‘Prolonged’ car rental issues increase vehicle delivery times and costs

05 January 2022 – The shortage of new cars has resulted in a 40 per cent rise in the cost of hiring a vehicle and this is impacting the collection and delivery of new and used cars, according to Birmingham-based national vehicle movement and inspection firm DMN Logistics.

The lack of rental vehicles is resulting in extremely limited availability of one-way rental vehicles, which logistics firms like DMN Logistics rely heavily on when transporting vehicles.

The logistical headache caused by an unprecedented shortage of new vehicles is also leading to an increase in costs, which to date are being absorbed by delivery firms but at some point, will have to be passed on to companies and retailers.

Europe’s largest listed rental firm Europcar warned earlier this year that the squeeze on the industry was likely to be ‘prolonged.’

Nick Chadaway, managing director at DMN Logistics, said: “With carmakers prioritising selling to dealerships rather than into the rental sector, which typically buys in bulk, rental firms are left scrambling to find stock to meet the demand to replace older cars.

“Rental companies update their fleets every six months, so they are now struggling to find new cars to replace older stock. They are having to hold onto vehicles longer, which makes them more costly to run and also limits their use, and that is directly affecting the logistics sector.

“One-day hires, even on return-to-originating branch, are becoming harder to source which leads to longer lead times on new car delivery. We are also seeing many rental companies exit the one-way rental business altogether or increase their charge structure, typically by adding anything up to £50 per transaction on top of the daily rental pre-covid charge.

“As a result, we are having to find other ways to transport delivery drivers, like sourcing larger vehicles to carry more drivers and also support social distancing or taking on longer-term hire cars, which is not very cost-effective or environmentally friendly.”

The situation shows no signs of improvement in the short term. Rising costs of vehicle collection and delivery continue as operators work hard to meet demand.

Nick concluded: “Whilst customers are seemingly accepting of the pressures currently within the sector and despite the challenges we are facing and for long term viability, it’s vital that businesses focus on managing their vehicle collection and delivery service and continue to prepare services for a sudden demand once the chip shortage eases.”

About DMN Logistics

DMN Logistics is a provider of UK-wide Vehicle Inspection and Logistics services. DMN’s core market is the Fleet and Remarketing sector and through utilising the latest technology and processes they deliver a digital-led service giving clients total visibility and control of vehicle inspections and time-sensitive movement data. Every aspect of their process can be managed online and through use and integration of data they also offer a white-label solution

Electric Vehicle Logistics : A challenge or an opportunity

The traditional road-driven, single vehicle delivery (trade plate logistics) is a well established sector within the automotive industry. Largely unchanged for a long period, it has in recent years evolved to include data capture at the point of collection and delivery, developing a skilled workforce carrying out in-depth roadside inspections to BVRLA standards, supporting the end of contract return of assets.

With the automotive landscape as a whole undergoing a revolution as electric vehicles become increasingly commonplace, DMN Logistics asks: what’s next for the logistics sector?

Read our latest white paper for more information : DMN – EV Logistics White Paper

Can your dealership support online sales ?

With dealer forecourts set to remain closed for the current time the shift to online sales is increasing. This brings challenges with it, but also opportunity.

Going forward we are likely to see more operating models where the first time a buyer will see the physical vehicle they have purchased is when it arrives on their doorstep. You may even have taken their existing vehicle as a part exchange.  There are ways that technology can be utilised in real-time to help confirm vehicles conditions and manage expectations.

There are some things that will need to be a given : ensure a safe hand over following all social distancing policies, and ensure that all clients are delighted with the product and process. You can track a £5 delivery from Amazon to your doorstep with regular messaging updates in case of changes / delays, this should be an essential part of any vehicle delivery service too.  You need to be happy that the vehicle was delivered to the right place at the right time and have an early view on the condition of any part exchange vehicle that you have agreed.

Here is how we are doing it at DMN :

Collection from your location

  • Have you got a dedicated vehicle handover area ?
  • Are you able to disenfect the vehicle prior to possession being handed over ?
  • Can our driver access the site and facilities safely and not pose any risk to themselves or your team ?
  • Do you have an operational plan on how to access your site for collections and deliveries ?

Social Distancing

  • Your client will receive an email the day prior given them details for their security identifying the driver and an ETA
  • Pre arrival telephone contact on the day by the driver to confirm and update their ETA
  • On arrival driver will contact your client and announce their presence and make any further access arrangements.
  • We will also confirm on site attendance to you via our MiVIS app.
  • The driver will wipe all key touch points including keys with antibacterial wipes and sprays
  • Mask and gloves will be worn by the driver and they will have access to hand gel
  • Documents and keys will be handed over without direct touch contact
  • A minimum of 2m distance from clients will always be observed

Vehicle Delivery

  • Our driver will confirm the condition of the vehicle at the point of delivery and an email will be sent direct to your client and your sales team from our MiVIS app with all the relevant details and supporting images
  • Our driver will wait while you contact the client (if you so wish) to confirm everything is to their satisfaction.

Part Exchange Process

  • Our driver will complete a full vehicle appraisal on site with the data sent in real-time to your office for review
    • Full supporting images
    • Detail of any damage
    • Confirmation of odometer reading
    • List and images of all documents
  • Once you receive the data, you will be in direct contact with our driver to ask for any additional images or commentary on the vehicle condition
  • Our driver will not leave site until you are completely satisfied and is advised to proceed by your office

Prove of delivery and collection location

  • Your client will not be asked to sign our drivers device due to potential cross contamination off the handheld device
    • MiVIS as geotags enabled so we know where the transactions take place
    • The driver will also image the vehicle in the location to support geotagging data



Damage appraisal - DMN Logistics

DMN advises fleets to plug end of contract cost leakage

DMN has advised fleet operators to stop making the same end of contract cost mistakes by implementing simple processes that focus on five key areas.

With a decade of first-hand experience based on tens of thousands of contract-hire and personal leasing defleet inspections and collections, DMN is encouraging fleet operators to implement some simple processes for drivers to cover off the five most common end of contract mistakes:

Spare keys
Drivers typically put the spare key in a ‘safe place’ never to be seen again. Ensure your driver has the spare key ready. A missing spare key can incur a charge from £250 upwards.

Vehicle cleanliness

End-of-life inspections are now being aborted due to the car not being clean. A charge of £45 is commonplace. Ensure that the car is presented in a clean condition.

Updated service book

If the car has a service book ensure this in the car, check the service schedule is up to date and the dealer stamp is in place prior to any inspection.

Tyre inflation kit readiness

Increasing numbers of cars now include a tyre inflation kit rather than a spare wheel. Make sure it is replaced, if used or missing, or face a charge of up to £120 for a full kit including the compressor.

Parcel shelf installation
That weekend adventure or trip to the household waste recycling centre often results in the driver forgetting to refit the parcel shelf. Doing so can cost upwards of £100 on hand-back.

According to DMN, the five leakage points are typical of the unnecessary costs incurred by fleet operators daily – something DMN believes is avoidable with heightened awareness and a little bit of forward planning.

“These five key areas are nothing revolutionary yet continue to plague fleet operators with unnecessary hassle and costly end of contract outlays,” explained Nick Chadaway, managing director of DMN.

“With a little bit of foresight, and some simple processes in place, these leakages can soon be plugged and, ultimately, will save businesses vast sums of money and alleviate individual driver stress.’

DMN is advising fleet operators that one of the first areas to update is the company car driver handbook and highlight the five basic cost leakage points as those requiring ongoing consideration throughout the life of the vehicle.

On top of this, DMN is recommending fleets introduce a pre- end of contract inspection to help control hand-back costs.

“An inspection, about two months out from end of contract gives the fleet operator additional insight as to any potential additional costs but also allows time to make an informed decision on the necessary course of action, and to ensure they have the usual suspects covered off,” explained Nick.

He continued, “With replacement cycles continuing to lengthen, averaging from 37 to 42 months depending on sources, these type of end of lease challenges are only set to get increasingly complex for fleet operators so implementing change now will start to stem the flow for the future.”

Nick Chadaway DMN

The complexity of vehicle inspections

One of the most contentious aspects of vehicle asset management is around end of contract fair wear and tear but it needn’t be that way according to Nick Chadaway, managing director of vehicle movement specialists, DMN.

Fair wear and tear occurs when normal usage causes deterioration to a vehicle over the duration of a contract – that’s the simple explanation.

The BVRLA’s Fair Wear and Tear Guide is the industry standard and does a very good job of setting out the factors to consider.

Some operators choose to produce their own guidelines.

Either way, the key lies in communication with the fleet or consumer customer in the case of a PCP in the first instance and subsequent adherence to the standards set.

This is where consistency, efficiency and the training and skill of the vehicle inspector comes into play.

Disputes and resolutions

Supporting the case in point, during the first half of 2019, the BVRLA’s Alternative Dispute Resolution (ADR) service handled 1,317 complaint cases.

As in previous years, damage was the main reason for customer complaints, with common areas of contention relating to who is liable for causing the damage and whether damage should be deemed as fair wear and tear incurred during the length of the contract.

Amanda Brandon BVRLA head of operations, said, ‘It is extremely important for members to document everything when it comes to the condition of vehicles and the logging of any existing or new damage.’

The key principles

With any inspection, the overriding principle is to remove the subjectivity from the inspection process and ensure operations work transparently and in harmony, offering peace of mind to the end-user and security to the vehicle owner.

A detailed, process-driven inspection ensures that any vehicles delivered or collected to the end-user are ‘as expected’ with no surprises or unexpected complications smoothing the entire supply chain process and adding value.

Immediate removal from site of an inspected vehicle, following a customer’s sign off, is also another key component of providing them with a defining level of service as well as removal of ‘doubt’ from the process.

Behavioural psychology

These types of service provision play on the principles of behavioural psychology, proactively enhancing customer interactions and building brand recognition that decreases the chance of any contested agreements.

Deployment of technology, as in any business sector today, across all elements of the inspection process is a must in order to assist the process, to garner that all-important customer trust and create value.

However, one very important factor I have not referred to and, for me, is arguably the most critical is the human side of business.

People are still a company’s greatest asset and those carrying out vehicle inspections are ultimately the ‘face’ of the vehicle asset management business.

Well trained, well presented and, generally, friendly natured personnel help to make vehicle inspection a positive touch point for the asset manager’s brand – the aim for any service provision, especially one where the supplier has such little opportunity to directly ‘impress’ the driver customer.

For a consumer with a PCP deal from a broker the end of contract inspection process may be new to them and this will be the first time they have had contact with the broker after the initial vehicle delivery.

If they know what are signing for and why there should be no further customers issues to manage for the asset owner.

A good consumer experience is likely to encourage a repeat order for a new car, a bad experience means the consumer may well look to a new provider for their next car and share their pain points with family and friends thus further penalising the asset owner’s business.

The complexity of vehicle inspections is clearly far more than just arguing over wear and tear, in fact it’s quite the opposite.

As an asset owner get it right and it can be part of a great customer journey and add value to their business.

Get it wrong and you are forever dealing with dissatisfied customers and layering in costs to your business.

The choice truly is yours.

Local businesses team up to create Peaky Blinders masterpiece for motor industry fundraiser

Two Digbeth based businesses have teamed up to produce a mobile, Birmingham-centric masterpiece in support of automotive charity, BEN.

The ‘Peaky Blinders’ themed car, based on the hit BBC drama by the same name, saw Digbeth based vehicle movement specialists DMN team up with local graffiti artist, Panda from GraffitiArtist.com to create a true tour de force.

Partnership approach

The partnership has seen a 2005 Saab 9-3 Sport, with 168,000 miles on the clock, converted into a mobile work of art which will take on a four-day, 2,000-mile road trip from Saturday 5 to Tuesday 8 October 2019 in aid of motor industry charity – Ben.

DMN – the vehicle movement people – will be taking part in Bangers4Ben, the annual, multi-day road trip supported by Car Dealer magazine. The event sees 50 teams purchase a car for less than £750, paint or decal the car accordingly and, having completed the rally, sell the car at auction to raise money for the charity.

Automotive industry charity

‘We are delighted to be supporting Ben – the automotive industry’s very own charity,’ said Nick Chadaway, managing director, DMN. ‘We are very proud of our roots here in Birmingham, which continues to play a leading role in the UK’s automotive sector, and by commissioning local graffiti supremo, Panda from GraffitiArtist.com, to manage our ‘look’ we have captured that just perfectly. The result is simply incredible.’

Panda commented, ‘It was pleasure working with Nick and the crew at DMN. Nick has supported the street art scene in Digbeth for the past two years through sponsoring a couple of artists at the High-Vis Street Culture Festival. DMN gets the whole vibe of Digbeth and are true team players – much love to them.’

Vehicle movements

DMN manages all kinds of vehicle movements on a local, regional and national basis for vehicle owners, fleet operators and sales outlets. To help support DMN’s fundraising efforts, visit: https://www.justgiving.com/fundraising/dmn

Ben is an independent charity and dedicated partner to the automotive industry, providing support for life for automotive people and their family dependents.

DMN enhances workplace wellbeing with the help of The Inspire Group

DMN, the vehicle movement people, has held the first of its inhouse workplace wellbeing programmes designed to inspire, engage and empower its workforce.

The programme, operated by The Inspire Group, saw DMN people engaged in a two-day programme of team building and activity courtesy of Inspire team coaches Steve Clarke, Alex Howard and Ryan Westley.

The Inspire Group exists to inspire sport, engage people and empower communities.

Business driven by people, supported by technology

‘We engaged with The Inspire Group to continue to develop our primary business assets – our people,’ explained DMN managing director, Nick Chadaway. ‘We are a business driven by people, supported by technology and ensuring we optimise both these areas within our business is crucial to our success.

‘We are working with The Inspire Group to help ensure our people are inspired, engaged and empowered as we continue to evolve in order to grow and meet our changing client requirements.’

‘We have received some great feedback from both the team at The Inspire Group and our team here in Birmingham and are excited to put into practice the learning and feedback which we have gained from the process.

Engage, inspire and empower

Steve Clarke, director at The Inspire Group, said, ‘We had a brilliant two days with the team at DMN, delivering the first of our workplace wellbeing assessments and look forward to continuing to work with them as part of our business engage, inspire and empower programme.’

Birmingham based DMN provides vehicle suppliers and fleet operators, throughout the UK, with all their vehicle inspection and movement needs.

DMN revs up for Bangers4Ben charity fundraiser

DMN is gearing up to help support the automotive industry’s independent charity – Ben – by taking part in this year’s Bangers4Ben fundraising road trip.

Bangers4Ben is a three-day, charity road trip fundraiser which takes place from 5-8 October 2019 and this year heads to France. The event, which is backed by Car Dealer Magazine, sees entrants from across the automotive industry pay an entry fee; purchase a car for less than £750; paint or decal the car to their taste; select suitable fancy dress; and, having completed the rally, sell the car at auction to raise money for Ben.

DMN’s ‘pride and joy’ for the event is a 2005/06 Saab 93 diesel with 167,000 miles on the clock. According to Gary Xuereb, inspections and sales director at DMN and driver for the event the Saab was a ‘real bargain and is perfect for the occasion’.

Bangers4Ben is an important event for Ben as funds raised help provide support for life for automotive people and their family dependents.


DMN introduces MIVIS V3 – the most powerful real-time automotive solutions App

DMN, the vehicle movement people, has introduced the most powerful version of its real-time automotive solutions App – MIVIS V3 – across its workforce.

MIVIS is a real-time automotive solutions App, designed to enhance communication and visibility across automotive operations. Web based and configurable across third party platforms, MIVIS offers immediate access to data – giving user’s transparency in real-time of each vehicle being inspected, collected or delivered.

Tailored to client’s requirements

Built from the ground up by DMN’s in-house development team, the robust, powerful and scalable solution can be tailored to each client’s specific requirements, no matter how complex.

MIVIS provides a multitude of functions to simplify the vehicle management process, including driver appraisals and fully-costed vehicle inspections.

Functionality is driven by process controls that guide the user, to ensure that a consistent approach is followed – providing reliable, uniformed and quality data.

All MIVIS information is available in real-time to ensure informed decisions can be made immediately, helping to enhance logistic efficiencies – adding value across the whole supply chain.

Inspect & Collect

Gary Xuereb, inspections and sales director at DMN said, ‘MIVIS sits at the very core of our newly formed Inspections and Customer Solutions division, and is the technology powering our Inspect & Collect service.

‘The real-time connectivity and tailored functionality of MIVIS provides a truly dynamic solution to assist businesses and fleet operators with their vehicle asset management portfolios, enhancing efficiencies and, ultimately, cost controls.’

Since launching MIVIS V3, DMN has already noted sizable developments across the business; from raised service levels, improved operational efficiencies and complete visibility – all due to real-time access to quality information. The seamless inclusion of Inspect & Collect has not only brought new business to DMN but also strengthened existing relationships by offering a competitive, inclusive service.

Automotive solutions

As the default solution for vehicle movements, the standard functions of MIVIS can be applied across other automotive solutions such as driver safety checks, compound inspections, post-repair audits, grey fleet checks, driver mileage, upstream remarketing and vehicle condition status.

MIVIS V3 features movement tracking; damage capture; vehicle imaging; costings; electronic signature capture; and geotagged inspection and appraisal for robust asset auditing.

To find out how MIVIS can support your automotive solutions, please contact Gary Xuereb on 02033 971 981 or email gary.xuereb@dmnlogistics.co.uk.

Nick Chadaway DMN

DMN targets future growth as it develops expertise and evolves to meet changing client requirements

Vehicle movement specialists, DMN is targeting future growth by developing its core business philosophy of ‘driven by people, supported by technology’ as it responds to changing customer needs.

Under the leadership of managing director Nick Chadaway, DMN has made a series of changes across its business including refining and enhancing its service offerings of: vehicle movements; Inspect & Collect; outsourced staff solutions; and MIVIS – the company’s vehicle movement and inspection solutions app.

Enhanced solutions

The refreshed impetus has already seen DMN enhance its solution provisions to clients across the UK including BT Fleet, Fleet Assist and Royal Mail.

A key focus for the business has been the development of its Inspect & Collect service which continues to elevate the levels of consistency and professionalism within the field of vehicle inspections and collections.

Utilising skilled staff and powered by a consistent technology driven processes, Inspect & Collect ensures all vehicles are inspected to either BVRLA or a customer’s own standards. The service ensures any vehicle damage is imaged, a signature is obtained at the point of inspection in order to minimise any potential disputes and, more importantly, the vehicle is immediately removed from the client’s location in one seamless transaction.

The service is supported by DMN’s own digital systems App – MIVIS which provides real time vehicle tracking, damage capture, vehicle imaging and electronic signature capabilities.

Refreshed business focus

‘It really is an exciting time for us as a business right now,’ explained DMN managing director, Nick Chadaway. ‘Our refreshed business focus has allowed us to improve our core provisions of quality service, high calibre personnel and intelligent technology. This is providing us with a sound footing on which to deliver enhanced services in both the physical and digital space with data a key driver in providing automotive insight to current and future potential partners.’

The ‘one stop shop’ for vehicle movement needs, DMN is currently undergoing a major recruitment drive to cater for the increased demand for its Inspect & Collect and outsourced staff solutions as part of its planned future growth.

To find out more, visit: https://rapid.dmnlogistics.co.uk/careers/