Reducing spending and improving inefficiencies are important for fleet management cost savings. Effective management of warranty claims can save fleet owners money.
Vehicle warranties can save your fleet money in maintenance costs. But, failing to keep accurate records and not understanding each vehicle’s warranty and what it offers can leave money on the table.
Here’s what you need to know to use warranty claims for fleet management cost savings in your fleet TCO.
Understanding Fleet Warranties
To get the most from your fleet’s warranties, you need to know what each warranty covers and more importantly, what is not.
These are the most common types of warranties.
Manufacturer: A manufacturer’s, or factory, warranty guarantees the vehicle maker that your new vehicle is in good condition. If your new vehicle needs repairs, the warranty will cover the cost if they meet certain conditions.
Typical things covered in a manufacturer’s warranty include:
- Manufacturing errors
- Corrosion
- Failure to meet emissions control standards
Extended: An extended warranty covers repair costs after the manufacturer’s warranty expires. Extended warranties have different coverage options, and like manufacturer’s warranties, certain conditions must be met for repair costs to be covered.
You can purchase an extended warranty from the factory or a third party. Extended warranties from the car manufacturer continue the original warranty. Extended warranties from third parties may have different inclusions or exclusions.
Powertrain: Powertrain warranties cover your vehicle’s engine, transmission, and driveshaft. These warranties last longer than other warranties.
Policy: A policy warranty covers latent defects and chronic failures. An example of this kind of warranty is a service recall notice.
You can get warranties from the original vehicle manufacturers, parts manufacturers, rebuilders, or third parties.
Regardless of the type of warranty you choose, you need to know its terms and conditions. Failing to do so may cost you money or delay repairs. For example, some warranties don’t cover wear and tear or require repairs at certain shops.
You also need to know how long each vehicle’s warranty lasts. Be sure to keep the documentation for each warranty in an accessible place.
Strategies for Leveraging Warranty Claims
While it may seem like a hassle to document and submit warranty claims, it’s worth it in the long run. Ensure your warranty claims process is as smooth as possible by:
Regular fleet maintenance: A comprehensive and robust fleet maintenance program extends the life of your vehicles and keeps each warranty valid.
Using your data: Your fleet data helps you manage and maximize your warranties. It can alert you to patterns, issues, and tracking needed and completed maintenance. Additionally, tracking accidents, recalls, other expenses, and repeat repairs.
An efficient tracking system lets you know what vehicles need service and what parts need to be replaced.
Keeping good records: Keep records of regular maintenance and other issues. Records of repairs and service keep your warranty valid. They also help you avoid unnecessary maintenance after your warranties expire.
Training staff: Educate your staff on what vehicle issues to watch for. An educated staff ensures your vehicles are operating at their best.
The Impact of Warranty Claims on Fleet TCO
Keeping your fleet well-maintained can significantly impact your fleet TCO. Warranties can remove some of the financial strain of repairs. However, the claim process can result in vehicles being out of service, impacting your TCO.
Maintaining each vehicle’s preventative maintenance can help keep your fleet TCO low. Effective warranty management also impacts your TCO. It alerts you to what needs servicing when, what is covered, and if any vehicles are out of service for repairs.
Including warranty considerations in fleet tactics can result in long-term savings by:
- Saving you a significant amount of money by not voiding warranties
- Allowing you to track which vehicles need repairs or are out of service for repairs.
Warranties can lower your TCO and help keep your fleet running efficiently. Effective recordkeeping, educating your staff on issues to watch, keeping on preventative maintenance, and knowing what your warranty covers can reduce costs and keep your vehicles operating at their best.
