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 a completely new level of customer relationship. From remote diagnostics to predictive maintenance that keeps customers coming back – we explore the business opportunities of 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 dream monopolised by manufacturers. Are you ready to accelerate your business to a new speed and leave competitors behind?
We began our technical experiment in autumn 2024 to investigate whether we could read telemetry data from a vehicle's OBD connection (on-board diagnostics). We wanted to determine what data we could collect and how it could be utilised in car dealership services and systems. This report summarises the outcomes of the experiment, outlines the potential business applications of the technology, and evaluates 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 researching this topic?
Crasman has a long history as a design partner in the automotive industry, developing and delivering services to both car 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 patterns.
Our experience is also that individual car dealerships are often so deeply involved in everyday project deadlines and problem-solving that there is rarely time and energy left for this type of technology experiment.
Challenges with manufacturer's systems and fleet management solutions?
From the perspective of car dealerships (and end users), the problem is that all the necessary data is already being collected from vehicles and sent to manufacturers' data centres. However, very little of this data is available or usable. Manufacturers are not obliged to offer telemetry data openly to dealers and leasing companies. And even if the data were available, since manufacturers use their own software solutions, a multi-brand platform operating car dealership or service provider would likely need several integrations to use it. Communication between dealers and manufacturers is also typically quite one-sided – manufacturers hardly provide 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 experiments can be cumbersome to establish, and the platforms' pricing models are not very transparent or easily scalable. The customisability of the platforms is limited, and in development work there is a need to be aware of supplier dependency risks.
Our solution
Our goal was to find a solution that is cost-effective and scalable, suitable for a single vehicle proof of concept experiment and scalable to a larger fleet. We aimed to find an open-source solution with good API support for data transfer. This would give us the opportunity to develop our own applications and interfaces for data and functionality utilisation if needed. The transmission of data and remote configuration had to take place via a 4G connection.
The solution we found is based on a small add-on device installed on the vehicle's OBD channel. Installing this device in place is the most challenging part of the process in its simplicity. The device setup is straightforward – its serial number is registered via a website, after which the device can be sent custom brand-specific settings or create service-related automations and alerts. The data is sent over the 4G network and can be updated remotely. Once the device is activated, it is ready for use. Data immediately starts accumulating in dashboard views.
Browser-based dashboard views can be customised to show all the data that is generally available via the OBD standard or OBD II extended interface. Based on this data, we can create customised workspaces for managing the entire fleet and individual cars.
What data is available?
Monitoring of journeys and speed as well as XYZ acceleration data
Monitoring of fluid levels, battery charge level
Reading of diagnostic trouble codes
Total mileage and usage time tracking
Possibility to integrate customer CRM data and vehicle history and contracts
Automatic notifications via webhooks or emails in situations where the car or its usage requires closer inspection
Location-based alerts when the car leaves or enters a certain area
Remote vehicle control – locking doors, opening windows, and managing connected devices such as cameras
And much more…
How can data be utilised commercially?
We also wanted to ideate 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 underutilized in Finland and much of Europe.
Remote diagnosis of fault codes
An actual scenario – A leasing customer's car's engine warning light comes on, leading to an urgent service visit. Diagnosing the fault requires multiple service visits, and it is ultimately revealed that a faulty sensor is the cause of the issue. The leasing service provider's maintenance cannot fix the fault, requiring a few more visits at the brand-specific service.
By utilising remote reading of OBD data, the customer could have been informed immediately when the error was detected in the system. The customer could have been notified if the fault required immediate maintenance or if it was safe to continue driving. The customer could also have been directed straight to brand-specific service without unnecessary and time-consuming diagnostic visits.
Avoiding extra service visits would have directly saved costs for the leasing service provider. Similarly, in this model, customer support would not have needed to spend time communicating with the customer between services.
Ultimately, improved customer satisfaction would lead to better customer retention and business results.
Remote reading of odometer
Remote reading of the odometer allows customers to easily track whether mileage limits of the leasing contract are sufficient. It also allows automatic sending of maintenance reminders, which facilitates vehicle condition maintenance and prevents unforeseen technical issues when the car is returned by the customer at the end of the contract.
Additionally, leasing companies can use this data to proactively suggest increasing the mileage limits of the contract. This avoids awkward discussions at the end of the contract and eases customers' concerns about exceeding the limits.
Fleet management for SMEs
Companies with a leasing fleet of 5-20 vehicles usually do not use a specific fleet management tool. However, a simple view offered by the car dealership could provide them with several advantages:
Real-time tracking of vehicles and route optimisation to ensure operational efficiency and quick deliveries.
Automatic collection of driving logbook as well as delineation of private and business drives.
Predictive maintenance planning and optimisation of their timing.
Real-time monitoring of vehicle condition.
Tracking of driving behaviour as a tool for promoting safety and ecological driving – speeding, harsh braking, excessive idling, etc.
Offering services like these to SMEs binds customers to the service provider and serves as a competitive advantage over other leasing companies. Customers benefit from tangible savings, increased efficiency, and reduced administrative work.
Savings in insurance premiums
This business model is common, for example, in Great Britain, but it is still scarcely used in many other markets.
Insurance customers can choose to share their XYZ acceleration, speed, and GPS location data with their insurance provider. The insurance company assesses the customer's driving behaviour and offers reduced insurance premiums to safe drivers. Tracking the vehicle's location helps locate stolen cars and notifies if the car leaves the country without permission. In case of damage, the collected data can be used to investigate the causes of the incident. Additionally, for instance, a notification can be sent if the car's theft alarm has been triggered.
Investment and profitability
How can the value of these services be determined and how can the profitability of the investment be predicted?
Assume a 200 K€ investment is made for a 2-year service trial involving cars of 2,000 customers. 25% of the budget is allocated to platform and hardware costs and 75% to implementation projects and development. This results in a 100 € investment per customer spread over two years. The potential revenue and cost savings can be estimated as follows:
If we reduce unnecessary service visits by 100 per year, and the cost of each visit is 100-200€, this results in savings of 10,000-20,000 € over 2 years.
By reducing unnecessary customer service messages by 400, and the cost of each message thread is 20€, we save 8,000 €.
If we prevent damage or loss of insurance for 10-20 vehicles due to missed maintenance (cost of 1,000 € per case), we save 10,000-20,000 €.
Increasing contract mileage sales for 10% of customers can generate 96,000 € in new revenue (20€/month/customer*2 years).
If the monthly margin of a leasing customer is 50€, then by increasing 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 a return of 120,000 € over 24 months.
The figures presented above involve a lot of guesswork and speculation, but their message is undeniable. This is the future we want to build! If you are interested in continuing the discussion on this topic, please feel free to contact us.
Crasman Ltd
14 Apr 2025
