Car rental: how to organise your fleet management

Car rental: how to organise your fleet management

The French short-term car rental market is estimated at between 5 and 6 billion euros. At the same time, long-term leasing (LLD) accounts for a significant share of the car market in France, with 27.5% of all new registrations in the first quarter of 2022, according to Sesamlld, the French trade body for long-term vehicle leasing companies. While this growth is great news for rental operators, it also shows how important efficient fleet management is to maximise profitability and keep customers satisfied. Good thing we have plenty of practical tips for you!

Tip #1: Track and optimise your vehicles

The first challenge rental operators face is keeping track of their vehicles. How many are available, out on rental, or in need of maintenance? Without the right tools, it quickly turns into chaos.

Solutions:

1. Digitise your fleet management: Software like Lokki centralises all your information on a single dashboard. You get the full picture at a glance.
2. Set up clear procedures for updating data: mileage, vehicle condition, availability.
3. Install connected GPS trackers: These tools let you monitor usage and prevent excess mileage.

Coach Lokki's tip: Simplify your tracking with a solution like Lokki that brings together scheduling, contracts and maintenance. You can save up to 20% of your admin time! Read our practical guide to management tools for rental operators.

Tip #2: Keep maintenance and the unexpected under control.

A breakdown can be expensive: the car is off the road, you lose revenue and the customer has a bad experience.

Solutions:

1. Plan ahead with a preventive maintenance schedule: Follow the manufacturers' recommendations and book services in advance.
2. Train your teams to spot warning signs: strange noises, drop in performance, etc.
3. Take out suitable insurance: This covers the cost of unexpected repairs and lets you provide your customers with a replacement car.

Coach Lokki's tip: Use Lokki to schedule maintenance automatically and get real-time alerts. You can avoid up to 30% of unexpected breakdowns. See also our advice on why good fleet maintenance matters.

Tip #3: Keep an eye on profitability

Between buying vehicles, maintenance and insurance, costs can quickly spiral.

Solutions:

1. Analyse your vehicles' performance: Which ones are the most profitable? Which cost the most in maintenance?
2. Go for a mix of purchase and leasing: This spreads your financial risk and lets you adapt your fleet to seasonal demand.
3. Extend the life of your vehicles: Stick to maintenance schedules and limit long-term rentals that put heavy wear on vehicles.

Coach Lokki's tip: Lokki's built-in financial dashboard shows your fixed and variable costs in one click. You'll spot where to optimise and can increase your margin by up to 15%. Read our article on profitability for small fleets.

Tip #4: Boost customer satisfaction with a smooth experience

A happy customer is your best ambassador. A smooth, personalised experience can make all the difference, especially in a competitive sector like car rental.

Solutions:

1. Digitise contracts and payments: Let your customers sign their contract and pay online so they don't have to queue at the counter.
2. Offer personalised options: Add services such as GPS, child seats or extra insurance tailored to their specific needs.
3. Make returns easy: Offer flexible hours or automated drop-off points to simplify logistics for your customers.

Coach Lokki's tip: With Lokki, you can automatically send SMS or email reminders before a vehicle is due back, improve your customer communication and reduce disputes over late returns or vehicle condition reports.

Tip #5: Comply with regulations and the green transition

Environmental regulations are pushing rental operators to adapt their fleets. Meeting these requirements can become a competitive advantage.

Solutions:

1. Electrify part of your fleet: Invest in hybrid or electric vehicles to attract environmentally conscious customers and cut fuel costs.
2. Raise your customers' awareness: Encourage eco-friendly habits, such as driving at moderate speeds or favouring short trips.
3. Get an eco-responsible label: This can strengthen your customers' trust and improve your brand image.

Quick recap

• Tracking and optimisation: Digitise management with the right tools and install connected GPS.
• Preventive maintenance: Schedule services to avoid unexpected breakdowns.
• Profitability: Analyse performance and mix purchase and leasing.
• Customer satisfaction: Simplify payments and returns, and offer personalised options.
• Sustainability: Electrify your fleet and adopt eco-responsible practices.