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July/August 2014

www.bvrla.co.uk

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

Fleet technology what happens next By Gerry Keaney BVRLA Chief Executive Harnessing the potential of automotive technology and vehicle data will be one of our industry’s biggest challenges over the next few years. The possiblities for improving road safety while reducing costs, emissions and congestion are immense, but the path to attaining these benefits will not be a smooth or straightforward one. The findings from our recent Fleet Technology Survey showed that our industry approach to this area is split almost 50:50 between ‘early’ and ‘cautious’ adopters. There will be a wide variety of approaches and business models, but BVRLA members will be using their knowledge, expertise and buying power to help their customers make the most from connected vehicles, autonomous safety advances and big data. Meanwhile, your association will be working to ensure that the regulatory regime and the government’s motoring agencies keep pace with these developments and don't stifle innovation. We will also see a role in maintaining and opening new channels of co-operation between our industry, vehicle manufacturers and other participants within the automotive technology sector. This work is already underway.

we hope the output of this event will establish a list of priority measures that the government can adopt to ensure that automotive technology and intelligent mobility can continue to progress in the UK. Our Industry Conference in December will feature a Fleet Technology Update. A 90-minute break-out session will followup on some of the key questions raised at our congress in July and feed back on some of the developments that have occurred in the meantime. For many members, data access and ownership and vehicle security are the most pressing issues arising from the growing adoption of connected vehicle technology. The BVRLA will also be addressing these in the coming months by talking to manufacturers and other stakeholders in the sector about their vehicle and driver data strategies and their approach to cyber security. For more information: To join our Fleet Technology Linkedin group, head to http://bit.ly/FleetTech The BVRLA's page on Intelligent Mobility can be found at bit.ly/IntelligentMobility

Fleet Technology White Paper

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In September the BVRLA is organising an Intelligent Mobility round-table in association with Fleet News, ACFO and the Automotive Council. Part of our Fleet Industry Manifesto series of policy debates (see page 3),

White Paper: BVRLA's in-depth report highlighted the issues facing the sector

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BVRLA launches Fleet Industry Manifesto How your association is working with ACFO and Fleet News to identify the fleet sector's key pre-election policy goals. page 3 Spotlight on Dartford Crossing changes Looking forward to the removal of Dartford's toll booths, plus how the charging scheme will be a blueprint for the rest of the UK. page 4 Financial Conduct Authority - what to do The BVRLA's advice on the FCA's consumer credit regime and a look at what's coming next. page 5 Coverage of the BVRLA Fleet Tech Congress More than 150 delegates, stunning cars and plenty of debates – relive the Fleet Technology Congress in our picture round-up. pages 6-7 Conciliation Service H1 2014 analysis A mid-year report on the work of the BVRLA's conciliation service, as well as an analysis of ECRCS complaints pages 9 TOM forums: what are you missing out on? We review what has been discussed at the BVRLA's Technical & Operational Management forums, plus what'll be debated at the next one. page 10

• Promoting responsible road transport since 1967 •


Industry ConferenCe Thursday 4th December 2014 Heritage Motor Centre, Gaydon, Warwickshire

2015

A Risk Management Perspective

residual values & remarketing What new models and technology should we watch out for in 2015? Should we expect an imminent fall in used vehicle prices?

For more information, visit www.bvrla.co.uk

fleet technology update

Connected vehicles, big data and cyber security: what is happening and how can you prepare?

Call 01494 545713

Have you got a van plan?

Hear about the latest developments in the fleet industry’s fastest-growing sector – the Light Commercial Vehicle market

Email nora@bvrla.co.uk


Comment

agency modernisation doesn’t place extra burdens on fleet operators. Three further round-tables are scheduled for the Autumn: • Intelligent Mobility • Road Safety & Duty of Care • Road Networks & Infrastructure.

It’s estimated that 90% of cars will be connected by 2020, up from 10% today. This is clearly going to have a significant impact on the world of fleet management. We looked at some of the opportunities and challenges in July’s Fleet Technology Congress and our white paper, but that was just the start. There are still more questions than answers, particularly on subjects like vehicle data and security. Over the next few months, we will try to address these with further discussions, events and resources. Things are moving very fast, so please update us with what happens in your part of the industry...

Toby Poston Editor

Toby Poston, toby@bvrla.co.uk 01494 545700

Staff Writer

Jamie Fretwell, jamie@bvrla.co.uk 01494 545710

Advertising

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

Contributors

Amanda Brandon, Fran Hampson and Patrick Cusworth © Copyright BVRLA 2014 BVRLA News articles may be used copyright free by members provided that an acknowledgement is given.

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

Peter Cakebread

Vice Chairman

Simon Oliphant

Honorary Treasurer Brian Back Chief Executive

Gerry Keaney

BVRLA News | July/August 2014

With an election looming, the BVRLA, ACFO and Fleet News are bringing leading fleet industry representatives together to discuss key issues facing corporate road users. A series of five round-table debates will help shape the ‘Fleet Industry Manifesto’ – suggested policy measures for the main political parties. The first debate, hosted by PwC, focussed on Tax and Emissions. Among the more pressing requirements identified were a commitment to ultra-low emission vehicles, harmonisation across all CO2-based tax regimes and policies that encourage staff to switch from cash allowance to company car. The second debate took place at the BVRLA and focussed on Red Tape and Regulation. The key recommendations were that the government should attempt to standardise the parking penalty process across the UK, improve the communication and enforcement of van operator best practice, and ensure that motoring

Delegates involved thus far include representatives from Anglian Water, Arcadia Group, Arval, BT Fleet, Coca Cola, Europcar, Fleet Hire, GE Capital, Hertz, Hitachi Capital Vehicle Solutions, LeasePlan, Lex Autolease, Royal Mail, Tusker and Zenith Leasedrive. “By working with ACFO and Fleet News we have assembled a cross-section of experts that we hope will enable us to address the policy requirements of all business road users,” said BVRLA Chief Executive, Gerry Keaney. “We need to make sure that supporting affordable, safe and sustainable road transport is a policy priority for all parties going into the next election.” Julie Jenner, ACFO director and former chairman of the fleet association, said appropriate government legislation was vital to ensure an efficient and effective fleet sector. “It is important that we continue working together looking at specific issues that will affect us now and in the future.” u For more information Visit www.fleetnews.co.uk/manifesto

Changes at DfT after PM reshuffles his cabinet

The Prime Minister’s Cabinet reshuffle has brought two new appointments to the Department for Transport (DfT). While Patrick McLoughlin has remained as overall Transport Secretary, John Hayes and Claire Perry have been promoted, with Stephen Hammond retiring to the backbenches.

John Hayes will have responsibility for national roads, the Infrastructure

Bill and the reform of the Highways Agency. He will also continue in his existing position within the Cabinet Office as Senior Parliamentary Adviser to the Prime Minister. Claire Perry will take on freight and logistics, railways, transport agencies and better regulation. The BVRLA will continue to work with the DfT and other government motoring agencies as it advises on policy and campaigns on behalf of the rental and leasing sector. u

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fleet scheme set to reduce congestion and penalties

From October 2014, the way motorists use the Dartford Crossing will change. Helen ffitch looks at all we know from the Highways Agency (HA) and Sanef to find out how the changes will benefit rental and leasing companies. The way the Dartford Crossing charge is paid is changing, and the BVRLA has been working hard with the HA to make sure that the process is as smooth as possible for fleets.

The new payment system is being operated by Sanef on behalf of the Highways Agency. The company has experience of operating similar systems in Ireland and Canada, and has listened to feedback from the London Congestion Charge scheme to ensure that Dart Charge is as hassle-free for fleets as possible.

The changes are part of a major road improvement programme to reduce congestion at the Dartford Crossing, which crosses the River Thames and links Essex and Kent. The new payment system – Dart Charge – will be introduced from October and means that drivers will no longer stop to pay at the barriers. Payment will be made in advance or by midnight the day after a journey.

Fleets' administrative burdens will be greatly reduced by the convenience of fewer accounts. The advantage of keeping all accounts in credit means that, theoretically, there should never be any penalty charges to pay.

Having listened to the calls made by the BVRLA, rental and leasing fleets will be able to open a Dart Charge account from September. Each account can have up to 9,999 vehicles registered, and creating an account means fleet operators can save up to a third. Plus, fleet managers won't need to remember to pay for vehicles, as accounts can be automatically topped up.

As a vehicle makes a crossing, lasers, number plate-reading cameras and tag readers will identify it to see how much needs to be paid. The system then takes money from the fleet's account.

Setting up an account involves sending a file of vehicle registrations to the contact centre. Ideally this is done online, so it can be quickly processed, but it can also be done by post or phone. There is no charge for this service or for making future changes.

In a particular win for the sector, the HA has promised that the time from detecting a vehicle on the crossing to it appearing on an online statement will be under an hour, though this may be longer if the weather is causing poor visibility or if the number plate is damaged, unclear or missing. To prevent any of the aforementioned scenarios, members are advised to fit tags which are read electronically rather than visually.

Only two months to go until CV Type Approval deadline Multi-stage build vehicles over 3.5 tonnes and trailers will require European Whole Vehicle Type Approval after 29 October 2014. Ahead of this date, the BVRLA is reminding its commercial vehicle members to communicate with their supply chain and customers about Whole Vehicle Type Approval changes to avoid unnecessary delays

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to vehicles being delivered.

While the new payment system will reduce congestion, there will be roadworks while the old booths are removed and a new road layout is introduced. This work will start in October and is scheduled to finish in spring 2015. u To register for Dart Charge updates, visit www.gov.uk/highways/dartford

More smart motorways

Transport secretary Patrick McLoughlin has announced that work is set to begin to change parts of the M1 and M3 into smart motorways. As part of the government's scheme to invest £24 billion into the UK's road network by 2021, junctions 28-31 and 32-35a of the M1, and junctions 2-4a of the M3 will be converted into smart motorways. The coalition estimates the programme of improvements will increase capacity by a third and cut journey times by between ten and 15 per cent. u

The wider industry is anticipating a number of vehicles being registered before 28 October in order to avoid needing multi-stage approval. u The BVRLA's fact sheet on European Whole Vehicle Type Approval is available to read online: http://bit.ly/TypeApproval

Getting smarter: Sections of the M1 and M3 BVRLA News | July/August 2014


FCA work continues

Market news

The BVRLA is warning the Financial Conduct Authority (FCA) not to send rental and leasing companies round in circles.

by Jamie Fretwell, BVRLA Media & Communications Officer The light commercial vehicle (LCV) market has maintained impressive growth in first six months of the year. We look at the detail behind this popular sector.

The association has been in dialogue with the FCA's communications team to encourage clear signposting and the removal of regulatory jargon when members seek advice. The call for clarity comes as the BVRLA continues to provide guidance to members on applying for full authorisation. The BVRLA's Guide To FCA Compliance is currently under review, and will be updated shortly. This guidance complements the four FCA compliance events the BVRLA has held in 2014, which have attracted a total of 240 delegates from over 140 member companies. These seminars and webinars have featured presentations from FCA representatives and compliancy firms and focussed on the principles of affordability, creditworthiness, managing

compliance, preparing for authorisation and treating customers fairly. The BVRLA is still working to ensure members are up to date on the latest FCA compliance details, as most leasing brokers are due to go to the FCA for full authorisation in 2015. The BVRLA's next FCA seminar will identify key issues for members in completing the application form, examine the FCA guidance and speakers will add insights about how delegates can evidence compliance. u To attend the next FCA compliance seminar on 9 September at Toyota GB in Epsom, visit http:// bvrlaregionalforum.eventbrite.co.uk. Alternatively, please contact BVRLA Member Services Sales Administrator Fran Hampson: Contact Fran Hampson 01494 545703 fran@bvrla.co.uk

BVRLA urges OTS not to scrap BIKs in tax shake-up Proposals from the Office of Tax Simplification (OTS) to alter the current tax regime would "have a significant negative impact on the company car market" according to the BVRLA. The association has responded to a consultation launched by the OTS, which has invited views ahead of its Competitiveness Review. One of the suggestions is to extend National Insurance Contributions (NICs) to benefits in kind such as company cars. The BVRLA feels these proposals would have a disruptive effect on the UK company car market. The extension of NICs to include benefits in kind would add an administrative burden on all organisations providing company cars, and potentially increase the cost to company car drivers.

BVRLA News | July/August 2014

Positive start to 2014 for new LCVs According to the latest data from the Society of Motor Manufacturers and Traders (SMMT), 344,762 commercial vehicles were registered in the first half of 2014 – up 16.4% on H1 2013. The LCV market in particular has seen impressive growth with registrations up 33.3% in June, and vans accounting for 155,532 sales.

New for 2014: Two-tonne Transit

For more about the BVRLA's work on taxation, contact Patrick Cusworth:

This strong start can be attributed to an array of attractive new products on sale, including the new Transit range from market leader Ford. There has also been impressive performance in the used LCV market. Latest data from the national Association of Motor Auctions (NAMA) suggests that the average LCV sold at auction in June 2014 went for £125 more than the average price acheived in January 2014. The average van was 4.5 years old, had covered 65,000 miles and was sold for 30% of its original asking price - consistent with H1 2013. However, an increase in volumes has put pressure on conversion rates. NAMA hopes that September will bring equilibrium to the balance between supply and demand. The BVRLA will have a van break-out session at the upcoming Industry conference - we'd love to hear your views on topics surrounding LCVs. u

Contact Patrick Cusworth 01494 545712 patrick@bvrla.co.uk

Contact Jamie Fretwell 01494 545710 jamie@bvrla.co.uk

This proposal could also negatively impact the take-up of ultra-low emission cars in the UK. Under the plans, business drivers would effectively be offered an incentive to drive older, more polluting vehicles, instead of using newer, cleaner company cars. The BVRLA feels the rental and leasing industry makes a major contribution to tax revenue for the government. As the Government wants to make the UK the most business-friendly nation in the world, now is not the time to be introducing new – or extending existing – tax obligations. u

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Successful Fleet Tech Congress

ones chaired -J y rr a P rd a h ic R ings the day's proceed

Chief Executive Ger guests to the H eritary Keaney welcomed ge Motor Centre

The BVRLA held its first ever event focussed on the subject of fleet technology on 1 July, which was attended by more than 150 rental and leasing executives. The event was supported by ICFM and ACFO, and sponsored by BMW and DRIVE Software Solutions. Delegates were provided with invaluable information and insight from a wide range of wellinformed speakers, who each gave their opinions in a bid to highlight the rapid growth within the fleet technology market. u

BMW 's hybrid i8 su percar proved popular

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Conciliation service: More than 330 disputes already resolved The BVRLA's compliants team has investigated a total of 344 complaints against rental and leasing members in the first six months of the year (H1 2014). The average complaint is resolved in less than 20 days - despite the association allowing up to 30 days. While the total number of complaints is higher than it was this time last year (up 52% on H1 2013), the service has upheld 38% of all cases it has investigated. The BVRLA feels that the increase in volume can be attributed to customers having greater awareness

received 251 complaints in the first half of 2014. The average time taken to resolve a complaint has been 20.7 days, and the service has upheld 45% of the cases it has investigated for the year to date.

ECRCS: Resolving disputes of the conciliation service, and is not indicative of a decline in standards across the industry. Meanwhile, the European Car Rental Conciliation Service (ECRCS) has

Commenting on the half-year figures, BVRLA Director of Policy and Membership Jay Parmar said: "Our team has been busier than ever this year, but members needn't worry. The rise in the number of disputes investigated is largely due to increased awareness, and the figures show that only the minority of complaints have been upheld.” u

Work with TC on impounding AdBlue must non-compliant HGVs in 2014 be highlighted The BVRLA has met with the Senior Traffic Commissioner to discuss the role of leasing companies in checking whether a customer has a valid operators’ licence. The Senior Traffic Commissioner was Compliant or not? BVRLA is working with Traffic of the view a leasing Commissioner to impound illegally-operated HGVs. company must check the existence of an Whilst this review is ongoing, O-licence at the beginning of a members are reminded of the contract, and cannot rely on the BVRLA’s fact sheet on the procedure defence of “not knowing” if a leased for impounding illegally operated vehicle ends up being impounded. goods vehicle. This includes the vital pre-impounding letter, which alerts The advice follows a case last members that one of their vehicles is year involving Societe Generale being operated illegally. Equipment Finance Ltd in which it was deemed that as the finance In addition, the Driver and Vehicle company had not checked whether Standards Agency (DVSA) provides the customer had an O-licence at the an online database which members beginning of the contract, the finance can use in order to check whether a company was not necessarily entitled customer has an O-licence. u to the return of the vehicle. The BVRLA fact sheet can be The BVRLA is currently reviewing the downloaded from: www.bvrla. impact of this case and the guidance co.uk/advice/fact-sheets which it provides members on checking the existence of an O-licence at the The DVSA database is online: www. start of a contract. gov.uk/lorry-bus-operator-search

BVRLA News | July/August 2014

The BVRLA's Technical and Operational Management (TOM) Committee has highlighted the importance of AdBlue when customers receive new vehicles. During July's TOM committee meeting, industry representatives voiced concern about their responsibilities to inform customers which vehicles need AdBlue. As the number of vehicles equipped with AdBlue increases, the committee also noted that members may wish to consider whether to factor the cost of top-ups into Service, Maintenance and Repair (SMR) budgeting. TOM Committee Chairman Chris Joyce said: "Rental and leasing companies must help point out which vehicles require top-ups - both during the vehicle choice process and when the vehicle is handed over to the driver." "Whether or not these are included as part of a maintenance package – or expected by the customer – is another matter, but AdBlue is crucial to the running of a vehicle. With manufacturers taking measures to meet the Euro 6 requirements for diesel vehicles, this is set to become a significant issue in the coming months.” u

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BVRLA TOM forums: just what exactly are you missing out on? The BVRLA has already held two Technical and Operational Management (TOM) forums this year, attracting 120 delegates from more than 50 BVRLA member companies. Fran Hampson describes a typical forum and highlights the reasons that you should attend if you haven't already signed up. BVRLA TOM forums provide vital information on all operational aspects of a rental and leasing company’s business – giving a unique opportunity for fleet operators to hear from expert speakers on topics that affect their day to day jobs. At the TOM forum in June this year, Brian Utton, Automotive Technical Manager at Castrol Lubricants UK & Ireland, delivered a thorough, succinct presentation on oil and lubricant mixes. Many would agree that the quality, mix and grade of lubricating oil are

very important to the all-round performance of a modern vehicle, but some delegates questioned why there isn’t a single blend of oil with a universal application. Utton explained that each vehicle manufacturer has its own engine design and invariably requires a unique oil specification to ensure the engine is protected and performs to its best. The presentation generated a number of questions as not only did delegates have a professional interest in vehicles, but many were thinking of their vehicles parked outside!

Well-attended: BVRLA's TOM forums have attracted 120 delegates from more than 50 companies so far this year.

The next TOM forum will take place on 6 November. This half-day session will provide delegates with the opportunity to ask questions, debate discussion points

and network with like-minded industry colleagues. Although several of the topics and speakers at this forum have yet to be confirmed, the BVRLA is pleased that representatives from the Downstream Fuel Association will be on hand to discuss problems with fuel blockages in winter and fuel quality. These speakers will highlight the ongoing work with the SMMT in trying to find a workable solution, and will be among a long list of speakers who will provide those who are actively involved in the management of their fleet from an operational perspective to get answers to burning questions. u To book your place at the BVRLA's next TOM forum for just £50 plus VAT, contact Fran Hampson: Contact Fran Hampson 01494 545703 fran@bvrla.co.uk

Industry Heroes wanted for BVRLA's Annual Dinner as tickets go on sale To tie-in with the time of year when businesses are undertaking six-month appraisals of staff, the BVRLA is now accepting nominations for its Industry Hero awards. With many rental and leasing firms currently in the process of reviewing staff performance, the BVRLA is keen for members to highlight their standout salespeople, top technical advisors and committed customer support managers. Since their inception in 2010, the Industry Hero awards have recognised

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some of the vehicle rental and leasing sector’s most deserving staff.

2015, with the heroes being invited to attend as guests of the BVRLA.

Members who feel they have worthy staff should submit nominations of no more than 500 words, explaining the outstanding contributions made by a particular employee.

Ticket prices for the Annual Dinner have been confirmed at £225 (excl. VAT). Tickets can be booked online at bvrladinner2015.eventbrite.co.uk. u

Once the nominations have been received, an expert panel of judges will select deserved winners.

Industry Hero award submissions must be sent to Nora Leggett by 31 December 2014. To sponsor the Annual Dinner, contact Toby Poston.

The names of these individuals will be announced at the BVRLA Annual Dinner at the London Hilton Hotel on Park Lane on Thursday 5 March

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

Toby Poston 01494 545700 toby@bvrla.co.uk

BVRLA News | July/August 2014


Tickets go on sale for 2014 2014 BVRLA BVRLA Industry Conference training dates

The BVRLA has opened the order books for its annual conference.

Break-out sessions will focus on used values, LCVs and fleet technology. u

Tickets for the Industry Conference – which will take place at the Heritage Motor Centre in Gaydon on 4 December – will cost £240 (excl. VAT).

Tickets can be purchased online: https://BVRLAconference.eventbrite.co.uk. To enquire about the BVRLA's sponsorship opportunities, please contact Nora Leggett:

The theme for the event is Risk Management, while speakers and an agenda will be announced shortly. Members who book before 3 October can pay £220 (excl. VAT) for a ticket.

Contact Nora Leggett 01494 545713 nora@bvrla.co.uk

Are you a Business Development Account Manager? Do you want to grow your business by improving sales performance in the corporate marketplace? Attending this programme will give you the confidence when speaking with customers about their fleet management needs.

Introduction to the Fleet Industry 10 September, Amersham

New members Rental

Coolrent (Barnoldswick) Octopus (Burslough) Leasing Broker AMVS (Manchester) Jigsaw Finance (Stoke-on-Trent) Lease Comparison (Old Stratford) Leasewell (Bridgend) MVM Contracts (Woodhall Spa) Vantage Leasing (Manchester Associate ATD Solutions

ATD Solutions is an IT and data services company specialising in the automotive finance market. It combines technical and market sector expertise to deliver data-related projects such as data warehousing, legacy migrations, data integration and data cleansing. ATD also provides software solutions for vehicle valuation forecasting / re-forecasting (AVS) and vehicle code matching (VMS). www.attentiontodata.com Retriever Sales Performance Retriever is a 12-year-old lead generation, telemarketing and training company, and is the BVRLA’s latest accredited training provider. Clients outsource telemarketing to Retriever, which helps develop sales proposition and strategy. Retriever’s ‘Wise Mind’ approach to New Business and Customer Retention centres on the importance of human interaction and getting a better balance between emotional and commercial approaches. www.retrievernewbusiness.co.uk

BVRLA Events Regional Member Forum & FCA Compliance Workshop Epsom, Surrey

9 Sept

Asset Management and Risk Forum

Manchester

16 Oct

RAC, Bescot

6 Nov

Residual Value and Remarketing Forum

Heritage Motor Centre

18 Nov

BVRLA Industry Conference

Heritage Motor Centre

4 Dec

Technical and Operational Management Forum

For enquiries about BVRLA events, contact Member Services Sales Administrator Fran Hampson: fran@bvrla.co.uk, 01494 545703 Full details of all BVRLA events can be found on our website: www.bvrla.co.uk

BVRLA News | July/August 2014

Professional Fleet Consultant Development Programme 3-4 September and 12-13 November, Amersham

Training new sales staff and refreshing existing staff can make the difference in sales effectiveness. This knowledge can also raise customer service levels from support staff. This one-day course will help all those in the industry.

Sales Performance training 17 September and 15 November, Amersham

Delivered by sales practitioners, this one-day course gives a fresh focus approach to securing new business and account management. Key course outcomes include: a more natural and effective approach to new business, the adoption of techniques to improve client retention and practical advice on how to nurture and build a sales pipeline.

Rental Agent Skills Accreditation 6 November, across the UK

Aimed at rental agents, this nationally recognised qualification, accredited by City & Guilds, is awarded to individuals who display knowledge of vehicle operations and best practice via a series of tests. The BVRLA offers a diverse range of events and training for the rental and leasing industry. Further information can be found on the BVRLA website: www.bvrla.co.uk. To book places, contact Fran Hampson. Contact Fran Hampson, fran@bvrla.co.uk 01494 545703

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BVRLA News, July/August 2014  

The newsletter of the British Vehicle Rental and Leasing Association (BVRLA) for July/August 2014.

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