BVRLA annual review 2010
bvrla.co.uk Established in 1967, the British Vehicle Rental and Leasing Association is the trade body for companies engaged in the rental and leasing of cars and commercial vehicles. Through its 500 member companies and their customers, the BVRLA represents the interests of more than two million people who drive at work, as well as the millions of people who use a rental vehicle each year. 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 Kevin McNally Vice Chairman Neil Cunningham Honorary Treasurer Brian Back Chief Executive John Lewis
Cert no. TT-COC-002132
BVRLA Annual Review 2010
The vehicle rental and leasing industry
Employment: The vehicle rental and leasing
makes a major contribution to the UK
sector employs an estimated 46,000 people
economy, bringing safe, sustainable
and supports a further 200,000 jobs across the
and affordable mobility to millions of
automotive industry in the UK.
consumers and businesses. Purchasing: BVRLA members spend around During the recession, BVRLA members helped
£16bn each year on new vehicles and a further
sustain thousands of businesses, providing them
£4bn on ancillaries such as maintenance, repairs,
with a vital source of funding and enabling them
insurance, telematics, remarketing and business
to free-up valuable capital to invest elsewhere in
services.
their operations or to service debts. Being able to rely on fixed-cost, flexible transport has enabled
Taxation: Each year BVRLA members contribute
many organisations to take advantage of the
an estimated £470m in vehicle excise duty and
emerging recovery.
registration fees alone. Their customers pay around £4bn in fuel duty and £1.4bn in benefit-
The months ahead will bring fresh challenges as
in-kind tax.
our sector deals with the impact of government spending cuts, changes to lease accounting and
Mobility: BVRLA members operate a combined
the first wave of electric vehicles hitting fleets.
fleet of more than 2.5 million vehicles, giving businesses and consumers access to safe, fuel-
BVRLA members will help their customers deal
efficient road transport.
with these changes, providing the financial and operational support they need to meet their ever-
Automotive market: BVRLA members buy 44%
changing transport requirements.
of new cars, vans and trucks registered each year. They also play a key role in the aftermarket, disposing of over a million high-quality, wellmaintained vehicles each year.
BVRLA Annual Review 2010
Page
6
Achievements
7
Challenges
our objectives for 2011
8
Working for you
10
Chairman’s comment
the BVRLA’s successes during 2010
the BVRLA’s activities in 2010
how the vehicle rental and leasing industry coped with a new government and an economic downturn
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Chief executive’s comment
the BVRLA’s work throughout the year
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Sector report – rental
airports, congestion charges and equality
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Sector report – commercial vehicle enforcement, testing and van emissions
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Sector report – leasing and fleet management
lease accounting, VAT recovery and manufacturer relationships
20
Sector report – leasing broker
standards, accreditation and boosting membership
22
How are we doing?
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BVRLA member listing
a comprehensive list of full members of the BVRLA
26
highlights from the member survey 2010
Who we are the members of the BVRLA team and how you can contact us
BVRLA Annual Review 2010
During 2010 your association has… …reduced the administrative burden
…convinced the European Commission to
associated with new lease accounting
secure the end-user status of leasing companies
proposals by ensuring that fees relating to
in the eyes of motor manufacturers and their
maintenance, fleet management and other
distribution chains.
service costs are excluded and customers renting vehicles for less than 12 months can
…worked with the European Commission,
use a simple accounting model.
consumer bodies, Leaseurope and BVRLA members on a series of measures to
…helped rental members participate in regional
tackle cross-border car rental disputes.
consortiums bidding for government funding for
The association has helped develop a pan-
electric vehicle charging points.
European conciliation service and a key facts document for consumers.
…worked with the Freight Transport Association, Road Haulage Association and
…launched a new Automotive Technician
Society of Motor Manufacturers and Traders
Accreditation (ATA) for the rental and
to highlight concerns over the Vehicle and
leasing sector, which recognises the skills of
Operator Services Agency’s plans to replace
maintenance controllers/technical service
its commercial vehicle testing locations with
advisors.
privately-run sites staffed by civil service examiners.
…undertaken a major research project that will demonstrate the key role car rental plays
…developed a pilot for members to access heavy
in providing a more sustainable transport
goods vehicle annual test data electronically.
system in the UK.
…raised car rental’s profile at UK airport
…helped to raise standards of professionalism
locations and made progress towards
and provide opportunities for career development
making services more accessible for
in the leasing broker industry by introduced a
passengers.
new accreditation scheme for sales staff.
BVRLA Annual Review 2010
Over the next year your association will… …lobby the government to ensure that the
…raise the profile of vehicle rental within central
business motorist is not seen as an easy
and local government to ensure that it is seen as
target for tax increases and that transport
part of the integrated transport solution.
cuts do not stifle economic recovery. …continue to protect our members’ right to …work with government departments and
enjoy free and competitive access to vehicles
agencies to reduce the cost and administrative
and aftersales services.
burden of red tape. …review the training and accreditation needs of …keep members and their customers
our rental members with the aim of delivering a
informed about any changes to lease
new qualification for frontline counter staff.
accounting rules and their impact on the vehicle rental and leasing sector.
…make more use of social media and online technology to deliver timely and relevant information to members.
…encourage the Driver and Vehicle Licensing Agency to improve its electronic communications, saving our members considerable time and money. …attempt to get our Commercial Vehicle Quality Assurance (CVQA) inspection programme endorsed by the Vehicle and Operator Services Agency, which would provide valuable assurance to our members’ customers.
BVRLA Annual Review 2010
The BVRLA provides a wide range of
strength, attended by nearly 400 members,
information, services and products
industry suppliers and experts during 2010. The
specifically developed for vehicle
growing reputation of these events is shown by
rental and leasing companies and their
the list of companies willing to host them, which
customers. Here are some more details of
includes BMW Group, Manheim Auctions, the
what we have been up to.
Motor Insurance Repair & Research Centre, Thatcham and Volkswagen Commercial Vehicles.
Training and accreditation As part of its goal of raising standards of
The association also held a timely seminar on the
professionalism within the industry, 2010 saw
implications of the proposed changes to lease
the association offering even more in the way of
accounting, which garnered some of the best
training courses and accreditation.
delegate feedback we have ever received for an event.
More than 180 people improved their knowledge of subjects ranging from vehicle fair wear and
Research and data
tear to contract hire; 41 passed the association’s
BVRLA research provides a unique source of
Vehicle Rental Operator Skills exam. Students on
data for members, enabling them to benchmark
the challenging Certificate in Fleet Consultancy
their own performance and learn about industry
programme spent four days getting a better
trends. It can also help the association identify
understanding of the fleet manager’s role and
new issues that we should be lobbying on or
needs.
areas where we could provide new services for members.
The year also saw us introduce two new qualifications. The BVRLA now provides
This year the BVRLA has undertaken one of
accreditation for the industry’s technical services
is largest projects to date, conducting a survey
advisors and leasing broker sales staff.
of our largest rental members in conjunction with the well-respected research body TRL.
Seminars and forums
We hope that this study will give the clearest
The BVRLA’s Service, Maintenance and Repair
picture yet of the role the car rental plays in a
Forum and Residual Value and Remarketing
modern, sustainable and integrated transport
Forum continued to grow from strength to
environment.
BVRLA Annual Review 2010
Members made a record number of searches
Information and advice
on the BVRLA’s RISC database in 2010 as
The BVRLA’s legal services team was busier
seven new members, including Hertz, started
than ever during 2010, dealing with more than
subscribing to the service. More than 133,000
1,800 member queries on a range of business
customer details searches were made against
support, legal, taxation and compliance topics.
the system’s list of thousands of individuals and
The team produced or updated over 24 fact
companies that have caused problems for rental
and information sheets and wrote numerous
members in the past.
articles for BVRLA News and our Weekly Update email. They also produced a new rental ‘key
These searches provided nearly 800 positive
facts’ document, reviewed the BVRLA rental
matches, potentially saving the industry millions
agreement terms and conditions and revised the
of pounds.
Leasing Broker Code of Conduct.
Members also submitted more than 1.5 million
Our conciliation service helped settle more than
records of their interim and disposal mileage data
283 disputes between BVRLA members and
to the BVRLA Mileage database, helping to raise
their customers.
industry standards by reducing vehicle clocking
Lobbying and public relations
crime and protecting consumers.
BVRLA members continually face the threat
Communications
of regulatory costs from poorly considered
The BVRLA strives to keep members informed
and ineffective legislation. In a bid to reduce
about all important developments involving the
the impact on the industry, the association
association and the vehicle rental and leasing
responded to 26 government consultations and
industry.
pursued 28 different policy objectives with no fewer than 10 different government departments.
This year the association moved to a new digital format for BVRLA News which has cut
Public relations activity was used regularly to
more than 90% from our production costs and
support these objectives. The BVRLA issued more
accelerated its delivery to more than 3,000 staff
than 40 press releases and bylined articles in
at member organisations. In the future we hope
2010 and responded to hundreds of requests for
to be able to add multimedia content.
comments or data from journalists and researchers.
As 2010 draws to a close, many of us are
time since the election there has been a notable
unsure whether we have just witnessed the
change at the Department for Transport, with civil
first year of a slow economic recovery or
servants and ministers more approachable and
a temporary reprieve before a double-dip
receptive. They are open to ideas and the BVRLA
recession.
has had some promising discussions about mutually beneficial measures that can cut costs
The uncertainty we experienced last year is still
for both sides while reducing bureaucracy and
with us, but this time strong governmental action
red tape. One particular focus is the deluge of
is being added to the mix. The Comprehensive
paperwork and forms involved with dealing with
Spending Review will strengthen the UK’s
the Driver and Vehicle Licensing Agency.
financial position in the long term, but the substantial cuts that are required may have a
Change has definitely been in the air this year. As
significant effect on our fragile economy over the
well as a new government, our industry is facing a
next few years.
major shake-up in the way leases are accounted for. New proposals from the International
Like an enthusiastic gardener trimming back a
Accounting Standards Board will bring all leases
hedge, let’s hope that the government hasn’t cut
on to the balance sheet, giving a more complete
too far, too soon.
picture of a company’s financial position.
On a very positive note, we do appear to have a
Unfortunately, the board has come up with a one-
government that we can work with. In the short
size-fits-all set of proposals which means that a
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BVRLA Annual Review 2010
lease will be dealt with in the same way, whether
longer warranties and improving the reliability of
it is a ten-year lease for an aircraft or building
their vehicles.
worth millions of pounds, or a three-year lease for a car or van worth £15,000.
Residual values will be affected by this ageing fleet, but used vehicle market demographics are
If adopted, the proposals will impose an extra
on our side. New vehicle sales continue to slump
accounting burden, although initially they
and we will see a shortage of cars, vans and
would only apply to companies that report to
trucks aged under five years coming to market,
International Financial Reporting Standards
providing a major bulwark to prices.
(IFRS). Most firms still report to the UK’s generally accepted accounting practice (GAAP)
The introduction of electric vehicles will present
and will remain unaffected for a few years at
a major challenge for this area of our business.
least.
With such huge uncertainty over their long-term performance and reliability, setting residual values
These changes will affect all types of leased
for these trailblazers will be akin to having a flutter
assets, but I have no doubt that leasing and
on the 3.40 at Kempton! Thank goodness they
rental will remain the dominant form of business
will be making a slow and gradual appearance in
vehicle finance. BVRLA members already advise
selected fleets, giving the number-crunchers time
companies on how to reduce their transport costs
to get their algorithms accurate.
and emissions and I am confident that we can also help them with their reporting requirements.
Last year I used my chairman’s comment to congratulate the industry on the vital part it
When not dealing with the impacts of legislators
played in keeping the UK economy moving
and standard-setters, our industry spends most
– providing the vehicles, finance and mobility to
of its time focusing on customers, and, guess
help British businesses survive one of the worst
what, things are changing here too!
recessions in living memory. To a large degree, this was also the story of 2010.
Salary sacrifice schemes and flexible leasing and rental are two relatively new offerings that have
But if the last two years were about keeping that
really taken off this year. Providing companies
‘business as usual’ sign hanging over the UK
and staff with cost-effective and adaptable
economy, next year will be different.
access to transport, they are a great example of how innovative products will succeed in even the
We have an economy running along a knife-edge
most challenging of business environments.
between recovery and recession, a government having to cut spending and raise taxes and the
This environment has also led to what many
biggest ever change in lease accounting rules…
think will be a permanent change in the average
Get ready for change!
lifecycle of a leasing contract. The typical three-year, 60,000-mile contract is increasingly
Kevin McNally
being extended to four years and 80,000 miles.
BVRLA chairman and senior vice president
Manufacturers have played their part by offering
Europe at LeasePlan Corporation
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2010 has been yet another year of economic
Survey, 88% of respondents said that we offered
uncertainty, with some political turmoil
good value for money, with 48% saying that the
added to the mix, but here at the BVRLA
association delivered very good value for money,
we have tried to concentrate on the basics.
up from 43% in 2009 and 38% in 2008.
We have focused on things that we can control,
Satisfaction with the association’s core goals
keeping a tight rein on overheads and making
– providing status and credibility, speaking out for
sure that we continue to deliver the services and
the industry and disseminating information and
products that our members need and value.
guidance – remained very high, at well over 90%.
Away from our day-to-day operations, we have
However, the survey isn’t about rubber-stamping
taken a serious look at our subscription policy.
what we already do. There were some clear
Mergers and acquisitions among our members
indications of what we could improve. For example,
have resulted in losses in the association’s
next year we will be working hard to make our
subscription and commercial revenues. A five-
website easier to navigate and get more of our
year strategy has been introduced to tackle this
smaller members involved with the association.
problem, with the aim of ensuring that ongoing income in revenues from this area will eventually
Continuous improvement is one of our aims and
cover 70% of the overheads required to operate
2010 saw a number of new initiatives that we
the BVRLA. Unfortunately, this means above-
hope are already delivering benefits. We have
inflation rises in subscription levels for most
introduced a new accreditation scheme for
members over the next few years.
technical service advisers, under the auspices of the Institute of the Motor Industry (IMI) and
Thankfully, the BVRLA continues to justify its
its Automotive Technician Accreditation (ATA)
fees, or so you tell us. In our 2010 Member
scheme. A similar accreditation scheme is also
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BVRLA Annual Review 2010
being piloted for leasing brokers, and this should
Whether it was our Industry Conference, a
be launched officially in 2011.
seminar or one of our forums, record numbers of members attended BVRLA events in 2010. The
With a responsibility to represent the industry,
best attended, as usual, was our Annual Dinner, in
the association has undertaken a number
March, which catered for nearly 800 people.
of measures this year to try and improve the reputation of the car rental industry. Through
The proposed lease accounting standards have
its membership of Leaseurope, the umbrella
been a major focus for our communications
group for European car rental associations, the
efforts this year, as we try to explain the changes
BVRLA helped develop – and now administers
and their potential impact on members and their
– a conciliation service for disputes involving
customers. Through a mixture of articles, press
cross-border rentals within the European Union.
releases, speaking slots and seminars we have
The European Car Rental Conciliation Service
been spreading the message that rental and
(ECRCS) is currently being piloted by Avis,
leasing will remain among the most popular types
Europcar, Hertz and Sixt.
of vehicle finance.
The BVRLA also produced a ‘key facts’ guide to
Lease accounting is not the only subject we have
inform customers where they stand on issues
been getting on our soap box about. We have
such as fuel, mileage, insurance, damage, late
spent a lot of time in Whitehall and Brussels,
returns and traffic fines and what they should
lobbying government departments and agencies.
expect from a rental company.
We have argued with HM Revenue & Customs for fairer VAT recovery for business car drivers,
Keeping members informed about the latest
told the DVLA how it can reduce paperwork and
industry news is one of our main tasks. In 2010
cut costs and helped gain European Commission
our monthly newsletter, BVRLA News, moved to
support for leasing companies trying to protect
a new digital format. As well as cutting the time it
their status as the end users of vehicles.
takes to ‘go to press’, it has dramatically reduced our production costs, freeing money for us to
Any strategy has to be adaptable to changes in
invest in other member services.
the economic and political landscape, so we have adopted a different approach with the coalition
This year also saw our first concerted use of
government. Rather than responding to a mass of
social media, with the setting up of a Twitter
consultations, we have focused on areas where
feed and new discussion groups on the LinkedIn
we believe our members can help ministers
network. In today’s digital world many people
meet their targets for reducing public debt and
complain of information overload, so our aim is
encouraging a private-sector-led recovery in the
to ensure that we provide members with relevant
UK economy.
messages, without bombarding them. Let’s hope we all succeed in this endeavour. A great way of communicating is face-to-face, giving members the choice to come and access
John Lewis
the knowledge and insight that suits them.
Chief executive, BVRLA
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BVRLA Annual Review 2010
Whilst the unprecedented economic
growth throughout the year and is set to
difficulties of 2009 appeared to be
continue into 2011.
behind us, 2010 remained an immensely challenging year for the rental industry.
As flexible as the product it sells, the car rental industry is well-positioned
The coldest winter for 30 years followed by
to survive, and in some instances
ash clouds closing our UK airport network
thrive, despite the uncertain business
for days on end ensured that the industry
environment we expect to continue well
had a difficult start. One of the wettest
into 2011.
Augusts on record then hampered the David Alexander
leisure market during its summer peak.
Chairman of the BVRLA Rental One silver cloud was the replacement
Committee and UK operations director
sector, which experienced significant
at Europcar
The BVRLA’s Rental Committee provides an opportunity for members to hear the views of colleagues, review and formulate constructive responses to impending legislation, and help develop new ideas of benefit to the industry.
Airports The association continues to work with UK airport authorities to raise the profile of car rental at these vital transport hubs. We have carried out a customer survey at Manchester Airport and are
If you would like to participate in the work of the association, please contact Jay Parmar, our head of legal services, at jay@bvrla.co.uk
working with the UK’s biggest airport company, BAA, to improve signage at its sites.
Chairman David Alexander Europcar UK & Premier First UK
Transport for London
Vice Chair Alison Chadwick
Dollar Thrifty Car Rental
Congestion Charge switched from Capita to IBM
Henry Imber
Streetcar
late in 2009 and a series of computer glitches
Bob Baillie
Sixt Rent a Car
saw members hit with fines for vehicles that were
Ian Feast
Avis Rent a Car
wrongly omitted from the fleet register.
David Cooper
Arnold Clark
Responsibility for administering the London
Raymond Goldsmith Argyle Garage Hire Ltd
As the problems continued into 2010, the
Richard Davies
Hertz Rent a Car
BVRLA arranged for members to discuss
Mike Nigro
Enterprise Rent a Car
their issues with Transport for London, which
Stuart Liddle
Budget Rent a Car
introduced a number of improvements. There
Andrew Strathdee
Isle of Man Rent a Car
has now been a large reduction in the number of
Helen Sylvester
Miles and Miles
fines wrongly issued.
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BVRLA Annual Review 2010
Equality Act
Consumers
The BVRLA has won vital government support
In conjunction with members, the BVRLA
in its calls for the sector to be exempted from
introduced a new, easy-to-read ‘key facts’ guide
elements of the Equality Act 2010, which would
that explains the terms and conditions associated
ban rental companies from treating customers
with renting a car.
differently according to their age. The document was produced in response to a The Government Equalities Office (GEO) has
Consumer Summit held earlier this year by the
now endorsed the association’s call for rental
European Commission. Following the summit,
companies to be allowed to use risk-based pricing
the Commission called on the car rental industry
when renting to older or younger drivers. The
to provide consumers with more user-friendly
Rental Committee was able to provide vital data
information summarising key contractual terms.
that demonstrated how it was unfair to charge all customers equally regardless of the risk they
The BVRLA is now encouraging its members
posed. The association is continuing to work with
to use the document as part of the pre-rental
the GEO to discuss the practical implications of
process to help make consumers better informed
this agreement and whether types of vehicles
about the key requirements and obligations
which can be hired can also be restricted.
associated with renting a car.
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BVRLA Annual Review 2010
As expected, this has been a very
could bring a major reduction in red tape
challenging year for the commercial
and bureaucracy while cutting costs for
vehicle rental and leasing industry.
both sides.
Despite the harsh economic conditions,
In a similar spirit of cooperation, we also
the committee has remained focused on
hope to build on the unified lobbying
its core goals of promoting operator best
campaign we undertook earlier this year
practice and providing members with the
with the Freight Transport Association
information, guidance and training that will
and Road Haulage Association. Working
help them survive and prosper into 2011.
together we are able to deliver stronger, clearer messages to government.
The industry is approaching next year with a degree of cautious optimism. There are
Nigel Martin
signs that the new government is looking
Chairman of the BVRLA Commercial
to engage with our industry and we have
Vehicle Committee and commercial
already identified some measures that
vehicle sales director at Ryder
Enforcement
Annual tests
The committee has welcomed the Vehicle
We have continued to push for members to be
and Operator Services Agency’s (VOSA’s)
given access to heavy goods vehicle annual
new enforcement strategy, which reduces
test data on an electronic basis to allow the
the emphasis on checking for vehicle defects
assessment of third-party providers and to
and overloading and pays more attention to
improve road safety. A service has now been
tachograph fraud and drivers’ hours. It will boost
piloted and the BVRLA wants this to be made
the role of training, information and education
available to the wider membership.
and target persistent offenders for penalties and prosecution. We will continue to support VOSA
The association has also lobbied the Department
as it implements its new strategy.
for Transport (DfT) for commercial vehicles to be exempt from an annual test in the first year, citing the fact that they are already inspected on a frequent basis. We estimate that such a change would save the industry £12m per annum in test fees and vehicle preparation.
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Vans The BVRLA has produced advice for members on renting and leasing vans which use exhaust gas recirculation (EGR) or selective catalytic reduction (SCR) technology and the practicalities of vans which require AdBlue. The association has also been lobbying the European Commission to ensure that its proposals to set mandatory emissions targets for van manufacturers recognise the needs of van users. The BVRLA’s Commercial Vehicle Committee provides an opportunity for members to hear the views of colleagues, review and formulate constructive responses to impending legislation, and help develop new ideas of benefit to the industry. If you would like to participate in the work of the association, please contact Jay Parmar, our head of legal services, at jay@bvrla.co.uk
A united voice Earlier this year the BVRLA joined forces with the Society of Motor Manufacturers and Traders, the Freight Transport Association and the Road Haulage Association to complain about plans to change the current commercial vehicle testing regime. A joint letter was sent to ministers at the DfT to express our dissatisfaction about the way it was introducing new Authorised Testing Facilities, which are run by private companies but staffed by civil service examiners. We believe that it is
Chairman Nigel Martin
Ryder Plc
Vice Chair Elliot Lennick
MAN Financial Services
Margaret Clark
Turner Hire Drive
Adam Fairbotham
Hill Hire Plc
David Farbon
Fraikin Ltd
Victoria Kerr
Eurohire Vehicle Rentals
Jon Lawes
Hitachi Capital
Andrew Morley
Prohire Plc
Steve Martin
Scania Truck Rental
unrealistic to expect VOSA staff to deliver a
Chris Sharp
Burnt Tree
satisfactory truck-testing service via third-party
Geoff Tyler
DAF Trucks
workshops.
Duncan Webb
BT Fleet Ltd
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The BVRLA’s Leasing and Fleet Management Committee provides an opportunity for members to hear the views of colleagues, review and formulate constructive responses to impending legislation, and help develop new ideas of benefit to the industry. If you would like to participate in the work of the association, please contact Jay Parmar, our head of legal services, at jay@bvrla.co.uk Chairman David Brennan
Leaseplan UK Ltd
Vice Chair Simon Oliphant
Hitachi Capital
Keith Allen
ALD Automotive
Mark Biggs
Arval Ltd
Mark Chessman Lex Autolease Peter Cakebread Marshall Leasing Andrew Cope
Zenith Vehicle Contracts
Stuart Houlston
Lombard Vehicle Management
Andrew Mann
JCT 600 Contracts
Con Mclaughlin
Peugeot Contract Hire
Ian Tilbrook
ING Car Lease
Peter Tatlock
Masterlease UK Ltd
In 2010 clients demanded a proactive
biggest challenges facing our industry in
stance from their leasing providers in
2011. The future success of the industry
delivering cost-effective fleet solutions.
rests on innovation. In many cases this means restructuring fleet models to make
However, the company vehicle remains
them relevant for a changing business
highly regarded as a key tool of business
environment – delivering cost benefits to
and 2010 saw fleet management
both employers and employees. Salary
increasingly considered at board level.
sacrifice schemes are one example of
This includes reviewing the way company
this approach in action – breaking the
vehicles are managed and measured,
traditional boundaries between the
ensuring effective use of vehicles to support
company car user and private car user.
business goals and balancing driver David Brennan
satisfaction and environmental concerns.
Chairman of the BVRLA Leasing and Fleet Responding to economic recovery and
Management Committee and managing
public sector spending cuts are the
director of LeasePlan
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BVRLA Annual Review 2010
Lease accounting
This end user status will protect leasing
The International Accounting Standards Board
companies’ freedom of choice when sourcing
(IASB) has issued proposals to bring all leased
vehicles and mean that they can keep customer
assets onto the balance sheet, giving a more
details confidential.
complete picture of a business’s financial position. The guidelines will also help preserve members’ If introduced, they would ensure publicly quoted
freedom of choice in getting their vehicles
companies leasing an asset – whether a
repaired, whether it is with a franchised dealer,
computer, vehicle or property – would be required
brand specialist or independent garage.
to account for it, giving greater transparency to
VAT
investors.
The BVRLA has called on HM Revenue & The BVRLA is continuing to lobby the IASB for
Customs (HMRC) to raise the VAT recovery rate
a simplified approach to the treatment of rental
for businesses leasing cars. Firms are currently
vehicles. It has already ensured that leasing
only allowed to recover 50% of the VAT portion of
companies do not have to provide any financial
the finance element of their rental payments, with
information relating to the asset’s value at the end
this percentage based on the assumed level of
of the leased term – so future residual values can
private use of the vehicle.
be ignored. However, data compiled by the BVRLA suggests The association has undertaken an extensive
that private mileage is much lower than HMRC
communications campaign, using face-to-face
presumes, meaning that leased fleets could be
meetings, print and online media, to ensure that
overpaying hundreds of millions of pounds in VAT.
the full implications of the proposals are clearly understood by members and their customers
The UK’s VAT treatment on leased cars has to be approved by the European Commission
Motor manufacturers
every three years and HMRC has now agreed
Following a three-year campaign, the BVRLA was
to undertake a thorough review of mileage data
able to secure the status of leasing companies
ahead of the next deadline, in 2013.
as end-users of vehicles in the eyes of motor
Electric vehicles
manufacturers and their distribution chains.
Recognising the immense purchasing power of Confirmation came in the European Commission’s
the rental and leasing industry, the government’s
guidelines to its block exemption regulations,
Office for Low Emission Vehicles has been
which will come into effect when the motor trades’
consulting with the BVRLA and its members on
current block exemption from EU competition law
the best way of introducing the plug-in car grant
expires on 1 June 2013.
to encourage fleet take-up of electric vehicles.
19
BVRLA Annual Review 2010
After the upheaval of 2009, the last year has been about consolidation. The shape of the broker marketplace has changed radically as a number of finance companies pulled out of the market and others rationalised their introducer base. This has resulted in a smaller, core group of brokers whose business practices and sales volumes chime with the aspirations of their funding partners. The major challenges for our channel will, I believe, stem from the availability of funds and the appetite for new business demonstrated by our finance company partners. Economic uncertainty and lack of commercial confidence are the two biggest threats. The upside is that we now have a stable broker base of largely well-established companies operating to agreed standards. This can only be good for our industry
Those companies that remain are looking
as the channel becomes recognised as a
healthier and their fiscal position is
positive source of good-quality business
improving. I’m certain that all brokers will
that is properly managed.
be striving to build on this increasingly solid foundation.
Hopefully, the process of consolidation is now largely at an end, and brokers can
Mike Lloyd
concentrate on the opportunities that
Chairman of the BVRLA Leasing Broker
will arise as the economy continues to
Committee and managing director of
stabilise.
Central Contracts
20
BVRLA Annual Review 2010
Manufacturer relations
Enlarging the market
The committee has built on the good work of
The committee is in the process of developing a
the previous four years in enhancing the profile
new membership proposition which outlines the
of leasing brokers with motor manufacturers.
benefits of joining the BVRLA and the standards
Brokers are increasingly being recognised as a
required to do so.
key route to market for some leasing companies and manufacturers.
Improving standards As part of its push to raise standards, the association has worked with the committee to produce best-practice leasing broker guidance
The BVRLA’s Leasing Broker Committee provides an opportunity for members to hear the views of colleagues, review and formulate constructive responses to impending legislation, and help develop new ideas of benefit to the industry.
on a range of areas, from producing quotations to end-of-contract procedures. It seems to be working – the number of
If you would like to participate in the work of the association, please contact Jay Parmar, our head of legal services, at jay@bvrla.co.uk
leasing broker complaints made to the BVRLA conciliation service has halved in 2010 compared to the previous year.
Chairman Mike Lloyd
Central Contracts Ltd
Under the guidance of the Leasing Broker
Vice Chair Martin Brown
Fleet Alliance
Committee the association has developed a new
Nigel Brain
Leasing Options Ltd
accreditation scheme for leasing broker sales
Paul Bulloch
Concept Vehicle Leasing
personnel.
Robert Chisholm
Applewood Vehicle Finance
Steve Cocks
Lex Vehicle Leasing
Currently in pilot phase, the full scheme will be
Mike Curtis
Arval Ltd
available to all BVRLA members from 2011,
Jo Elms
LeasePlan UK Ltd
and will include a range of online learning
Paul Huxford
PHVC Ltd
materials. The annual accreditation will test
Michael Moylan
Croydon Contract Leasing
candidates’ competency in corporate and industry
Philip Page
Compass Contract Hire Ltd
governance, regulatory compliance, business
Graham Prince
Neva Consultants Plc
acquisition methods and sales.
Gordon Stephen
Ogilvie Fleet Ltd
Accreditation
21
BVRLA Annual Review 2010
According to the results of the BVRLA member survey 2010‌ 88% of members say that belonging to the BVRLA represents good or very good value for money. 88% of members believe that BVRLA
News and Weekly Update provide a good or very good level of information. 80% of members say they read
BVRLA News on a regular basis, making it more popular than Fleet News, Fleet World or any other trade publication. 98% of members are either
97% of members are either
satisfied or very satisfied that
satisfied or very satisfied with the
belonging to the BVRLA confers
BVRLA as a source of information
status and credibility.
and advice. 96% of
82% of members are either
members
satisfied or very satisfied with
are either
the networking opportunities
satisfied or very
provided by the BVRLA.
satisfied that the BVRLA provides a strong voice to represent the industry.
22
BVRLA Annual Review 2010
Corporate members A & B Self Drive Hire Ltd
Brocars Plc
Euroway Vehicle Contracts Ltd
Aberconwy Car & Van Hire
BT Fleet Ltd
Exclusive Vehicle Contracts
Access Hire Nationwide Ltd
Budget Rent A Car
Falcon Vehicle Solutions
Accident Claims Hotline Ltd
Burnt Tree Vehicle Rental
FGA Contracts UK Ltd
Accident Exchange Ltd
Bury Van Hire Ltd
First Self Drive Ltd
Adelphi Self Drive
Cambridge Car & Van Rental
Fleetcare Ltd
Afford Rent A Car
Capital Hire Car & Van Rental
Fleet Europe Plc
Agility UK Ltd
Car and Van Hire Ltd
Fleet Hire Ltd
Aim Rent A Car Ltd
Carillion Fleet Management
Fleet Management and Leasing Ltd
ALD Automotive
CCL Vehicle Rentals Ltd
Flexible Vehicle Contracts Ltd
Allied Vehicle Rental Ltd
Central Self Drive
Focus Vehicle Rental
Allied Vehicles Ltd
Charter Vehicle Hire
Ford Rental
Alltruck Hire
Cheshire Van Hire Ltd
Fourways Self Drive
Almers (Kent) Ltd
Cheshire Vehicle Rental & Sales Ltd
Fraikin Ltd
Alphabet (GB) Ltd
Chevron Autohire
Franklin Hire Ltd
AMK Self Drive
Chief Vehicle Rentals Ltd
FrigoRent Ltd
AMT Rent A Car Ltd
City Inter-rent
Fulton Leasing
Amvale Ltd
Clarkson of Glasgow
Gallagher Car & Van Rental
Apex Car Rental
CLM Fleet Management Plc
GE Capital Solutions Fleet Service
Argyle Garage (Hire) Ltd
Cole Services Ltd
Gill Bradley Vehicle Hire Ltd
Arnold Clark (Finance) Ltd
Collison Vehicle Rental
GKL Leasing
Arval UK Ltd
Commercial Vehicle Solutions
GlenRental
Aston Financial Ltd
County Car & Van Hire Ltd
Global Autocare Ltd
Automotive Finance & Leasing (UK) Ltd
Crown Rentals Ltd
Go Green Car & Van Rental
AVH Ltd
DAF Trucks Ltd
Green-Line Vehicle Rentals
Avis Rent A Car
Daimler Fleet Management
Green Motion Vehicle Rental
B & T Hire (Hertfordshire) Ltd
Days Contract Hire
Grosvenor Contracts Leasing Ltd
Barnes Hire City Ltd
DFC (NI) Ltd
Harber Hire (Autos) Ltd
Beerhouse Self Dive Hire
Dreamcarhire.com
Helphire Group Plc
Benfield Contract Motoring
Drive UK
Hendy Hire
Berkshire Van Hire
Drive UK (Preston) Ltd
Hertz Rent A Car
Big White Cube Vehicle Hire
Easi Drive Ltd
Hill Hire Plc
BMW
Eden Garage
Hitachi Capital Vehicle Solutions Ltd
BMW Financial Services (GB) Ltd
Enterprise Rent A Car
Howard Self Drive Hire Ltd
Bognor Motors Vehicle Solutions
Eurodrive
Howarth Bros Haulage Ltd
Bourne Free Motorhomes Ltd
Eurohire Vehicle Rentals Ltd
Inchcape Fleet Solutions Ltd
Brecon Car Rentals Ltd
Europcar Group UK Ltd
ING Car Lease UK Ltd
Brighton Vehicle Rentals
European Transport Assistant
Intack Self Drive
23
BVRLA Annual Review 2010
Corporate members (continued) Isle of Man Rent A Car
Motability Operations Ltd
The Car & Van Rental Co Ltd
Iveco Contract Services Ltd
Motiva Group Ltd
The Civilised Car Hire Company
JA Fisher Cars Ltd
MTCR Marketing Ltd
The Storage Centre
Jays Vehicle Rentals Ltd
MVCH Ltd
Thrifty Car Rental
JCT 600 Contracts Ltd
Northgate Vehicle Hire Ltd
TJS Hire Co (Humberside) Ltd
John Clark Motor Group
NVR Fleet UK Ltd
TLS
John Dennis 4x4 Vehicle Hire
Ogilvie Fleet Ltd
Ton Hire
Jolly Good Van Hire
Paragon Vehicle Contracts Ltd
Toomey Eurolease Ltd
JP Rental Ltd
Parkhurst Self Drive Hire Ltd
Toomey Skyway Leasing Ltd
K2 Car Hire Ltd
Peugeot
Toyota
Keaton Knight Ltd
Peugeot Contract Hire
Toyota Financial Services (UK) Plc
Kendall Cars Ltd
Pitter Self Drive Ltd
Translinc Ltd
Kenhire Ltd
Practical Car & Van Rental
Turner Hire Drive Ltd
Key Drive Car & Van Rental
Premiere Velocity
Tusker Direct Ltd
LC Vehicle Hire
Prohire Plc
U-Drive Ltd
Lease 360 Evolution Plc
Rabbits Vehicle Hire Ltd
Vans 4 Glass Ltd
Leasedrive Velo
RCI Financial Services Ltd
Vehicle Contracts
LeasePlan UK Ltd
Regal Rentals Ltd
Vehicle Rental Ireland Ltd
Leaseway Vehicle Rental Ltd
Renault
Vehicle Rental Services
Le Baron Luxury
Rentorose Ltd
Venson Automotive Solutions Ltd
Lets Cars
RH Rentals Ltd
Vic Young (South Shields) Ltd
Lex Autolease
Riverside Truck Rental Ltd
Vincent Hire
Lombard Vehicle Management Ltd
Ryder Ltd
Vincent Van Hire
London Car Rentals
Salford Van Hire Ltd
Vincents Daily Rentals
London Hire Ltd
Sandicliffe Garage Ltd
Volkswagen Commercial Vehicles
Long Marsh Ltd
Scania GB Ltd
Volkswagen Financial Services (UK) Ltd
Lookers Leasing Ltd
Season Car Hire
Watts Van Hire
Loughton Self Drive Ltd
Shawhire
Wayside Rentals & Wayside Leasing
MAN Financial Services Plc
Sinclair Finance & Leasing Ltd
Wennington Car Hire Ltd
Marshall Leasing Ltd
Sixt Rent A Car
West Street Garage
Masterlease
Skipton Self Drive Ltd
West Wallasey Fleethire Services
McLays Car Sales Ltd
SSH Self Drive
White Dove Contracts Ltd
MC Truck Rental Ltd
Star Car and Van Rental
Wicked Campers Ltd
Measham Self Drive
Streetcar
Windsor Vehicle Leasing
Mercedes-Benz CharterWay
Stylish Car Hire Ltd
Woodfield Facilities
Miles and Miles Ltd
Sudden Impact Ltd
WVC Vehicle Solutions Ltd
MK Prestige Vehicle Solutions
Tata Motors European Technical Centre Plc
W Wright & Sons
MNH-Platinum Ltd
TCH Leasing
Zenith Vehicle Contracts Ltd
Mold Car Hire
Ten 05 Hire Sussex Self Drive
ZooCars
24
BVRLA Annual Review 2010
Leasing broker members Academy Leasing Limited
Driven By Image Ltd
Lookers Leasing Direct
Advanced Vehicle Contracts
Driven Leasing & Finance Ltd
Low Cost Vans
Advanced Vehicle Leasing (Stockton) Ltd
DSG Auto Contracts Limited
Mann Island Finance Ltd
Albion Vehicle Contracts Limited
Eagle Oak Vehicle Contracts
Millhouse Leasing
Alliance Asset Management Plc
Eiger Vehicle Leasing
Morgan Highfield and Land Ltd
Allied Vehicle Contracts
Ferguson Vehicle Contracts
Motoplan Ltd
Alpha Contracts
First European Finance (Scotland) Ltd
Motoring Solutions Ltd
Alternative Route Finance Ltd
First Vehicle Finance Limited
MW Vehicle Contracts
Anthony K Associates Ltd
First Vehicle Leasing
Nationwide Vehicle Contracts Limited
Fleet Alliance Ltd
Neva Consultants LLP
Fleetdrive Management Ltd
Newgate Finance Ltd
Fleet Street Ltd
Next Vehicles Ltd
Fleet Support Group Ltd
North Staffs Leasing Ltd
Four Counties Leasing & Contract Hire Ltd
Oak Leasing (UK) Ltd
Freedom Vehicle Contracts Ltd
OSV Ltd
Frontier Vehicle Leasing Ltd
Oxford Vehicle Leasing Ltd
Fulton Network Limited
Pendle Vehicle Contracts Ltd
Gateway2Lease
PHVC Ltd
GB Car Loans Limited
Professional Vehicle Solutions Ltd
GB Vehicle Contracts
Purple Contracts
Grange Court Leasing
Scorpion Vehicle Management Ltd
GWA (UK) Ltd
Silverstone Vehicle Management Ltd
Hawkins Fleet Management Ltd
Skyfleet Ltd
Hawkriver Leasing
Sprint Contracts Ltd
Highfield St James
Tilsun Vehicle Contracts Ltd
Holmwood Leasing Ltd
Toomey Eurolease Ltd
Howlett Leasing
Total Fleet Services Ltd
Apex Vehicle Management Limited Applewood Vehicle Finance Applied Leasing Ltd Auric Autofinance UK Automotive Funding Solutions Limited Autoplan Vehicle Contracts Autorama UK Ltd Balgores Leasing Ltd B & B Vehicle Contracts Limited Benchmark Leasing Ltd Bentley Walker Vehicle Solutions Blue Chilli Car Contracts Ltd Blueroc Ltd Bowater Price Plc Business Car Contracts Ltd Caledonian Independent Leasing Limited Cameron Clarke Leasing
Insight Vehicle Management Ltd
UK Carline Ltd
Carleasinguk.com
IVL
Vansdirect.co.uk
CCLeasing
Kingston Vehicle Leasing Ltd
Vehicle Contracts Ltd
Central Contracts (S-O-T) Ltd
Kudos Vehicle Management
Vehicles 4 Business
Central (UK) Vehicle Leasing Ltd
Lease4Less
VeSource Ltd
Compass Contract Hire Limited
Leaseline Ltd
Wessex Fleet Solutions Ltd
Crystal Lease
Leaseright Limited
West Midland Vehicles Ltd
CVM Leasing Ltd
Leasing Options Ltd
Whitewater Leasing Ltd
CVSL Limited
LMC of Farnham Ltd & Lease National
XLCR Vehicle Management Ltd
Demo Limited
Logical Vehicle Management
Yorkshire Vehicle Finance
25
BVRLA Annual Review 2010
Chief Executive’s Office
Membership
We provide accounting and administrative support to the chief executive and have responsibility for facilities management and health and safety.
We maintain membership records, manage the BVRLA quality assurance programme and take bookings for BVRLA events.
John Lewis, chief executive 01494 545712 john@bvrla.co.uk
David Hanson, membership manager 01494 545705 david@bvrla.co.uk
Kate McLaren, PA/secretary 01494 545709 kate@bvrla.co.uk
June Dyer, membership administrator 01494 545714 june@bvrla.co.uk
Jane Davis, assistant PA 01494 545707 jane@bvrla.co.uk
Legal Services We lobby on issues affecting the industry, advise members and manage the BVRLA conciliation service.
Bharti Ladwa management accountant 01494 545708 bharti@bvrla.co.uk
Jay Parmar, head of legal services 01494 545706 jay@bvrla.co.uk Amanda Brandon legal services executive 01494 545701 amanda@bvrla.co.uk
Member Services We manage a range of data services (including the Vehicle Mileage Database, the Industry Residual Values Survey and RISC Online), publications, training, seminars and forums.
Communications
Nora Leggett head of member services 01494 545713 nora@bvrla.co.uk
We keep members informed and ensure that the association and industry are presented in a positive way. We oversee the BVRLA website and publications.
Frances Hampson member services administrator 01494 545703 frances@bvrla.co.uk
Toby Poston head of communications 01494 545700 toby@bvrla.co.uk
Steph Czaplinska member services executive 01494 545702 steph@bvrla.co.uk
Steven Prizeman production manager 01494 545710 steven@bvrla.co.uk
26
British Vehicle Rental and Leasing Association Ltd River Lodge, Badminton Court, Amersham, Buckinghamshire HP7 0DD Tel: 01494 434747 Fax: 01494 434499 Email: info@bvrla.co.uk Web: www.bvrla.co.uk