What is Fleet Management?

A streamlined fleet that works well is beneficial to an entire business. But weaknesses such as frequent downtime, inflated non-budgeted costs and sudden late-night hassles over accidents quickly become vulnerabilities that can hurt your business bottom line. This is where Fleet Management comes in.

Any vehicle on the road means financial risks are involved. The only way to protect your company against those risks is to know what is happening across all your fleet, at all times. However, having all that data is useless if you don’t have the expertise to interpret it. You need to know how to optimise your fleet and insulate it against unexpected costs.

Fleet Management uses industry expertise and bulk purchasing power to maximise your fleet’s potential and minimise risk to your business. It should be one of the biggest priorities for any business with significant fleet operations.

There are several components that can make up a Fleet Management package. ORIX’s Fleet Management is flexible and packages can be tailored to your businesses’ needs. For example, a fleet of construction utes is going to have very different requirements to a fleet of urban sales rep vehicles. We would always recommend looking for a Fleet Management package that can be tailored to your needs and provide reporting that is fit for purpose.

With over 30 years in the leasing and finance industry, ORIX has refined our Fleet Management service to deliver significant cost savings and optimal performance for your fleet of vehicles.

The following will explain how each Fleet Management aspect can be beneficial to the right fleet. For further details see our Fleet Management Package.

ORIX Maintenance Management

You have two choices for ORIX Maintenance Management.

Budgeted Vehicle Maintenance is available for your ORIX lease vehicles and is integrated into your monthly rentals. The estimated costs of mechanical maintenance and servicing for your vehicle are assessed and averaged over the term of your lease. Your monthly lease payments are consistent and include the amount to cover maintenance. At the end of your lease, if the total expended on maintenance is less than the amount estimated we refund you the difference; if it is more we include a charge for the difference in the final lease reconciliation

Invoiced Vehicle Maintenance is available for vehicles you own, ORIX lease vehicles or third party leased vehicles and is popular when transitioning to a fleet package. We manage all maintenance and servicing work on your behalf and charge it back to you on a monthly basis.

With a maintenance management package (either budgeted maintenance or invoiced management) we can:

  • Obtain service, repair and labour discounts upwards of 30% when compared with retail.
  • Implement our own service schedules to ensure vehicles are maintained correctly and economically.
  • Negotiate out of additional charges such as diagnostic tools, booking fees, freight, and miscellaneous charges.
  • Selectively use third party suppliers for your older vehicles.
  • Set up automatic authorisation limits based on a transaction or monthly maintenance spend to give you ‘arms distance’ control over the maintenance and set up notifications for any exceptions. Any mechanical work above an agreed limit will be referred to you for authorisation before work commences.
  • Invoice you as part of a consolidated monthly invoice for repairs and servicing costs.

This gives your business a considerable cost advantage when servicing or repairing your fleet of company vehicles.

Maintenance Interventions

From time to time vehicle maintenance and mechanical repair situations arise that allow specific, expert intervention by the ORIX maintenance and fleet management team. An expensive repair can be handled in several ways - particularly with an aged vehicle - and often a pragmatic and considered solution can be found at a fraction of the cost of the default option. Coupled with proper spare tyre utilisation, these ‘interventions’ are recorded in the ORIX system and can add up to considerable savings for your business. 

Warranty Issues

ORIX has extensive experience in advocating on behalf of our Fleet Management customers for warranty claims. We have found that a periodic review of these cases offers a valuable insight into the true value of the ORIX Fleet Management relationship.

Warrant of Fitness Management and Alerts

All WOF (warrant of fitness) and COF (certificate of fitness) inspections and authorisations can be managed for you by the ORIX maintenance team.  We will provide regular updates and reporting on vehicles that fall outside normal maintenance and WOF schedules.

Vehicle servicing, COF and WOF notifications can be set up for your drivers in addition to your standard reporting. Text alerts are sent out in the month prior to vehicle servicing, WOF or COF expiry, alerting your drivers to the upcoming requirements and helping to avoid fines.

Vehicle Registration & RUC Management

Annual vehicle re-licensing labels can be issued, printed and dispatched to your drivers directly when required. RUC’s (road user charges) for diesel vehicles can be issued proactively based on your driver’s kilometre usage, or on direct request from your team. Lost or replacement labels and RUCs can be reprinted and organised immediately on request.

Tyre Management

ORIX has nationwide agreements with several tyre providers. Bridgestone and Firestone are our preferred suppliers.  In many cases new lease vehicles are fitted with these brands to ensure that quality and value is provided from day one.  Through this relationship, ORIX can negotiate significant discounts off tyre and tyre related service costs which are passed on to your business.

We work with tyre suppliers to ensure effective tyre management. This includes qualification of tyre amounts, type of tyre requests, fitments and wheel alignments.  ORIX Tyre Management reduces administration for your business and ensures the spare tyre is introduced at the earliest opportunity to avoid it becoming obsolete and therefore unable to be used. This translates to significant savings for your business without compromising the safety of your drivers.

ORIX Accident / Breakdown Management

In the event of an accident or breakdown, ORIX has procedures and dedicated staff in place to ensure your driver and their vehicle is off the road for the shortest possible time, with the minimum of disruption to your ongoing business requirements.

Since 1996, First Assistance Ltd has responded to all of ORIX’s requests for emergency assistance. First Assistance is a 24/7 service provider that manages all aspects of a ‘first call’ accident or breakdown service on behalf of ORIX, with specific requirements set to ensure your driver’s welfare.

As an industry recognised provider of roadside assistance, First Assistance offer a range of benefits, including:

  • Extensive digital mapping of the entire country allowing them to establish your drivers’ exact whereabouts.
  • Ability to find the closest service supplier to get your driver back on the road, from a database of over 2,500 service providers.
  • Experience in handling approximately 30,000 inbound emergency calls per month. Most customer calls are answered immediately and roadside assistance is provided on average:
    -  Within 32.1 minutes nationally, 24 hours a day, 7 days a week.
    -  Within 19.5 minutes in the metropolitan areas, 24 hours a day, 7 days a week.

The initial phone call to First Assistance starts a full incident response process, including the co-ordination of towing, repairs and loan vehicle when required.  

Replacement or Relief Vehicles

ORIX can organise a replacement vehicle when necessary at your request with the cost of the replacement rental passed on to your business. The replacement vehicle provided will be similar to the existing vehicle on lease (where possible) and the costs will be at ORIX’s preferential rental rates.

Toll Management

Toll processing can be managed by ORIX and requires very little involvement from your business. A ‘Toll Road’ account is set up for your vehicles that require access to toll roads. ORIX pays any toll charges and invoices them back to your business. A monthly statement of all toll charges incurred is available at any time on request.

Infringement Management

Managing driver infringements (speeding fines etc.) is a time critical process that requires immediate and direct action to ensure further costs are not incurred. Upon receipt and confirmation that an infringement charge is legitimate, ORIX can organise for the fine to be transferred into your driver’s name so the risk is removed from your business. This involves ORIX verifying the driver’s licence number and current home address by way of direct email to your driver with escalation to your cost centre manager if needed.

Driver Training

ORIX can arrange both initial and ongoing training for your drivers. Our Driver Training service offers a range of programmes to assess drivers, support drivers with one on one training courses and deliver a comprehensive training and risk management solution.  

We can also facilitate workshops held off site or at your offices and provide corporate induction sessions to cover driver training specific to your business. Topics can be varied and the education can be theory, practical or online.

We highly recommend implementing a driver training and safety programme for your drivers to ensure safety and best practice are regularly top of mind.

Relocation of Vehicles

From time to time it may be necessary to relocate a leased vehicle between your offices or around the country. ORIX can promptly arrange the transportation of these vehicles to most destinations at discounted rates.

Proven Expertise

The most beneficial item our Fleet Management package can offer you is access to our experienced team. Our maintenance staff members are all trade qualified industry professionals with experience in all aspects of the automotive business including; Automotive Engineering, Light Commercial Vehicles (LCV), Electric Vehicles, Heavy Commercial Vehicles (HCV), and Auto Electrical Engineering.  The team actively monitors maintenance costs, reducing over-spending so that all repairs are completed in accordance with manufacturer and safety standards.

Our dedicated Account Managers are highly experienced in managing your fleet’s movement's, reporting on your fleet’s progress, identifying inconsistencies and providing opportunities that could maximise your fleet’s potential.

A Fleet Management solution minimises the potential risk in the running of your company vehicles, allowing you to run an efficient vehicle fleet with reduced administrative burden. It can be as comprehensive or simple as you need but most importantly, a good Fleet Management system allows you to concentrate on what matters most, running your business.

If you’re ready to maximise your fleet’s potential, call us today on 0800 106 749.

ORIX New Zealand feedback submission on the Government’s Clean Car Discount Proposal

ORIX New Zealand Limited is a leasing and finance provider that has been leasing vehicles to NZ businesses for over 30 years. We have extensive experience in analysing businesses’ requirements to create fit for purpose solutions to their transportation needs. This has included advising businesses on how EVs could fit into their fleet and lower their fleets’ emissions outputs.

The following submission refers only to the Clean Car Discount as the Clean Car Standard is not an area where we are as experienced.

The biggest concern we see with the Clean Car Discount is the effect it will have on businesses that require load carrying tool of trade vehicles and do not have a viable EV or other low emission alternative to the vehicles they currently use. Examples of this would include tradespeople who need to carry tools and supplies to various jobs, businesses in the construction sector that need to transport pieces of equipment etc.  These activities cannot be practically carried out in small-medium passenger EVs such as Nissan Leafs or Teslas.

Currently there are 16 pure EV vehicle models available in NZ (NZ New), of which 14 are passenger vehicles only. There are no EV Utes available.  The lack of practical alternatives means that businesses that require light commercial vehicles will be penalised by the Clean Car Discount Proposal as there will be no rebate-earning suitable vehicles.

For Small to Medium Enterprise (SME) businesses these additional penalties added on their tool of trade vehicles, combined with the recent fuel tax increases, will lead to a hike in operational costs that can’t be recovered easily. In many cases these businesses are sole traders who work hard and have no ability to spread costs against other revenue streams.

The New Zealand business landscape is significantly different to overseas models that this proposal is based on. Small businesses make up 97% of all enterprises in New Zealand (according to the Ministry of Business, Innovation and Employment 2018*) and they are the ones that will be significantly affected by the penalties the Clean Car Discount would impose. 

Our suggestion is to delay the implementation of the scheme on light commercial vehicles (LCV’s) until there are viable EV alternatives available. Alternatively, GST registered businesses could be excluded from the penalty structure until a range of viable low emission vehicles are available. As stated in the Clean Car Discount Proposal, 26 percent of vehicles entering the NZ fleet are purchased by businesses. Making businesses exempt from the penalties imposed on LCV’s until there are viable options would have a limited impact on the overall scheme. Allowing businesses to still access the discount available in this scheme will allow businesses to experience and implement the infrastructure needed when the LCV alternatives come to market, allowing for faster uptake and acceptance.

While ORIX appreciates the Government’s efforts, it seems the Government has failed to adequately consider the impact on businesses and hasn’t considered other alternatives that could yield a better result for all parties.

Another suggestion we would like to make - although not touched upon in the Clean Car Discount Proposal - would be to review the fringe benefit tax (FBT) placed on EV’s. The current FBT regime assesses the private benefit of a company provided vehicle at the rate of 20% of the vehicle’s cost price (this is Cost Price Method most commonly used by employers). When applied to EVs, which are currently around double the purchase price of an equivalent ICE vehicle, this creates a further disincentive to the uptake of EVs. ORIX recommends that the Government considers temporarily applying a lower (than 20%) rate for the calculation of FBT on EVs, until cost prices of EVs reduce. This should actually be fiscally neutral if the same dollar value of FBT is paid on vehicles whether ICE or EV.

With extensive experience in providing alternative funding options for business vehicles in NZ we welcome any further questions and would be happy to participate in further discussions on the Governments initiatives in this area.

 

* Ministry of Business, Innovation and Employment New Zealand’s Support for Small Business – May 2018 https://www.business.govt.nz/assets/Uploads/Documents/Small-business-booklet.pdf

RUC Price Increase – 1 July 2019

The NZ Transport Agency has announced that starting 1 July 2019, there will be a rate increase on RUC (Road User Charges) rates by approximately 5.5% on all RUC applicable vehicles.

The rate increase is part of the Governments policy statement on land transport 2018.  This is the second of three planned increases to RUC rates, the third increase will happen in 2020.

Heavy RUC licences bought before the 1 July 2019 are required to be re purchased within one month of the rate increase under section 86 of the Road Users Charges Act 2012. This means all Heavy RUC licences (only for heavy vehicles) bought before 1 July 2019 will now expire on 1 August 2019.

Those affected by the Heavy RUC licence changes must purchase a new RUC licence before 1 August 2019, starting from their current hubodometer reading. They must buy enough RUC to take them past their current RUC licence end distance. They call this an overlap licence.

ORIX NZ can assist our clients in purchasing the overlap licence, please contact your dedicated Account Manager on 0800 106 749 with a list of all registrations required.

30 Years of Warm Welcome

Last week the welcoming face of ORIX New Zealand celebrated 30 years with the business. In honour of Catherine’s long service, we asked her what it was that’s kept her here all these years.

“If you had asked me 30 years ago if I’d still be here today, I would have laughed off the idea as being absurd! 

But 30 years on, ORIX has maintained the wonderful unique culture and great work ethic that I fell in love with at the start, with the added bonus of sharing my genuine love of cars and meeting some of my closest friends!

ORIX NZ is a successful, fun business and I feel there have been enough changes around me not to make any major changes myself – why try to fix something that isn’t broken! 

I’ve watched the comings and goings of people (including some ‘goodies’ coming back!)  and 30 years on we have an impressive number of long-timers mixed with lots of new blood, that has proven to be a great mix.

It hasn’t always been without its tough times.  We have lost some special people and while it hits us hard, the way we pull together is amazing! 

We are a close knit team that looks out for each other and that has never changed. 

I have always been and still am today, proud to be a part of the ORIX family.” 

Catherine Paul – Office Administration Manager, ORIX New Zealand

Thank you for all your years with ORIX NZ Catherine, you embody the quality values we strive for as a business and have provided a high level of service for us all to strive towards. We hope to have you for 30 years more!

Toll Road Price Increase

From the 1st of March 2019, the prices for the Tauranga and Northern Gateway toll roads will increase. The NZTA announced this increase as being in line with inflation. The following will be affected:

Northern Gateway Toll Road: Light Vehicles (car/motorcycle) – Will rise from $2.30 to $2.40 Heavy (bus/truck) – Will rise from $4.70 to $4.80

Tauranga Eastern Link Toll Road: Light Vehicles (car/motorcycle) – Will rise from $2.00 to $2.10 Heavy (bus/truck) – Will rise from $5.00 to $5.20

Takitimu Drive Toll Road: Light Vehicles (car/motorcycle) – Will rise from $1.80 to $1.90 Heavy (bus/truck) – Will rise from $4.80 to $5.00

 For those with a Toll account, the new charges will happen automatically and there is no need to do anything.

Pre-purchased trips prior to the 1 March 2019 update will still be valid and recognised as a fully paid trip with no top up needed.

This increase only affects the toll charges, service and transaction fees have not changed.

For more information please visit: tollroad@nzta.govt.nz.  

Information sourced from NZTA.govt.nz