to rent the car
What is the process with USG and new plates to a branch?
Required to input notes so if vehicles leaves your branch the next branch can track down where plates are at
If plates go missing, the branch in USG with notes determines responsibility and new plate fees/responsiblity.
What can be disadvantages for your branch if depreciation is too high?
Higher break even
Too many free upgrades
Higher right exposure
lower operating profit
If your branch's depreciation is too high, what can you do to correct?
Give cars to other branches
Request traffic and VA to give you only smaller cars
One way larger units
Meet with fleet
Market to local area to gain account that require larger units.
What do you do if you receive NCS with damage?
Do not rent
Bring back to PDI center
Must be reported before it goes on rent in order to collect from the transportation sournce.
As an assistant Manager, how would you kn ow the right or wrong fleet mix?
Schedule a meeting with fleet to go over the DC-40
Do MTs have cars to upsell on the lot?
Does your fleet match business mis?
Your depreciation is higher than the group avg, but your op is lower
Your depreciation is higher than the group avg, but your inventory adjustment is lower.