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Definition of a
lease
The objective of selecting a Lease as the
preferred method of financing your vehicle
is twofold, firstly to pay for utilization
instead of ownership, thus improving cash
flow and opportunity cost on funds and
secondly to have an aggressively managed
fleet at the best possible cost with active
reports to make critical decisions.
A Lease is a true operating rental under the
accounting standard IAS17 and is considered
an expense; the entire rental attracts a tax
claim. It provides usage based costs for
utilization of a vehicle for a defined
period and mileage. Vehicles are contract
based; each contract can be renegotiated to
accommodate in utilization.
Full Maintenance Lease
A Full Maintenance Lease (FML) is a fixed
monthly payment determined by the choice of
vehicle, period of usage and kilometer
requirement. The payment includes all
maintenance, licence and registration costs
as well as roadside assistance. In terms of
the maintenance component, the FML agreement
allows for all maintenance, repairs and
replacement tyres, the only exclusions being
top-up oil, accident damage and repairs as a
result of negligence and/or abuse of the
vehicle.
Operating Lease
An Operating Lease (OPL) is calculated on
the same principle as the FML agreement but
excludes tyres and maintenance. The benefits
remain the same but the risk on the
maintenance component is transferred to our
customers. An OPL may also be structured to
include our managed maintenance product.
Sale and Leaseback
A sale and leaseback involves the transfer of risk of an existing
fleet with the option of renting the
vehicles back to the customer for the
balance of the useful life this ultimately provides
a fully-maintained and
managed fleet, with a possible cash injection
to the customer.
Car Scheme
The Car Scheme option caters for individuals
that are remunerated under a cost to company
structure, who choose to sacrifice some of
their monies in lieu of receiving the
benefit of a company car.
Eqstra Private Lease
Now the private consumer can also enjoy the
benefits of leasing with Eqstra Private
Lease, historically only individuals who
received a car allowance from their employer
qualified to lease, this change has created
a new opportunity for EFM under the
individual leasing company, Eqstra Private
Lease.
Maintenance and Tyres
Maintenance and tyre costs can be as
punitive as the financial aspect of a
vehicle. Factors that influence maintenance
and tyre costs are the make, model, period
and utilisation. EFM continues to play an
active role in assisting customers with
containing these costs. The introduction of
Managed Maintenance to the market in 1992
reinstated our ability to meet the needs of
customers with an owned fleet but ultimately
exposed to the maintenance and tyre portion.
EFM used our already well established FML
infrastructure to support our Managed
Maintenance offering. The demand for Managed
Maintenance has increased year on year, our
base offering was then adjusted to provide a
fixed monthly cost option under a
Maintenance Plan.
Managed Maintenance
The objective of this product is one of
managing all players who participate in the
generation of maintenance expenditure, viz.
the servicing dealer, alternative suppliers,
manufacturer, customer and the driver.
The focus of Managed Maintenance is on real
cost reduction and the benefits of reduced
administration, driver support, quality of
repair and the provision of a complete
maintenance history that will enhance the
vehicle’s resale value.
Managed Maintenance can be sold as a
standalone product, or linked to any one of
our product offerings e.g. Operating Lease.
Stand alone Maintenance
Customers who wish to pay a fixed monthly
amount for maintenance and tyre costs would
elect this option. The EFM stand alone
maintenance product
take cognizance of any standard service or
maintenance plan that is standard with the
vehicle. Each maintenance contract has a
time and mileage component and variations
would result in a contract restructure,
ensuring that EFM does not over or under
collect.
Fuel Management
The provision of fuel for your company
vehicles is a necessary cost factor in your
monthly fleet expenses, over and above the
cost, fuel is a difficult commodity to
manage. Our fuel product addresses
accessibility and exceptions. EFM
facilitates the fuel transactions
correlating the costs into your monthly
invoice, exception reports and monthly fuel
reports. EFM is able to provide customers
with access to fuel and fuel management on
an actual cost incurred basis. Your
employee will be issued with an “Eqstra Fuel
Card”, an established fuel card system that
allows for the payment and capture of fuel,
oil and toll related purchases. Customers
will have access to our Fleet Management BI
tool, this tool should be used for the
management of exceptions and you will have
the functionality to set up automated,
specific reports. EFM will create the fuel
invoices for the actual monthly fuel costs
incurred. The benefit, to both yourself
and EFM, in utilizing our fuel management
product, is accurate updated km readings,
this information is used to update the EFM
system and as a result we are able to
generate accurate monthly variance reports,
services due reports and other such reports.
Eqstra Accident Management
Eqstra Accident Management (EAM) involves
managing the entire accident repair process
to minimise downtime associated with
accidents, reduce repair costs and ensure
repairs are of high quality. This maintains
a vehicle’s residual value. Traditionally a
service offered to self insured fleets.
The benefit of utilising the services of EAM
is to provide assistance to drivers in the
event of an accident, and manage both the
downtime and costs associated with the
repair. Through EAM vehicles are repaired
with minimum intervention being required
from our customer’s employee outside of
completing and detailed and accurate claim
form. The balance of the management and
administration associated with an accident
claim is handled by EAM allowing your
employees to focus on the core
responsibilities.
Fleet Insurance
A choice of vehicle insurance packages and
solutions for comprehensive fleet insurance.
These range from full self-insurance to full
risk transfer. Issues covered are insurance
of vehicles, management of claims and risk
associated with insurable events.
Driver Management
EFM is the first fleet management company to
launch an on line driver risk management
solution. This unique product is offered in
a two pronged approach, initially
identifying risk through the hazard
perception evaluation program and then
mitigating risk through prescribed
corrective training modules.
Driver risk management will be done through
the state of the art and internationally
recognised Alert Driver Training programme.
This driver safety programme is the one of
the most advanced system of its kind in the
world. The Alert Driver program utilises
full-motion, real life video footage, one of
the reasons it is so effective.
The driver risk management programme is made
up of two different modules, the first is
Hazard Perception Evaluation followed by
Defensive Driver Training.
Turnkey Fleet Solution
Provides for total outsource, exclusive of
finance, whereby the customer may select
from the full range of products available.
eProcure
eProcure is a new concept that we have
introduced; the objective is to secure best
pricing on a vehicle per vehicle basis. This
service is incorporated into our lease based
products to ensure optimum pricing of our
assets but is also offered as a standalone
service.
eProcure is a tender based procurement
system. EFM uses this methodology to
purchase our fleet vehicles. We have
recently taken the service to market as a
stand alone offering enabling customers to
buy their vehicles via our tender system.
eProcure guarantees “best price every time”
in the desired delivery area.
Third Party payment
The payment of monthly subscriptions fees,
on behalf of our customers, on tracking
devices and insurance products.
Licence and Administration
EFM is the registered title holder and owner
for all passenger and light commercial
vehicles, facilitated under lease with EFM,
unless otherwise required. EFM ensures the
timeous renewal of vehicle licences, costs
associated with this service are
accommodated in your monthly lease rental.
Customers may elect to own their fleet of
vehicles, but outsource certain operational
activities. Annual licence renewals may be
outsourced to EFM, ensuring the timeous
delivery of your annual licence renewals.
Customers who wish to utilise EFM for this
service, must undertake to provide the
following information: -
Make and model
Exterior colour
Date of first registration
Registration number
Engine number
Chassis number
NATIS number
Current kilometers
Date of odometer reading
EFM will track the annual licence renewals
based on the information provided, any
changes must be communicated to EFM. The
customer must supply EFM with a full proxy
pack per authority and a letter stating that
EFM has the right to change the postal
address from that of Customers details to
that of EFM. This letter will be sent to
eNATIS by EFM.
Traffic Fine Management
As the registered owner, EFM automatically
becomes the conduit to receive all traffic
offences. For ease of management fines are
scanned and available electronically for
customers to view. Our stance on managing
traffic fines on behalf of our customers is
aligned to current legislation. EFM’s
traffic fine management service may be
extended to customers who have chosen to own
their fleet of vehicles; this service is
linked to the annual licence renewals
service, the address change with eNATIS
would ensure that we receive the traffic
offences
EFM will receive all traffic offences on
behalf of the driver. The traffic fines are
scanned for record keeping purposes and then
redirected to the driver via the relevant
traffic authority, in exceptional cases we
pay the fine and rebill the customer or we
redirect to the customer, for the customer
to settle with the authorities.
The Administrative Adjudication of Road
Traffic Offences (AARTO) Act, No. 46 of
1998, is currently piloting in Tshwane and
the City of Johannesburg, however, no
demerit points may be issued to any
individual at this stage. With the national
rollout scheduled for early 2010, the
implementation of precautionary and
practical human resource policies is
essential before this legislation affects
the operation of business. Under the act,
every person starts with zero points and the
maximum permissible number of points is
twelve, allowing a person to drive until
he/she has these twelve points. Every point
exceeding the twelve points results in a
three-month suspension of the licence card,
which is known as a disqualification period.
Customer Access and Reports
As a fleet management company, the most
important convenience factor is the
provision of immediate feedback on
operational enquiries; report generation and
requests from our customers.
Our customer portal, Qnet can be accessed
via our website with secure login and
password securities. This tool provides our
diverse customer base with information that
is both convenient and user friendly and
totally available online. Hence we are able
to offer our customers immediate feedback on
operational enquiries and requests and
access to accurate and relevant management
information on a continuous basis. EFM uses
Qnet primarily to manage all interactions
with our customers and to ensure a level of
service that is not available through any
other service provider. EFM has bought and
developed an effective Customer Relationship
Management System. The EFM CRM system has
taken three years to implement and
integrates seamlessly with our online
customer portal, Qnet. EFM, as one of the
leading fleet management service providers
in South Africa has and will continue to
invest significantly in technology, support
systems and customer interface tools.
Vehicle Remarketing
In today’s environment it is becoming more
and more difficult to remarket existing
assets. EFM has been in the fleet management
industry for over 25 years and has developed
numerous channels to market for the sale of
our assets. Customers can have access to
these channels on a stand alone basis, with
the functionality to upload photographs and
vehicles details via the web, thereby
reaching a wider audience.
Car Rental Broking
The provision of your ad hoc short term
rental requirements on a re-bill basis can
be facilitated by EFM. These services are
offered throughout South Africa with a drop
off/collect choice to customers under an
exiting facility with EFM. Our desire to
deliver service excellence at the lowest
possible cost is achieved through a car
rental broking program.
EFM selected our preferred rental partners
through a tender process. We have enhanced
our offering by simplifying the booking
process; customers may request a car rental
booking via telephone or via our customer
portal Qnet.
Once a request is received; EFM publishes a
mini tender to our preferred suppliers; if
additional discounts can be secured, these
are passed onto our customer. This process
ensures the best possible rental price on
the day with the comfort of a ceiling price
as published here below.
Billing
EFM will receive the relevant invoices, the
amounts due will be added to your monthly
EFM invoice.
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