ORIX analysis reveals significant savings

‘Let me tell you about our Secret Sauce’ says Tania Betts, Head of Customer Experience for ORIX New Zealand, who is responsible for Product Development, Marketing, and the end-to-end delivery of ORIX services.  ‘But first, a story!’

She shares a recent incident which involved a customer inadvertently paying for services covered under the lease.  It’s a rare occurrence at ORIX but easily remedied by assessing the activity on each invoice and refunding everything aligned to manufacturer’s specifications that’s within a fair price range.

‘Unfortunately, in this situation, only 31% of the invoices could be fully refunded’ says Betts.  ‘On the remaining invoices the customer had paid 24.1% more than ORIX would have paid, due to repeat work, excessive labour time and other discrepancies.  For example, two wheel alignments being undertaken on the same vehicle within a 48hr period (first by the servicing supplier, then the tyre supplier).  A 25% cost variance on an identical set of tyres.  20-44% longer labour times and more’.

On the face of it, all seemed relatively acceptable and there was nothing to prompt most people to query the activity on the invoices.   ‘The devil is in the detail’ says Betts, ‘If you don’t have a strong operational framework for asset management, with quality and cost controls, you will not achieve the depth of oversight to maintain assets as effectively as possible’. 

Like many fleet management organisations (FMOs), ORIX prides themselves on their operating platform, supplier agreements and discount structures.  It’s the conversation every procurement professional has had with at least 4-5 salespeople this year – or is it? 

We learn that the landscape has changed in the FMO world.  ORIX is one of the only companies to have its maintenance activity scrutinised solely by trained Auto Technicians, all of whom have previous ‘hands on’ experience as mechanics and Auto Technicians scrutinising maintenance activity.  Other FMOs have opted for customer service people.  Maybe due to a labour shortage?  ORIX is not certain and wonders why an FMO would make this call when their governance of assets is so critical.

ORIX have invested in building a sophisticated system over 18 months, with significant data points and algorithms to assess work requests from multiple angles.  It is ORIX’s online Repair and Maintenance Portal (RAMP) which is used by selected franchised tyre and service providers to expedite approvals, invoicing and payment – and keep customer’s fleets productive.

There is nothing particularly new in automated authorisation platforms, but Betts claims that ‘it is the combination of RAMP and a strong team of Auto Technicians that is ORIX’s Secret Sauce’.   Every vehicle make, model and powertrain configuration on RAMP, has its own service schedule, with specified service intervals, parts, labour, quantities and cost structures.  It means that ~ 40% of standard servicing or tyre requests achieve immediate approval on submission of the work request.  This frees up ORIX’s Auto Technicians to focus on more complex work requests that require greater attention and review.

To put the value in perspective, Betts plucks an example of one vehicle from her earlier story and says ‘Prior to the level of data and validation rules placed in RAMP, we would have assessed the invoice with a 14.6% differential in spend.  With the combination off RAMP and an Auto Technician, we achieved 24.8% savings, with no compromise to driver safety.  This is hugely advantageous to our customers’.

If you have leases with an FMO you may be wondering whether your supplier is managing your vehicles as effectively as they could.  Betts suggests getting deeper into the detail. ‘Ask them the quantity of engine oil required to fill a Mitsubishi 2.4 4WD Triton or their price for a sump washer on the same vehicle’.  If you struggle to get an answer quickly, you may want to ask more questions to check your FMO is doing the best by your fleet.

The ORIX Corporation manages more than 1.3 million vehicles around the globe, as one of its six core business streams, with interests in fleet leasing and management, car and truck rentals, car sharing, used car leasing and car sales.  You can contact us on 0800 106 749.

New Zealand Clean Car Programme

Recently the Government has announced a range of measures that will help New Zealand meet our carbon neutral targets by 2050, including the proposed Clean Car Programme.

While it is yet to be legislated, the Clean Car Programme includes two central pillars focused on reducing CO2 emissions generated by transport – the Clean Car Standard and the Clean Car Discount.

Clean Car Standard   |   targeted for 2022

In January 2021, the Government agreed to introduce the Clean Car Standard, that will focus on encouraging importers to bring cleaner New and Used light vehicles into New Zealand.

It is proposed that vehicles that have CO2 emission ratings above the Standard will incur a fee, and the higher the CO2 rating, the greater the fee. 

Alternatively, it is proposed that vehicles that have CO2 emission ratings below the Standard will receive a credit (that could be used to offset fees).

We expect legislation will be introduced in late 2021, with the policy taking effect in 2022.

Clean Car Discount   |   1 July 2021

The Clean Car Discount came into effect on 1 July 2021 and provides rebates for eligible new and used light electric vehicles (EVs) and plug-in hybrid vehicles (PHEVs) that:

  • are registered in New Zealand for the first time between 1 July and 31 December 2021 AND
  • have an ANCAP safety rating of 3 or more AND
  • have a net purchase price including on road costs and GST that is less than $80,000 AND
  • subject to funding limitations
How it will work

Rebates for leases will be claimed by ORIX and applied to your lease.  This means you achieve the added benefit of:

  • a reduced net purchase price (FBT Value)
  • a reduced lease rate
Rebate Levels

It is proposed that this preliminary scheme will be replaced from 1 January 2022 with a scheme that will be based on CO2 emissions of vehicles.  Those with low or zero CO2 emissions will qualify for a rebate and those with moderate to high CO2 emissions will incur a fee.  Details are to follow later this year.

If you have any questions, please contact your ORIX representative or you can find more information here

Frequently Asked Questions

Will ORIX lease quotes include the rebate?

Yes, any eligible vehicles will be quoted to include application of the rebate.  This will allow you to compare vehicles easily without any requirement for an off-system calculation.


Will ORIX pass on 100% of the rebate to my lease vehicle?

Yes.  While ORIX is the registered owner, we want you to receive the full benefit of making positive steps to help New Zealand achieve our carbon neutral goals.


Will I need to claim the rebate for my lease vehicle?

No, you don’t have to do anything!

As the registered owner, ORIX will claim the rebate and apply it directly to your lease.  It will be reflected in a lower lease rate and reduced net purchase price (FBT value).


What if I ordered my car prior to announcements?  Will I still get the rebate?

Yes, if it meets the eligibility criteria, we will claim the rebate.  Your ORIX representative will requote all vehicles that are eligible for rebates and send you a replacement order with a lower lease rate and reduced net purchase price (FBT value).

ORIX Christchurch has Moved!

We are pleased to announce the new location of our ORIX Christchurch office at 124 Carmen Road in Hornby. The move comes on the back of increasing demand for leasing and finance options which has resulted in further investment and growth in the Southern region. The new location will be the home of our South Island Vehicle Leasing and Finance operations, our Trucks and Equipment Leasing and Finance, and our quality ex lease vehicle sales yard.

We look forward to seeing you at our new location, feel free to pop in and see the new office. Our hours will continue to be 8:30am to 5:00pm, Monday to Friday and the vehicle sales open on Saturday: 9:00am to 4:00pm. All our contact numbers will remain the same however if you have any issues finding us please call: 03 353 1900

Summer Driving Tips

That’s right, shorts and singlet weather is approaching. Make the most of it by making sure your vehicle is in tip-top condition, inside and out.

PLAY IT COOL. The heat of summer puts pressure on the engine and cooling system so make sure your vehicle is serviced on time and topped up with fluids regularly to keep it in great working shape.

SUN ON THE HORIZON. The long afternoons may be great for a BBQ but aren’t great for driving in the late afternoon with the sun on the horizon. Keep a pair of sunglasses with polarized lenses on hand to help you see the road and avoid any incidents.

DON'T DRIVE TIRED. With daylight saving comes longer days and more activities that can lead to driver fatigue. Be on the lookout for signs like restlessness, blinking frequently, yawning and drowsiness, that will alert you that a break is required. Always take a 15 minute break every 2 hours regardless.

BEWARE OF SEA AND SAND. Salt water will cause rust and corrosion to your vehicle, something that falls outside of the fair wear & tear guidelines. While we recommend avoiding salt water and parking as far away from the beach as possible, we know there are times where this can’t be avoided.

To help lower the impact to your vehicle, use a car wash with an under vehicle wash function in each instance to reduce the level of deterioration and financial implications to your business.

EASE UP ON THE ACCELERATOR. With the start of summer comes lycra season. This means more runners, cyclists and pedestrians so ease up on the accelerator, increase your following distance and use caution in areas with pedestrians or heavy traffic.

BE AWARE OF THE TEMPERATURE GUAGE. Driving an over-heated engine can cause significant damage. If you see the temperature gauge rising into the amber zone, turn off your air conditioner, turn on your heater (to draw heat away from the engine), then pull over safely and shut down the engine.

Do not attempt to remove the radiator cap or take other action yourself. Simply telephone our driver helpline: 0800 506 749 for assistance.

CARE FOR YOUR PASSENGERS. It may come as a surprise that the AA receive on average 1400 call-outs a year* for kids and pets left in hot vehicles. Temperatures can soar to 40 degrees in a locked car within 2-3 minutes on a sunny day, even with a window left slightly ajar. Take extra care of all your passengers on hot days and do not leave them alone in a locked car under any circumstances.

STOCK UP FOR THE UNEXPECTED. Be prepared for summer breakdowns. Carry water, snacks, a first aid kit, charged cell phone, sturdy walking shoes and a hat in case of emergencies.

KEEP ON ROLLING. Perform regular inspections of tyres to make sure that they are properly inflated and that there are no breaks or cracks that could lead to a blow out from hot asphalt in the height of summer.

If you have any concerns about driving this summer then please contact our support team here at ORIX Support: 0800 506 749.

*John Healy, tvnz.co.nz, 30.1.2018.