In this article, we delve into the promised world of vehicle telemetry data and how leveraging it can revolutionise the operations of car dealerships. We discuss OBD data, new service models, and an entirely new level of customer relationships. From remote diagnostics to predictive maintenance that keeps customers returning – we explore the business potential of the technology and calculate the return on investment. We address open-source solutions and a future where remote reading of car data is not just a monopolised dream by manufacturers. Are you ready to accelerate your business to a new speed and leave competitors behind?
We initiated our technical trial in autumn 2024 to determine whether we could read telemetry data from the vehicle's OBD connector (on-board diagnostics). We wanted to explore what data we could gather and how it might be utilised in dealership services and systems. This report summarises the results of the trial, outlines the potential business uses of the technology, and assesses the profitability of the investment. We also consider the customer's perspective – why would they agree to share their vehicle's data with us?
Why is Crasman investigating this topic?
Crasman has a long history as a design partner in the automotive sector, a developer, and supplier of services to both dealerships and startup companies. We are dedicated to advancing the automotive trade by exploring trends and technologies. Over the years, we have also conducted high-quality research projects related to industry development, consumer behaviour, and car purchasing methods.
Our experience also shows that individual dealerships often find themselves so deeply involved in daily project urgencies and problem-solving that they rarely have time and energy left for this kind of technological experimentation.
Challenges with manufacturers' systems and fleet management solutions?
From the perspective of car dealerships (and end-users), the problem is that all necessary data is already collected from vehicles and sent to the manufacturers' data centres. However, very little of this data is available or usable. Manufacturers are not obliged to openly provide telemetry data to dealerships and leasing companies. Even if the data were available, because manufacturers use their own software solutions, a multi-brand platform-dealing dealership or service provider would likely require several integrations to use them. Communication between dealers and manufacturers is typically also quite one-sided – manufacturers are unlikely to offer support or respond to feature requests.
On the other hand, existing fleet management solutions may not be appealing for agile service development projects. Small-scale fleet trials can be cumbersome to establish, and the pricing models of platforms are not very transparent or easily scalable. The possibilities for platform customisation are limited, and in development work, one must be aware of the risks of vendor lock-in.
Our solution
Our goal was to find a solution that is cost-effective and scalable, suitable for a single vehicle proof of concept trial, and can be expanded to a larger fleet. We aimed to find an open-source solution with good API support for data transmission. This would give us the opportunity to develop our own applications and interfaces for utilising the data and functionalities as needed. Data transmission and remote configuration had to occur via a 4G connection.
The solution we found is based on a small additional device installed into the car's OBD channel. Installing this small piece is, in its simplicity, the most challenging part of the process. The device setup is straightforward – its serial number is registered via a website, after which custom brand-specific settings or service-related automations and alerts can be sent to the device. Information is sent over a 4G network and can be updated remotely. Once the device is activated, it is ready for use. Data immediately begins gathering in dashboard views.
Browser-based dashboard views can be customised to show all the data generally available through the OBD standard or OBD II extended interface. With this data, we can create customised workspaces for managing the entire fleet and individual vehicles.
What data is available?
Monitoring of journeys and speed along with xyz acceleration data
Monitoring of fluid levels, battery charge level
Reading diagnostic trouble codes
Tracking total mileage and usage time
Integration of customer CRM data, vehicle history, and contracts
Automatic notifications via webhooks or emails in situations where the car or its usage needs closer inspection
Location-based alerts when the car leaves or enters a specific area
Remote car control – locking doors, opening windows, and managing connected devices like cameras
And much more…
How can data be commercially utilised?
We also wanted to brainstorm promising use cases that could be developed using this data and technology. Some of the applications described here are already in use in certain limited market areas, but they are still poorly exploited in Finland and much of Europe.
Remote diagnosis of fault codes
It happened in real life – A leasing customer's car has an engine warning light come on, leading to an urgent repair visit. Diagnosing the fault requires multiple service visits, and eventually, it turns out that a faulty sensor is the cause of the problem. The leasing service provider's maintenance cannot fix the fault, requiring a few more visits to a brand service centre.
By utilising remote reading of OBD data, the fault could have been communicated to the customer immediately when detected in the system. The customer could have been informed whether the fault required immediate maintenance or if they could safely continue driving. The customer could also have been directed straight to the brand service, avoiding unnecessary and time-consuming diagnostic visits.
Avoiding additional service visits would have directly saved costs incurred by the leasing provider. Similarly, in this model, customer support would not have had to spend time communicating with the customer between services.
Ultimately, improved customer satisfaction would lead to better customer retention and business outcomes.
Remote mileage reading
With remote mileage reading, customers can easily monitor the mileage limits of their leasing contracts. This also allows for the automatic sending of maintenance reminders, promoting fleet condition maintenance and preventing unexpected technical issues at the end of the contract when the car is returned.
Additionally, leasing companies can use this data to proactively suggest increasing the mileage limits of contracts. This avoids difficult conversations at the contract's end and eases customers' concerns about exceeding limits.
Fleet management for SME businesses
Companies with a leased fleet of 5-20 vehicles usually do not have a dedicated fleet management tool in use. However, a simple view offered by the dealership could provide them with several benefits:
Real-time vehicle tracking and route optimisation, ensuring operational efficiency and quick deliveries.
Automatic collection of driving logs and differentiation between personal and work trips.
Predictive maintenance planning and timing optimisation.
Real-time monitoring of vehicle condition.
Monitoring driving behaviour as a tool for promoting safety and environmental friendliness – speed violations, abrupt braking, extensive idling, etc.
Offering services like these to SME businesses ties customers to the service provider and serves as a competitive edge against other leasing companies. Customers benefit from tangible savings, increased efficiency, and reduced administrative work.
Savings in insurance premiums
This business model is common in, for example, Great Britain, but it is still scarcely used in many other markets.
Insurance customers can choose to share their data on XYZ acceleration, speed, and GPS location with their insurance company. The insurance company evaluates the customer's driving behaviour and offers reduced insurance rates to safe drivers. Tracking the vehicle's location helps in locating stolen cars and alerts when a car exits the country without permission. In the event of an incident, the collected data can be used to determine causes of the damages. Additionally, customers can be notified, for example, if the car alarm is triggered.
Investment and profitability
How can the value of these services be defined, and how can the profitability of the investment be forecasted.
Let's assume that a €200,000 investment is used to carry out a 2-year service trial involving 2,000 customer cars. 25% of the budget is allocated to platform and hardware costs and 75% to the implementation project and development. This results in a €100 investment per customer spread over two years. The revenue potential and cost savings can be estimated as follows:
If we reduce unnecessary service visits by 100 per year, and the cost per visit is €100-200, savings of €10,000-20,000 are achieved over two years.
By reducing unnecessary customer service messages by 400, with a cost of €20 per message chain, €8,000 savings are achieved.
If we prevent 10-20 cars from being damaged or losing insurance due to missed services (cost of €1,000 per case), we save €10,000-20,000.
Additional sales of contract kilometres to 10% of customers could generate €96,000 in new revenue for us (€20/month/customer*2 years).
If a leasing customer's monthly margin is €50, by boosting customer retention by 2%, we generate €48,000.
And finally, if we attract 100 new customers due to better recommendations from current customers, we can achieve €120,000 in revenue over 24 months.
The figures above involve a significant amount of conjecture and speculation, but their message is undeniable. This is the future we wish to build! If you are interested in continuing the discussion on this topic, feel free to contact us.
Crasman Ltd
14 Apr 2025
