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September/October 2016

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

Industry rallies against company car ‘tax raid’ The BVRLA and a coalition of other fleet industry stakeholders are working together to oppose yet another government tax raid on the company car market. HM Revenue & Customs wants to change the way employee benefits are taxed and has put forward plans that could affect up to 650,000 people who have taken a salary sacrifice car or receive a vehicle as part of a ‘cash or car’ benefit scheme.

Employee Benefits Consultation: What’s at stake? 650,000 people receive a salary sacrifice or cash alternative company car. 3 in 4 salary sacrifice car scheme members are basic rate taxpayers. 217,000 new cars are registered annually as a result of the employerprovided car market. 37% – the proportion of these cars built in the UK or containing a UK-built engine. 37,000 jobs are supported by the employer-provided car market.

The BVRLA and its members have joined forces with Fleet News, ACFO, car manufacturers and a wide cross section of public and private sector employers to share their concerns with a range of ministers, MPs and policymakers. The BVRLA believes the current company car benefit-in-kind tax (BiK) system provides a fair, equitable and

administratively simple way of estimating the cash equivalent of a company car for tax purposes. It says the new proposals would introduce confusion and inequity into the system by requiring employers to change or increase their reporting requirements and by taxing an employee who has a cash alternative to their company car differently from one who has exactly the same vehicle but no cash alternative. The BVRLA says the present tax system works for businesses, is fair for drivers and has proven very successful in helping the government meet its policy goal of increasing the uptake of low emission vehicles. Salary sacrifice and ‘perk’ company cars are the dominant source of ultra-low emission vehicle (ULEV) registrations in the UK, partly because drivers use the incentives within the current company car tax regime to reduce their BiK tax bill. The BVRLA warns that these incentives would disappear under the new proposals, which would see the average person opting for a ULEV being left hundreds of pounds a year worse off. ULEV registrations are likely to plummet, it says, as drivers choose a cheaper, higher-emission company car, use their cash allowance to fund a second-hand car, or opt-out of their employer’s salary sacrifice scheme. “Our analysis suggests that the governments’ proposals could actually reduce overall tax revenues, stifle the uptake of ultra-low emission cars and have a negative impact on cash-strapped public sector employers,” said BVRLA Chief Executive Gerry Keaney. u

Autumn Statement action stations The BVRLA has been busy briefing policymakers on a number of consultations that could affect members’ businesses. page 4 Minister extols car rental’s ‘extra choice’ Transport Minister Andrew Jones has praised car hire for giving people “extra choice for getting around”. page 5 Ford event will explain vehicles to members The BVRLA is partnering with Ford to give members the lowdown on its vehicle range. page 6 Golf Day goes down to the wire More than 70 people took part in a hardfought BVRLA Annual Golf Day this September. page 7 Survey details vehicles’ life cycles A survey of BVRLA rental members has revealed the structure of the market and its contribution to reducing vehicle emissions. page 9 New faces, new roles Following a round of changes at BVRLA HQ, the association would like to update members about a number of new recruits. page 10

• Promoting responsible road transport since 1967 •

National Conference Centre, Solihull 1 December 2016

BVRLA Industry Conference 2016

Insert full-page advert here

2016 Key topics...

Tax and the Company Car

Personal Leasing


Future Mobility

Fleet Emissions

The Economy

Getting to Grips with Grey Fleet

Break-out sessions

For more information or to book tickets


Call 01494 545703


The BVRLA team Chief Executive Gerry Keaney 01494 545716, Secretary to the Chief Executive Kate McLaren 01494 545709, Management Accountant Bharti Ladwa 01494 545708, Accounts Assistant Melanie Richardson 01494 545722, Director of Communications & External Relations Toby Poston 01494 545700, Research & Insight Manager Phil Garthside 01494 545717, Media Relations & Communications Manager Jamie Fretwell 01494 545710, Marketing & Communications Executive Tamsin Stuczynska 01494 545707, Director of Member Services Nora Leggett 01494 545713, Events Executive Fran Hampson 01494 545703, Learning & Development Professional Duncan McMillan 01494 545719, Member Services Executive Laura Birdsey 01494 545714, Director of Policy & Membership Jay Parmar 01494 545706, Membership Manager Greg Theaker 01494 545705, Compliance & Governance Executive Adam Holt 01494 545718, CRM Data Manager Robert Burford 01494 545702, Senior Policy Advisor Patrick Cusworth 01494 545712,

Comment By Gerry Keaney, BVRLA Chief Executive

Change is afoot, but we’re used to adapting to challenges In 2017 the BVRLA will celebrate its golden anniversary. The past 50 years have shown that our industry can overcome challenges and adapt to changing environments very quickly. Right now the industry is growing and your association is in its strongest shape ever. We have nearly 900 members, responsible for almost five million vehicles. Members are experiencing growth in many areas and there is strong demand from SMEs, corporate customers and consumers as they learn the benefits of renting and leasing cars, rather than owning them. What powers these cars is changing as well. Developments in battery technology and hybrid powertrains have allayed fears of range anxiety – some electric cars can travel more than 150 miles on a full charge, and there are now

plug-in versions of fleet favourites like the Audi A3, BMW 3 Series, Mercedes C-Class and VW Golf. The pace of this change has the potential to catch out many people, including government officials. The Office for Low Emission Vehicles has already revised its plug-in grant structure to reward the cars that can travel farthest on electric power alone with the biggest discounts. There are other changes ahead: uncertainties following the vote to leave the European Union, and current government consultations on benefit-in-kind, salary sacrifice and ultra-low emission vehicles. These changes could reshape our industry, but your association will continue to play a major role in ensuring that our sector overcomes the challenges that are set out on the road ahead.

Legal & Policy Executive Amanda Brandon 01494 545701, Conciliation Service Manager Sallie Catchpole 01494 545715, Conciliation Service Officer Rick Connors 01494 545711, Conciliation Service Officer Stephen Dix 01494 545711, Conciliation Service Officer Sarah Philp 01494 545711,

The British Vehicle Rental & Leasing Association River Lodge, Badminton Court Amersham, Buckinghamshire HP7 0DD Tel 01494 434747 Fax 01494 434499 Email Web © Copyright BVRLA 2016. BVRLA News articles may be used copyright free by members provided that an acknowledgement is given.

Honorary Life President Freddie Aldous Chairman Simon Oliphant

Vice Chairman Matt Dyer Honorary Treasurer Brian Back

BVRLA News | September/October 2016



Patrick Cusworth: Senior Policy Advisor at the BVRLA – on point for amassing evidence to put before the Treasury

Autumn Statement brings BVRLA to action stations to brief policymakers As well as calling for cars to be exempted from the salary sacrifice proposals (page 1), the BVRLA is also using its Autumn Statement submission to highlight a number of areas in which the government could support the rental and leasing industry. The main thrust of the BVRLA’s submission centres around the unfair tax burden being placed on the sector. Chief Executive Gerry Keaney’s opening request is that Chancellor Philip Hammond reconsider the current system and levels of company car taxation, particularly given the 2% increase from 2017-18 and the delay in removing the 3% diesel supplement. This supports the government’s own consultation into the company car tax bandings for Ultra-Low Emission Vehicles, which the BVRLA is responding to separately, as it believes the cleanest cars should be incentivised beyond 2020.


The association has also suggested that HM Treasury consider reviewing the Vehicle Excise Duty (VED) refund rules, which restrict the amount of tax refunded when a vehicle is disposed of in the first year. This will have a big impact on rental companies from April 2017 as these companies will no longer be able to get a full refund for any vehicles emitting more than 110g/km CO2. In its example, the BVRLA highlighted that the new rules will result in a loss of £25 per vehicle, which is significant when this process happens twice a year and car hire companies operate hundreds of thousands of vehicles. Elsewhere, the BVRLA has noted a discussion document by HM Revenue & Customs (HMRC) that looks at changes to the existing tax rules for the leasing of plant or machinery following the publication of the new lease accounting standard. HMRC wants to ensure that any tax changes take into

account the current and expected future commercial environment, that they introduce simplification where possible and that there is strong protection of revenue for the Exchequer. The discussion document looks at how these might be achieved, and is considering four options – the status quo, an accounts-based regime, an accountsbased regime with a leasing allowance and an account-based regime with capital allowances. Finally, the BVRLA is repeating its calls for mileage adjustment companies to be regulated, following a question on clocking in another Department for Transport consultation. u To find out more about the BVRLA’s policy work, contact Senior Policy Advisor Patrick Cusworth. Contact Patrick Cusworth 01494 545712

September/October 2016 | BVRLA News

Minister extols car rental’s ‘extra choice’ Transport Minister Andrew Jones has praised the car hire industry for giving people “extra choice for getting around” and making travelling “healthier, more sustainable and accessible to all”.

for getting around and it can help make travelling healthier, more sustainable and accessible to all. We want to help to reduce congestion and emissions and these figures show that car rental

Jones, a Parliamentary Under Secretary of State at the Department for Transport, was responding to the publication of the BVRLA’s Car Rental Customer Survey, which found that rental is used by a diverse range of people for a wide variety of purposes. It also revealed that car hire customers have more sustainable travel habits than the average licence holder. The minister said: “Pay-as-you-go car use has grown sharply in recent years as young people delay buying a vehicle, and this report shows the important role rental plays. Car hire gives people extra choice

customers help deliver that ambition as they tend to walk, cycle and use public transport more often.” The research was conducted by transport research body TRL on behalf of the BVRLA, and reported that car rental enables a large number of drivers to avoid owning a car or to own fewer cars, and rental cars are used more efficiently than private cars. u BVRLA members can download the report from the research section of the BVRLA website: For more information on the BVRLA’s research, contact Research & Insight Manager Phil Garthside.

Jones: fan of ‘accessible’ car hire

Contact Phil Garthside 01494 545717

Members set out sector’s wish list for Brexit deal The BVRLA has held its first discussion event for members to help frame the sector’s position on issues arising from June’s referendum vote for the UK to leave the European Union. As part of this roundtable event, members expressed a preference for the UK to remain as part of the European Single Market, and also raised concerns about the continuation of certain European Regulations and Directives as part of UK law. Since the roundtable, the Prime Minister has announced that European Directives previously adopted into UK law will remain, but that the government will remove those that are excessive, burdensome, or irrelevant to British business. Some European Directives that members suggested

could be dispensed with include current limitations on commercial vehicle drivers’ hours and the legal requirement for HGVs to be re-tested every two years (which the BVRLA would like to be replaced by a threeyearly re-test). The BVRLA will continue to consult with its members throughout 2017 at events and committee meetings, and remains in regular contact with government to highlight the concerns of the sector. For further information, or to discuss European legislation that you believe is unnecessary or damaging to your business, contact Senior Policy Advisor Patrick Cusworth. Contact Patrick Cusworth 01494 545712

BVRLA News | September/October 2016

Expert speaker: BVRLA Chief Executive Gerry Keaney gave an update on the political and regulatory issues affecting the commercial vehicle sector at the BT Fleet Conference in September.



Ford event will explain Leasing broker audits highlight vehicles to members In a move to diversify its learning events for members, the BVRLA has partnered with Ford Motor Company to provide a free interactive event on Wednesday 2 November, in Peterborough. Aimed at customer-facing rental and leasing staff, the event offers a forum in which to learn product information on the 32 current Ford vehicles. Impactful briefings will explain Ford’s technical innovations, driver convenience aids and the technical aspects of running a vehicle – such as tyre maintenance and service intervals. The technical sessions will be supported by interactive exercises to help members retain key product points through a series of learning tasks.

Members will have the opportunity to inspect and drive a selection of current Ford vehicles on site. There will even be a chance to test offroad driving skills in the new Ford Ranger. Also on display will be the new Ford Focus RS and five-litre Ford Mustang GT (pictured). The event will close with lunch, offering members a further opportunity to engage with Ford’s product experts. u Spaces at the event are limited. For further information and to secure a place, contact BVRLA Learning & Development Professional Duncan McMillan. Contact Duncan McMillan 01494 545719

The Industry Hero Awards recognise the outstanding contributions of employees in the vehicle rental and leasing sector. Nominations are now invited from all BVRLA rental, leasing and broker members. Award winners will be invited to attend the association’s Annual Dinner at London’s Hilton on Park Lane in March 2017 as guests of the BVRLA. To nominate a colleague for an award, simply tell us why they deserve to win. Nominations should be approved by


With the number of BVRLA leasing brokers set to hit 300 this year, the association’s Leasing Broker Committee met auditors CCAS to discuss the latest trends being picked up in its audits of new and existing members. The auditors have conducted 144 inspections this year, with the vast majority resulting in a pass or advisory pass. A number of members expressed concern before their audit and felt it was unnecessary, given that they had just been through the Financial Conduct Authority’s authorisation process. Afterwards, however, many had high praise for the process – especially as it identified both key weaknesses and areas of potential growth. Some areas needing improvement were:

Tell us about your heroes The BVRLA is once again on the hunt for the rental and leasing industry’s unsung heroes.

key concerns

a senior manager and submitted by 31 December 2016.

› Lack of documentation on key procedures, such as risk assessments and contracts for sub-brokering. › No financial promotions register or processes for managing the register. › Understanding when an information notice is required.

The association is now accepting bookings for the Annual Dinner. Tickets cost £250 + VAT (or £2,500 + VAT for a table for ten). Sponsorship opportunities are also available for interested members. u

The Leasing Broker Committee is to meet separately to discuss the audits and its plans for enhancing the audit process in 2017. u

To nominate a hero, book a place at the Annual Dinner, or discuss sponsorship, contact BVRLA Director of Member Services Nora Leggett.

To find out more about the BVRLA’s governance programme, contact Governance & Compliance Executive Adam Holt.

Contact Nora Leggett 01494 545713

Contact Adam Holt 01494 545718

September/October 2016 | BVRLA News


Golf Day goes down to the wire

More than 70 people took part in the BVRLA’s 13th Annual Golf Day on 8 September, which this year took place at the challenging course of the Oxfordshire Golf Club. After coffee and bacon rolls, some 18 teams tackled the fairways and greens, in changing weather conditions. There were individual and team Stableford competitions, with the electronic scoring sponsored by Hertz. Refreshments were provided at a half-way house, and participants enjoyed a three-course lunch after completing the 18 holes. The individual event was won by Daphne Fagan from AFL Fleet Management, with second place going to Daphne’s AFL colleague Donna Methven.

After the countback, the first place trophy went to the Hill Dickinson LLP team (pictured, bottom left). Narrowly missing out was ALD Automotive, while RAC rounded out the podium by coming third. The Nearest The Pin trophy went to Keith Hawes of Nationwide Vehicle Contracts, while Andy Brookes from FCA Fleet Services hit the longest drive of the day.

The BVRLA’s next Golf Day has been booked for September 2017. To reserve your place, contact Events Executive Fran Hampson.

The BVRLA would like to thank all members who supported the event, in particular event sponsors PJM Rental and Hertz. u

Contact Fran Hampson 01494 545703

But it didn’t end there… The top three teams from the BVRLA Golf Day were invited to unite for the special President’s Golf Day match at prestigious Stoke Park on 28 September. The 12-strong BVRLA team battled with the Motor Trades Golfing Society (MTGS) team, but lost in a close contest. The overall result: MTGS 3.5, BVRLA 2.5. MTGS Match Manager Neil Smith is pictured receiving the trophy from BVRLA Director of Member Services Nora Leggett.

BVRLA News | September/October 2016


London Hilton, Park Lane 2 March 2017 The BVRLA returns to London’s West End for its Annual Dinner. It is the only evening to bring the whole industry together and we are celebrating 50 years of representing the industry. Last year more than 900 people representing over 100 companies enjoyed top-class food and entertainment at the London Hilton on Park Lane. Why not bring some of your clients or business partners to this must-attend

occasion, which is widely acclaimed as the friendliest, funniest and most looked-forward to event on the rental and leasing industry calendar? As well as providing an unrivalled opportunity to network amongst your peers, you can join with us recognising some of our industry’s most talented individuals and unsung heroes. Further details on the event will follow. Interested in finding out about our sponsorship packages for this event? Email

To book, please contact Fran Hampson on 01494 545703 or email

50th Anniversary



Survey details vehicles’ emissions A survey of 12 BVRLA rental members (representing 48% of the sector by volume) has revealed more detail about the structure of the market and its contribution to reducing vehicle emissions.

eight months old, and vehicles are disposed of after 13 months, with just under 21,000 miles on the clock. The average rental van is 17 months old, with vehicles being disposed of after 33 months having completed 51,000 miles.

22% and a fall in bands B to D (101 to /130 g/km CO2) to 51% and bands E to M (131g/km+ CO2) to 27%. u

The BVRLA’s Rental Operator Survey, conducted earlier this year, found that 66% of car and 68% of van hires are for corporate customers. The average length of a corporate car hire transaction is 12 days, with an average of 59 miles being billed each day, compared to averages of 37 days and 50 miles for corporate van hires.

The car rental fleet is also doing its bit to reduce emissions. The data shows an increase in the proportion of band A vehicles (up to 100g/km CO2) to

Contact Phil Garthside 01494 545717

At the start of the year, BVRLA members’ short-term rental fleet was responsible for 430,000 vehicles, with 59% cars and 36% vans. According to the Rental Operator Survey, the average rental car is

Vehicle Emissions:

changing trend in CO2 Band profiles Band A: up to 100g/km CO2 Band B to D: up to 101-130g/km CO2 Band E to M: up to 131g/km+ CO2

70% 60%

57% 53%

% of rental fleet

In the leisure sector, the average hire length is five days for cars and three days for vans. The average number of miles billed per day is 76 for cars and 85 for vans – both greater than in the corporate sector.

For more information on BVRLA statistics, contact Research & Insight Manager Phil Garthside.


50% 40% 30%



27% 22%


20% 13%

The BVRLA survey shows a rising trend in the proportion of Band A vehicles and a falling trend across the higher emission bands.

10% 0%




Car Emissions by Band

Funders: ‘car and van leasing is growing’ BVRLA Leasing Brokers responsible for more than before 250,000 200,000






The total van leasing fleet increased by 13% during the first half of 2016, up from 59,187 vehicles to 67,239. The van leasing market is dominated by contract hire, which has a share

BVRLA News | September/October 2016







The poll identified that 93% of cars on contract are either leased through contract hire (50%) or personal contract hire (43%). Whilst the combined domination of these products has been stable since 2014 there has been a steady increase in the take up of PCH, while contract hire is showing signs of decline.






Car contracts with leasing brokers increased from 148,819 at the end of 2015 to 165,280 at the end of June 2016 – an increase of 11%. There were 37,934 new car contracts in the first six months of 2016.

Vehicle Numbers:


According to a BVRLA poll of seven major funders, volumes for car and van leasing grew to 232,519 units in the first half of 2016 – up 10% from 2015.


H1 2016

of the market that is consistently around the 60% mark (61% in this half year). Finance lease makes up the other third (34%) and also currently remains stable. u



Melanie Richardson: accounting

Phil Garthside: adding insight

Rick Connors: troubleshooter

Adam Holt: overseeing governance

Laura Birdsey: member services

Rob Burford: managing CRM

New faces and roles at the BVRLA Following a round of changes at BVRLA HQ, the association would like to update members about a number of new recruits. With a growing membership and even more services to offer, the BVRLA has sought to bolster its team with the addition of several new members of staff. Melanie Richardson has joined as the association’s new Accounts Assistant, and will provide part-time support to Management Accountant Bharti Ladwa with invoicing and billing. Melanie’s voice will be familiar to some members as she previously worked for the organisation on a temporary basis.


Another new recruit is Phil Garthside, who has been appointed as Research & Insight Manager. Phil has a background in market research, and will be responsible for adding insight to the BVRLA’s statistics and data. With more people aware of the BVRLA’s Conciliation Service, Rick Connors has joined the association to handle complaints, working alongside Conciliation Service Manager Sallie Catchpole and her team. Elsewhere, Adam Holt has started as Compliance & Governance Executive. With a background in the banking sector, Adam will be overseeing the BVRLA’s governance regime and audit programme.

Long-serving employee Rob Burford has been promoted to the new role of CRM Data Manager, having successfully managed the implementation of the BVRLA’s new membership database. His replacement in the Member Services team is Laura Birdsey, who has joined from LeasePlan UK, where she was Fleet Services Executive. Finally, Jamie Fretwell has been promoted to Media Relations & Communications Manager. He continues to manage the BVRLA’s corporate press releases, publications, social media and website. u Contact details for all BVRLA employees can be found on page 3.

September/October 2016 | BVRLA News



New associate members GeoTab

Geotab is a global leader in telematics, providing open platform fleet management solutions to help businesses better manage their drivers and vehicles via real-time and historical trip data. Geotab helps companies increase productivity, cut fuel consumption, improve driver safety and strengthen compliance.


LICENCECHECK was founded in 2008 and has established itself as a leader and innovator in the licence verification industry. LICENCECHECK provides real-time driving licence-checking using the Driver & Vehicle Licensing Agency’s Access to Driver Data (ADD) service.

MiX Telematics

MiX Telematics delivers its solutions to customers in more than 120 countries, managing over 580,000 vehicles and trailers. The new MiX DriveMate provides live driver feedback, encouraging safe driving as well as recording private and business mileage.

New members Rental 2 Rent UK (Warrington) A10 Auto Centre (Kings Lynn) Folkestone Vehicle Rental (Folkestone) Mac’s Truck (Rental Leasing) (Huddersfield)

Newark Self-Drive Hire (Newark) T.O.M Vehicle Rental (Airdrie) UK Vehicle Rentals (Wednesbury) White Car (Heathrow)

Contract Hire and Leasing BNP Paribas Rental Solutions (Basingstoke)

Gates Leasing (Hertfordshire)

Leasing Broker Alpha Lease (Wigan) AMT Contract Hire and Leasing (Leeds) Asset Finance Management (Poole) Autohorn (York) Central Accident Management Services (Birmingham) Eclipse Partnership (Southport) HN Vehicles (Whalley)

NCA Vehicle Management (Yeovil) Players Cars (Wakefield) Profit Tree Finance (Hammersmith) Run your Fleet (Hatfield) TrueFleet (Huddersfield) Venus Fleet Management (Bingley) Venus Vehicle Solutions (Houghton le Spring)

Fair Wear and Tear Standard for Contract Hire & Leasing – Cars 16 November, Curdworth This extremely popular one-day course provides an interactive learning experience, demonstrating the BVRLA’s Fair Wear and Tear standard in a practical way. Selling Contract Hire 22-23 November, Chesham Another BVRLA favourite, aimed squarely at sales professionals and their managers in the leasing and fleet management sectors, this two-day course provides valuable knowledge and skills enhancement in an interactive format. Introduction to Daily Rental 12-13 December, Bromsgrove Providing a perfect foundation for all front-line rental employees new to the sector, or moving into a customer-facing role, this two-day course is filled with vital knowledge – ranging from the general market through to common insurances and tariff interpretation. Selling, Regulation & Compliance for Leasing Brokers 14 December, Bromsgrove Providing an update in knowledge and technical expertise, this one-day workshop is vital for leasing brokers. Subjects range from tax changes to regulatory updates. Contact Duncan McMillan 01494 545719

BVRLA Events Van Forum Ford Motor Company Product Day

25 October

DAF Trucks, Thame

2 November

Grange Farm, Peterborough

Technical & Operational Management Forum 3 November

MG Motor UK, Longbridge

Residual Value & Remarketing Forum BVRLA Industry Conference

17 November

BCA, Birmingham

1 December National Conference Centre, Solihull

For details contact BVRLA Events Executive Fran Hampson: 01494 545703, Full details of all BVRLA events can be found online:

BVRLA News | September/October 2016


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BVRLA News, September/October 2016  

The newsletter of the British Vehicle Rental and Leasing Association (BVRLA) for September/October 2016

BVRLA News, September/October 2016  

The newsletter of the British Vehicle Rental and Leasing Association (BVRLA) for September/October 2016