DAF bring in fixed cost
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maintenance contract
DAF TRUCKS (GB) Ltd has introduced a contract maintenance •and repair system which is paid for by fixed monthly contributions over the period of the contract, thus allowing vehicle costs to be budgeted with accuracy. A generously worded inflation index provides for parts or labour costs to rise when DAF parts or wage costs increase by a certain amount, but insulates the operator against the effect of outside inflation.
The system, applicable to all DAF trucks when supplied new (and possibly to selected DAF operators with very low mileage vehicles) covers repairs and maintenance and the sup ply of labour, parts and lubricant for agreed contract periods up to a maximum of four years or 300,000 miles. Batteries, tyres and glassware are excluded.
The contract will include preventive maintenance and inspection at periods appropriate to the vehicles and their work, and typical service periods will lie between 3,000 and 5,000 miles. Whatever period is chosen, it will comply with DOE requirements and service records will be maintained in triplicate—one copy for the operator, one for DAF Trucks and one for the dealer.
Emergency service is covered by a credit card system linked to the 24-hour DAF-aid scheme, so that contract work away from base can be undertaken by a DAF dealer and remain within the terms of the scheme.
Payment for the contract is made direct to DAF Trucks (GB) Ltd and not the dealer; and the contract is negotiated with DAF Trucks.
The cost per mile for the maintenance contract is calculated for each individual truck, and DAF will be drawing on experience with similar proven systems in Holland and in France. As an example of the type of charges involved, DAP quoted for a 2200 tractive unit on a four-year maintenance contract, covering 60,000 miles a year and operated as a onedriver vehicle—that is, not normally used by a succession of different drivers. The contract service cost would' be 0.818 pence per mile, the " DoE" inspection (carried out at every service) 0.331 ppm and the repair costs 2.118 ppm. This gives a total of 3.267 ppm compared with approximately 5 ppm in typical own-workshop estimates, and 6 ppm quoted for this class of vehicle in typical current cost tables. (The CM Tables, for example, allow 6.01 ppm for maintenance on a 32-tonner.) The actual contract figure for a DAF 2200 tractive unit at this mileage could vary by up to 20 per cent from the 3.267 ppm quoted, according to the conditions of work.
When the ppm figure has been settled, it is transformed into a monthly cast which can be paid by Standing Order or similar method. If the actual mileage exceeds or falls short of the calculated annual figure an adjustment is made at the year's end, crediting or debiting the operator.
The contract is not transferable to a different operator if the vehicle is sold, but DAF emphasises that the evidence of being contract-maintained to manufacturer standards will improve the residual value of vehicles in the scheme.