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Contents : EDITION 10 DECEMBER 2003 and control techniques put to practice on a closed road situation. There are also sessions in bus control country and/or dirt-road driving 4WD training driver counselling driver psychology programs and courses in the effects of fatigue alcohol and drug influences. It's in our future Dan Leslie believes driver training will be mandatory within 10 years. He says a culture change in how we use our cars is needed if our roads are to be better places and that it's just a matter of time before our governments recognise that driver training is the way to achieving this. Furthermore as cars change fuel cell vehicles with their radical shapes drivetrains and packaging are almost here so will the need to educate drivers on how to live and work with the new technology. It's obvious driver training is much more than learning how to stop on a wet road. The advantages outweigh the initial cost many times over in increased efficiency and residuals and reduced employee and vehicle insurance costs. Esanda FleetPartners has negotiated a special discount with JMDC for our clients available nationally. To arrange a driver training program to suit your fleet contact your Relationship Manager. DriverTraining How fleet operators can improve their drivers and their bottom line Not so long ago driver training was regarded by many as a fun day out and not much more a chance for managers and staff to have a turn on a racetrack while picking up a few steering and braking tips along the way. But in today's safety-conscious budget-minded fleet industry driver training is taking on a much more serious role. Driver training is an important part of overall fleet management. It may save the lives of other road users. And it might even improve the resale value of your fleet. What is Driver Training FleetView spent time with the Jim Murcott Driver Centre (JMDC). It is one of only a handful of accredited driver training courses using registered instructors who are certified workplace trainers and assessors. That's important because driver training is regarded as an Occupational Health and Safety issue. Not surprisingly many leading companies now invest in driver training including Telstra Hilton Hotels the Port Phillip Council Melbourne Water Department of Primary Industries and The Spastic Society of Victoria. Benefits The attitude that "it's only a company car" is a pervasive problem for fleet managers. Driver training is one method of encouraging drivers to think and act more responsibly towards company vehicles and other drivers. Safer driving also translates into fewer crashes bingles speeding fines and vehicle downtime. Orica Australia reports that driver training has cut crashes by half while the cost-per-crash has fallen from $2500 to $1100. Fewer mishaps can translate into higher residual value at the end of a vehicle's lease. Day-to-day operations can also be improved through driver training. In the courses drivers are encouraged to adopt more economical car operations such as checking tyre pressures removing ski racks in summer to reduce drag etc. At the very least driver training sends the message to staff that their safety is important. What's in it for the drivers Driver training aims to: Make drivers safer more environmental and economic behind the wheel Increase driver adeptness in identifying hazards assessing risky situations and managing them better if necessary Reduce risky behaviour Increase their defensive and protective driving skills Give drivers a better insight into their own behaviour at the wheel Have the driver accept accountability and responsibility in the eyes of the law Maintain a safe vehicle environment Become more competent at basic vehicle control This is achieved via an induction process that can involve an interactive CD-ROM or the more traditional one-day safe driving workshops. Changing behaviour According to JMDC spokesman Dan Leslie driver training is really about addressing driver attitudes and their motivation to change their on-road behaviour. It's also about having a higher degree of self awareness and knowledge of both the road and vehicle environment. This philosophy is taught and reinforced in a small classroom environment with the help of visual and interactive aides group discussion and individual participation. Only then are the extensive car familiarisation 10 tips towards better company car driving Look up and stay back - reading the road and not tailgating can halve accident rates. Reverse the vehicle in and drive the vehicle out. Don't be afraid to ask passengers to get out and help with parking. Adjust your seating position so you have easy reach of everything. Check your car weekly for tyre wear and air pressure. Increase the usual gap from the car in front when taking a hands-free phone call. Secure items flying objects (like umbrellas) can be deadly missiles in a panic stop. Share the driving on long journeys with your colleague partner or friends. Inform your drivers that the company workplace policy extends to the car. Slow down in wet conditions. Near-New is it new enough FOR FLEETS Certified Used Vehicle Programs have prompted a rise in the number of "used" vehicles being purchased for fleet use. We look at the market for near-new and the implications for optimum fleet management Near new or "Certified Used Vehicle Programs" (CUVP) have become commonplace in recent years. In Australia the surge in new car sales has flooded the used car market and consequently reduced residual values. Manufacturers have responded by introducing Certified Used Vehicle Programs. The logic is that near-new allows individuals and small fleet purchasers to upgrade to a better car for significantly less than the cost of a new car. Certified Used Vehicles (CUVs) are different from ordinary used vehicles in that they are sold only through the manufacturer's own network and come with warranties and after sales perks normally reserved for new cars. These include a 100 point inspection remainder of new car warranty powertrain warranty roadside assist emergency accommodation and meals mechanical and trim detailing. Programs can cover vehicles up to seven-years old or 140 000 kilometres. Residual values The key attraction of buying near-new the lower purchase price is also one of the reasons fleet purchasers should approach CUVPs with caution. Soaring new car sales and the flurry of new model activity have had a negative impact on used car residuals. In the past 15 months for example used car values for popular fleet vehicles have declined as the all-new Camry a significantly new Falcon a facelifted Magna and Avalon and two Commodore upgrades were released onto the market. Around three quarters of new Commodore Falcon Camry and Magna sales are to fleets. Fleet sales also account for more than 10 per cent of some popular imported models. An examination of Glass's Guide shows just how far residual values have slipped in the past three years. In October 2001 a one-year old (Year 2000 model) Ford Falcon Forte 4.0 auto with between 22 000 and 37 000 kilometres on the odometer was valued at $24 000. By 2002 a one-year old version of the same car (Year 2001 model) with identical mileage was valued at $22 500. In October 2003 the same one-year old (Year 2002 model) vehicle was valued at just $21 700. Low residual values can lead to blow-outs in whole-of-life costings making what looks like a bargain much more expensive in the longrun. Fleet buyers should also keep in mind the limited appeal of third-hand ex-fleet vehicles in a market already flooded with used vehicles and CUVPs. Benefits of buying near-new Typically when a used car is traded in or returned after a lease period its condition is evaluated. If it falls within certain age mileage and overall condition parameters it is then thoroughly inspected and reconditioned if necessary in preparation for sale with a warranty. There are a number of benefits to buying a CUV: Add a near-new car to your fleet at several thousand dollars below its equivalent new car price Relax in the knowledge that the used car you have bought complies with a fairly strict set of standards Enjoy the security and peace of mind of a warranty whether it is the remainder of the original or an optional warranty-extension. Considerations when buying near new It is important to remember that CUVs are still used vehicles. Purchasing through a CUVP can also mean paying well above second-hand market value. Here's a recent example. Ford dealers have offered 2001/02 AU III Falcon Forte models at $20 888 with the balance of the new-car warranty. An identical "non-certified" AU III may be bought as low as $14 800 according to one recognised used car intelligence guide. When buying a CUV remember that dealership inspection procedures can vary with some being more thorough than others. Whole of life costing CUVPs also raise whole-of-life costing issues particularly as some cars become more expensive to service the older they get. Costly cam belt replacements clutch tyre and exhaust wear automatic transmission failure and electronic component gremlins can all add up to expensive on-going maintenance. These can occur below 80 000 kilometres. CUVs and fleet buyers When considering a CUV for fleet use it pays to check the warranty very carefully. In many cases vehicles sold with the balance of new car warranty offer just that a fraction of the original warranty. In many cases the purchaser is covered for just months before the factory warranty expires. Reduced specification is another factor to weigh up. Because of their age some CUVs may not be equipped with the latest safety features such as anti-lock brakes airbags and traction and vehicle stability control systems. Is near-new new enough For many private buyers the cost savings offered by CUVPs is reason enough to take the plunge. Today's second-hand cars are cheaper better equipped and better maintained than ever before. When it comes to fleets however price is only one consideration. Fleet mangers should carefully weigh up the pros and cons of a CUV and conduct a whole-of-life analysis. Only then can they be sure that the saving over the life of the vehicle. SPECIAL NIGHT: Esanda FleetPartners held an Open Night at Southbank Auto Auctions in November for clients drivers friends and family to view a large range of quality preowned vehicles. The inaugural event was a great opportunity for all to meet enjoy our hospitality exchange ideas and discuss issues. It was the first of many so watch out for more dates shortly. Retail sales soar to new heights Fleet favourites are forging sales to an all-time record Australia's soaring new-car sales are heading for a record high of 900 000 units this year. This is the prediction of the Federal Chamber of Automotive Industries following the release of October's sales figures. It shows that 2003's 755 913 year-to-date sales are up 71 152 vehicles or 10.4 per cent over the same period last year. It is worth noting that 2002 was a record year itself with more than 824 000 new vehicles sold. The previous best was 1998 with close to 808 000 units. Leading this year's charge are the refreshed fleet favourites. It is believed fleet orders for the new BA Falcon and Toyota Camry are running at around 75 per cent of their total sales while the recently revised Magna/ Verada and VY1/VY2 Commodore ranges have at times edged close to 78 per cent. The large-car segment is up 11.2 per cent. The light-car segment has risen 16.1 per cent while the medium car and sports utility vehicle segments leaped forward 22 and 7.2 per cent respectively. The latter reflects the growing trend towards user-chooser and novated leases. company car-sale superstars 2003 2002 Holden Commodore Ford Falcon Toyota Camry 4&6 Toyota Corolla Holden Astra Toyota Hi-Lux total Mitsubishi Magna/Verada Mazda 323 Ford Falcon utility Nissan Pulsar Toyota Echo Holden Commodore utility Toyota LandCruiser wagon Toyota Prado Mazda 6/626 72 496 61 386 31 992 30 281 22 458 21 615 20 168 17 331 16 963 15 627 14 111 13 393 12 212 11 889 10 670 73 212 42 381 24 723 28 797 23 157 18 468 19 321 12 877 14 815 13 798 6 967 11 404 9 785 6 794 4 217 The Camry (left) and Mazda 6 are ahead of last year but the Commodore (below) has some work to do. Figures are for period January to October 2002 and January to October 2003. Experts believe that low prices and low interest rates the favourable effects of the GST on company cars the reduction of luxurycar tariffs and the increasing popularity of the novated lease all play a part. Furthermore most of the vehicles listed above have enjoyed a significant revamp in the past year or so while hot new models such as the Honda Jazz Nissan X-Trail and Honda Accord/Euro appeal to user-choosers. Interestingly some observers are predicting a fragmentation of the large-car segment in the next 12 months. The new breed of "crossover" 4WD-style vehicles such as the Ford Territory Holden Adventra and Toyota Kluger are expected to woo away fleet buyers from their respective Falcon Commodore and Camry stablemates. From With the holiday season fast approaching now is a good time to reflect on recent achievements and start planning new initiatives for the year ahead. It is fair to say that 2003 has been a landmark year for Esanda FleetPartners. A number of highlights stand out: the successful restructure of Esanda FleetPartners the shift to a client focus in everything we do and the launch of new time-saving technology for clients and staff. An experienced new senior management team is driving operational and strategic changes while a new organisational structure is delivering greater client focus and improved products and services. Another change to benefit clients this year has been the introduction of new reporting technology. As we look ahead two key priorities will drive Esanda FleetPartners' strategic vision in 2004: To grow and enhance our commercial vehicle offering. To expand relationships with channel partners. Head of Esanda FleetPartners Australia Leigh Penberthy a new document system designed to cut application and approval times with future web-based functionality is due for rollout in early 2004. We approach these challenges sure in the knowledge that 2003 has been a year of positive change. The results of our annual satisfaction research program show wide support for the new structure. Client approval levels are well up on last year with particularly strong improvements noted in client service and relationship management. The research also highlighted areas for improvement. Some are already being addressed others will be part of our 2004 agenda for change. A special bulletin highlighting results of the research will be distributed early next year. The year ahead holds many exciting challenges for Esanda FleetPartners and our clients. Thank you for your support in 2003 and we look forward to working with you next year. Best wishes for the festive season. The push to make Esanda FleetPartners far more operationally excellent and client focused will remain the core strategic goal in 2004. This means ensuring clients are fully supported in their fleet decisions. Commercial fleet operators will notice some big changes next year. Over the past months we have invested considerable resources creating a technically strong team focussed on supporting commercial new business activities. Emphasis will now shift to implementing a strong back-office support system for this team and their clients. Two new commercial fleet managers will direct operations in NSW and Victoria providing clients with an unprecedented level of support and advice. Finally 2004 will see additional resources put into channel areas. The small to medium enterprise market represented by our channel partners is one of the fastest growing parts of the Australian economy and we will be working with channel partners on a number of pilot projects to improve support documentation and servicing for these clients. The centrepiece Profiles Liz McGrath Accounts Receivable Supervisor Steve Boyce Field Operations Supervisor Knowledge What is your role at Esanda FleetPartners I head up the Accounts Receivable and Payable departments for the business. What did you do prior to joining Esanda FleetPartners I emigrated from Ireland in 1989 and have been in credit roles for the past 11 years. Immediately prior to working at Esanda FleetPartners I worked for Onelink Transit Systems the company contracted to implement the automated ticketing system on the Public Transport Network. What is the most challenging part of your role Ensuring that collections and payments occur in an acceptable time frame while providing excellent customer service. What has been the highlight of your career so far Setting up the credit department at Onelink Transit Systems while the company was still in its very early stages. What are your interests outside work Running gym socialising and weekends away at the beach in Warrnambool. What is the most daring thing you have ever done Emigrating from London to Melbourne Who is your greatest influence and what did they teach you My parents who encouraged me to: "Believe in who you are". What can't you say no' to Travel and champagne! Explain your role at Esanda FleetPartners My job begins as soon as a truck is ordered and continues to the time the vehicle is handed back at lease end. It is my department's responsibility to ensure our vehicles comply with regulations and are maintained and operated in accordance with the manufacturers' and Esanda FleetPartners' recommendations. What did you do prior to joining Esanda FleetPartners I was the Fleet Manager at National Bus Company in Melbourne. What is the most challenging part of your role Keeping up to date with regulation changes and technical improvements across all the various manufacturers and regulatory bodies. What has been the highlight of your career so far Developing maintenance procedures within the workshops at National Bus Company to gain ISO accreditation. We were the first mechanical workshop in Australia to achieve this. What are your interests outside work Footy (How many in a row for the Lions ) bushwalking and anything outdoors. What is the most daring thing you have ever done I once went surfing at "Snapper Rocks" in 12ft. surf. Who is your greatest influence and what did they teach you I was bushwalking with an old guy once who said: "Experience not expense". It has always struck a chord with me. What can't you say no' to The Australian Tax Office! Expertise Innovation Flexibility HEAD OFFICE Victoria Gardens Level 1/600 Victoria Street Richmond VIC 3121 Ph 03 8416 5300 Fax 03 8416 5303 NEW SOUTH WALES 7/5 Talavera Road North Ryde NSW 2113 Ph 02 9855 4100 Fax 02 9855 4160 QUEENSLAND Level 8/324 Queen Street Brisbane QLD 4000 Ph 07 3228 5446 Fax 07 3228 3619 WESTERN AUSTRALIA Durack Centre Level 5/263 Adelaide Terrace Perth WA 6000 Ph 08 9320 7249 Fax 08 9320 7225 SOUTH AUSTRALIA Level 2/13 Grenfell Street Adelaide SA 5000 Ph 08 8218 8706 Fax 08 8218 8735 www.esandafleet.com.au

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