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July/August 2015

www.bvrla.co.uk

BVRLA News The bimonthly newsletter of the British Vehicle Rental and Leasing Association

BVRLA membership hits ten-year high In the first six months of the year, the association welcomed 73 new members across all categories – taking the total number of companies in membership to over 750 – a tenyear high.

recognised as the benchmark, and this can also be seen elsewhere – our Conciliation Service recently became one of the first alternative dispute resolution services in the UK to be approved by the Trading Standards Institute.

This reflects the vital role the BVRLA is playing in enabling members to achieve and maintain compliance in an increasingly regulated environment.

Furthermore, all five of our strengthened, sector-specific Codes of Conduct have now been published. Due to be introduced in 2016, these will be underpinned by a new governance regime.

The past 18 months have seen us work particularly closely with the Competition and Markets Authority (CMA) in its review of the car rental sector and with the Financial Conduct Authority (FCA) in its development of a consumer credit regime. Our standards are being

All this leaves our industry wellpositioned to take advantage of a strengthening economy, and gives consumers the confidence they need to look for the BVRLA logo when renting or leasing a vehicle. u

Budget analysis An in-depth look at the Chancellor’s announcements in July’s Budget, and what the changes to VED mean for fleets. page 4 Consumer Rights Act How the introduction of the Act affects your business. Plus, news about the BVRLA’s Conciliation Service. page 5 Highlights from the 2015 Fleet Technology Congress A full review of July’s event at the Williams F1 Conference Centre. pages 6-7 Research update The results of the BVRLA’s latest Leasing Broker survey, and early findings from the 2015 CV Informer research. page 9 Licence checking: all you need to know Following the abolition of the paper counterpart earlier this year, we take a detailed look at the DVLA’s online driving licence portal. page 10

Success story: BVRLA Chief Executive Gerry Keaney at July’s Fleet Technology Congress

Changes at the BVRLA Find out what’s happening in the Member Services department as Nora Leggett is promoted and the association welcomes a new member of staff. page 11

• Promoting responsible road transport since 1967 •


Golf Day 2015 Insert full-page advert here

Thursday 3 September

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Frilford Heath Golf Club, Abingdon, Oxfordshire The BVRLA is holding its annual Golf Day on Thursday 3 September 2015 at Frilford Heath Golf Club, Oxfordshire. Open to all members of the BVRLA, the event is a wonderful opportunity for networking, with corporate hospitality and friendly rivalry. With strictly limited places available on a first-come, first-served basis, it’s important to book as soon as possible. Tickets include breakfast, a three-course lunch and on-course refreshments. To book your place or find out more Visit www.bvrla.co.uk Call 01494 545703 Email felisha@bvrla.co.uk sponsored by


The BVRLA team Chief Executive Gerry Keaney 01494 545716, gerry@bvrla.co.uk Secretary to the Chief Executive Kate McLaren 01494 545709, kate@bvrla.co.uk Management Accountant Bharti Ladwa 01494 545708, bharti@bvrla.co.uk Director of Communications & External Relations Toby Poston 01494 545700, toby@bvrla.co.uk Research & Insight Manager Hazel Collier 01494 545717, hazel@bvrla.co.uk Media & Communications Officer Jamie Fretwell 01494 545710, jamie@bvrla.co.uk Marketing & Communications Administrator Tamsin Stuczynska 01494 545707, tamsin@bvrla.co.uk Director of Member Services Nora Leggett 01494 545713, nora@bvrla.co.uk Member Services Executive Robert Burford 01494 545702, robert@bvrla.co.uk Events Executive Felisha Weekes 01494 545703, felisha@bvrla.co.uk Learning & Development Professional Gursh Gill 01494 545719, gursh@bvrla.co.uk Marketing & Administrative Executive James Mansfield 01494 545720, james@bvrla.co.uk Director of Policy & Membership Jay Parmar 01494 545706, jay@bvrla.co.uk Membership Manager Greg Theaker 01494 545705, greg@bvrla.co.uk Membership Administrator June Dyer 01494 545714, june@bvrla.co.uk Senior Policy Advisor Patrick Cusworth 01494 545712, patrick@bvrla.co.uk Legal & Policy Executive Sallie Catchpole 01494 545715, sallie@bvrla.co.uk Legal & Policy Executive Amanda Brandon 01494 545701, amanda@bvrla.co.uk Compliance Officer Natasha Howard 01494 545718, natasha@bvrla.co.uk Legal & Policy Executive Karl Shadenbury 01494 545701, karl@bvrla.co.uk Legal & Policy Administrator Stephen Dix / Sarah Philp 01494 545711, stephen@bvrla.co.uk / sarah@bvrla.co.uk

Comment By Gerry Keaney, BVRLA Chief Executive

We need to send signals – let’s just hope the government is watching Most businesses, including the CBI itself, broadly welcomed the Corporation Tax cuts and infrastructure investment announced in the recent Summer Budget. Such announcements often have a sting in the tail, however, and it is an unfortunate irony that the same government that is providing multimillionpound support for UK firms developing emissions-reduction technology is also raising taxes on fleets that might buy it. At a time when air quality is at the top of the public health agenda and drivers have shown signs of gaining trust in plug-in cars, the government decided to raise Vehicle Excise Duty on lowemission hybrids while actually reducing it for some vehicles that produce more CO2 and NOx. The architects of this new VED regime want to encourage people to buy battery-powered electric

vehicles, but have ignored the more popular plug-in hybrid vehicles that present a likelier choice for many fleets. The government claims that its new-look VED regime will only raise the same amount of revenue in the future as it does today. If only that were true for company car tax, where successive Budgets have increased the burden on hundreds of thousands of people who drive at work. It is more important than ever that we send some clear signals to policymakers. We must show the vital role our industry plays in facilitating the movement of people and goods, supporting the UK automotive sector and operating the country’s, newest, cleanest and safest vehicles. We will be communicating these messages in the months ahead and look forward to sharing them with you. u

The British Vehicle Rental & Leasing Association River Lodge, Badminton Court Amersham, Buckinghamshire HP7 0DD Tel 01494 434747 Fax 01494 434499 Email info@bvrla.co.uk Web www.bvrla.co.uk © Copyright BVRLA 2015. BVRLA News articles may be used copyright free by members provided that an acknowledgement is given.

Honorary Life President Freddie Aldous Chairman Simon Oliphant

BVRLA News | July/August 2015

Vice Chairman Peter Cakebread Honorary Treasurer Brian Back

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NEWS

Budget shocks automotive industry Chancellor George Osborne’s Summer Budget contained a number of surprises, not all of them pleasant ones for the rental and leasing industry.

per kilometre (g/km CO2) will incur a standard rate of £140. In contrast, zero-emissions vehicles will not to have to pay any VED at all (see table, below).

While the continuation in the fuel duty freeze is welcome, the BVRLA is concerned by the announcement that Vehicle Excise Duty (VED) is to be restructured for cars registered from April 2017. These will become subject to varying first year rates according to their CO2 emissions.

All cars with a list price of more than £40,000 will be subject to an additional £310 annual supplement (on top of the first year rate and the standard rate) for five years.

In subsequent years, all cars emitting more than one gram of CO2

A Treasury spokesman said this change would address falling tax revenues. Furthermore, VED revenues will be invested in the government’s newly announced Roads Fund.

Treasury officials also believe the current VED system is out of date and does not incentivise take-up of the cleanest, greenest cars. They said that, given the emissions standards being delivered by vehicle manufacturers, many cars would not be liable to pay VED in the first year of registration (2017). Estimates suggest that 70% of UK motorists would be paying just £30 a year per car by 2017. Currently, the annual average VED is £166 per car. Whilst officials understood that BVRLA rental and leasing members were able to improve the fuel efficiency of their fleets by purchasing the newest and greenest vehicles, they also believe the current VED system is regressive in that its tax burden is being shouldered by those able only to afford a second-hand car. The BVRLA believes the Treasury’s position represents a policy shift from VED being based solely on tailpipe emissions, and may discourage the take-up of low-emission vehicles. The Chancellor also referred to salary sacrifice arrangements in his Budget statement, prompting some commentators to interpret this as advance notice of a shift in policy. As salary sacrifice is not available to all employees, there is a concern that it could be considered both discriminatory and a loss of tax income to the Treasury.

New VED system – for cars registered from 2017 Emissions (g/km CO2)

First year rate

0

£0

1-50

£10

51-75

£25

76-90

£100

91-100

£120

101-110

£140

111-130

£160

131-150

£200

151-170

£500

171-190

£800

191-225

£1,200

226-255

£1,700

Over 255

£2,000

Standard rate* £0

£140

*cars above £40,000 pay £310 supplement for five years

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Boxing clever? Chancellor George Osborne announcing the Budget

The BVRLA will continue to monitor developments, and will maintain its position that salary sacrifice schemes offer lower-paid employees access to brand new cars, encouraging the sale of newer, safer vehicles while also generating tax revenue for the Treasury. The association will engage with other affected organisations to further present the case for a fairer VED system which incentivises the take-up of new, safe, fuel-efficient cars while also generating tax revenues. u

July/August 2015 | BVRLA News


Vehicle and driver data

The BVRLA will hold the first meeting of the Data Working Group on 26 August 2015 to address vehicle and driver data issues posed by increasingly connected and autonomous vehicles. The first meeting will feature the input of lawyers from Shoosmiths, who will help the group explore some of the data protection issues surrounding the collection, storage and analysis of driver information. Ready and waiting! The BVRLA is pleased to announce that its 2015 Industry Conference will take place at the National Motorcycle Museum in Coventry on 3 December. The conference is the annual opportunity for senior executives from across the vehicle rental and leasing sector to come together and explore some of the key issues affecting the industry. A major theme of this year’s event will be air quality and emissions, though the usual operational and strategic matters will still be covered. To book your place, visit www.bvrla.co.uk/IndustryConference2015. To enquire about sponsorship opportunities, contact the BVRLA’s Director of Member Services, Nora Leggett: nora@bvrla.co.uk

BVRLA and government focus on Consumer Rights as October deadline nears On 1 October 2015, the Consumer Rights Act will replace the Sale of Goods Act, giving consumers 30 days in which to return and/or reject goods – including cars and vans. If a vehicle has been leased or purchased, the customer has the right to expect that it is in full working order (unless specifically stated otherwise). In some cases, the consumer has the right to request a full repair or replacement. If this is not available or is unsuccessful, or is not provided within a reasonable timeframe and without significant inconvenience

BVRLA News | July/August 2015

to the consumer, the consumer can claim a price reduction or reject the vehicle. Consumers who choose to reject a vehicle are entitled to a refund. To help members with consumer queries, the BVRLA has prepared a Guide to Consumer Rights which can be read online. Members will also want to note that the BVRLA’s Conciliation Service is now a government-approved Alternative Dispute Resolution provider. u The BVRLA Guide to Consumer Rights can found at: www.bvrla.co.uk/advice/guidance/ consumer-rights

The BVRLA hopes the group will help establish a mandate and direction for further discussions with EU and national policymakers as well as car manufacturers. To contribute to the Data Working Group, contact Legal & Policy Executive Karl Shadenbury. u Contact Karl Shadenbury 01494 545701, karl@bvrla.co.uk

Faster Dartford Crossing

Work on removing toll booths from the Dartford Crossing has been completed, resulting in speed limits being raised from 30mph to 50mph. While this is positive news for motorists using the crossing, fleets have reported a number of issues with penalty charge notices (PCNs) that have arisen from alleged nonpayment of the charge. The BVRLA has been in contact with its members and Highways England regarding these, and will remain active until they are resolved. u

Toll booths: goodbye to all that

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FEATURE

Fleet technology experts set out visions of future The BVRLA’s second annual Fleet Technology Congress took place at the Williams F1 Conference Centre on 1 July, attended by more than 130 executives from the rental and leasing sector and its supply chain. Once again, the association assembled a host of experts to focus on three technology areas: The Future of Mobility; Technology Safety & Risk; and The Future of Fleet Management.

The Future of Mobility › The percentage of plug-in fleet vehicles will continue to increase, but they will remain a niche proposition in the short term. › Market share for hybrids (20%) and pure electric vehicles (5%) will grow significantly by 2030, but advanced, downsized petrol (40%) and diesel (35%) engines will continue to dominate the automotive landscape.

› The UK is leading the world with some of its autonomous vehicle trials and the relative lack of regulatory requirements is a key advantage. › ‘Intelligent Mobility’ will provide some significant societal benefits: improved air quality, reduced congestion and increased productivity. The fleet sector will play a major role.

Thanks to our sponsors, Jaguar Land Rover, Kee Resources and Trak Global

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July/August 2015 | BVRLA News


BVRLA Chairman Simon Oliphant: addressing Technology Congress delegates

Technology, Safety & Risk › There is an increasingly strong case for autonomous emergency braking to be fitted in all vehicles and the government should support this.

› Data protection is not just about your organisation staying compliant. It is also about maintaining public perception and trust in your company.

› Fleet insurance telematics is no ‘silver bullet’ and organisations still need a strong risk management focus.

› Don’t rely on OEMs to keep up with the threats posed by rapid adoption of new technology. Fleets have to assess their own liability as owners and operators.

The Future of Fleet Management › 3G and 4G coverage will get better and it needs to, because it is failing to keep up with data usage that is growing at 60% a year.

› To embrace the future and provide app-enabled ‘mobility services’, you need to sort out your back office IT ‘spaghetti’.

› Independent garages are moving with the times and will be ready to help maintain and repair increasingly connected vehicles.

› Gamification and reward can provide some useful ways of turning driver performance data into meaningful and motivational stimuli that can improve safety and reduce costs. u

‘Intelligent Mobility’ will provide some huge societal benefits BVRLA News | July/August 2015

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Register for our forums Expert speakers | Personal Development | Networking

Throughout the year the association gathers experts and practitioners from across our membership to encourage discussion and debate and share information and best practice. Subject areas include residual value and remarketing, technical and operational management, and credit and risk management.

For more information on BVRLA forums and other events, please call us on: 01494 545703, email us at: felisha@bvrla.co.uk or visit:

www.bvrla.co.uk/events/forums


RESEARCH & INSIGHT

Research update Research and Insight Manager Hazel Collier rounds up the latest findings from the BVRLA’s surveys.

Leasing brokers

According to a BVRLA poll of leading funders, combined broker volumes for car and van leasing grew to 179,935 units in the first half of 2015 – up 10% from 2014.

– some 75,059 vehicles. Personal contract hire accounts for 43,270 vehicles (33% of fleet), and was responsible for 44% of new car contracts in the first half of 2015.

Car contracts with leasing brokers grew 7% to 129,370, with van leasing up 16% to 50,565. Contract hire’s share of the car market now stands at 58% of the total fleet

In van leasing, all finance types showed healthy increases in volumes, with the proportions of new contracts remaining relatively stable (contract hire 61%, finance lease 34%). u

179,935 161,775

150

135,097

123,211

The 2015 CV Informer report, published by Motor Transport in association with the BVRLA, shows that growth in the 100 biggest CV rental and leasing companies mirrors the results of the BVRLA’s leasing broker survey (see left). According to CV Informer, combined van, truck and trailer assets have increased 10% since 2014 to 513,425. Trucks show 12% growth and vans 13%. There is some consolidation of total assets, with the top 10 providers owning 68% of all assets, compared to 57% last year. Lex Autolease remains the largest provider with a 10% increase in assets (80,757), followed by Northgate (47,908). Volkswagen’s assets have seen astronomical growth of 78% to 43,688, pushing LeasePlan into fourth place by a small margin.

0

cars vans

cars vans

cars vans

2012

2013

2014

50,565

129,370

ALL VEHICLES

42,739

119,036

ALL VEHICLES

35,919

99,198

ALL VEHICLES

37,621

50

90,590

100 ALL VEHICLES

NUMBER OF VEHICLES ON CONTRACT (THOUSANDS)

Leasing brokers

Commercial vehicles

cars vans 2015 (H1)

TO ENSURE YOUR COMPANY’S FIGURES ARE INCLUDED IN THESE REPORTS, CONTACT BVRLA RESEARCH & INSIGHTS MANAGER HAZEL COLLIER: TEL 01494 545717 EMAIL HAZEL@BVRLA.CO.UK

Fleet technology survey Order of importance

2015

2020

1

Tax costs

(74%)

Fuel efficiency

(79%)

2

Fuel efficiency

(69%)

Tax costs

(74%)

3

Emissions

(42%)

Emissions

(59%)

4

Design & Comfort

(39%)

Infotainment

(55%)

5

Safety (36%)

Safety

(45%)

6

Vehicle brand

(31%)

Design & comfort

(41%)

7

Infotainment

(31%)

Driver aids

(39%)

8

Driving performance (27%)

Driving performance (29%)

9

Driver aids

Vehicle brand (26%)

(19%)

BVRLA News | July/August 2015

Fleet technology

Respondents to the BVRLA’s 2015 fleet technology survey have stated that tax costs and fuel efficiency are their main reasons for choosing one vehicle over another. These look set to remain the priorities for the next five years, but by 2020 they will be joined by emissions and infotainment (see table, left). The survey also found that the implementation of telematics has progressed, albeit slowly. Some 51% of organisations now have less than a quarter of their fleet fitted with telematics, compared to 57% in 2014. Challenges in persuading companies to adopt telematics include educating businesses about how fleet management could affect the bottom line, and concerns about data collection and duty of care. Ultra-low-emission vehicles are expected to deliver the greatest positive impact on fleet technology, followed by autonomous driving and safety technologies. u

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NEWS

View Driving Licence makes it easier to check partial records Two months after the abolition of the paper counterpart to the driving licence, BVRLA members have been giving their feedback on the Driver & Vehicle Licensing Agency’s View Driving Licence website. Motorists have generated more than 525,000 ‘check codes’ since the portal went live. Rental and leasing companies use these codes to verify individuals’ driving licence details. Responding to consumer and industry pressure, the DVLA has now extended the life of each code to 21 days (rather than 72 hours, as was the case previously). BVRLA members have since registered their concerns about an anomaly in the way endorsements are recorded on the system. Under the Rehabilitation of Offenders Act, which came into effect in March 2014, drivers are

not compelled to disclose any driving offences that are more than five years old, even though some endorsements may remain on a licence for up to 11 years. These five-year-old ‘spent’ endorsements are automatically removed from the licence summaries that individuals generate via the View Driving Licence website. The BVRLA is working with the DVLA to ensure rental companies can safely and correctly interpret everything on summary PDFs. u The BVRLA has prepared a fact sheet about the View Driving Licence portal for members to access online: www.bvrla.co.uk/advice/fact-sheet/ view-driving-licence For more info, contact Nora Leggett: Contact Nora Leggett 01494 545713, nora@bvrla.co.uk

RISC: revised, relaunched and ready for more renters The BVRLA has transferred all existing users to its new and improved problem renter database, RISC.

The BVRLA is working on a B2B application interface which will make it easier for members to link RISC to their in-house systems.

Launched in July, the upgraded database includes the details of more than 13,000 individuals and companies who have been identified as a potential risk based on their previous rental experience. Working in partnership with rental software provider Nexus, the online portal has been made more user-friendly, with a clear dashboard and a greater focus on corporate customers.

The BVRLA has produced a four-page guide to RISC, which will be issued to members shortly. u

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To sign up to the service or to find out more, contact the RISC Administrator: Contact RISC Administrator 01494 545702, risc@bvrla.co.uk

London’s Safer Lorry Scheme: extra burden on HGV operators

Law steps in to protect city’s cyclists From 1 September 2015, most vehicles over 3.5 tonnes in London must be fitted with Class V & VI mirrors and sideguards to protect cyclists. The rules come into force as part of the Safer Lorry Scheme set up by the capital’s transport authority, Transport for London (TfL). The scheme will be enforced by the police and the Driver & Vehicle Standards Agency, with noncompliant drivers liable for a fine of £50. Some vans are exempt from the regulations, including the Iveco Daily, Mercedes Sprinter and VW Crafter. The scheme complements the optional Fleet Operator Recognition Scheme (FORS). To achieve the minimum FORS accreditation – bronze – vehicles over 3.5 tonnes must be fitted with side-guards or a blind-spot warning system – such as sensors or cameras. For construction vehicles, there is also the optional Construction Logistics and Cyclist Safety standard – CLOCS. This already requires side-guards and Class V & VI mirrors to be fitted on rigid mixer, tipper and waste-type vehicles over 3.5 tonnes. u

July/August 2015 | BVRLA News


MEMBERSHIP

Member Services update

Training

Nora Leggett has been named Director of Member Services at the BVRLA.

Contacts Nora Leggett 01494 545713, nora@bvrla.co.uk

Fleet Consultant Development 15 September & 10 November. BVRLA, Amersham, Bucks

Nora has led the Member Services team successfully for a number of years, and the association is now delivering its most extensive and comprehensive programme of events and services ever.

James Mansfield 01494 545720, james@bvrla.co.uk

Introduction to Daily Rental September/October Location: attendees’s choice

The team has also been increased to extend the support offered to members, with James Mansfield joining as Marketing and Administrative Executive on a six month contract. The team is also working with a new training provider – Professional Inspirations Ltd, who will provide rental operator and leasing broker compliance training to members. u

This two-day course is the perfect preparation for the City & Guilds Rental Operator Skills Certification exam on 4 November. It explains the legal and procedural aspects of daily rent-a-car agreement writing and the end-of-rental process. New face: James Mansfield joins the Member Services team

New members Rental

Blue Point London/Source London Just Vehicle Solutions (Newark) Freeway Vehicle Hire Holmbush Commercials Ltd (Saltash) Minibus world (Stoke-on-Trent) 365 Car Club Ltd (Sidcup) SL 1 Vehicle Hire Ltd (Burnham)

Leasing Broker ABC Leasing Ltd

Practical Car & Van Rental (Tonbridge) Bathwick Car & Van Hire Ltd (Chippenham) Central Vehicle Hire (Alloa) Ignition Leasing Ltd (London) F1 Prestige (Group) Ltd Practical Car & Van Rental (Corby)

Motor Depot Ltd (Hull)

Leasing/Contract Hire

Carmmunity (Loscoe)

Hills Contracts (Kidderminster) Wileman Sales Consultancy (Burton on Trent) Abridge Vehicle Management Ltd (Leatherhead)

Commercial Vehicle

DGC Vehicle Rental & Contract Hire (Belvedere)

Red Kite Vehicle Consultants Ltd (Wimborne)

BVRLA Events BVRLA Regional Forum Asset Management & Risk Control Forum BVRLA Industry Conference

Glasgow 15 September Manchester

5 October

Coventry

3 December

For enquiries about events, contact Felisha Weekes: felisha@bvrla.co.uk Full details of all BVRLA events can be found online: www.bvrla.co.uk

BVRLA News | July/August 2015

Contact Gursh Gill 01494 545719, gursh@bvrla.co.uk

New associates

New Car Deals Ltd (Ossett) Just Vehicle Solutions (Newark) JG Leasing (Ipswich) Marsh Wall Leasing Camel Consultants Ltd (Barry) Allcarleasing (Mobberley) LeasEasy (St Martin) Fish Car Leasing (Orpington)

Sterling Vehicle Ltd (Sittingbourne)

The BVRLA has commissioned this four-day programme from the Institute of Car Fleet Management to help explain the issues facing those in charge of corporate fleets.

GRS Fleet Graphics

Specialist vehicle branding company GRS Fleet Graphics has been supplying the vehicle rental and leasing industry since 1991. Operating out of a design and production facility in Southampton, it provides nationwide coverage and can work on site.

www.grsfleetgraphics.com Professional Inspirations

Specialising in automotive training and consulting, Professional Inspirations offers training including sales process, after-sales, finance, insurance, management, motivation, customer care and telephone techniques. The company is headed by Nige O’Shea FIMI, who has worked in the automotive sector for the past 16 years. www.professionalinspirations.com

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BVRLA News - July/August 2015  

The newsletter of the British Vehicle Rental and Leasing Association (BVRLA) for July/August 2015.

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