Kia to Reduce Dealer SMR Costs for Fleets

Kia in the UK is introducing a new fleet service package to its dealers.

Called the Kia Business Service Promise, it is designed to compete with independent service providers, while offering the benefit of a dealer service record.

Kia says it will help improve fleet residual values with a full dealer service history, which will feed into more competitive business contract hire leasing rentals.

The Kia Business Service Promise can be accessed across the company’s 192 UK dealer partners, allowing Kia fleet cars to benefit from a national hourly business labour rate of £49 plus VAT.

Business customers also benefit from a 10% discount on parts prices, with an MOT, required after three years, at £35 (normally up to £55). Cars will also receive a free vehicle health check and any software updates will be installed free of charge.

John Hargreaves, Kia’s general manager for fleet and remarketing, said: “This package completes the ownership experience and will benefit us, dealers and fleet drivers.”

Hargreaves said fleets had been moving to lower cost independent providers and the package was partly designed to counter this. “We will start to communicate with the leasing companies about our new proposition as they are one of the main targets, but also fleets that buy their own vehicles and use independents,” he said.

In addition, Kia said it would provide a like-for-like car replacement if a Kia vehicle was off road with a warranty issue.

"We want to keep our fleet drivers mobile, that is essential,” Hargreaves added.

He went on to say: “The Business Service Promise is multi-faceted in its approach, offering businesses several reasons to maintain their vehicles at a Kia dealership. Firstly, the highly competitive labour rates ensure Kia dealerships don’t cost a premium over alternatives. Secondly, fleets can be reassured by fixed costs for typical repair work, as well as that their driver will be kept on the road with our no-quibble policy for any warranty work.”

Kia is currently the number one fleet brand in the UK, with a market share of 8.8% and just short of 50,000 units sold (49,866) year-to-date (end September).

The Kia Business Service Promise:

● Available across Kia’s 192 UK dealer partners

● National hourly business-labour rate of just £49 plus VAT

● 10% discount on parts prices

● MOTs priced at £35

● Free vehicle health check on every visit

● Cars are also kept up-to-date, with the latest software updates installed free of charge

● Like-for-like vehicle provision if a car off-road for a warranty issue