BVRLA News The bimonthly newsletter of the British Vehicle Rental and Leasing Association
New Rental Code of Conduct launched The BVRLA launched its revised Rental Code of Conduct last month, the first of five sector-specific codes clarifying standards for the BVRLA’s different types of member. This latest rental-specific version of the code fits the modern vehicle hire environment and the association’s increasingly diverse membership. It is clearer and more detailed about the standards that are required at the vital customer interaction stages of any rental transaction. The remaining four codes: Rental Broker, Leasing and Fleet Management, Leasing Broker and Commercial Vehicle, will be launched later in 2015. All five codes will be underpinned by a new governance regime, to be developed during 2015 and implemented in 2016. In a bid to improve transparency within the industry, the new codes are clearer and more prescriptive about the standards members must adhere to.
The new codes and governance regime also incorporate the specific input of key industry regulators including the Competition & Markets Authority (CMA) and the Financial Conduct Authority (FCA). Each Code is expected to satisfy the EU’s Alternative Dispute Resolution Directive. As the new codes are more prescriptive and customer facing, and have been designed with the help of key industry regulators, they will provide even more of a quality benchmark for BVRLA members. The BVRLA will be sending out a series of newsletters, providing tips and guidance on the new codes. Members will also have the opportunity to hear more about the revised codes and put questions to BVRLA staff at a series of regional events taking place throughout 2015. u For more details about the Rental Code and the related events, visit www.bvrla. co.uk/advice/guidance/rental-code
New for 2015: Code is being updated and split into new sector-specific publications
Where next for Intelligent Mobility? Details of the BVRLA’s contribution to the Motoring of the Future report, and what the Government needs to do. page 3 Budget 2015 Everything you need to know about the Chancellor’s Budget, including the hike in Benefit-in-Kind company car tax rates. page 4 Latest leasing industry trends A Q4 2014 update on business confidence, members’ fleet sizes and average emissions. page 5 Motoring agencies update The DVLA reacts to Mary Reilly’s review, plus the new name for the Highways Agency. page 7 CV Special A look forward to the Commercial Vehicle show at the NEC, including a stand guide and how to meet up with the BVRLA. page 8 Industry Heroes Read all about the outstanding contributions made by star performers in the vehicle rental and leasing industry. page 10
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The BVRLA team Chief Executive Gerry Keaney 01494 545716, email@example.com PA/Secretary to the Chief Executive Kate McLaren 01494 545709, firstname.lastname@example.org Management Accountant Bharti Ladwa 01494 545708, email@example.com Director of Communications & External Relations Toby Poston 01494 545700, firstname.lastname@example.org Research & Insight Manager Hazel Collier 01494 545717, email@example.com Media & Communications Officer Jamie Fretwell 01494 545710, firstname.lastname@example.org Marketing & Communications Administrator Tamsin Stuczynska 01494 545707, email@example.com Head of Member Services Nora Leggett 01494 545713, firstname.lastname@example.org Member Services Executive Robert Burford 01494 545702, email@example.com Events Executive Felisha Weeks 01494 545703, firstname.lastname@example.org Director of Policy & Membership Jay Parmar 01494 545706, email@example.com Membership Manager Greg Theaker 01494 545705, firstname.lastname@example.org Membership Administrator June Dyer 01494 545714, email@example.com Senior Policy Advisor Patrick Cusworth 01494 545712, firstname.lastname@example.org Compliance Officer Natasha Howard 01494 545718, email@example.com Legal & Policy Executive Sallie Catchpole 01494 545715, firstname.lastname@example.org Legal & Policy Executive Karl Shadenbury 01494 545701, email@example.com Legal & Policy Executive Amanda Brandon 01494 545701, firstname.lastname@example.org Legal & Policy Administrator (Part-time) Stephen Dix 01494 545711, email@example.com Legal & Policy Administrator (Part-time) Sarah Philp 01494 545711, firstname.lastname@example.org
Comment By Gerry Keaney, BVRLA Chief Executive
More joined-up thinking needed on the issue of intelligent mobility There is a growing sense within Whitehall that autonomous and connected vehicles have the potential to deliver huge societal and economic benefits for the UK. Last Autumn, I gave evidence to the House of Commons Transport Committee and highlighted how the government has not yet grasped the opportunities presented by ‘Intelligent Mobility’. The Transport Committee clearly shares these concerns as many of our recommendations were taken up by this influential group of MPs in their recently published Motoring of the Future report. Their support, as well as the £100m of funding announced in the recent Budget, comes at just the right time to provide some much-needed impetus into this vital work. There is a lot at stake.
vehicles, big data and smart motorways are just some of the intelligent mobility technologies that are beginning to have a major impact on the road transport sector. As the buyers of over half of all the cars, vans and trucks sold in the UK every year, the fleet market is a crucial early adopter of autonomous and connected vehicle technology. You operate the newest, cleanest and safest vehicles out there. With the right government support, the potential to reduce harmful emissions, road casualties and congestion is huge. We have produced a high-level blueprint for what the Government needs to do – the Fleet Industry Manifesto. It’s currently being digested by a range of senior policymakers in the main parties. I trust they are paying attention.
We are in the early stages of a motoring revolution, with technology set to transform the way we use cars, vans, trucks and buses. Connected cars, driverless
The British Vehicle Rental & Leasing Association River Lodge, Badminton Court Amersham, Buckinghamshire HP7 0DD Tel 01494 434747 Fax 01494 434499 Email email@example.com 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 Peter Cakebread
BVRLA News | March/April 2015
Vice Chairman Simon Oliphant Honorary Treasurer Brian Back
Budget sets out BIK rates for 2020 It was a hit and miss Budget for company car drivers as Chancellor George Osborne announced some changes to the way company car benefit-in-kind (BIK) tax rates will increase from 2019. There was good news for drivers of ultra-low emission cars (75g/km CO2 and under) who will see a slowdown in the rate of increase previously announced. This was in contrast to the outlook for drivers of any vehicle emitting more than 76g/km CO2, who will see the percentage of their company car’s list price (P11D price)
that is liable for tax rise by three percentage points each year, instead of two. The Treasury estimates that this will cost the sector an extra £340m each year. Commenting on Budget 2015, BVRLA Director of Policy and Membership Jay Parmar said: “We’re encouraged that the government has responded to our calls to reduce the pace of company car tax increases on ultra low-emission vehicles in 2019/20. Sadly, George Osborne has chosen not to go further, and the government now runs the serious risk of reducing the tax incentive between ultra low-emission vehicles and higher-polluting models.”
Other announcements from the Budget include a £100m fund for driverless cars and changes to the fuel benefit charge. Government departments have also been told that they must consider car sharing alongside more traditional transport options. The BVRLA welcomed the decision to freeze fuel duty and the Vehicle Excise Duty (VED) rates for HGVs. The Government is also cutting Corporation Tax to 20% from 1 April 2016 to stimulate growth. However, the Enhanced Capital Allowances for zero-emission goods vehicles that were announced by the Chancellor are unavailable to rental and leasing companies. u For members’ convenience, the BVRLA has produced a full Budget summary, outlining its impacts on the vehicle rental and leasing sector. This is available to read online at www.bvrla.co.uk/Budget-2015. For more information on any announcements from the Budget, or to discuss the BVRLA’s campaigning, please contact Patrick Cusworth:
Last time? George Osborne delivers his Budget last month
Contact Patrick Cusworth 01494 545712 firstname.lastname@example.org
Members try counterpart replacement A second wave of BVRLA rental members has now signed up to trial the DVLA’s new Share My Driver Licence service. The beta version of the system went live in March with more than a dozen BVRLA members now participating and providing staff and customer feedback to the agency. Share My Driver Licence is one of three licence checking options that will be available to rental companies following the abolition of the driver licence paper counterpart on 8 June
and it is the only one that is free of charge. The service requires a hirer to view their driver licence details via the www.gov.uk website, using their National Insurance Number, Driver Number and Post Code. They can then print off a copy of their driver record as a PDF and take it to the rental desk. The rental company can accept this copy at face-value, or ask for additional authentication by obtaining an online view of the driver record, which the hirer can provide via an access code. The BVRLA website provides regular
updates on the abolition of the counterpart and also has details of the other licence checking services that will be available to members. Members should not expect to hear from the Driver and Vehicle Licensing Agency about the abolition in the run up to the general election, as the agency is curbing its communications. u To access the DVLA’s webpage with marketing materials and advice, visit: http://dvla.dft.gov.uk/dvla-aoctoolkit.html
March/April 2015 | BVRLA News
VVR & V5C now live The Driver and Vehicle Licensing Agency (DVLA) has launched its online View Vehicle Record (VVR) and V5C on Demand systems.
HGV Levy: The Heavy Goods Vehicle (HGV) levy on foreign hauliers has generated £44 million in its first year of operation. Foreign truck operators have purchased more than 1.8 million levies, a time-based charge that ensures all HGVs over 12 tonnes contribute towards their use of UK roads. Enforcement agencies have issued some 2,500 fixed penalty notices and collected fines of over £750,000 for nonlevy payment in the past year.
Confidence tempered by used values in Q4 2014 The latest BVRLA Quarterly Leasing Survey for Q4 2014 reveals that members’ fleet sizes are growing and emissions are still falling, but there’s concerns over used car prices. Concerns over used car prices have tempered business confidence. While 75% of leasing companies surveyed expect fleet sizes to grow in the next six months, on balance, 88% reckon used car values will fall. This represents a stark contrast from the Q3 2014 survey, when 61% of survey respondents were predicting used car values to fall.
Q4 Q1 Q2 Q3 Q4
2013 2014 2014 2014 2014
BVRLA leasing members’ fleet sizes continue to grow, and emissions are falling faster than the national averages (see table). Members’ new registrations in Q4 emitted just 114.7g/km CO2 on average – 7% lower than the average for all new UK registrations in that time. u BVRLA Research & Insight Manager Hazel Collier can provide more info:
Elsewhere in the report, leasing companies are positive about the economic and fleet sector prospects BVRLA whole fleet 124.7g/km 123.9g/km 123.5g/km 121.4g/km 120.1g/km
for the next six months, but on balance, confidence has fallen. Just 38% of respondents in Q4 expect conditions in the fleet leasing sector to improve in the next six months.
Contact Hazel Collier 01494 545717 email@example.com
BVRLA New registrations 119.1g/km 117.9g/km 117.8g/km 116.7g/km 114.7g/km
All UK New registrations 127.4g/km 126.1g/km 125.9g/km 123.8g/km 123.1g/km
Getting greener: Leasing members’ fleets’ average emissions fell again
BVRLA News | March/April 2015
Companies registered on the DVLA’s fleet scheme will now have the opportunity to access the VVR service. Since January, the DVLA has been engaging with fleets to gauge interest and so far, 50% of fleets contacted have provided administrator details. In order to access the VVR service, fleet operators must follow a secure log in process. Companies will only have access to their fleet data, which replicates that shown on the V5C vehicle registration certificate. Users of the VVR service can then determine if they wish to ‘opt in’ to the V5C on Demand scheme. Opting in to this service means any vehicles that are newly registered to that fleet will not be issued with a V5C. If vehicle record changes are required, a new V5C will not be issued following the update. All other V5Cs for existing vehicles will need to be kept. VVR can be used whether or not a member opts in to the V5C On Demand service. The benefit of using these services is that members will have free 24/7 access to fleet vehicle data. Choosing not to receive a V5C also opens up the potential for further administration and storage cost savings. u If you have 50 or more vehicles in your fleet and want to join the DVLA’s fleet scheme, or if you’re on the scheme and wish to sign up to the VVR service, please contact the DVLA directly: Contact DVLA Vehicle Enquiries 0300 083 0016 firstname.lastname@example.org
DVLA reacts to review The Driver and Vehicle Licensing Agency (DVLA) has spelt out how it will work with its parent body, the Department for Transport (DfT). The Framework Agreement builds on the recommendations made in Mary Reilly’s 2014 review, which recommended changes to DVLA’s governance and management structures. The Framework details several structural changes which will enable the DVLA to work more constructively with the DfT. The agreement details how the DVLA will take forward its statutory responsibilities for both vehicles and individual drivers. For vehicles, the Agency will continue to authorise the licencing and registration of vehicles, collection and enforcement of Vehicle Excise Duty, and the issuing of registration documents. The DVLA will also retain a series of secondary responsibilities, including the issue and revocation of registration numbers, setting
levels of VED, dealing with Statutory Off Road Notifications [SORN], and releasing and selling information. For drivers, the DVLA will take responsibility for all matters relating to licences; including issuance, renewal, and restriction; as well as revoking licences from drivers who obtain six penalty points within two years of passing their first test. The agency will also have responsibility for recording endorsements, prosecuting drivers, fraud and/ or false declarations, withholding material information, and legislation governing visitors in Great Britain. The DVLA will now obtain the DfT’s written approval before changing or exceeding its annual approved budget. In addition, authorisation for funding new projects will be made on a three-tier level, depending on the cost of the project, with DfT approving projects requiring more than £100m. u The full framework document can be read online at http://bitly.com/ DVLAframework.
New name for transport organisations The Highways Agency has become a governmentowned company and adopted a new name – Highways England. The organisation is wholly owned by the Secretary of State for Transport and has a role to operate, maintain and modernise the strategic road network in line with the Road Investment Strategy. It has published its delivery plan, which sets out how it will deliver its strategic outcomes and measure success between now and 2020. Its performance is now being scrutinised by Transport Focus – the new name for Passenger Focus. Previously, this organisation represented the interests of Britain’s rail, bus, coach and tram passengers. It now represents the interests of road users. Both name changes took effect from 1 April 2015.
BVRLA News | March/April 2015
SMMT’s diesel campaign
The Society of Motor Manufacturers and Traders (SMMT) is challenging what it calls the “increasing demonisation of diesel”. The organisation has launched the campaign as it is concerned that negativity about diesels could deter motorists from considering the most modern and cleanest diesel cars as their next purchase. u More information about the new campaign can be found online at www.dieselfacts.co.uk
Agreement on Dartford
The BVRLA is currently negotiating with Highways England to agree a memorandum of understanding concerning members’ use of the Dartford Crossing. The memorandum would address a series of operational difficulties that members have experienced since the barriers went cash-less in 2014. It would streamline the process of disclosing the details of a hire or lease driver liable for the PCN, which in turn would reduce the burden when members make representations to transfer liability. The BVRLA will update members in due course. u
Lease accounting news
The BVRLA has met with the International Accounting Standards Board (IASB), the Finance and Leasing Association (FLA) and the Association of Chartered Certified Accountants (ACCA) to discuss the upcoming lease accounting standards. The IASB is developing a new International Financial Reporting Standard (IFRS), which will require companies to bring leases onto the balance sheet. The IASB is finalising its new accounting model for leases, and the IFRS will be issued later this year. u To read the practical implications of the IFRS, visit www.bvrla.co.uk/ sites/default/files/documents/ifrs_ practical_implications.pdf
CV Show: complete guide for members
Manufacturers, suppliers and specialists are expected at this year’s premier UK road transport and logistics event, Members’ Guide the Commercial Vehicle Show, to be held at the NEC in Company Hall Birmingham from 14-16 April 2015. The 2015 Show features more than 450 quality exhibitors spread across 50,000 square metres and offers excellent sourcing and networking opportunities all under one roof. The BVRLA will be present at the show, and can be found in Hall 4, on stand J10, alongside Manheim. Commenting about the BVRLA’s involvement at the show, Membership Manager Greg Theaker said: “The CV show is an excellent event for catching up with our members and speaking to businesses looking to join the association. It’s a great opportunity for members to find out what we’re
There are a further 20 BVRLA members who will have stands at the event (see panel, right), while many more have confirmed that they will be sending staff to attend the show as visitors. u
Ford Motor Company
G10 / G20
To arrange to meet the BVRLA at the show, please contact Membership Manager Greg Theaker:
The AMT Group
United Rental Group
Vauxhall Commercial Vehicles
up to, and I’m particularly excited to hear from our members about their plans for the rest of the year.”
Contact Greg Theaker 01494 545705 email@example.com
Key event: Members are expected to flock to the CV Show once again
CV Informer 2015 research underway
The 2015 CV Informer report into the commercial vehicle rental and leasing sector will include a customer survey.
maintenance and telematics, their preferences for particular van or truck brands, and their opinions of the rental and leasing sector.
This new element of the research, which is carried out in conjunction with Road Transport Media, will canvas CV operators on a range of issues including their current fleet breakdown, their use of vehicle finance, their approach to vehicle
BVRLA members also have the opportunity to get a free bespoke report on their customers’ views. BVRLA Director of Communications and External Relations Toby Poston said: “Assembling stronger market data enables us to champion the
cause of our CV members in the media and with policymakers.”
To make sure that your company is included in the 2015 CV Informer survey, contact BVRLA Research and Insight Manager, Hazel Collier. Contact Hazel Collier 01494 545717 firstname.lastname@example.org
March/April 2015 | BVRLA News
Top speakers: Politico Alastair Campbell, comedian Ian Moore BVRLA Chairman Peter Cakebread & BVRLA Chief Exec Gerry Keaney
Annual Dinner 2015 The BVRLA Annual Dinner took place at the London Hilton on Park Lane on Thursday 5 March. More than 900 guests enjoyed superb food and wine, as well as the wit and wisdom of Ian Moore and Alastair Campbell. More than £8,000 was raised for charity BEN, and one lucky diner won an iPad in the prize draw.
Lombard, Maserati, MS Automotive and VRS. To attend the BVRLA’s 2016 Annual Dinner, please contact the BVRLA’s Events Executive Felisha Weekes: Contact Felisha Weekes 01494 545703 email@example.com
The BVRLA would like to thank all guests for attending, and acknowledge our sponsors: BCA, Ebbon-Dacs, Enterprise, Landar,
Award winners take centre stage Five guests left the Annual Dinner with sought-after awards. The Industry Achievement Awards went to Claire Auton of ALD Automotive and Dominic Wilson of Arnold Clark Car & Van Rental. Claire (left) scored 93% in the BVRLA’s Professional Fleet Consultant Development Programme, while Dominic (centre, receiving his award from sponsor Landar’s Mark Forton) was the top performer in the BVRLA’s Rental Operator Skills Certificate examinations. New for 2015 was the Airport Operator of the Year award, which went to Edinburgh Airport and was collected by Kevin Murphy (far right). The airport scored the best overall customer satisfaction results in 2014’s independent audits. The BVRLA also named three Industry Heroes. You can read more about these fantastic employees on page 10.
BVRLA News | March/April 2015
Revisions to FWT guide
The BVRLA has revised its Fair Wear & Tear Guide for drivers returning leased and financed cars. It follows a lengthy consultation phase, and now explicitly informs personal contract customers how they can repair damage before returning a vehicle.
Changes at BVRLA: The BVRLA has appointed three new members of staff. Hazel Collier (left) has joined as Research & Insight Manager, Karl Shadenbury (centre) steps in as Legal and Policy Executive, and Felisha Weekes (right) is the BVRLA’s new Events Executive. Meanwhile, Natasha Howard has been promoted to the new role of Compliance Officer, and she will develop a new governance regime for the BVRLA’s Code of Conduct. Full contact details can be found on page 3.
There have been no changes to the standard that describes the degree of acceptable deterioration. E-versions of the guide will be updated in 2015. u For more details, contact Member Services Executive Rob Burford: Contact Rob Burford 01494 545702 firstname.lastname@example.org
Stiff competition as three more names added to rental and leasing industry’s roll of honour at 2015 Annual Dinner It was tougher than ever for the BVRLA to select just three staff who went above and beyond the call of duty in the past year. Since their inception in 2010, the BVRLA Industry Hero Awards have recognised the vehicle rental and leasing sector’s most deserving employees. Once again, the BVRLA received plenty of stories of dedication, but as ever, there could only be three winners. The first award went to Rick Barker. Since joining SHB in 2011, Rick has risen from being a vehicle mechanic to Assistant Operations Manager. In addition to those duties, he has played an essential role as interim workshop manager for one of the company’s busiest sites. His dayto-day tasks are crucial in ensuring all vehicles and equipment are maintained to standard. Next to win was Marlene Stevenson - Branch Manager of Glasgow
South Arnold Clark. The BVRLA judges were impressed with Marlene’s singular determination to investigate a fraud that had the potential to seriously impact our sector. They commended her for her determination to Heroes: BVRLA Chief Executive Gerry Keaney protect not only her presents the first award to Rick Barker; fraudown company’s vehicle buster Marlene Stevenson with her award assets, but those of her local competitors as well. Matt Coleman was acknowledged for stepping up to help Alphabet And while he was unable to attend successfully launch its new broker on the night, Rob Allen of Hitachi channel at short notice. u Capital Commercial Vehicle Solutions was recognised for his commitment, To find out how you can win a BVRLA professionalism and enthusiasm. award at the 2016 Annual Dinner, please contact BVRLA Head of There were two further employees Member Services Nora Leggett: who the judges felt deserved notable mentions. Paul Baker from Contact Hitachi Capital Vehicle Soultions was Nora Leggett commended for his work in reducing 01494 545713 defleeting queries by 87%, and email@example.com
March/April 2015 | BVRLA News
Reduced fees for forums It’s not too late to sign up to attend the BVRLA’s forums. The joining fee to attend both the Residual Value & Remarketing (RVR) and Technical & Operational Management (TOM) forums is usually £220+ VAT, which allows two people to attend three forums per year. With a few places remaining for 2015, the BVRLA is now offering a reduced rate of £150+ VAT. Topics discussed at the last TOM forum centered on the DVLA, the use of AdBlue as well as concerns surrounding type approval. Attendee George Reid from Fleethire said: “What I like about the TOM Forums is that they introduce industry topics for discussion which most of the time we would not get involved in. The sessions are always very informative and the forums are important dates in my calendar.” February’s Residual Value & Remarketing Forum focussed on electric vehicles and the state
of the used vehicle market. The forum regularly helps attendees determine residual value risk, including pre-procurement, best practice in vehicle collection and vehicle resale. The managing director of JCT 600 Vehicle Leasing Solutions, Andrew Mann said: “The BVRLA’s last Residual Value and Remarketing Forum provided useful information from experts in their field to help us with our respective businesses.” The next TOM forum takes place in Milton Keynes on 4 June 2015. The next RVR forum will be held at Nissan’s Parts Centre in Leicester on 18 June 2015. u
Training & accreditation IMI Accreditation 1-to-1 assessments on demand Leasing staff who deal with technical enquiries and rental staff who handle customer service queries will benefit from this accreditation, which is goverened by the Institure of the Motor Industry (IMI).
Selling Contract Hire 18 June, BVRLA, Amersham
This two-day course is aimed at sales professionals in contract hire, leasing and fleet management.
Fleet Consultant Programme 15 Sept & 10 Nov, BVRLA
For more information on how to renew your forum membership, please contact BVRLA Events Executive Felisha Weekes:
Are you a Business Development or Account Manager? Do you want to grow your business by improving sales performance? This programme will give attendees confidence when speaking to customers.
Contact Felisha Weekes 01494 494703 firstname.lastname@example.org
Contact Felisha Weekes 01494 545703 email@example.com
Sun Kissed Campers Ltd (Bath)
Andeva provides the UK fleet and vehicle hire market with bespoke insurance solutions and uses technology to deliver first class service.
Leasing Broker Any Car Online (Liverpool)
Specialist Vehicle Rental (Walsall)
Landcruise Motor Home Hire (Chichester)
BVRLA Events Asset Management & Risk Control Forum
Regional Member Forum
The Fleet Show, Silverstone
Broker 200 Karting Race
Dayton Milton Keynes
Regional Member Forum
Hill Dickinson, London
Technical & Operational Management Forum Milton Keynes
Residual Values & Remarketing Forum
For enquiries about events, contact Felisha Weekes: firstname.lastname@example.org Full details of all BVRLA events can be found on our website: www.bvrla.co.uk
BVRLA News | March/April 2015
FMG Support is a provider of end-toend incident management services for fleets and operates a specialist vehicle recovery service.
www.fmg.co.uk Smart Witness
SmartWitness creates vehicle CCTV and systems. The company ensures fleets are completely protected against fraudulent insurance claims.
Golf Day 2015 Thursday 3 September 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. Just 72 places are available on a first-come, first-served basis. 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 email@example.com
The newsletter of the British Vehicle Rental and Leasing Association (BVRLA) for March/April 2015.