{"id":18094,"date":"2024-01-05T19:41:14","date_gmt":"2024-01-05T19:41:14","guid":{"rendered":"https:\/\/de-en.holman.com\/de-en\/?p=18094"},"modified":"2024-01-24T17:23:51","modified_gmt":"2024-01-24T17:23:51","slug":"how-we-might-easily-resolve-return-disputes","status":"publish","type":"post","link":"https:\/\/de-en.holman.com\/de-en\/resources\/how-we-might-easily-resolve-return-disputes\/","title":{"rendered":"How We Might Easily Resolve Return Disputes"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> &lt; 1<\/span> <span class=\"rt-label rt-postfix\">minute<\/span><\/span> \n\n\n\t\t\t\n\t\n\t\t\t<div class='resource-header-container' style='position:relative;'>\n\t\t<div class=''><nav aria-label=\"breadcrumbs\" class=\"rank-math-breadcrumb\"><p><span class=\"last\">Home<\/span><\/p><\/nav><\/div>\n        <div id='blog-title'><h1>How We Might Easily Resolve Return Disputes<\/h1><\/div>\n            <img src='https:\/\/de-en.holman.com\/de-en\/wp-content\/uploads\/2024\/01\/returns-dispute-blog-feature.jpg' alt='a man pointing at a damaged tire' id='blog-header-image' style='width:100%;object-fit:cover;object-position: center;'>                            \n\t\t\t<aside style='max-width:298px;margin-top:62px;' id='mobile-info'>\n\t\t\t\t<div class='blog-info-box'><p class='aside-header'>Posted<\/p>\n\t\t\t\t<p class='aside-info'>January 5, 2024<\/p><\/div>\n\t\t\t\t<div class='blog-info-box'><p class='aside-header'>Type<\/p>\n\t\t\t\t<p class='aside-info'>\n\t\t\t\t\tBlog\t\t\t\t<\/p><\/div>\n\t\t\t\t<div class='blog-info-box' id='social-icons'><p class='aside-header'>Share<\/p>\n\t\t\t\t\t\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.facebook.com\/sharer.php?u=https:\/\/de-en.holman.com\/de-en\/resources\/how-we-might-easily-resolve-return-disputes\/\" id=\"footer-mobile-facebook-link\" title=\"Facebook\" target=\"_blank\" class='aside-info'>\n\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/de-en.holman.com\/de-en\/wp-content\/themes\/holman\/assets\/images\/facebook-share.png\" alt=\"Facebook\" \/>\n\t\t\t\t\t\t\t<\/a> <!-- .item -->\n\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.linkedin.com\/sharing\/share-offsite\/?url=https:\/\/de-en.holman.com\/de-en\/resources\/how-we-might-easily-resolve-return-disputes\/\" id=\"footer-mobile-linked-link\" title=\"linkedin\" target=\"_blank\" class='aside-info'>\n\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/de-en.holman.com\/de-en\/wp-content\/themes\/holman\/assets\/images\/linkedin-share.png\" alt=\"LinkedIn\" \/>\n\t\t\t\t\t\t\t<\/a> <!-- .item -->\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t<a href=\"mailto:?subject=How We Might Easily Resolve Return Disputes&#038;body=I wanted to share this content from Holman! 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!important;}\n\t\t.ebook-overlay.gated{width:100%;height:100%;position:relative;}\n\t\t@media(max-width:900px){#form-container-gated #ebook-form{width:100%;}.ebook-overlay.gated{min-height:435px;}#form-container-gated #ebook-form .wpcf7 label{width:100%;}#icon-container{flex-direction:column;gap:24px 0;}#case-study-header-title,#case-study-header-description{font-size:12px;}.case-study-feature{width:100%;justify-content:flex-start;}#case-study-image{height:auto;}}\t\t\t\t\n\t\t<\/style>\n\n\n \n\n\n\t\t\t\n\t\n\t\t\t \n\t\t<section class='resource-wysiwyg'>\n\t\t\t        \t<p><span data-contrast=\"auto\">Have you ever been involved in an expert appraisal of vehicles that are being returned? If so, you&#8217;ve probably seen German meticulousness in action: An elaborate lighting set-up and pairs of mirrors are used to determine whether there are any dings in the body that cannot be seen with the naked eye. Then, depending on the catalog of damages, the current condition is assessed to determine whether a value reduction is called for. In some cases, not only two but numerous measurements are taken because different service providers and associations use different catalogs of criteria. For example, the Association of Brand-Independent Mobility and Fleet Management Companies (VMF) has published &#8220;The VMF Fair Vehicle Valuation&#8221;; T\u00dcV NORD offers a certified international standard, but as a service provider for paying manufacturers, it also tests according to other criteria.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<h2>A Question of Definition<span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/h2>\n<p><span data-contrast=\"auto\">The only thing that is undisputed is this: Our fleet vehicles are commodities that do not need to be in like-new condition when they are returned. This sounds reasonable, but in practice it is often frustrating\u2014and pricey. If you are saddled with the value-reduction bill at the end of the return, you might be wondering, &#8220;Am I actually allowed to use the vehicle or am I expected to dutifully make my lease payments and then return the car as good as new?&#8221; But seriously, the controversial question of what constitutes normal wear and tear has been occupying our industry for years, as the industry publication <\/span><i><span data-contrast=\"auto\">Autoflotte<\/span><\/i><span data-contrast=\"auto\"> [<\/span><i><span data-contrast=\"auto\">Auto Fleet<\/span><\/i><span data-contrast=\"auto\">] describes in its recent article on the subject, which is well worth reading.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">So let&#8217;s just ask the question: What is normal wear and tear? What do the experts say? Most experts agree on &#8220;scratches in the paint on door handles and doors&#8221; as well as &#8220;car wash scratches&#8221; and &#8220;small scratches on the surface.&#8221; &#8220;Paint damage that requires repainting&#8221; and &#8220;severe scratches on alloy wheels,&#8221; on the other hand, are usually at least questioned. And you can argue about everything in between.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<h2><span class=\"word\">Are<\/span>\u00a0<span class=\"word\"><span class=\"changedDisabled\">T<\/span>hese<\/span>\u00a0<span class=\"word\"><span class=\"changedDisabled\">P<\/span>etty<\/span>\u00a0<span class=\"word\"><span class=\"changedDisabled\">S<\/span>kirmishes<\/span>\u00a0<span class=\"word\"><span class=\"changedDisabled\">W<\/span>orth<\/span>\u00a0<span class=\"word\"><span class=\"changedDisabled\">I<\/span>t<\/span>?<\/h2>\n<p><span data-contrast=\"auto\">What appears to be a minor clash can have financial consequences. The agent whose prerogative it is to set value reductions can make significant additional demands regarding the overall value. This frivolous battle becomes correspondingly bitter: In the catalogs of criteria, not a single millimeter of sheet metal is voluntarily relinquished. There are lists of accepted minimum tread depths, various sizes of dents and dings measured in millimeters, scratches and deformations on bumpers, and even dirty interiors. In cases of doubt, the customer, who typically has neither experience as a claims expert nor time for disputes, must nevertheless contend with expensive expert opinions, counter-evaluations, and professionals.\u00a0 Isn&#8217;t there some alternative?<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">We think there is. In fact, we think that this dispute could be completely unnecessary. Imagine that you lay out in the sun without sunscreen\u2014but buy an expensive tube of Fenistil and cooling pads beforehand because you expect to see your sunburned face in the bathroom mirror in the evening. Why not apply sunscreen protection from the start and sit in the shade every now and then? This analogy can also be applied to the return process at the end of a lease. Why not apply the sunscreen from the start\u2014in this case, take advantage of a leasing model in which, for example, no reduced values are found in the end, no claim settlement is due, and you don&#8217;t get burned in the process? There are a few ways to handle vehicle returns. At Holman, we&#8217;ve been using one in particular for years.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">It requires attention and fairness. First, you need to understand what&#8217;s actually behind the concept of value reductions. When the lessee returns a vehicle, thereby transferring the risk of resale to the lessor, value reductions symbolize the degree of risk. It&#8217;s really quite easy and inexpensive.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">But year after year, lessors are charging more and more for this risk. Value reductions are the vehicle for price increases. Why? The value reductions are subjective and are undergirded by expert opinions\u2014and lessors can therefore make a good argument for them. Granted, repairs and material costs have risen significantly in the last decade. These increases, however, are disproportionate to the sometimes massive increases in value-reduction settlements at the end of a lease.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">They very often exceed the vehicles\u2019 actual loss in value and do not necessarily reflect a realistic resolution of supply and demand. We should ask ourselves whether this approach is the best solution with respect to the almost inflationary depreciation and claim settlements described here.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<h2><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">What Are the Alternatives? <\/span><\/h2>\n<p><span data-contrast=\"auto\">The really interesting question is how much depreciation the vehicle actually incurs on the used car market. What price are buyers willing to pay for the car despite its condition? And how do buyers price the damage into the purchase price? Buyers are not interested in scientific value reductions or curves that can only be detected by using two mirrors. They recognize the true value of the car on their own and pay it. We call this the market price. In our experience as fleet managers of more than 100,000 vehicles under our supervision in Germany, this market price depends far less on a value-reduction appraisal than is credibly asserted to customers in the market.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">As a fleet operator, what alternatives do you have to avoid your dependence on such value-reduction appraisals and claim payments?<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:1080,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\"><strong>Option 1:<\/strong> You can go back to the concept of a fleet of purchased vehicles. The vehicles are owned by the company, which sells its vehicles itself or through a professional service provider. When selling, the best possible realistic price is targeted\u2014any value reductions are already incorporated into the sales price.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:1080,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\"><strong>Option 2:<\/strong> You switch to an open-end leasing model\u2014for example, our Holman FlexLease. You remember\u2014like the scenario of using sunscreen right before sunbathing. Here, as well, the lessee has a marketing opportunity, similar to the purchase scenario. The lessor does not carry out value-reduction appraisals, which, in case of doubt, result in subjective claim settlements and their associated penalties. The lessor sells the car for the customer. The lessee receives the full proceeds after the sale. This means the market decides how much the vehicle is worth. The buyer pays, and the full proceeds go to the customer.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">Either of these options might be a good choice for the customer if they are laid out transparently for the customer to choose from.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Finally, once again, to be perfectly clear: Of course, anyone in a free economy can demand whatever premiums they like. However, we argue that customers should never simply pay for subjectively evaluated, theoretical value reductions, but that they learn at the time of sale the extent to which any damage actually reduces the value. In the US, this form of cooperation and leasing has been used successfully for decades. At Holman in Germany, we have been offering this solution to our customers since 2018. With us, lessees and lessors do not spar over claim settlements or value reductions. On the contrary, we work in partnership to find a holistic, functional solution for each fleet. Never off-the-shelf, always tailor-made for your requirements.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">We will be happy to advise you on an open leasing model.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n\t\t<\/section>\n\t\t\n\t\t\t\n<style>\n\tsection{margin:0;}\nsection.resource-wysiwyg{margin:20px 0 0;padding:0;}\nsection.resource-wysiwyg:first-of-type {margin:35px 0 0;padding:0;}\n.resource-wysiwyg p{margin-bottom:16px;font-size:16px; line-height: 24px;}\n.resource-wysiwyg h2, .resource-wysiwyg h3, .resource-wysiwyg h4{margin-top:40px;color:#003057;}\n.resource-wysiwyg h3{margin-bottom:16px;color:#003057;font-weight:500;}\n.resource-wysiwyg h4 {line-height: 24px; font-size:16px;}\n.resource-wysiwyg h5{font-size:14px;font-weight:500;margin:16px 0;}\n.resource-wysiwyg p:last-of-type{margin-bottom:0px;}\n.resource-wysiwyg img{padding:16px 24px;max-width:40%;}\n.resource-wysiwyg img.alignright{float:right;padding-right:0px;}\n.resource-wysiwyg img.alignleft{float:left;padding-left:0px;}\n.resource-wysiwyg ul{margin-left:0;padding-left:1rem;margin:16px 0;}\n.resource-wysiwyg ul li{font-size:16px;font-weight:400;}\n.resource-wysiwyg ul li::marker{color:#2C9941;font-size:20px;margin-top:5px;}\n#form-container-gated #ebook-form h2, #form-container-gated #ebook-form h3, #form-container-gated #ebook-form h4{margin-top:0px;}\n@media(max-width:600px){section.resource-wysiwyg:first-of-type{margin:16px 0 0;}.resource-wysiwyg img{max-width:50%;height:auto;padding:8px 12px;}}\n<\/style>\n","protected":false},"excerpt":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> &lt; 1<\/span> <span class=\"rt-label rt-postfix\">minute<\/span><\/span>","protected":false},"author":32,"featured_media":18095,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[140],"tags":[119],"blog-type":[118],"featured":[91],"legacy":[],"topic":[],"class_list":["post-18094","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fleet-management","tag-blogs","blog-type-blog","featured-no"],"acf":[],"permalink_manager":null,"_links":{"self":[{"href":"https:\/\/de-en.holman.com\/de-en\/wp-json\/wp\/v2\/posts\/18094","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/de-en.holman.com\/de-en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/de-en.holman.com\/de-en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/de-en.holman.com\/de-en\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/de-en.holman.com\/de-en\/wp-json\/wp\/v2\/comments?post=18094"}],"version-history":[{"count":7,"href":"https:\/\/de-en.holman.com\/de-en\/wp-json\/wp\/v2\/posts\/18094\/revisions"}],"predecessor-version":[{"id":18243,"href":"https:\/\/de-en.holman.com\/de-en\/wp-json\/wp\/v2\/posts\/18094\/revisions\/18243"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/de-en.holman.com\/de-en\/wp-json\/wp\/v2\/media\/18095"}],"wp:attachment":[{"href":"https:\/\/de-en.holman.com\/de-en\/wp-json\/wp\/v2\/media?parent=18094"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/de-en.holman.com\/de-en\/wp-json\/wp\/v2\/categories?post=18094"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/de-en.holman.com\/de-en\/wp-json\/wp\/v2\/tags?post=18094"},{"taxonomy":"blog-type","embeddable":true,"href":"https:\/\/de-en.holman.com\/de-en\/wp-json\/wp\/v2\/blog-type?post=18094"},{"taxonomy":"featured","embeddable":true,"href":"https:\/\/de-en.holman.com\/de-en\/wp-json\/wp\/v2\/featured?post=18094"},{"taxonomy":"legacy","embeddable":true,"href":"https:\/\/de-en.holman.com\/de-en\/wp-json\/wp\/v2\/legacy?post=18094"},{"taxonomy":"topic","embeddable":true,"href":"https:\/\/de-en.holman.com\/de-en\/wp-json\/wp\/v2\/topic?post=18094"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}