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BVRLA annual review 2010


bvrla.co.uk Established in 1967, the British Vehicle Rental and Leasing Association is the trade body for companies engaged in the rental and leasing of cars and commercial vehicles. Through its 500 member companies and their customers, the BVRLA represents the interests of more than two million people who drive at work, as well as the millions of people who use a rental vehicle each year. BVRLA River Lodge, Badminton Court Amersham Buckinghamshire HP7 0DD T 01494 434747 F 01494 434499 E info@bvrla.co.uk W www.bvrla.co.uk Honorary Life President Freddie Aldous Chairman Kevin McNally Vice Chairman Neil Cunningham Honorary Treasurer Brian Back Chief Executive John Lewis

Cert no. TT-COC-002132


BVRLA Annual Review 2010

The vehicle rental and leasing industry

Employment: The vehicle rental and leasing

makes a major contribution to the UK

sector employs an estimated 46,000 people

economy, bringing safe, sustainable

and supports a further 200,000 jobs across the

and affordable mobility to millions of

automotive industry in the UK.

consumers and businesses. Purchasing: BVRLA members spend around During the recession, BVRLA members helped

£16bn each year on new vehicles and a further

sustain thousands of businesses, providing them

£4bn on ancillaries such as maintenance, repairs,

with a vital source of funding and enabling them

insurance, telematics, remarketing and business

to free-up valuable capital to invest elsewhere in

services.

their operations or to service debts. Being able to rely on fixed-cost, flexible transport has enabled

Taxation: Each year BVRLA members contribute

many organisations to take advantage of the

an estimated £470m in vehicle excise duty and

emerging recovery.

registration fees alone. Their customers pay around £4bn in fuel duty and £1.4bn in benefit-

The months ahead will bring fresh challenges as

in-kind tax.

our sector deals with the impact of government spending cuts, changes to lease accounting and

Mobility: BVRLA members operate a combined

the first wave of electric vehicles hitting fleets.

fleet of more than 2.5 million vehicles, giving businesses and consumers access to safe, fuel-

BVRLA members will help their customers deal

efficient road transport.

with these changes, providing the financial and operational support they need to meet their ever-

Automotive market: BVRLA members buy 44%

changing transport requirements.

of new cars, vans and trucks registered each year. They also play a key role in the aftermarket, disposing of over a million high-quality, wellmaintained vehicles each year.




BVRLA Annual Review 2010

Page

6

Achievements

7

Challenges

our objectives for 2011

8

Working for you

10

Chairman’s comment

the BVRLA’s successes during 2010

the BVRLA’s activities in 2010

how the vehicle rental and leasing industry coped with a new government and an economic downturn

12

Chief executive’s comment

the BVRLA’s work throughout the year

14

Sector report – rental

airports, congestion charges and equality

16

Sector report – commercial vehicle enforcement, testing and van emissions

18

Sector report – leasing and fleet management

lease accounting, VAT recovery and manufacturer relationships

20

Sector report – leasing broker

standards, accreditation and boosting membership

22

How are we doing?

23

BVRLA member listing

a comprehensive list of full members of the BVRLA

26

highlights from the member survey 2010

Who we are the members of the BVRLA team and how you can contact us




BVRLA Annual Review 2010

During 2010 your association has… …reduced the administrative burden

…convinced the European Commission to

associated with new lease accounting

secure the end-user status of leasing companies

proposals by ensuring that fees relating to

in the eyes of motor manufacturers and their

maintenance, fleet management and other

distribution chains.

service costs are excluded and customers renting vehicles for less than 12 months can

…worked with the European Commission,

use a simple accounting model.

consumer bodies, Leaseurope and BVRLA members on a series of measures to

…helped rental members participate in regional

tackle cross-border car rental disputes.

consortiums bidding for government funding for

The association has helped develop a pan-

electric vehicle charging points.

European conciliation service and a key facts document for consumers.

…worked with the Freight Transport Association, Road Haulage Association and

…launched a new Automotive Technician

Society of Motor Manufacturers and Traders

Accreditation (ATA) for the rental and

to highlight concerns over the Vehicle and

leasing sector, which recognises the skills of

Operator Services Agency’s plans to replace

maintenance controllers/technical service

its commercial vehicle testing locations with

advisors.

privately-run sites staffed by civil service examiners.

…undertaken a major research project that will demonstrate the key role car rental plays

…developed a pilot for members to access heavy

in providing a more sustainable transport

goods vehicle annual test data electronically.

system in the UK.

…raised car rental’s profile at UK airport

…helped to raise standards of professionalism

locations and made progress towards

and provide opportunities for career development

making services more accessible for

in the leasing broker industry by introduced a

passengers.

new accreditation scheme for sales staff.




BVRLA Annual Review 2010

Over the next year your association will… …lobby the government to ensure that the

…raise the profile of vehicle rental within central

business motorist is not seen as an easy

and local government to ensure that it is seen as

target for tax increases and that transport

part of the integrated transport solution.

cuts do not stifle economic recovery. …continue to protect our members’ right to …work with government departments and

enjoy free and competitive access to vehicles

agencies to reduce the cost and administrative

and aftersales services.

burden of red tape. …review the training and accreditation needs of …keep members and their customers

our rental members with the aim of delivering a

informed about any changes to lease

new qualification for frontline counter staff.

accounting rules and their impact on the vehicle rental and leasing sector.

…make more use of social media and online technology to deliver timely and relevant information to members.

…encourage the Driver and Vehicle Licensing Agency to improve its electronic communications, saving our members considerable time and money. …attempt to get our Commercial Vehicle Quality Assurance (CVQA) inspection programme endorsed by the Vehicle and Operator Services Agency, which would provide valuable assurance to our members’ customers.




BVRLA Annual Review 2010

The BVRLA provides a wide range of

strength, attended by nearly 400 members,

information, services and products

industry suppliers and experts during 2010. The

specifically developed for vehicle

growing reputation of these events is shown by

rental and leasing companies and their

the list of companies willing to host them, which

customers. Here are some more details of

includes BMW Group, Manheim Auctions, the

what we have been up to.

Motor Insurance Repair & Research Centre, Thatcham and Volkswagen Commercial Vehicles.

Training and accreditation As part of its goal of raising standards of

The association also held a timely seminar on the

professionalism within the industry, 2010 saw

implications of the proposed changes to lease

the association offering even more in the way of

accounting, which garnered some of the best

training courses and accreditation.

delegate feedback we have ever received for an event.

More than 180 people improved their knowledge of subjects ranging from vehicle fair wear and

Research and data

tear to contract hire; 41 passed the association’s

BVRLA research provides a unique source of

Vehicle Rental Operator Skills exam. Students on

data for members, enabling them to benchmark

the challenging Certificate in Fleet Consultancy

their own performance and learn about industry

programme spent four days getting a better

trends. It can also help the association identify

understanding of the fleet manager’s role and

new issues that we should be lobbying on or

needs.

areas where we could provide new services for members.

The year also saw us introduce two new qualifications. The BVRLA now provides

This year the BVRLA has undertaken one of

accreditation for the industry’s technical services

is largest projects to date, conducting a survey

advisors and leasing broker sales staff.

of our largest rental members in conjunction with the well-respected research body TRL.

Seminars and forums

We hope that this study will give the clearest

The BVRLA’s Service, Maintenance and Repair

picture yet of the role the car rental plays in a

Forum and Residual Value and Remarketing

modern, sustainable and integrated transport

Forum continued to grow from strength to

environment.




BVRLA Annual Review 2010

Members made a record number of searches

Information and advice

on the BVRLA’s RISC database in 2010 as

The BVRLA’s legal services team was busier

seven new members, including Hertz, started

than ever during 2010, dealing with more than

subscribing to the service. More than 133,000

1,800 member queries on a range of business

customer details searches were made against

support, legal, taxation and compliance topics.

the system’s list of thousands of individuals and

The team produced or updated over 24 fact

companies that have caused problems for rental

and information sheets and wrote numerous

members in the past.

articles for BVRLA News and our Weekly Update email. They also produced a new rental ‘key

These searches provided nearly 800 positive

facts’ document, reviewed the BVRLA rental

matches, potentially saving the industry millions

agreement terms and conditions and revised the

of pounds.

Leasing Broker Code of Conduct.

Members also submitted more than 1.5 million

Our conciliation service helped settle more than

records of their interim and disposal mileage data

283 disputes between BVRLA members and

to the BVRLA Mileage database, helping to raise

their customers.

industry standards by reducing vehicle clocking

Lobbying and public relations

crime and protecting consumers.

BVRLA members continually face the threat

Communications

of regulatory costs from poorly considered

The BVRLA strives to keep members informed

and ineffective legislation. In a bid to reduce

about all important developments involving the

the impact on the industry, the association

association and the vehicle rental and leasing

responded to 26 government consultations and

industry.

pursued 28 different policy objectives with no fewer than 10 different government departments.

This year the association moved to a new digital format for BVRLA News which has cut

Public relations activity was used regularly to

more than 90% from our production costs and

support these objectives. The BVRLA issued more

accelerated its delivery to more than 3,000 staff

than 40 press releases and bylined articles in

at member organisations. In the future we hope

2010 and responded to hundreds of requests for

to be able to add multimedia content.

comments or data from journalists and researchers.




As 2010 draws to a close, many of us are

time since the election there has been a notable

unsure whether we have just witnessed the

change at the Department for Transport, with civil

first year of a slow economic recovery or

servants and ministers more approachable and

a temporary reprieve before a double-dip

receptive. They are open to ideas and the BVRLA

recession.

has had some promising discussions about mutually beneficial measures that can cut costs

The uncertainty we experienced last year is still

for both sides while reducing bureaucracy and

with us, but this time strong governmental action

red tape. One particular focus is the deluge of

is being added to the mix. The Comprehensive

paperwork and forms involved with dealing with

Spending Review will strengthen the UK’s

the Driver and Vehicle Licensing Agency.

financial position in the long term, but the substantial cuts that are required may have a

Change has definitely been in the air this year. As

significant effect on our fragile economy over the

well as a new government, our industry is facing a

next few years.

major shake-up in the way leases are accounted for. New proposals from the International

Like an enthusiastic gardener trimming back a

Accounting Standards Board will bring all leases

hedge, let’s hope that the government hasn’t cut

on to the balance sheet, giving a more complete

too far, too soon.

picture of a company’s financial position.

On a very positive note, we do appear to have a

Unfortunately, the board has come up with a one-

government that we can work with. In the short

size-fits-all set of proposals which means that a

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BVRLA Annual Review 2010

lease will be dealt with in the same way, whether

longer warranties and improving the reliability of

it is a ten-year lease for an aircraft or building

their vehicles.

worth millions of pounds, or a three-year lease for a car or van worth £15,000.

Residual values will be affected by this ageing fleet, but used vehicle market demographics are

If adopted, the proposals will impose an extra

on our side. New vehicle sales continue to slump

accounting burden, although initially they

and we will see a shortage of cars, vans and

would only apply to companies that report to

trucks aged under five years coming to market,

International Financial Reporting Standards

providing a major bulwark to prices.

(IFRS). Most firms still report to the UK’s generally accepted accounting practice (GAAP)

The introduction of electric vehicles will present

and will remain unaffected for a few years at

a major challenge for this area of our business.

least.

With such huge uncertainty over their long-term performance and reliability, setting residual values

These changes will affect all types of leased

for these trailblazers will be akin to having a flutter

assets, but I have no doubt that leasing and

on the 3.40 at Kempton! Thank goodness they

rental will remain the dominant form of business

will be making a slow and gradual appearance in

vehicle finance. BVRLA members already advise

selected fleets, giving the number-crunchers time

companies on how to reduce their transport costs

to get their algorithms accurate.

and emissions and I am confident that we can also help them with their reporting requirements.

Last year I used my chairman’s comment to congratulate the industry on the vital part it

When not dealing with the impacts of legislators

played in keeping the UK economy moving

and standard-setters, our industry spends most

– providing the vehicles, finance and mobility to

of its time focusing on customers, and, guess

help British businesses survive one of the worst

what, things are changing here too!

recessions in living memory. To a large degree, this was also the story of 2010.

Salary sacrifice schemes and flexible leasing and rental are two relatively new offerings that have

But if the last two years were about keeping that

really taken off this year. Providing companies

‘business as usual’ sign hanging over the UK

and staff with cost-effective and adaptable

economy, next year will be different.

access to transport, they are a great example of how innovative products will succeed in even the

We have an economy running along a knife-edge

most challenging of business environments.

between recovery and recession, a government having to cut spending and raise taxes and the

This environment has also led to what many

biggest ever change in lease accounting rules…

think will be a permanent change in the average

Get ready for change!

lifecycle of a leasing contract. The typical three-year, 60,000-mile contract is increasingly

Kevin McNally

being extended to four years and 80,000 miles.

BVRLA chairman and senior vice president

Manufacturers have played their part by offering

Europe at LeasePlan Corporation

11


2010 has been yet another year of economic

Survey, 88% of respondents said that we offered

uncertainty, with some political turmoil

good value for money, with 48% saying that the

added to the mix, but here at the BVRLA

association delivered very good value for money,

we have tried to concentrate on the basics.

up from 43% in 2009 and 38% in 2008.

We have focused on things that we can control,

Satisfaction with the association’s core goals

keeping a tight rein on overheads and making

– providing status and credibility, speaking out for

sure that we continue to deliver the services and

the industry and disseminating information and

products that our members need and value.

guidance – remained very high, at well over 90%.

Away from our day-to-day operations, we have

However, the survey isn’t about rubber-stamping

taken a serious look at our subscription policy.

what we already do. There were some clear

Mergers and acquisitions among our members

indications of what we could improve. For example,

have resulted in losses in the association’s

next year we will be working hard to make our

subscription and commercial revenues. A five-

website easier to navigate and get more of our

year strategy has been introduced to tackle this

smaller members involved with the association.

problem, with the aim of ensuring that ongoing income in revenues from this area will eventually

Continuous improvement is one of our aims and

cover 70% of the overheads required to operate

2010 saw a number of new initiatives that we

the BVRLA. Unfortunately, this means above-

hope are already delivering benefits. We have

inflation rises in subscription levels for most

introduced a new accreditation scheme for

members over the next few years.

technical service advisers, under the auspices of the Institute of the Motor Industry (IMI) and

Thankfully, the BVRLA continues to justify its

its Automotive Technician Accreditation (ATA)

fees, or so you tell us. In our 2010 Member

scheme. A similar accreditation scheme is also

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BVRLA Annual Review 2010

being piloted for leasing brokers, and this should

Whether it was our Industry Conference, a

be launched officially in 2011.

seminar or one of our forums, record numbers of members attended BVRLA events in 2010. The

With a responsibility to represent the industry,

best attended, as usual, was our Annual Dinner, in

the association has undertaken a number

March, which catered for nearly 800 people.

of measures this year to try and improve the reputation of the car rental industry. Through

The proposed lease accounting standards have

its membership of Leaseurope, the umbrella

been a major focus for our communications

group for European car rental associations, the

efforts this year, as we try to explain the changes

BVRLA helped develop – and now administers

and their potential impact on members and their

– a conciliation service for disputes involving

customers. Through a mixture of articles, press

cross-border rentals within the European Union.

releases, speaking slots and seminars we have

The European Car Rental Conciliation Service

been spreading the message that rental and

(ECRCS) is currently being piloted by Avis,

leasing will remain among the most popular types

Europcar, Hertz and Sixt.

of vehicle finance.

The BVRLA also produced a ‘key facts’ guide to

Lease accounting is not the only subject we have

inform customers where they stand on issues

been getting on our soap box about. We have

such as fuel, mileage, insurance, damage, late

spent a lot of time in Whitehall and Brussels,

returns and traffic fines and what they should

lobbying government departments and agencies.

expect from a rental company.

We have argued with HM Revenue & Customs for fairer VAT recovery for business car drivers,

Keeping members informed about the latest

told the DVLA how it can reduce paperwork and

industry news is one of our main tasks. In 2010

cut costs and helped gain European Commission

our monthly newsletter, BVRLA News, moved to

support for leasing companies trying to protect

a new digital format. As well as cutting the time it

their status as the end users of vehicles.

takes to ‘go to press’, it has dramatically reduced our production costs, freeing money for us to

Any strategy has to be adaptable to changes in

invest in other member services.

the economic and political landscape, so we have adopted a different approach with the coalition

This year also saw our first concerted use of

government. Rather than responding to a mass of

social media, with the setting up of a Twitter

consultations, we have focused on areas where

feed and new discussion groups on the LinkedIn

we believe our members can help ministers

network. In today’s digital world many people

meet their targets for reducing public debt and

complain of information overload, so our aim is

encouraging a private-sector-led recovery in the

to ensure that we provide members with relevant

UK economy.

messages, without bombarding them. Let’s hope we all succeed in this endeavour. A great way of communicating is face-to-face, giving members the choice to come and access

John Lewis

the knowledge and insight that suits them.

Chief executive, BVRLA

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BVRLA Annual Review 2010

Whilst the unprecedented economic

growth throughout the year and is set to

difficulties of 2009 appeared to be

continue into 2011.

behind us, 2010 remained an immensely challenging year for the rental industry.

As flexible as the product it sells, the car rental industry is well-positioned

The coldest winter for 30 years followed by

to survive, and in some instances

ash clouds closing our UK airport network

thrive, despite the uncertain business

for days on end ensured that the industry

environment we expect to continue well

had a difficult start. One of the wettest

into 2011.

Augusts on record then hampered the David Alexander

leisure market during its summer peak.

Chairman of the BVRLA Rental One silver cloud was the replacement

Committee and UK operations director

sector, which experienced significant

at Europcar

The BVRLA’s Rental Committee provides an opportunity for members to hear the views of colleagues, review and formulate constructive responses to impending legislation, and help develop new ideas of benefit to the industry.

Airports The association continues to work with UK airport authorities to raise the profile of car rental at these vital transport hubs. We have carried out a customer survey at Manchester Airport and are

If you would like to participate in the work of the association, please contact Jay Parmar, our head of legal services, at jay@bvrla.co.uk

working with the UK’s biggest airport company, BAA, to improve signage at its sites.

Chairman David Alexander Europcar UK & Premier First UK

Transport for London

Vice Chair Alison Chadwick

Dollar Thrifty Car Rental

Congestion Charge switched from Capita to IBM

Henry Imber

Streetcar

late in 2009 and a series of computer glitches

Bob Baillie

Sixt Rent a Car

saw members hit with fines for vehicles that were

Ian Feast

Avis Rent a Car

wrongly omitted from the fleet register.

David Cooper

Arnold Clark

Responsibility for administering the London

Raymond Goldsmith Argyle Garage Hire Ltd

As the problems continued into 2010, the

Richard Davies

Hertz Rent a Car

BVRLA arranged for members to discuss

Mike Nigro

Enterprise Rent a Car

their issues with Transport for London, which

Stuart Liddle

Budget Rent a Car

introduced a number of improvements. There

Andrew Strathdee

Isle of Man Rent a Car

has now been a large reduction in the number of

Helen Sylvester

Miles and Miles

fines wrongly issued.

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BVRLA Annual Review 2010

Equality Act

Consumers

The BVRLA has won vital government support

In conjunction with members, the BVRLA

in its calls for the sector to be exempted from

introduced a new, easy-to-read ‘key facts’ guide

elements of the Equality Act 2010, which would

that explains the terms and conditions associated

ban rental companies from treating customers

with renting a car.

differently according to their age. The document was produced in response to a The Government Equalities Office (GEO) has

Consumer Summit held earlier this year by the

now endorsed the association’s call for rental

European Commission. Following the summit,

companies to be allowed to use risk-based pricing

the Commission called on the car rental industry

when renting to older or younger drivers. The

to provide consumers with more user-friendly

Rental Committee was able to provide vital data

information summarising key contractual terms.

that demonstrated how it was unfair to charge all customers equally regardless of the risk they

The BVRLA is now encouraging its members

posed. The association is continuing to work with

to use the document as part of the pre-rental

the GEO to discuss the practical implications of

process to help make consumers better informed

this agreement and whether types of vehicles

about the key requirements and obligations

which can be hired can also be restricted.

associated with renting a car.

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BVRLA Annual Review 2010

As expected, this has been a very

could bring a major reduction in red tape

challenging year for the commercial

and bureaucracy while cutting costs for

vehicle rental and leasing industry.

both sides.

Despite the harsh economic conditions,

In a similar spirit of cooperation, we also

the committee has remained focused on

hope to build on the unified lobbying

its core goals of promoting operator best

campaign we undertook earlier this year

practice and providing members with the

with the Freight Transport Association

information, guidance and training that will

and Road Haulage Association. Working

help them survive and prosper into 2011.

together we are able to deliver stronger, clearer messages to government.

The industry is approaching next year with a degree of cautious optimism. There are

Nigel Martin

signs that the new government is looking

Chairman of the BVRLA Commercial

to engage with our industry and we have

Vehicle Committee and commercial

already identified some measures that

vehicle sales director at Ryder

Enforcement

Annual tests

The committee has welcomed the Vehicle

We have continued to push for members to be

and Operator Services Agency’s (VOSA’s)

given access to heavy goods vehicle annual

new enforcement strategy, which reduces

test data on an electronic basis to allow the

the emphasis on checking for vehicle defects

assessment of third-party providers and to

and overloading and pays more attention to

improve road safety. A service has now been

tachograph fraud and drivers’ hours. It will boost

piloted and the BVRLA wants this to be made

the role of training, information and education

available to the wider membership.

and target persistent offenders for penalties and prosecution. We will continue to support VOSA

The association has also lobbied the Department

as it implements its new strategy.

for Transport (DfT) for commercial vehicles to be exempt from an annual test in the first year, citing the fact that they are already inspected on a frequent basis. We estimate that such a change would save the industry £12m per annum in test fees and vehicle preparation.

16


Vans The BVRLA has produced advice for members on renting and leasing vans which use exhaust gas recirculation (EGR) or selective catalytic reduction (SCR) technology and the practicalities of vans which require AdBlue. The association has also been lobbying the European Commission to ensure that its proposals to set mandatory emissions targets for van manufacturers recognise the needs of van users. The BVRLA’s Commercial Vehicle Committee provides an opportunity for members to hear the views of colleagues, review and formulate constructive responses to impending legislation, and help develop new ideas of benefit to the industry. If you would like to participate in the work of the association, please contact Jay Parmar, our head of legal services, at jay@bvrla.co.uk

A united voice Earlier this year the BVRLA joined forces with the Society of Motor Manufacturers and Traders, the Freight Transport Association and the Road Haulage Association to complain about plans to change the current commercial vehicle testing regime. A joint letter was sent to ministers at the DfT to express our dissatisfaction about the way it was introducing new Authorised Testing Facilities, which are run by private companies but staffed by civil service examiners. We believe that it is

Chairman Nigel Martin

Ryder Plc

Vice Chair Elliot Lennick

MAN Financial Services

Margaret Clark

Turner Hire Drive

Adam Fairbotham

Hill Hire Plc

David Farbon

Fraikin Ltd

Victoria Kerr

Eurohire Vehicle Rentals

Jon Lawes

Hitachi Capital

Andrew Morley

Prohire Plc

Steve Martin

Scania Truck Rental

unrealistic to expect VOSA staff to deliver a

Chris Sharp

Burnt Tree

satisfactory truck-testing service via third-party

Geoff Tyler

DAF Trucks

workshops.

Duncan Webb

BT Fleet Ltd

17


The BVRLA’s Leasing and Fleet Management Committee provides an opportunity for members to hear the views of colleagues, review and formulate constructive responses to impending legislation, and help develop new ideas of benefit to the industry. If you would like to participate in the work of the association, please contact Jay Parmar, our head of legal services, at jay@bvrla.co.uk Chairman David Brennan

Leaseplan UK Ltd

Vice Chair Simon Oliphant

Hitachi Capital

Keith Allen

ALD Automotive

Mark Biggs

Arval Ltd

Mark Chessman Lex Autolease Peter Cakebread Marshall Leasing Andrew Cope

Zenith Vehicle Contracts

Stuart Houlston

Lombard Vehicle Management

Andrew Mann

JCT 600 Contracts

Con Mclaughlin

Peugeot Contract Hire

Ian Tilbrook

ING Car Lease

Peter Tatlock

Masterlease UK Ltd

In 2010 clients demanded a proactive

biggest challenges facing our industry in

stance from their leasing providers in

2011. The future success of the industry

delivering cost-effective fleet solutions.

rests on innovation. In many cases this means restructuring fleet models to make

However, the company vehicle remains

them relevant for a changing business

highly regarded as a key tool of business

environment – delivering cost benefits to

and 2010 saw fleet management

both employers and employees. Salary

increasingly considered at board level.

sacrifice schemes are one example of

This includes reviewing the way company

this approach in action – breaking the

vehicles are managed and measured,

traditional boundaries between the

ensuring effective use of vehicles to support

company car user and private car user.

business goals and balancing driver David Brennan

satisfaction and environmental concerns.

Chairman of the BVRLA Leasing and Fleet Responding to economic recovery and

Management Committee and managing

public sector spending cuts are the

director of LeasePlan

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BVRLA Annual Review 2010

Lease accounting

This end user status will protect leasing

The International Accounting Standards Board

companies’ freedom of choice when sourcing

(IASB) has issued proposals to bring all leased

vehicles and mean that they can keep customer

assets onto the balance sheet, giving a more

details confidential.

complete picture of a business’s financial position. The guidelines will also help preserve members’ If introduced, they would ensure publicly quoted

freedom of choice in getting their vehicles

companies leasing an asset – whether a

repaired, whether it is with a franchised dealer,

computer, vehicle or property – would be required

brand specialist or independent garage.

to account for it, giving greater transparency to

VAT

investors.

The BVRLA has called on HM Revenue & The BVRLA is continuing to lobby the IASB for

Customs (HMRC) to raise the VAT recovery rate

a simplified approach to the treatment of rental

for businesses leasing cars. Firms are currently

vehicles. It has already ensured that leasing

only allowed to recover 50% of the VAT portion of

companies do not have to provide any financial

the finance element of their rental payments, with

information relating to the asset’s value at the end

this percentage based on the assumed level of

of the leased term – so future residual values can

private use of the vehicle.

be ignored. However, data compiled by the BVRLA suggests The association has undertaken an extensive

that private mileage is much lower than HMRC

communications campaign, using face-to-face

presumes, meaning that leased fleets could be

meetings, print and online media, to ensure that

overpaying hundreds of millions of pounds in VAT.

the full implications of the proposals are clearly understood by members and their customers

The UK’s VAT treatment on leased cars has to be approved by the European Commission

Motor manufacturers

every three years and HMRC has now agreed

Following a three-year campaign, the BVRLA was

to undertake a thorough review of mileage data

able to secure the status of leasing companies

ahead of the next deadline, in 2013.

as end-users of vehicles in the eyes of motor

Electric vehicles

manufacturers and their distribution chains.

Recognising the immense purchasing power of Confirmation came in the European Commission’s

the rental and leasing industry, the government’s

guidelines to its block exemption regulations,

Office for Low Emission Vehicles has been

which will come into effect when the motor trades’

consulting with the BVRLA and its members on

current block exemption from EU competition law

the best way of introducing the plug-in car grant

expires on 1 June 2013.

to encourage fleet take-up of electric vehicles.

19


BVRLA Annual Review 2010

After the upheaval of 2009, the last year has been about consolidation. The shape of the broker marketplace has changed radically as a number of finance companies pulled out of the market and others rationalised their introducer base. This has resulted in a smaller, core group of brokers whose business practices and sales volumes chime with the aspirations of their funding partners. The major challenges for our channel will, I believe, stem from the availability of funds and the appetite for new business demonstrated by our finance company partners. Economic uncertainty and lack of commercial confidence are the two biggest threats. The upside is that we now have a stable broker base of largely well-established companies operating to agreed standards. This can only be good for our industry

Those companies that remain are looking

as the channel becomes recognised as a

healthier and their fiscal position is

positive source of good-quality business

improving. I’m certain that all brokers will

that is properly managed.

be striving to build on this increasingly solid foundation.

Hopefully, the process of consolidation is now largely at an end, and brokers can

Mike Lloyd

concentrate on the opportunities that

Chairman of the BVRLA Leasing Broker

will arise as the economy continues to

Committee and managing director of

stabilise.

Central Contracts

20


BVRLA Annual Review 2010

Manufacturer relations

Enlarging the market

The committee has built on the good work of

The committee is in the process of developing a

the previous four years in enhancing the profile

new membership proposition which outlines the

of leasing brokers with motor manufacturers.

benefits of joining the BVRLA and the standards

Brokers are increasingly being recognised as a

required to do so.

key route to market for some leasing companies and manufacturers.

Improving standards As part of its push to raise standards, the association has worked with the committee to produce best-practice leasing broker guidance

The BVRLA’s Leasing Broker Committee provides an opportunity for members to hear the views of colleagues, review and formulate constructive responses to impending legislation, and help develop new ideas of benefit to the industry.

on a range of areas, from producing quotations to end-of-contract procedures. It seems to be working – the number of

If you would like to participate in the work of the association, please contact Jay Parmar, our head of legal services, at jay@bvrla.co.uk

leasing broker complaints made to the BVRLA conciliation service has halved in 2010 compared to the previous year.

Chairman Mike Lloyd

Central Contracts Ltd

Under the guidance of the Leasing Broker

Vice Chair Martin Brown

Fleet Alliance

Committee the association has developed a new

Nigel Brain

Leasing Options Ltd

accreditation scheme for leasing broker sales

Paul Bulloch

Concept Vehicle Leasing

personnel.

Robert Chisholm

Applewood Vehicle Finance

Steve Cocks

Lex Vehicle Leasing

Currently in pilot phase, the full scheme will be

Mike Curtis

Arval Ltd

available to all BVRLA members from 2011,

Jo Elms

LeasePlan UK Ltd

and will include a range of online learning

Paul Huxford

PHVC Ltd

materials. The annual accreditation will test

Michael Moylan

Croydon Contract Leasing

candidates’ competency in corporate and industry

Philip Page

Compass Contract Hire Ltd

governance, regulatory compliance, business

Graham Prince

Neva Consultants Plc

acquisition methods and sales.

Gordon Stephen

Ogilvie Fleet Ltd

Accreditation

21


BVRLA Annual Review 2010

According to the results of the BVRLA member survey 2010‌ 88% of members say that belonging to the BVRLA represents good or very good value for money. 88% of members believe that BVRLA

News and Weekly Update provide a good or very good level of information. 80% of members say they read

BVRLA News on a regular basis, making it more popular than Fleet News, Fleet World or any other trade publication. 98% of members are either

97% of members are either

satisfied or very satisfied that

satisfied or very satisfied with the

belonging to the BVRLA confers

BVRLA as a source of information

status and credibility.

and advice. 96% of

82% of members are either

members

satisfied or very satisfied with

are either

the networking opportunities

satisfied or very

provided by the BVRLA.

satisfied that the BVRLA provides a strong voice to represent the industry.

22


BVRLA Annual Review 2010

Corporate members A & B Self Drive Hire Ltd

Brocars Plc

Euroway Vehicle Contracts Ltd

Aberconwy Car & Van Hire

BT Fleet Ltd

Exclusive Vehicle Contracts

Access Hire Nationwide Ltd

Budget Rent A Car

Falcon Vehicle Solutions

Accident Claims Hotline Ltd

Burnt Tree Vehicle Rental

FGA Contracts UK Ltd

Accident Exchange Ltd

Bury Van Hire Ltd

First Self Drive Ltd

Adelphi Self Drive

Cambridge Car & Van Rental

Fleetcare Ltd

Afford Rent A Car

Capital Hire Car & Van Rental

Fleet Europe Plc

Agility UK Ltd

Car and Van Hire Ltd

Fleet Hire Ltd

Aim Rent A Car Ltd

Carillion Fleet Management

Fleet Management and Leasing Ltd

ALD Automotive

CCL Vehicle Rentals Ltd

Flexible Vehicle Contracts Ltd

Allied Vehicle Rental Ltd

Central Self Drive

Focus Vehicle Rental

Allied Vehicles Ltd

Charter Vehicle Hire

Ford Rental

Alltruck Hire

Cheshire Van Hire Ltd

Fourways Self Drive

Almers (Kent) Ltd

Cheshire Vehicle Rental & Sales Ltd

Fraikin Ltd

Alphabet (GB) Ltd

Chevron Autohire

Franklin Hire Ltd

AMK Self Drive

Chief Vehicle Rentals Ltd

FrigoRent Ltd

AMT Rent A Car Ltd

City Inter-rent

Fulton Leasing

Amvale Ltd

Clarkson of Glasgow

Gallagher Car & Van Rental

Apex Car Rental

CLM Fleet Management Plc

GE Capital Solutions Fleet Service

Argyle Garage (Hire) Ltd

Cole Services Ltd

Gill Bradley Vehicle Hire Ltd

Arnold Clark (Finance) Ltd

Collison Vehicle Rental

GKL Leasing

Arval UK Ltd

Commercial Vehicle Solutions

GlenRental

Aston Financial Ltd

County Car & Van Hire Ltd

Global Autocare Ltd

Automotive Finance & Leasing (UK) Ltd

Crown Rentals Ltd

Go Green Car & Van Rental

AVH Ltd

DAF Trucks Ltd

Green-Line Vehicle Rentals

Avis Rent A Car

Daimler Fleet Management

Green Motion Vehicle Rental

B & T Hire (Hertfordshire) Ltd

Days Contract Hire

Grosvenor Contracts Leasing Ltd

Barnes Hire City Ltd

DFC (NI) Ltd

Harber Hire (Autos) Ltd

Beerhouse Self Dive Hire

Dreamcarhire.com

Helphire Group Plc

Benfield Contract Motoring

Drive UK

Hendy Hire

Berkshire Van Hire

Drive UK (Preston) Ltd

Hertz Rent A Car

Big White Cube Vehicle Hire

Easi Drive Ltd

Hill Hire Plc

BMW

Eden Garage

Hitachi Capital Vehicle Solutions Ltd

BMW Financial Services (GB) Ltd

Enterprise Rent A Car

Howard Self Drive Hire Ltd

Bognor Motors Vehicle Solutions

Eurodrive

Howarth Bros Haulage Ltd

Bourne Free Motorhomes Ltd

Eurohire Vehicle Rentals Ltd

Inchcape Fleet Solutions Ltd

Brecon Car Rentals Ltd

Europcar Group UK Ltd

ING Car Lease UK Ltd

Brighton Vehicle Rentals

European Transport Assistant

Intack Self Drive

23


BVRLA Annual Review 2010

Corporate members (continued) Isle of Man Rent A Car

Motability Operations Ltd

The Car & Van Rental Co Ltd

Iveco Contract Services Ltd

Motiva Group Ltd

The Civilised Car Hire Company

JA Fisher Cars Ltd

MTCR Marketing Ltd

The Storage Centre

Jays Vehicle Rentals Ltd

MVCH Ltd

Thrifty Car Rental

JCT 600 Contracts Ltd

Northgate Vehicle Hire Ltd

TJS Hire Co (Humberside) Ltd

John Clark Motor Group

NVR Fleet UK Ltd

TLS

John Dennis 4x4 Vehicle Hire

Ogilvie Fleet Ltd

Ton Hire

Jolly Good Van Hire

Paragon Vehicle Contracts Ltd

Toomey Eurolease Ltd

JP Rental Ltd

Parkhurst Self Drive Hire Ltd

Toomey Skyway Leasing Ltd

K2 Car Hire Ltd

Peugeot

Toyota

Keaton Knight Ltd

Peugeot Contract Hire

Toyota Financial Services (UK) Plc

Kendall Cars Ltd

Pitter Self Drive Ltd

Translinc Ltd

Kenhire Ltd

Practical Car & Van Rental

Turner Hire Drive Ltd

Key Drive Car & Van Rental

Premiere Velocity

Tusker Direct Ltd

LC Vehicle Hire

Prohire Plc

U-Drive Ltd

Lease 360 Evolution Plc

Rabbits Vehicle Hire Ltd

Vans 4 Glass Ltd

Leasedrive Velo

RCI Financial Services Ltd

Vehicle Contracts

LeasePlan UK Ltd

Regal Rentals Ltd

Vehicle Rental Ireland Ltd

Leaseway Vehicle Rental Ltd

Renault

Vehicle Rental Services

Le Baron Luxury

Rentorose Ltd

Venson Automotive Solutions Ltd

Lets Cars

RH Rentals Ltd

Vic Young (South Shields) Ltd

Lex Autolease

Riverside Truck Rental Ltd

Vincent Hire

Lombard Vehicle Management Ltd

Ryder Ltd

Vincent Van Hire

London Car Rentals

Salford Van Hire Ltd

Vincents Daily Rentals

London Hire Ltd

Sandicliffe Garage Ltd

Volkswagen Commercial Vehicles

Long Marsh Ltd

Scania GB Ltd

Volkswagen Financial Services (UK) Ltd

Lookers Leasing Ltd

Season Car Hire

Watts Van Hire

Loughton Self Drive Ltd

Shawhire

Wayside Rentals & Wayside Leasing

MAN Financial Services Plc

Sinclair Finance & Leasing Ltd

Wennington Car Hire Ltd

Marshall Leasing Ltd

Sixt Rent A Car

West Street Garage

Masterlease

Skipton Self Drive Ltd

West Wallasey Fleethire Services

McLays Car Sales Ltd

SSH Self Drive

White Dove Contracts Ltd

MC Truck Rental Ltd

Star Car and Van Rental

Wicked Campers Ltd

Measham Self Drive

Streetcar

Windsor Vehicle Leasing

Mercedes-Benz CharterWay

Stylish Car Hire Ltd

Woodfield Facilities

Miles and Miles Ltd

Sudden Impact Ltd

WVC Vehicle Solutions Ltd

MK Prestige Vehicle Solutions

Tata Motors European Technical Centre Plc

W Wright & Sons

MNH-Platinum Ltd

TCH Leasing

Zenith Vehicle Contracts Ltd

Mold Car Hire

Ten 05 Hire Sussex Self Drive

ZooCars

24


BVRLA Annual Review 2010

Leasing broker members Academy Leasing Limited

Driven By Image Ltd

Lookers Leasing Direct

Advanced Vehicle Contracts

Driven Leasing & Finance Ltd

Low Cost Vans

Advanced Vehicle Leasing (Stockton) Ltd

DSG Auto Contracts Limited

Mann Island Finance Ltd

Albion Vehicle Contracts Limited

Eagle Oak Vehicle Contracts

Millhouse Leasing

Alliance Asset Management Plc

Eiger Vehicle Leasing

Morgan Highfield and Land Ltd

Allied Vehicle Contracts

Ferguson Vehicle Contracts

Motoplan Ltd

Alpha Contracts

First European Finance (Scotland) Ltd

Motoring Solutions Ltd

Alternative Route Finance Ltd

First Vehicle Finance Limited

MW Vehicle Contracts

Anthony K Associates Ltd

First Vehicle Leasing

Nationwide Vehicle Contracts Limited

Fleet Alliance Ltd

Neva Consultants LLP

Fleetdrive Management Ltd

Newgate Finance Ltd

Fleet Street Ltd

Next Vehicles Ltd

Fleet Support Group Ltd

North Staffs Leasing Ltd

Four Counties Leasing & Contract Hire Ltd

Oak Leasing (UK) Ltd

Freedom Vehicle Contracts Ltd

OSV Ltd

Frontier Vehicle Leasing Ltd

Oxford Vehicle Leasing Ltd

Fulton Network Limited

Pendle Vehicle Contracts Ltd

Gateway2Lease

PHVC Ltd

GB Car Loans Limited

Professional Vehicle Solutions Ltd

GB Vehicle Contracts

Purple Contracts

Grange Court Leasing

Scorpion Vehicle Management Ltd

GWA (UK) Ltd

Silverstone Vehicle Management Ltd

Hawkins Fleet Management Ltd

Skyfleet Ltd

Hawkriver Leasing

Sprint Contracts Ltd

Highfield St James

Tilsun Vehicle Contracts Ltd

Holmwood Leasing Ltd

Toomey Eurolease Ltd

Howlett Leasing

Total Fleet Services Ltd

Apex Vehicle Management Limited Applewood Vehicle Finance Applied Leasing Ltd Auric Autofinance UK Automotive Funding Solutions Limited Autoplan Vehicle Contracts Autorama UK Ltd Balgores Leasing Ltd B & B Vehicle Contracts Limited Benchmark Leasing Ltd Bentley Walker Vehicle Solutions Blue Chilli Car Contracts Ltd Blueroc Ltd Bowater Price Plc Business Car Contracts Ltd Caledonian Independent Leasing Limited Cameron Clarke Leasing

Insight Vehicle Management Ltd

UK Carline Ltd

Carleasinguk.com

IVL

Vansdirect.co.uk

CCLeasing

Kingston Vehicle Leasing Ltd

Vehicle Contracts Ltd

Central Contracts (S-O-T) Ltd

Kudos Vehicle Management

Vehicles 4 Business

Central (UK) Vehicle Leasing Ltd

Lease4Less

VeSource Ltd

Compass Contract Hire Limited

Leaseline Ltd

Wessex Fleet Solutions Ltd

Crystal Lease

Leaseright Limited

West Midland Vehicles Ltd

CVM Leasing Ltd

Leasing Options Ltd

Whitewater Leasing Ltd

CVSL Limited

LMC of Farnham Ltd & Lease National

XLCR Vehicle Management Ltd

Demo Limited

Logical Vehicle Management

Yorkshire Vehicle Finance

25


BVRLA Annual Review 2010

Chief Executive’s Office

Membership

We provide accounting and administrative support to the chief executive and have responsibility for facilities management and health and safety.

We maintain membership records, manage the BVRLA quality assurance programme and take bookings for BVRLA events.

John Lewis, chief executive 01494 545712 john@bvrla.co.uk

David Hanson, membership manager 01494 545705 david@bvrla.co.uk

Kate McLaren, PA/secretary 01494 545709 kate@bvrla.co.uk

June Dyer, membership administrator 01494 545714 june@bvrla.co.uk

Jane Davis, assistant PA 01494 545707 jane@bvrla.co.uk

Legal Services We lobby on issues affecting the industry, advise members and manage the BVRLA conciliation service.

Bharti Ladwa management accountant 01494 545708 bharti@bvrla.co.uk

Jay Parmar, head of legal services 01494 545706 jay@bvrla.co.uk Amanda Brandon legal services executive 01494 545701 amanda@bvrla.co.uk

Member Services We manage a range of data services (including the Vehicle Mileage Database, the Industry Residual Values Survey and RISC Online), publications, training, seminars and forums.

Communications

Nora Leggett head of member services 01494 545713 nora@bvrla.co.uk

We keep members informed and ensure that the association and industry are presented in a positive way. We oversee the BVRLA website and publications.

Frances Hampson member services administrator 01494 545703 frances@bvrla.co.uk

Toby Poston head of communications 01494 545700 toby@bvrla.co.uk

Steph Czaplinska member services executive 01494 545702 steph@bvrla.co.uk

Steven Prizeman production manager 01494 545710 steven@bvrla.co.uk

26


British Vehicle Rental and Leasing Association Ltd River Lodge, Badminton Court, Amersham, Buckinghamshire HP7 0DD Tel: 01494 434747 Fax: 01494 434499 Email: info@bvrla.co.uk Web: www.bvrla.co.uk


BVRLA Annual Review 2010