This article explains how to use and interpret the Lease Snapshot Report.
For organizations which have leased vehicles, the Lease Snapshot Report is a valuable tool to perform a 'lease health check'. The purpose of this report is to show you how each lease is performing in the context of (a) current vehicle usage, and (b) the lease term.
The report performs calculations to produce a confidence number or score, which represents whether or not you are likely to exceed the lease term and thus incur penalties from the lessor, based on current usage patterns. By intervening before the lease terms have been exceeded, the report gives you a 'heads up' that certain vehicles may need to be moved to other departments where the usage is less.
The report is located at Sysadmin > Lease Snapshot Report
Reading the Report
Please refer to the attached screen shot of a sample report. Note this picture is real data with some columns deleted to preserve the confidentiality of the client's data.
The column headings reading from left-to-right are self explanatory - this data is taken from the Vehicle Register where a vehicle record has the 'Leased?' flag set to Yes. In the vehicle register, you can enter the lease details such as term, lessor, etc. The snapshot report simply extracts all vehicles that are leased.
- Current ODO column - note this column is color-coded with either a background of red, amber or green. This 'traffic-light' color scheme shows how recent the current ODO reading is (ODO reading date). If the ODO reading date is 'fresh' then the color is Green; Red indicates the reading is stale, with a reading date more than 60 days old.
- Budget KMs/Month - this column takes the lease term KMs and divides by the lease term months, arriving at how many KMs "should" be travelled per month. In other words, the monthly budget that can be travelled to stay on track with the leasing agreement.
- Actual KMs/Month - this column shows how many KMs a month the car is actually doing, based on supplied odo readings and the age of the car.
- Estimated KMs End of Term - if the current usage continued as-is for the remainder of the term, what would the ODO be like at the end of the term? In other words, (months remaining on lease x actual KMs per month being travelled).
- Score. Again traffic-lighted into red, amber and green. If the estimated KMs at end of term exceeds the lease term then the color will be red (danger! vehicle will most likely exceed lease term). You want green here in this column, or better still, amber which means your lease term is slightly under the agreed terms. The percentage value shows how close/far you are likely to be at the end of lease term.
Why Amber is Better than Green
Things to Note
- Increase the 'discouragement factor' so that the vehicle receives less bookings
- Create 'maintenance' or dummy bookings for periods of time each month to get usage down
- Swap the vehicle out with that from another department, who would typically use the vehicle less
- Increase the lease terms or just wear the penalties (if any).