Latest Manheim survey reveals essential damage limitation

A survey conducted by Manheim DeFleet Services has revealed that nearly two-thirds of fleet vehicles inspected in 2008 were damaged beyond normal ‘fair, wear and tear’. Of those vehicles inspected, more than 90% had suffered up to £250 worth of damage, 40% of which could be rectified using cost-effective SMART repairs. This would ensure that, for the purposes of onward remarketing, the negative impact of such damage on residual values can be minimised. Manheim inspects 65,000 fleet vehicles annually and has seen the incidence of damage increase.

Of the vehicles inspected nearly half had up to £100 of damage, 45% had £101 to £250 of damage, 5% had £251 to £500 of damage and 2% more than £500 of damage. Most common damage was dents and scratches to bumpers and body panels (58%) and alloy wheel damage (27%), all of which can be easily and quickly repaired. More than 20% of the vehicles inspected had either incomplete or missing documents both of which impact negatively on buyer interest, particularly in a market where buyers have become highly selective.

David Mercer, Managing Director, Manheim DeFleet Services said: “There is an increasing need for fleet and leasing companies to monitor the damage to their vehicles and to employ a robust management, inspection and reconditioning policy to maximise the value of their assets. A regular and thorough inspection process can keep damage under control while the intelligent use of SMART repairs can add value to the used vehicle by up to two and a half times the actual cost of repair.”

Survey Results:

Manheim inspects 65,000 vehicles annually
63% of inspected vehicles have damage beyond normal ‘fair, wear and tear’
48% of inspected vehicles have up to £100 of damage
45% of inspected vehicles have between £101 and £250 of damage
5% of inspected vehicles have between £251 and £500 of damage
2% of inspected vehicles have more than £500 of damage
58% of inspected vehicles have dents and scratches
27% of inspected vehicles have damage to alloy wheels
11% of inspected vehicles have worn tyres
8% of inspected vehicles have damage to windscreens
40% of the damage can be rectified by SMART repairs
23% of inspected vehicles have missing or incomplete documents