ADMINISTRATIVE UNIT REVIEW RECOMMENDATION #3C

 

Title:                             Loaner Vehicles

Description:                  The AUR Committee believes that vehicle rates should eliminate assessments for loaner vehicles ($17/mo).  Essentially, each customer that receives the service of a loaner vehicle is paying $204 per year for the benefit whether they utilize the loaner or not.  It is true that many or even most customers expect and want a loaner vehicle when their vehicle is in for service, but it appears that the cost of that service should be allocated directly to those who utilize it versus socializing the cost over the entire customer base.

Team Leaders:              Ed Conners and Larry Amerman

Team:                           Hans, Bob, Valerie and Dale

Identified Issues:           The monthly assigned lease rate contains a $17.00 charge for replacement/loaner vehicles. Some departments do not use replacement vehicles and feel this is an unfair charge.

Fleet Proposal:             We recommend keeping the loaner pool of vehicles and charging customers a daily/mileage charge instead of including the cost in the monthly lease rate.  The customer still has the option of using a replacement vehicle at a per use charge.

 

Daily/mileage loaner rates will be established in the Fall of 2005 at the same time other rates are determined.  At that time, the $17.00 fee will be deleted from the monthly rate. 

 

Currently, Facilities Services' vehicles are serviced by the evening shift.  The vehicles are picked up by Fleet Services and returned the same night.  There has been no additional charge for this service because Facilities Services did not use loaner vehicles and the loaner fee offset the cost of the pickup/delivery service. If the loaner charge is taken out of the rate, Facilities Services will be charged for the pick up and delivery service.  However, this charge will be lower than the $17.00 per vehicle per month they now pay for the loaner pool.  The charge would be about $17.00-20.00 per round trip (approximately twice per year). 

 

If the decision is made to pursue this change, Fleet will meet with departments (Facilities, Vet Med, Communication Resources) who have vehicles serviced at night. It has been the practice of the night crew to return vehicles (if safe) when there are parts on order.  Fleet will then pick up and deliver the vehicle when the part comes in.  This service will cost extra.  Departments need to be part of the decision process.  This extra service is important to the customer because there is less down time for their vehicle and may be worth the additional pickup and delivery charge. 

 

Justification:                  Replacement vehicles are a valuable asset to the service office. It is easier to get people to bring in their vehicle for service if a loaner is available.  The replacement vehicles are also an important service to Fleet customers. 

 

Impact:                         This recommendation should have no negative impact on our customers or shop personnel. Replacement vehicles will still be available to departments that want to use them. The current $17.00 will be removed from the monthly lease rate for customers, lowering their monthly rate. The user will be charged a daily and mileage rate for rental of a loaner vehicle when the lease vehicle is in the shop.

 

                                    Result for campus departments should be lower cost.