How to Maximize Loaner Fleet Profitability

Ah, the loaner fleet. The necessary evil of the service department. It’s supposed to be a tool for customer satisfaction, but for most GMs, it’s a money pit of unaccounted-for damages, wasted time, and lost value.

Let’s be real. Who’s tracking fuel? The average cost of unrecovered fuel can be $15-$25 per vehicle, per transaction. Who is documenting scratches and dings? Are you tracking mileage to make sure you sell them at peak value? Poorly managed fleets can suffer from utilization rates as low as 50-60%, meaning half your expensive assets are just sitting there, depreciating.

How to Make Your Loaner Fleet a Source of Profit

You wouldn’t run your service bays on paper and spreadsheets, so why are you managing a fleet of expensive assets that way? It’s time to upgrade your auto dealer tools.

Your Fleet P&L Game Plan:

1. Digitize the Walk-Around: The “he said, she said” over a bumper scratch ends now. Use a tablet to take timestamped photos and get a digital signature on a condition report before the car leaves and right when it returns. Any new damage is undeniable and billable.
2. Automate Your Tracking: A good system with telematics tracks fuel, mileage, and location in real-time. No more chasing down cars or arguing over an empty tank. This can reduce the average time a car is out by up to half a day, dramatically boosting availability and helping to reduce bottlenecks in your fixed ops.
3. Set Smart Alerts: The system should automatically alert you when a car is approaching its optimal mileage for decommissioning. This alone can save you thousands per vehicle by ensuring you sell at peak profitability instead of reacting two months too late.

But you might be thinking that your people don’t have time for more process. With Kimoby Go, this isn’t more process. It’s a smarter process that saves countless hours of arguments, paperwork, and lost revenue on the back end.

This is exactly the kind of control that people like Francesco A. Policaro at Policaro Group use to turn their mobility services from a cost center into a streamlined, efficient operation that enhances the dealership customer experience.

The Payoff

Your loaner fleet doesn’t have to be a headache. With the right tools, you can plug the leaks, increase utilization, and turn that black hole of cash into a well-oiled, predictable, and even profitable part of your business.

Think your loaner process could be tighter? Let’s do a quick 15-minute call to see how you can track damages, fuel, and mileage automatically.