During the Corona Virus lockdown, fleet managers find themselves looking for answers they never thought they would ask. However, it is also an opportunity to do useful things they do not get around to in normal times. We have compiled ten questions and answers for the fleet manager to address some of these questions. Some of these questions are also applicable to perk drivers of vehicles leased from Eqstra Fleet Management.
1. My perk drivers have enjoyed working from home and no longer want a company car. Should I let them terminate their contracts?
According to Schedule 7 of the Income Tax Act 58 of 1962, employees making use of a company car will not get a relief from the perks tax payable. Remember, you are being taxed on the private use of the vehicle and not the business use.
Although there is no or limited private use, the Act is very clear that the value to be placed on the private use of a motor vehicle shall not be reduced by reason of the fact that the vehicle is temporarily not in use by an employee for private purposes. This would typically be where an employee goes on leave for a month and incurs no private use on the vehicle. Unfortunately, as much as one wants to see it differently, in our opinion the same principle applies now under the lockdown. You would be wise however to consult your own tax consultants to obtain your own expert opinions
SUMMARY
In our opinion, perk drivers would not be able to terminate their contracts early, as they are still making private use of their vehicles and this would be in contravention of Schedule 7 of the Income Tax Act.
2. Our company performs an essential service and needs more vehicles. What do I do?
Contact Eqstra FlexiRent for a short-term rental vehicle! According to Fred Bissett, National Operations Manager, availability of a rental vehicle will depend on the type of vehicle required and whether the vehicle would be used to perform an essential service. The vehicle rental would also be subject to an upfront deposit and the contract documents will have to be amended.
Existing customers performing an essential service may contact Fred on (011) 977 8000 or by e-mail: fbissett@eqstra.co.za.
SUMMARY
If you need more vehicles and you have an existing contract with Eqstra, contact us so we can provide you with a short-term rental vehicle. Availability will depend on the type of vehicle required.
3. We will need new vehicles when the crisis is over, but carmakers have shut their factories. Who do I contact to place an order for new vehicles?
The main rule here is to speak to your fleet management company as soon as you can.
If you are an existing customer of Eqstra, contact Eqstra’s General Manager, Jean-Clay (JC) van Heerden on (011) 458 7805 or send him an e-mail: jvanheerden@eqstrafleet.co.za
If you would like to become a new customer of Eqstra, contact Eqstra’s General Manager of new business Heather de Vos on (011) 458 7810 or by e-mail: hdevos@eqstrafleet.co.za.
Although we cannot confirm vehicle availability or arrange for vehicles to be delivered right now as the dealers are all closed, we will be sure to action your requests once the lockdown has been lifted!
If you have ordered vehicles and are wondering when they will be delivered or even still available, note that the dealers are closed for business during the lockdown, so delivery is unfortunately out of the question. Where Eqstra has placed an order for vehicles, we would have issued the dealership with our purchase order, and delivery will be scheduled as soon as possible post the lockdown.
SUMMARY
The main rule here is to speak to your fleet management company as soon as you can.
Contact Eqstra to place an order for new vehicles on lease. Although the dealers are closed during the lockdown, they will be open for business once the lockdown has lifted. Eqstra will do everything in our power to secure vehicle availability after lockdown.
4. Do I still need to inspect the leased vehicle?
If you can, yes. The inspection is especially important if the vehicle is currently in use – even just to the shops and back. Although Eqstra is in lockdown and our staff all work from home, our system is Corona Virus-free and so is our mobile app. Get it on Apple or android phones:
FLEET MANAGER will guide you through all the required steps. Once downloaded-
• After logging in with your username and password, select VEHICLE INSPECTION at the bottom of the screen.
• If you have a vehicle inspection due, the app will remind you of this task.
• You can also check under MY TASKS if you have any tasks due.
• Follow the steps in the app.
FLEET MANAGER will guide you in each step of the inspection, and you can take photographs of the interior and exterior of the vehicle as well as the odometer reading. The app will then automatically upload the inspection report onto our system.
SUMMARY
Yes, you still need to inspect the leased vehicle. You can make use of our mobile app, which will remind you when inspections should take place.
5. How can you maintain your tyres when a vehicle isn't moving for an extended period
Not using your car for several weeks could cause problems with your tyres. This is because the weight of your vehicle presses down on the tread area - which remains unchanged if you don’t move the car. In short, the weight of the vehicle could potentially deform the tyres, damaging the internal structure of the tyre and cause deflation. Flat spots could also develop on tyres, but this only happens when your vehicle’s tyres are old or in a bad condition. Ally Bransby, Eqstra’s Technical Team Leader and resident tyre expert, has given the following advice:
• If you can, take the tyre pressure, including that of the spare wheel.
• Take a short drive to the petrol station to check the tyre pressure. And follow the advice given to Question 10 on filling up fuel – same rules apply.
• The tyres provided by our service providers all have a five-year shelf life, and as per our tyre replacement policy on our leased vehicles, most of our customers’ vehicle tyres should still be in a good condition.
• However, Eqstra has contact with tyre suppliers able to assist if you need to replace the vehicle’s tyres, although this would be mainly for those vehicles used to perform an essential service. Please contact Eqstra’s 24/7/365 call centre on 0861 377 872 or make an emergency call after logging into our mobile app by clicking on the drop-down menu in the top right-hand corner of the screen, and selecting EMERGENCY CALL or CONTACT EQSTRA.
SUMMARY
It is advisable to drive the short distance to the nearest garage to check tyre pressure. In a tyre emergency or breakdown, Eqstra’s roadside assistance teams are available 24/7/365 to assist you during the lockdown. A select few of our tyre suppliers are still open, although e are trading within the constraints of the law and preference will be given to vehicles providing essential services.
6: Should you proactively ask your leasing company to re-evaluate your contract?
This is not advised. Rather speak to your fleet management company where you are leasing your vehicles from as soon as you can. Be open and frank about your situation.
However, if you do feel strongly that you need to re-evaluate your leasing contract with us, or that there are valid mitigating circumstances send us an e-mail addressed to Legal Team and our legal team will respond as soon as they can: info@eqstrafleet.co.za or legalnotices@eqstra.co.za
SUMMARY
Have an honest and open conversation with your leasing company as soon as you can.
7: Should I cancel my vehicle insurance because the vehicles are not being used?
Willers Baard, approved Financial Services representative at Eqstra Financial Services (FSB reg. no. 46229) strongly advises against cancelling, suspending or lapsing your vehicle insurance during lockdown.
You don’t need more stress to contend with by not having vehicle insurance. We are already exposed to a catastrophe, don’t be exposed to risks that can be covered by us, says Willers.
I know that it is challenging times, especially if your income has reduced or even stopped, and this forces people to choose whether you should feed your family or keep your insurance alive, says Baard. If your vehicle is bought on credit or is leased, vehicle users are required by the Credit Act and your Credit Agreement to have comprehensive insurance in place.
You might argue that the chances of an accident are slim because you rarely use the vehicle during lockdown. Keep in mind that your comprehensive vehicle insurance policy also covers:
• Weather-related damage caused by storms, wind, hail, snow, wind, and other similar nature-related incidences
• Damage due to fire
• Explosions
• Water damage sustained during storms, floods, or passing through water
• Earthquakes
• Damage to people’s property with your vehicle
• Losses incurred due to gross negligence by your vehicle’s driver
• Loss due to theft, hi-jacking, break-in, or any attempt to steal your vehicle
• Other accidental and catastrophic damage to the vehicle.
However, life happens, and we all do what we can. If you cannot afford comprehensive insurance, Willers advises you to immediately contact your insurer to temporarily reduce your vehicle insurance cover only to fire, explosions, theft, hi-jacking and Third Party Liability, or at the very least Third Party Liability only. This will at least cover you if you inadvertently cause damage to people’s property; your handbrake might fail in the complex parking lot! With Third Party Liability cover, you have up to R5 million cover if the car damages your neighbour’s wall.
If you have regularly paid your insurance premiums and you have a good track record with your insurer, Willers also advises policy holders to contact them to request a premium break or payment holiday for a month or two. In most cases, the insurer would rather put your premium on ice until you are in a better position to pay your premium before losing you as a customer. You can always arrange a structured payment for the future to catch up any arears premium amounts.
SUMMARY
If your vehicle is bought on credit or is leased, you are required by the Credit Act and your Credit Agreement to have comprehensive insurance in place.
8: How should you deal with accidents in times of social distancing?
Now would be good time for fleet managers to revise company procedure when a vehicle is in an accident and how information should be exchanged between drivers.
Even after you’ve been involved in an accident, you need to respect social distancing rules. If accident management is part of the product offering from your fleet company, encourage your drivers to make use of it. Eqstra’s mobile app takes drivers through the entire process, allowing you to take pictures of the accident scene, all vehicles involved and load details of the drivers. Alternatively you may call our 24/7/365 roadside assistance team on 086 137 7872. Remember: hugs, kisses and handshakes have been postponed until further notice. Be assured that Eqstra will make use of every method possible to deliver an outstanding service to our customers without endangering the public or ourselves.
Handle documents carefully. Consider taking out your drivers’ licence, putting it on a flat surface and encourage the other people involved in the accident to do the same. Then you can take photographs of each other’s details without touching anything that is not yours. Always carry a pen and cell phone with you.
Now would also not be a good time to hitch a ride with the tow truck driver, as you could be endangering your health as well as that of the tow truck driver. Instead consider making use of safe, alternative transport such as Uber.
When reporting the accident to the police, think of the usual precautions, such as not touching your face and disinfecting your hands afterwards. If that’s not possible, do not touch your hands until you can wash them. And use your own pen!
SUMMARY
• If accident management is part of your fleet package, contact your fleet manager’s call centre for accident assistance or make use of their mobile app.
• If you are an existing accident management customer of Eqstra, call our 24/7/365 call centre on 086 137 7872 or report the accident through Eqstra mobile app.
• If you do not have a fleet management company to take care of your fleet, tell your drivers to always keep a pen and paper and cell phone with them. That way, they can take photographs of each other’s drivers’ licences, record their contact details, and draw the scene of an accident.
• Practice social distancing at all times.
• Fleet managers should revise your fleet policy to include ways on how to exchange information between drivers after an accident has occurred.
9. What should I do to my car while I’m under quarantine?
Keep the battery healthy, disinfect the car, and keep the vehicle under cover if you can. More in our article on vehicle safety tips during lockdown.
10: How do I keep my fleet drivers who are providing an essential service safe?
Check out our recent article on what fleet managers should do during these dark times. Here are a couple of other ideas:
1. Provide your drivers with disposable masks if required and teach them how to safely remove them. The World Health Organisation (WHO) recommends people to only wear masks if they are ill or looking after someone who is ill, because they are needed by essential health workers.
Closer to home, University of Cape Town professionals says wearing even just cloth coverings is the missing link in the strategy against Covid-19. Read all about it here.
2. Provide hand sanitiser to be kept in the cab of the vehicle that complies with health guidelines. WHO recommends providing at least a 60 % alcohol-based solution if soap and clean water is not available.
3. Disinfect surfaces of shared vehicles and/or equipment before and after using. We found this article helpful and it not only pertains to truck drivers. You can also download this very comprehensive factsheet and e-mail it to your drivers or place it at the break area.
We recommend that ambulances and transporters of blood for example should follow the guidelines provided to them by their organization as it pertains to the medical environment.
4. Tell drivers to keep the interior of the vehicle clean and limit the items going in and out with them.
5. Practice social distancing measures with customers or other drivers. This video from WHO might help them understand why social distancing is important.
6. A hygiene study conducted in six cities in America by a consumer product manufacturer discovered that 71% of fuel pumps carry high levels of contamination, holding 11,000 times more bacteria than a home toilet. Follow recommended sanitising and distancing measures when refuelling vehicles:
• If you open the petrol cap, or for any other reason need to touch engine or petrol pump components, wear disposable gloves and discard prior to getting back into your vehicle.
• Wipe down the petrol cap, petrol pump components with sanitizing wipes if you have to touch them.
• Avoid using credit card terminals. If possible, opt for mobile pay options. Else, wipe the credit card with a disinfectant wipe before and after use (use a clean one every time), and keep your gloves on if you handle the card machine.
• Maintain a safe distance from other people while at the pump. Wear a mask if you can.
• Avoid touching your face and use approved hand sanitizer when leaving the petrol station.
• Wash your hands as soon as you can, following the recommended method. Remember, washing your hands for 20 seconds is still the best method of cleaning your hands.
7. For information and updates on the Corona Virus, and how to protect themselves, tell your employees to:
• Join the NICD’s Whatsapp group at 0600 12 3456
o Step 1: Save the number as “Covid-19 Connect” to your contacts on your cell phone.
o Step 2: Send the word "Hi" To Covid-19 Connect and start chatting
• Store the NICD’s helpline number on their telephones: 0800 029 999
• Encourage them to visit the following sites if they would like more information on the pandemic:
o South Africa’s COVID-19 Corona Virus resource portal
o The South African National Department of Health
o The World Health Organisation (World-based)
o The Centers for Disease Control and Prevention (CDC, US-based)
• If you cannot find a mask anywhere, do not despair, there are a host of short instructional videos which include on YouTube to assist. And if you hate sewing us much as I do, here are some DIY NO SEW ideas:
o Making a mask by folding a napkin or bandanna Two elastic hair bands/rubber bands are required.
o Making a mask by upcycling a t-shirt
o Making a mask by upcycling leggings
o The CDC’s article on how to use cloth face coverings to help slow the spread of COVID-19
These masks are such that you can insert extra padding if needed. The same rules apply when donning and discarding
SUMMARY
• Provide your drivers with disposable masks if required and teach them how to safely remove them
• Provide hand sanitiser to be kept in the cab of the vehicle that complies with health guidelines.
• Disinfect surfaces of shared vehicles and/or equipment before and after using.
• Tell drivers to keep the interior of the vehicle clean and limit the items going in and out with them.
• Practice social distancing measures with customers or other drivers.
• Follow recommended sanitising and distancing measures when refuelling vehicles.
• For information and updates on the Corona Virus, tell your employees to:
o Join the NICD’s Whatsapp group at 0600 12 3456
o Store the NICD’s helpline number on their telephones: 0800 029 999
o Visit YouTube for some DIY masks if they cannot find any in the stores.
o Encourage them to visit the National Department of Health, WHO and NICD websites for information
Do you have any other questions?
Contact us and we will try find answers for you: info@eqstrafleet.co.za
