BVRLA News
www.bvrla.co.uk February/March 2011
The newsletter of the British Vehicle Rental and Leasing Association
Our Budget goal: fair tax It is time for the government to deliver on its promises of fairer taxes and less red tape. This is the message delivered by the BVRLA ahead of Chancellor George Osborne’s 23 March Budget. “Our industry has helped the government deliver a successful emissions-based company car tax regime,” said BVRLA chief executive John Lewis. “We want to continue this partnership by delivering a fairer tax system for road users and pointing out some of the Department for Transport’s most glaring inefficiencies.” On behalf of its members, the BVRLA is pushing for a straightforward, technologyneutral company car tax framework which delivers clarity and certainty to road users. All this can be achieved while protecting tax receipts for the Exchequer.
The BVRLA has also identified ‘red tape’ it believes the government can cut for the benefit of all fleet operators. The association believes that the advent of continuous registration laws and increasing use of automatic number plate recognition cameras make the tax disc obsolete. It estimates that abolishing the disc would save the Driver and Vehicle Licensing Agency over £90m a year in administration costs and eliminate a massive amount of paperwork for fleet owners. Allowing companies to buy their vehicle excise duty on a multi-year basis would bring similar benefits, the BVRLA believes.
In its submission the association reiterates its call for the removal of the 3% diesel supplement in benefit-in-kind tax for company cars and fuel.
Despite the recent surge in fuel prices, the association shares the concerns of many in the public sector about the tax-free mileage allowances paid to employees who use their own vehicles for work (known as the ‘grey fleet’).
“This is the one glaring error in the entire company car tax regime,” said Lewis. “It penalises company car users for selecting the very same diesel vehicles that have the lowest CO2 emissions in their class. “This supplement is well past its use-by date – we know it and so does the government.”
It thinks the current allowance of 40p a mile is too high, encouraging people to use their own, often older, less environmentally-friendly vehicles instead of more appropriate means of travel, including public transport and rental or leased vehicles.
The association wants the coalition government to follow Labour’s policy of setting company car tax bands three years in advance by announcing the figures for 2013/14.
“We urge the government to align the rates to a level that represents the incremental running costs of using a private car for business, rather than the total cost of ownership,” said Lewis. n
Annual general meeting
Notice is hereby given that the annual general meeting of the British Vehicle Rental and Leasing Association Ltd will be held at 9.30am on Thursday, 19 May 2011 at the association’s offices at River Lodge, Badminton Court, Amersham, Bucks HP7 0DD for the following purposes: ❱ To receive the chairman’s report. ❱ To receive the report of the Committee of Management. ❱ To receive the report of the auditors. ❱ To elect the Committee of Management. ❱ To elect auditors and to arrange their remuneration. By order of the Committee of Management. John Lewis, Chief Executive
bvrla.co.uk
In this issue OFT says car hire is a ‘top ten’ problem A study of consumer contracts highlights concerns about car and van rental page 3 BVRLA queries lorry road user charge The government is pushing ahead with plans to introduce a lorry road user charge by April 2014 page 4 Leaf or Ampera: will fleets go EV or hybrid? Nissan’s Leaf electric vehicle blows into the UK this spring, with major firms set to bring it on fleet. But will others wait for Vauxhall’s Ampera hybrid? page 4 Why are we waiting? With lead times of up to eight months and missed deadlines, delivery is becoming a problem for leasing companies and brokers page 5 The Big Event: BVRLA Annual Dinner 2011 Full coverage and photos of our yearly industry gathering page 6
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Comment OFT survey puts car and van hire in consumers’ ‘top ten’ problem areas With fuel prices soaring, spending cuts looming and the threat of a double-dip recession in the air, it was great to put all these concerns aside and celebrate with industry peers at the BVRLA Annual Dinner earlier in March.
With BVRLA chairman Kevin McNally’s rousing call to arms, the celebration of some of our industry’s unsung heroes and inspiring tales of Olympic achievements from Seb Coe, there was plenty to cheer about. Guests even enjoyed the unique sight of a transport minister extolling his love of motor vehicles! Perhaps things aren’t so bad after all. For extensive coverage of this great evening, and of our industry heroes, turn to pages 6-9.
Toby Poston
Editor Toby Poston, toby@bvrla.co.uk 01494 545700 Production Manager Steven Prizeman, steven@bvrla.co.uk 01494 545710 Advertising Nora Leggett, nora@bvrla.co.uk 01494 545713
Key facts about your rental
it will help you understand what’s included in your This is a summary of the key facts of your rental agreement. While in full in order to be sure of your obligations and ours. agreement and what isn’t, you should read your rental agreement
What’s not included
What’s included
✓ ✓ ✓ ✓
Motor insurance
You are insured to drive the vehicle you hire – as are any other drivers named on the rental agreement.
Repair costs
If the vehicle is damaged while it is on hire to you, then you’ll only be liable for costs up to a fixed sum chosen by you.
Fuel
The vehicle comes with fuel. You’ll be expected to return the vehicle with the same quantity of fuel at the end of your hire, or reimburse us for refuelling the vehicle.
Mileage
There is normally no limit on the distance you can drive in the vehicle you hire.
✘ ✘ ✘
Please remember that…
condition of …before you drive the rental vehicle you should take time to check the an opportunity the vehicle you want to hire with a member of our staff. This gives you on the to identify and record any existing damage to the vehicle – such as scratches bodywork – this will help to ensure there are no disputes later. then please …if you return the vehicle, with our approval, outside our office hours – the vehicle park it legally in a safe, well-lit area. Take time to check the condition of – if possible, take photos of it. of your …you should check what is covered in our agreement, and the extent not covered, financial liability for the cost of repairs. Some types of damage are often wrong type of such as punctures, chipped windscreens, damage caused by using the fuel, and damage to the roof.
Traffic fines
You must pay any fines or penalty charges relating to our vehicle, such as parking fines, that arise while it is on hire to you. We may ask you to pay our costs for dealing with these fines.
Late returns
You must return the vehicle you hire on the date and time, and to the location, specified in your rental agreement. Unless you have gained our permission to extend the hire you may incur extra charges.
Unattended returns
By arrangement, we may allow you to return the vehicle you hire outside our normal opening hours, but, if you do so, you will remain responsible for the vehicle, and any damage it sustains, until it has been inspected by us.
We abide by the code of conduct of the British Vehicle Rental and Leasing in Association (BVRLA), an organisation that represents vehicle rental firms the UK and maintains standards amongst them by regulating its members and providing a conciliation service for dissatisfied customers. BVRLA, River Lodge, Badminton Court, Amersham, Bucks HP7
Tel 01494 434747
Fax 01494 434499
0DD
Email info@bvrla.co.uk
www.bvrla.co.uk
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© Copyright BVRLA 2011 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 bvrla.co.uk Honorary Life President Freddie Aldous Chairman Kevin McNally Vice Chairman Neil Cunningham Honorary Treasurer Brian Back Chief Executive John Lewis
BVRLA News | February/March 2011
The OFT’s key recommendations for the car and van rental sector 1 Provide a complete set of terms and conditions on website and in contracts 2 Summarise key terms clearly, including those relevant to compensation charges, waiver restrictions and exclusions 3 Ensure that salespeople highlight these key terms 4 Provide and explain opportunities for consumers to challenge firms and seek redress if they feel they have been charged unfairly
BVRLA queries lorry road user charge The government is pushing ahead with its plans to introduce a lorry road user charge (LRUC) by April 2014. The proposed time-based charge will be payable either annually or on a daily basis. The government believes this will ensure that heavy goods vehicles registered outside the UK will make a contribution for using UK roads. Although it will publish a formal consultation later this year, the Department for Transport (DfT) has already met the BVRLA to discuss how the scheme could operate in a simple, cost-neutral way for British businesses. For the scheme to comply with EU rules, the UK government is required to charge both UK and foreign hauliers. To ensure the charge is simple for UK hauliers to pay, the DfT plans
to collect it from vehicle excise duty (VED). However, to ensure this does not impose a new cost, the VED will be reduced by an amount equal to the annual cost of the LRUC. In theory this would mean that most UK firms operating heavy goods vehicles would continue to pay the same total amount as they do today. However, even after the proposed reduction to the VED, certain vehicles may still end up paying more than present. This is because EU laws set a minimum VED for member states to charge. To help compensate UK businesses that may be out of pocket, the DfT has said it is prepared to reduce other fees, such as annual test and operator licence fees. The BVRLA has raised concerns with this approach because rental and leasing firms, which are normally the registered keepers of their vehicles,
are not always responsible for these operating costs. “While it is right and fair that foreign hauliers contribute towards using UK roads, it is vital that the proposal does not impose additional cost burdens on UK hauliers and vehicle owners,” said Jay Parmar, the BVRLA’s head of legal services. “Having examined the proposals, there are some serious reservations as to whether the cost to introduce and operate the scheme outweighs the anticipated benefits.” Under the DfT plan, vehicles registered outside the UK would be liable to pay the LRUC before using UK roads and owners would pay either an annual or daily charge. It is thought that the UK Border Agency would check payments had been made and the Vehicle and Operator Services Agency carry out enforcement for non-compliance. n
Leaf or Ampera: what’s the best fit for a fleet? Nissan will start delivering its first Leaf electric vehicles in the UK this month, with more than 250 fleet orders already lined up. Hertz, Europcar, LeasePlan, Arval and ALD Automotive are among the BVRLA members due to bring the fullyelectric vehicles on fleet this year. However, the cars will be in short supply until Nissan builds new production lines in the US and UK in 2012/13. UK fleets will only receive a few thousand Leafs before the arrival of its first mass-market rival, the Vauxhall Ampera, in early 2012.
Nissan Leaf
On sale Price
Vauxhall Ampera
Now £23,990 (inc grant) c £330/month for 36-month lease Range 100 miles all electric Battery life eight years, 100,000 miles Charge time eight hours full charge (240v) Capacity five seats, 330 litres luggage
Early 2012 £28,995 lease cost not yet available 50 miles electric only + 310 using petrol generator eight years, 100,000 miles four hours full charge (240v) four seats, 300 litres luggage
Unlike the Leaf, which is a pure electric car aimed at urban customers, the range-extended, plug-in hybrid electric Ampera is more suited to a traditional company car driver who needs to make long motorway journeys.
mile range whereas Vauxhall says its Ampera can go 360 miles without the need for recharging or refuelling.
2013 with the arrival of electric versions of popular fleet cars – the Ford Focus, VW Golf and a new BMW i3.
Research suggests that until the UK develops a more comprehensive charging infrastructure and motorists overcome their range anxiety, hybrids like the Ampera will prove most popular with fleet buyers. The Leaf has a 100-
Nissan and Vauxhall will also face competition in 2012 from Toyota’s new Prius plug-in hybrid and Renault with its all-electric Fluence saloon and Zoe compact hatchback. However, the market is set to really spark into life in
“Shortage of supply means that the fleet market for electric vehicles is unlikely to take off until 2013,” said BVRLA chief executive John Lewis. “But the pioneers of 2011 and 2012 will learn some valuable lessons in real-world use.” n
BVRLA News | February/March 2011
Why are we waiting? BVRLA members on lead times Most of the feedback from BVRLA members centred on the Audi, Volkswagen and Skoda brands. Here are some of their comments: “Most other manufacturers are reasonable… Volkswagen Group is by far the worst, and it is all down to incompetent planning and forecasting.” “Audi’s build dates are very erratic at the moment. In December and January it was taking up to six weeks from the build date to delivery of the vehicle to the dealership. The average lead time is five-to-six months.” “Audi lead times are pretty bad on most models.” “Scirocco and Tiguan should be 12-14 weeks lead time, but due to the UK allocation for 2011 both these vehicles have a lead time of 32 weeks. Most Golf orders are taking 20-24 weeks. The dealerships seem to be under the impression that allocation is being prioritised elsewhere. Despite this, our order book for VW remains strong.” “Skoda has a shortage of diesel engines across the range, resulting in lead times of up to 24 weeks. Build dates are very erratic and unconfirmed at the moment.” “A six-month lead time can have a major impact on a vehicle’s lifecycle, creating extra residual value risk. Other elements, like the cost of funding, can also change.”
How to live with lead times 1 Order in advance – most fleets have predictable purchase cycles, so get your order in early. 2 Be flexible – If the vehicle you want is not available, choose something else – perhaps a model that is in stock or one from a cancelled order.
BVRLA News | February/March 2011
3 Offer incentives – encourage your drivers to choose vehicles that can be delivered more quickly. 4 Don’t over-specify – The more bespoke a vehicle becomes, the longer the potential waiting time. 5 Do your research – Customers are willing to wait longer for some cars than others.
5
A fond farewell: BVRLA chairman Kevin Mc term in office ends this year, urged members Nally, whose to get involved
ers can’t be wrong din of s ble ta t gh ei Eighty
There were even balloon s!
Mike Penning: no
t a typical Tory
aised BE Nit, y JohnLewis: pr char the automotive industry
Kevin Bridges: cleaner than Frankie Boyle (but only just)
Lord Sebastian Coe enthralled the 900 guests pres ent Hilton’s Grand Ballroom and revealed his car rental conn in the ection
Time to reinforce the trophy cabinet: Lord Coe poses with all award winners (minus Eric Rees – second place in the C& G the evening’s category)
Insurance that puts you in the driving seat The value you’d expect for less than you might think We’ll make sure you only pay for the insurance you need on your rental fleet. And because we offer more payment options than anyone else on the market, your cash flow won’t take such a beating either.
For a quote, call us today on 0118 929 5064 or visit www.rentalbusiness.aon.co.uk
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BVRLA looks for ways to reduce needless complaints The BVRLA is looking into ways of reducing the number of complaints against leasing firms that it is asked to investigate. In 2010, 77% of leasing-related complaints were decided in favour of the leasing firms involved. The BVRLA believes this indicates that members have the right evidence to defend their end-of-lease charges – the main area of complaint. Complainants tend to dispute either the existence of damage or the cost of repairing damage, or claim that damage was reasonable given the age and mileage of the vehicle. These claims are usually robustly defended by members’ processes and evidence. Given the presence of this evidence, the BVRLA believes that many disputes could be resolved by leasing firms themselves if they established more formal complaints procedures. The BVRLA investigated 249 complaints against rental and leasing companies in 2010 – a reduction on the number investigated in 2009. “Contrary to what you might think, given some of the negative press coverage the rental sector has received recently, rental company complaints are on the decrease,” says Jay Parmar, the BVRLA’s head of legal services. 47% of complaints against rental companies were found in their favour. This appears to indicate an improvement by the association’s rental members – in 2009 the majority of complaints were found in favour of complainants. The BVRLA believes this shows that rental companies have taken steps to get processes right and robustly defend their actions. A sample complaint which is typical of those the BVRLA has dealt with in the past year is featured on the right. n 10
Road rage: clear explanation of end-of-lease charges and evidence of vehicle condition upon return can head off many complaints
Result of rental and leasing complaints adjudicated on by the BVRLA Showing percentage of results in favour of member and complainant
Rental
Leasing
Member
47%
77%
Complainant
41%
12%
Neither/Both
12%
11%
Number of complaints adjudicated on by the BVRLA By sector of membership
Rental
Leasing
Leasing broker
2010
135
107
7
2009
154
98
12
2008
182
89
3
A typical complaint The BVRLA received a complaint from the managing director of a small business, complaining about a leasing member. The member had failed to pick up its vehicles at the end of the lease and then charged its customer for an extra month’s lease payment. The BVRLA reviewed the file and asked the member for comment.
unavailable due to repairs being carried out. As the complainant had cancelled the collection, responsibility for rearranging it rested with them. The complainant had failed to do this, which is why the vehicle was not picked up until a month later. The member’s contract clearly stated that lease payments were due until the vehicle was collected.
The member firm said that the initial vehicle collection had actually been cancelled by the customer as the vehicle was
The BVRLA therefore concluded that the member had acted correctly in charging the complainant the extra month’s lease payment. BVRLA News | February/March 2011
Association’s airport efforts are starting to reap rewards The efforts of the BVRLA’s airports working group are starting to pay dividends. Manchester Airport has installed a ‘travel information pod’ in its baggage hall which will ensure that car rental is offered as a travel option to all air travellers. The move puts car rental on an equal footing with rail, buses and taxis in terms of its exposure to travellers. Manchester Airport Group will also ask airline passengers who do not rent cars for their onward journey to say why not. It is hoped this will help to identify any remaining obstacles to car rental. BAA, the operator of Heathrow, has also been working with the association to identify and remove obstacles to car rental. It has already improved signage and expressed its desire to deliver
clear information about car rental to the millions of air travellers who use its airports each year. l In the wake of the disruption to air services this winter caused by heavy snowfall, BAA launched an inquiry into its performance. After canvassing members who were adversely affected, the BVRLA has submitted its findings in the hope that this will help airports prepare better contingency plans. n The airports working group was set up to encourage airport operators to promote car rental to air travellers. For more information about its work contact Jay Parmar, the BVRLA’s head of legal services. Contact Jay Parmar, jay@bvrla.co.uk 01494 545706
Renault’s u-turn on EV batteries Renault has responded positively to criticism from the BVRLA and data provider CAP by reversing its plan to offer only leased batteries with its electric vehicles (EVs). The French car and van maker is due to introduce four electric vehicles over the next two years, but had insisted
that it would sell the vehicles without batteries due to concerns about their high cost and potential impact on residual values.
Stricter standards coming to London Low Emission Zone in January 2012 A number of changes are being introduced from 3 January 2012 to the London Low Emission Zone. These include:
❱ Larger vans, minibuses and other
vehicles will be included in London’s Low Emission Zone (LEZ) and will have to meet a Euro 3 standard for particulate matter in order to drive within the zone free of charge.
❱ For heavy goods vehicles (HGVs),
buses and coaches that are already affected by the LEZ, emissions standards will be tightened to Euro IV for particulate matter.
Most vehicles owned by BVRLA members are likely to comply with the standards, thereby providing an opportunity to promote their products to customers who occasionally operate in London or need to upgrade older vehicles. n London Low Emisson Zone (Fact Sheet 568) can be downloaded here.
However, it now says that it will offer a range of options, including battery leasing, full vehicle leasing and outright purchase, depending on demand. n
BVRLA gives its Risk management: are you interested? support to campaign The BVRLA is inviting members to “The group will only meet when the let it know about risk management agenda dictates and we will mostly for fairer fuel prices and compliance issues of interest to them. “We are aiming to set up a group of members who are involved with risk management who can share their experiences and develop guidance for the wider membership on credit risk profiling, debt recovery, compliance with legislation and best practice on rental front desk operation,” said legal services executive Amanda Brandon. BVRLA News | February/March 2011
communicate virtually.
“We are eager to ensure the group represents all members’ requirements so anyone interested in being involved should complete our online survey and let us know what they would be interested in discussing with their colleagues.” n The BVRLA’s risk management and compliance survey can be found here: www.surveymonkey.com
The BVRLA has added its support to the Fair Fuel UK campaign. Launched in January, the campaign is calling for the government to scrap the fuel duty rise planned for April and introduce a mechanism to stabilise fuel prices. n To find out more, or to sign the campaign’s petition, go to www.fairfueluk.com 11
BVRLA Accredited Training Courses Manheim Remarketing
a c c r e dit e d t r a ining pr ov ide r
Book your place today Manheim Remarketing Training dates 2011 One day courses 9.30am-4.30pm
Location:
Manheim, Dunton Park, Curdworth, Warwickshire, B76 9EB In-house training is also available on demand.
Course 1: Fair Wear & Tear Standards Training
Dates available: 13th Apr, 16th Jun, 16th Aug, 12th Oct and 30th Nov Who should attend and why? Fleet operators, managers, administrators or drivers who regularly discuss the condition of the vehicle with the customer, especially during the contract period or on termination. Our expert trainers will cover: • Key factors influencing vehicle’s resale price
• Reduce charge-back or refurbishment costs at the end of lease
• An introduction in to the BVRLA Fair Wear & Tear standards
• Appraisal of the vehicle using a dedicated method, relating any findings to the Fair Wear & Tear standards
• How Fair Wear & Tear standards will impact on the vehicle, its saleability and value at de-fleet • Impact of vehicle documentation, servicing, repairs and general care taken by the customer will have on wear and tear.
Course 2: Vehicle Inspection and Damage Recognition for daily rental operators
• Effective communication methods with customers to limit misunderstandings and resolve problematic issues
Dates available: On request Who should attend and why? Branch managers, customer service agents, check-in staff and valeters. Our expert trainers will cover: • Discussion of main factors influencing a vehicle’s rental and resale price • Differences between 'acceptable' damage and ‘unacceptable’ damage relative to a vehicles age and mileage
• How damage will impact on the vehicle • Appraisal of a vehicle using a dedicated method relating any findings to the principle of 'acceptable' or ‘unacceptable’ damage
• Reduce customer charges or refurbishment costs at end of rental
To book a place or for further information contact Marcia Unitt on 01675 471178 or 07795 608269 www.manheimremarketing.co.uk
MANHEIM Auctions
ING Car Lease: climbing the stairway to success The entire maintenance control team at ING Car Lease has passed the BVRLA’s new Automotive Technician Accreditation (ATA).
success. We’re incredibly proud that the whole of our technical services team has passed this accreditation with flying colours.”
Alan Lilley, head of technical services at ING Car Lease, said: “Technical services advisers perform an essential role within the fleet industry to ensure that the safety of our customers and drivers is not compromised.
The accreditation, regulated by the Institute of the Motor Industry (IMI), is valid for five years. Recipients also undertake continuous professional development. Fifty technical services professionals have been accredited against a set of key skills – including vehicle maintenance and repair processes, budgeting, health and safety, and customer service – since the ATA was launched last September. n
“By focusing on efficiently managing expenditure, while ensuring vehicles are kept in a legal and roadworthy condition, the technical services team is integral to fleet management
Training courses BVRLA Fair Wear and Tear Standards Training Course 13 April Dunton Park, Warwickshire
The BVRLA Fair Wear and Tear course is run by BVRLA-accredited training provider Manheim Inspection Services. The one-day course is delivered through a mixture of classroom and ‘hands-on’ practical workshop sessions and is ideal for staff who regularly discuss vehicle condition and those in business development roles. Contact Fran Hampson, frances@bvrla.co.uk 01494 545703
Certificate in Fleet Consultancy Module One: 13-14 April 2011 Module Two: 31 May - 1 June 2011 Amersham Devised in association with the Institute of Car Fleet Management (ICFM) and accredited by the Institute of Leadership and Management (ILM), this course is aimed at sales executives and account managers. It covers key principles of fleet and asset management, policy purpose and delivering fleet solutions, including finance and acquisition needs. Contact Nora Leggett, nora@bvrla.co.uk 01494 545713
ING Car Lease’s maintenance controllers: Dennis Birch, Bryan Gough, Gary Nutter, Mick Philips, Dave Rushton, James Long, Simon Martin, Philip Ainsworth, Tim Milstead
Training programme 2011 Tech & Ops Forum at the Electric Vehicle Showcase, in association with Fleet World Continuous Insurance Enforcement Seminar and Rental Operational Legal Update Workshop
Solihull
22 March
Warwickshire
5 April
In-house training – dates available upon request For further information about all BVRLA courses, contact Fran Hampson: frances@bvrla.co.uk, 01494 545703
New members Aberdeen 4x4 Self Drive AGS European Ltd Campervantastic Ltd SG Fleet UK Ltd Assured Vehicle Rental Ltd Vertu Motor Plc
BVRLA News | February/March 2011
Aberdeen Huddersfield London Carlisle Altrincham Gateshead
Rental Rental Rental Leasing Associate Associate
ATA Technical Customer Service Advisor (see feature above) Assessors can be booked at dates to suit candidates Intended for staff in technical service departments, this Automotive Technician Accreditation (ATA) aims to boost individual careers and professional development while improving an employer’s reputation for professional excellence. Regulated by the Institute of the Motor Industry (IMI) the accreditation lasts five years. Skills are assessed through an online test and practical assignments based on real-life situations. The assessment, which only takes half a day, can be carried out at the candidate’s own business premises. Contact Fran Hampson, frances@bvrla.co.uk 01494 545703 13