BVRLA News April/May 2018

April/May 2018

The bimonthly eNewsletter of the British Vehicle Rental & Leasing Association

YOUR ASSOCIATION

Protecting the rental sector from the impact of terrorism

In the media spotlight…

Welcome to the BVRLA family Driving ahead with investment Revised LCV FW&T Guide launched VE103B stock check

Last year saw a spate of terrorist attacks in which rental vehicles were used as ramming weapons to cause death and injury in the UK and around the world.

The BVRLA and its members have been working closely with law enforcement organisations and government to identify and agree tactics to counter the terrorist risk. The association has published a Position Paper to outline key policy asks in this area and has been lobbying government.

BVRLA Chief Executive Gerry Keaney said: “We have also been actively supporting the National Counter Terrorism Police ACT campaign (Action Counters Terrorism), encouraging all those operating in the sector to help to increase awareness and vigilance amongst employees and customers of the vehicle rental sector. Training is an important part of this and we are proud to be leading on the development of a

number of bespoke training resources, including a webinar and guidance tailored specifically to the needs of the daily rental sector. The first webinar took place at the beginning of May and was joined by 100 members, representing a record attendance figure for an event like this.”

Position Paper Vehicle Terrorism BVRLA members own and operate almost 5 million vehicles; that’s 1-in-8 cars, 1-in-5 vans and 1-in-5 trucks on UK roads. As a key part of the new vehicle supply chain, members buy almost half of all new vehicles sold in the UK and sell hundreds of thousands of relatively new vehicles each year.

By working with the BVRLA and its members, policymakers can affect change and deliver results far quicker.

To engage with the BVRLA and its members to ensure a collective, coordinated and proportionate approach from government, law enforcement and industry.

To support the vehicle rental industry to develop a compulsory national accreditation scheme, endorsed by government and delivered by accredited industry experts, such as the BVRLA. To protect vehicle rental operators and their insurers from the impact of terrorism to ensure that they can continue to provide cost-effective insurance.

To intervene to secure the removal of any online content inspiring violence and extremism.

NEW

Top 5 key messages: •

The BVRLA and its members continue to work with law enforcement and government to explore ways of sharing data to help make the vehicle rental sector a hostile environment for terrorists.

•

The vehicle rental industry can help to deter terrorists by increasing visibility of, and demonstrating increased collaboration with counter-terrorism agencies.

•

The BVRLA is encouraging members to support the national ACT campaign to help increase counter-terrorism awareness and vigilance amongst employees and customers of the vehicle rental sector.

•

The vehicle rental industry takes security very seriously and the BVRLA has long-established processes in place to share information on the latest security threats and best practice.

•

The BVRLA has been accredited by the National Counter Terrorism Security Office to deliver specialist training to increase awareness and provide guidance to the vehicle rental sector on how to tackle terrorist threats.

Latest BVRLA activity from Q1-2018: •

In March, the BVRLA published a report assessing the threat of vehicle terrorism on the UK rental sector. Co-authored with the International Centre for the Study of Radicalisation, the 32-page report, Vehicles as weapons: a threat and policy assessment for the UK vehicle rental sector, provides an authoritative insight and includes recommendations on how the sector hopes to work with law enforcement organisations and policymakers from across government.

The report says these attacks pose a significant threat to the provision of affordable and convenient vehicle rental. u

• • • • • • •

Published a co-authored report Vehicles as a Weapon: a threat and policy assessment for the UK vehicle rental sector Hosted a breakfast briefing in Westminster Palace to unveil the threat assessment report to stakeholders Delivered a series of NaCTSO accredited counter-terrorism awareness training workshops for members and non-members Engaged with DfT Ministerial private office to share the report and seek meetings with ministers Held meetings with parliamentarians and other stakeholders to bring BVRLA policy position to their attention Collaborated with RHA and FTA Met with officals from Treasury and DfT to discuss insurance Met with ABI and MIB to discuss pooling risk

BVRLA Contacts: nora@bvrla.co.uk and andrea@bvrla.co.uk

The issue explained:

In 2017, we saw a spate of terrorist attacks where rental vehicles were used as ramming weapons causing death and destruction in the UK and around the world.

Analysis of terrorist literature has shown that commercial vehicles are a preferred weapon of choice.

Western governments believe that this type of terrorism is likely to become more prevalent.

Protecting public spaces from vehicle attacks is a top priority for governments.

Government and the vehicle rental sector are both under pressure to take action.

These attacks are also having a major impact on the insurance market, where members and their insurers have faced multi-million personal compensation bills.

Some insurers have since increased premiums or withdrawn from the market.

The vehicle rental market in the UK is one of the largest in Europe, managing well over 500,000 cars, vans and trucks estimated to be worth £1.25 billion1.

1

RESEARCH & INSIGHT Quarterly Leasing Survey findings 7 Leasing broker research published 7

2015 Study by KPMG

We are calling upon members to help with: Actively promoting our counter terrorism messaging Reporting any inciteful online NEW content to Gov.uk/ACT Increasing training to embed a culture of vigilance amongst staff Providing us with information to feedback the impact of terrorism Coordinating engagement with law enforcement, policymakers and others affecting our sector

REGULATION & COMPLIANCE

#LetsTalkVehicleTerror Updated 9 May 2018

The Vehicle Terrorism Position Paper can be read on the BVRLA website: www.bvrla.co.uk

AIR QUALITY & EMISSIONS Tendo boosts public affairs capacity 5 Working together for HGVs 11

Q2-2018 update

What we are asking of policymakers:

2 4 5 6 8

Vehicles as weapons: a threat and policy assessment for the UK vehicle rental sector can also be read on the BVRLA website.

NOTICE: The BVRLA Annual General Meeting will take place on Thursday 24 May 2018 at 9.30am in Amersham

Governance programme raising standards FT gives green light to members

9 9

LEARNING & DEVELOPMENT Forums help members stay ahead 10 List of L&D opportunities 10 SOCIAL & NETWORKING Stay in touch with social media 11 Annual Dinner went down a storm 12

YOUR ASSOCIATION

In the spotlight…

During Q1-2018 the BVRLA was mentioned in 371 articles: 323 online and 48 in print. Stories this quarter focussed on Clean Air Zones, the impact of vehicle terrorism and vehicle taxation. There was also coverage of the BVRLA’s Three-Year Plan, including its investment plans.

Although most of the coverage was in the trade press, articles relating to vehicle terrorism also appeared in the national media, including The Times newspaper and on the MailOnline website.

The association’s regional air quality roundtables were also covered in regional media and on BBC Look North and ITV. u

CONTACT THE BVRLA TEAM Chief Executive Gerry Keaney: 01494 545716, gerry@bvrla.co.uk Secretary to the Chief Executive Kate McLaren: 01494 545709, kate@bvrla.co.uk Management Accountant Bharti Ladwa: 01494 545708, bharti@bvrla.co.uk Accounts Assistant Melanie Richardson: 01494 545722, melanie@bvrla.co.uk Director of Communications & External Relations Toby Poston: 01494 545700, toby@bvrla.co.uk Public Affairs Manager Rachael Hewish: 01494 545739, rachael@bvrla.co.uk Research & Insight Manager Phil Garthside: 01494 545717, phil@bvrla.co.uk Media Relations & Communications Manager Andrea Davies: 01494 545710, andrea@bvrla.co.uk Marketing & Communications Executive Tamsin Stuczynska: 01494 545707, tamsin@bvrla.co.uk Director of Member Services Nora Leggett: 01494 545713, nora@bvrla.co.uk Events Manager Fran Hampson: 01494 545703, fran@bvrla.co.uk Training & Development Manager Duncan McMillan: 01494 545719, duncan@bvrla.co.uk Member Services Executive Laura Birdsey: 01494 545714, laura@bvrla.co.uk Director of Policy & Membership Jay Parmar: 01494 545706, jay@bvrla.co.uk Membership Manager Greg Theaker: 01494 545705, greg@bvrla.co.uk Compliance & Governance Executive Adam Holt: 01494 545718, adam@bvrla.co.uk Compliance Officer Hayleigh Clayton: 01494 545728, hayleigh@bvrla.co.uk Compliance & Membership Co-ordinator Diane Alexander: 01494 545720, diane@bvrla.co.uk CRM Data Manager Robert Burford: 01494 545702, robert@bvrla.co.uk Senior Policy Advisor Patrick Cusworth: 01494 545712, patrick@bvrla.co.uk Legal & Policy Executive Amanda Brandon: 01494 545701, amanda@bvrla.co.uk Conciliation Service Manager Sallie Catchpole: 01494 545715, sallie@bvrla.co.uk Conciliation Service Officers Stephen Dix: 01494 545711, stephen@bvrla.co.uk Sarah Philp: 01494 545711, sarah@bvrla.co.uk Laura Pite: 01494 545711, laurap@bvrla.co.uk Mairead Sullivan: 01494 545711, mairead@bvrla.co.uk

Gerry’s note: See you at Fleet Tech Congress ’18!

Have you developed your roadmap for connected, autonomous and electric vehicles yet? Have you finished digitising your business functions, analysing your ‘Big Data’ and testing your new Mobility as a Service platform?

With so much hype around new automotive technology and excitement about the prospects for emerging mobility trends, it is easy to feel a bit left out or ‘behind the curve’.

This is where the BVRLA can help. Our annual Fleet Technology Congress is designed to help you cut through the buzzwords and sales pitches to get a better view of what is really happening and what it means for the vehicle rental and leasing industry.

On 5 July we will be assembling our usual mix of experts, research and case studies to give you a unique perspective on how new technology and business models are already changing the way

we work. In the morning we will provide a big picture overview of the key trends shaping the automotive sector, with a particular focus on new powertrains and the arrival of connected, intelligent vehicles, which are going to change the way we think about travel.

Later in the day we will drill a bit deeper to explore how technology is changing the way we remarket vehicles, use vehicle data, think about road safety, repair and maintain our assets and electrify our fleets. We will finish off with a look at what the emergence of ‘Mobility as a Service’ might look like in the UK. You will hear plenty of buzzwords, but I can also promise you plenty of well informed, industry focussed insight and discussion.

I hope you can join us. u Gerry Keaney, BVRLA Chief Executive

British Vehicle Rental & Leasing Association River Lodge, Badminton Court Amersham, Buckinghamshire HP7 0DD Tel 01494 434747 Fax 01494 434499 Email info@bvrla.co.uk Web www.bvrla.co.uk © COPYRIGHT BVRLA 2018

BVRLA News articles may be used copyright free by members provided that an acknowledgement is given.

Chairman Matt Dyer Vice Chairman Simon Oliphant Honorary Treasurer Brian Back | April/May 2018

3

YOUR ASSOCIATION

Welcome to the BVRLA family Since the previous edition of BVRLA News was published, the association has welcomed 15 Corporate Members, one Rental Broker Member, 14 Leasing Broker Members and three Associate Members.

Corporate Members

4 Rent Vehicle Hire Tadley AT & T Rentals Newtownabbey Bespoke Van Hire Rotherham BSD National Burscough Car Hire Hebrides Stornoway Corinthian Plant Dartford Drivespeed Leasing York FCA Automotive Services UK Slough HSBC Equipment Finance (UK) Edgbaston InMotion Ventures Coventry Premier Truck Hire Blaydon Simple Self Drive London Total Fleet Solutions Loughton Vehicle Procurements Nottingham Y3 Hire York

Rental Broker Members

Auto International Car Rental

Leasing Broker Members

London

Best Contract Cars London Buyyour Limited Sutton Coldfield Clapham Commercials York Grantham Motor Company Gateshead IV Solutions Group Liverpool JCT600 Vehicle Leasing Solutions Bradford Motion Vehicle Consulting Derby NBU Consulting Camberley Platinum Leasing Cardiff Right Choice Car Leasing Bury Smart Leasing Solutions Sale Soper of Lincoln Lincoln Total Vehicle Leasing Cheshire Vanaways UK Bristol 4

Associate Members Locke Lord (UK) LLP London www.lockelord.com Locke Lord is a full-service, international law firm and our specialised Asset Finance, Leasing and Consumer Finance team provide a comprehensive range of services that fully cover the legal and compliance needs of all firms working in the vehicle rental and leasing sector.

Tasker Southeast Limited Kent www.taskerinsurance.co.uk Tasker Insurance Brokers provides businesses and individuals with the cover and advice needed to keep fleets out on the road earning money. Specialist Andy Vardon has over 30 years’ experience and extensive industry knowledge to make sure that customers get the best policy and support.

Wagonex Limited London www.wagonex.com Wagonex is a Mobility-as-a-Service platform offering cars on subscription. They provide fleet partners with the marketplace for distribution and a fleet management engine enabling them to monetise a dormant inventory. The Wagonex platform digitalises the entire consumer journey from sign up to first payment.

April/May 2018 |

Expanding the BVRLA team The BVRLA is delighted to welcome two additional members of staff as plans to expand the association’s internal resources get well underway. Rachael Hewish joins the communications team as Public Affairs Manager and Hayleigh Clayton joins as Compliance Officer.

Law graduate Hayleigh Clayton has spent the last four years working in the Legal Review Team at Watford-based law firm Slater and Gordon. Experienced in case monitoring and management, HR and compliance she will provide a much-needed additional resource to our compliance function.

Policy and communications specialist Rachael Hewish has spent the past decade supporting parliamentarians in Westminster and has worked in a variety of policy, engagement and communications roles in the charity and association sectors.

She will provide a valuable additional resource to help boost our public affairs capabilities.

We are sure you will join us in welcoming them both to the BVRLA family. u

YOUR ASSOCIATION

AIR QUALITY & EMISSIONS

Driving ahead with investment plans The BVRLA Three-Year Plan 2018-20 outlined the association’s plan to make significant investment in infrastructure, research, and internal and external expertise. The first quarter of 2018 has seen a great deal of progress, particularly in the areas of infrastructure and resource.

As well as growing its internal resource, the association has been investing in accessing the services of external public affairs specialists to support its lobbying work in areas relating to air quality, motor finance, taxation and vehicle terrorism.

There has also been investment into a new website, where scoping and design is well underway.

The new site will be tested by a selection of people, including members, to ensure that the final product delivers a positive experience for users.

The BVRLA’s Director of Communications & External Relations, Toby Poston, said: “Members will see a big improvement in ease-of-use and functionality, making it easier for them to access information that is most relevant to them. We know

| April/May 2018

The BVRLA has been working with specialist public affairs agency Tendo since the start of the year and it has already made a valuable contribution to our campaigning efforts in the area of air quality.

Tendo helped to arrange a series of highly successful roundtables, which took place in four of the five cities earmarked for the implementation of Clean Air Zones (CAZs).

The BVRLA teamed with Fleet News, Energy Saving Trust and ACFO to host the roundtables in Leeds, Nottingham, Derby and Birmingham in February and March.

The events gave members and other local fleet operators the opportunity to ask questions and discuss the impact of CAZs with local authority representatives.

BVRLA Three-Year Pl

an 2018 - 2020

Tendo helped to secure coverage in both trade and regional press, and on BBC Look North and ITV.

This three-year period will see the association makin g significant investment This Plan outlines the key in infrastructure, research, strategic priorities for the internal and external experti BVRLA as it works to suppo rt members and protect se. the interests of our sector Build our capabil .

ity

To

• Increase the BVRLA workfo rce; Expanding our policy, trainin g, communications, govern ance and conciliation teams.

• Increase political engage ment; Working with external agencie s to boost our levels of activity and internal expertise.

• Carry out more researc h activity; Increasing the budget to strengthen our evidence-based lobbyin g.

• Grow and expand our revenue streams; Focusing on training , events, research and data.

• Attract and retain the finest talent; Being an employer of choice leading and developing those we employ.

• Increase digital investm ent; Rolling out a dynamic new CRM-in tegrated website.

Improve our offering

• Focus on key issues; Raising awareness and understanding of the challenges and opport unities facing our industry.

• Focus on industry skills; Providing a wider range of innovative learning and development opport unities.

• Invest in the e-Learning Platform; Developing our portfolio of training modules and growing the user-base to 2000 by the end of 2019.

• Keep members well inform ed; Delivering more accessible advice, guidance and information to help members and their custom ers.

• Strengthen our inspecti on regime; Raising standards and suppor ting member compliance.

Increase our influenc

e Strengthen our sect or

• Work with central Govern ment; Having more frequent proacti ve and constructive discuss ions with key policymakers and people of influence.

• Work with local Govern ment; Developing relationships with local authorities and devolv ed administrations.

• Work with regulators; Ensuring that members’ business models are understood and their profess ionalism is acknowledged.

• Widen our membership; Introducing new member categories.

• Recruit more members within existing categories; With a particular focus on the rental sector.

• Build more customer-focu sed equity into the BVRLA brand; Increasing brand recogn ition and improving consumer confide nce.

• Collaborate with law enforcement and other organisations; Minimising the impact of terrorism on the UK vehicle rental sector.

• Collaborate with consum er finance bodies; Ensuring that regulati on does not adversely affect the availab lity of affordable motor finance products.

• Establish our industr y credentials; Producing robust statisti cs and research that demonstrates the vital role played by the industr y.

Delivered with effectiv e communications and

Stronger industry representation

Louder voice of influence

Deeper industry insight

engagement

Wider service offering

Greater membership value

Date: February 2018 ©Copyrigh t BVRLA 2018

that an increasing number of consumers go to our website as a first port of call for information.

In the past, we have focused on members’ needs rather than consumers when designing our site but this time we are catering for both. We are looking forward to launching the site later this year.” u

You can access the BVRLA’s Three-Year Plan on the association’s website: www.bvrla.co.uk

Most recently, the HGV partnership work the BVRLA is instigating with several haulage and freight trade bodies, has been greatly assisted by agency efforts and expertise.

Tendo is currently engaging with ministerial offices and the BVRLA is accessing agency support to secure meetings with Members of Parliament and other prominent organisations to increase the association’s reach and influence with policymakers.

The benefits of this engagement activity are already being realised as we are starting to see parliamentary questions and ministerial letters submitted by parliamentarians to raise the profile of the BVRLA’s air quality campaign calls. u 5

YOUR ASSOCIATION

Auto Windscreens partners BVRLA at the CV Show…

Revised LCV FW&T Guide The BVRLA reviews each of its three Fair Wear & Tear Guides every few years to ensure they remain fit for purpose. The updated FW&T Guide for LCVs was launched at the Commercial Vehicle show in April.

The BVRLA attended the Commercial Vehicle Show alongside associate member Auto Windscreens. The two organisations shared a stand at the Birmingham NEC. Rupert Armitage, Auto Windscreens’ Managing Director, said: “We are proud to be a member of the BVRLA and look forward to partnering with them on our stand at the show. We are both dedicated to maintaining high industry standards and best practice.” u

The BVRLA’s Director of Member Services, Nora Leggett, who led the review of the guide said: “As always we are grateful for the assistance of those BVRLA members and independent market experts who took part in our specialist working group to help determine the required updates to the LCV Fair Wear & Tear Guide.”

BVRLA Director of Member Services Nora Leggett chats to member Gary Xeureb

The BVRLA’s Membership Manager, Greg Theaker, said: “There are lots of opportunities for members to work in partnership with us. Sharing a stand with Auto Windscreens at the CV Show was a great example of this.”

6

The changes applied to the new guide include: › An amendment to the Fair Wear & Tear definition. › A much clearer explanation of the end-of-contract process and charges has been added, so customers know what to expect. › Addition of fair wear and tear guidance for box bodies, temperature-controlled bodies, and curtain-side bodies.

› Addition of fair wear and tear guidance for drop-sided bodies, tippers and platform bodies, rear shutters and tail boards, load contamination, sign writing and livery, specialised bodywork, oil and coolants, fuel and Adblue tanks, wings, batteries, electrical equipment, and additional equipment and tools. › Amendment to ‘engine, transmission and driveline’ – no examples of what isn’t acceptable. Wording now only reflects what IS acceptable. › Removed reference to catalytic converters under ‘Vehicle Underside’ heading.

‘Cranes’ added to ‘Tail-lifts and Other Vehicle-Mounted Equipment’ section. u A full list of changes to the new Fair Wear & Tear Guide for LCVs can be found on the BVRLA website: www.bvrla.co.uk Members can also request a copy of the guide via the website.

April/May 2018 |

RESEARCH & INSIGHT

Leasing Survey reveals CO2 still rising Leasing Q4 2017 QUARTERLY LEASING SURVEY SUMMARY

This yr-on-yr growth comprises:

* includes HP, Contract purchase, PCP,

TREND

112.7 g/km

TREND

ECOS & salary sacrifice

UK fleet

Q4 2017

112.7g/km

122.3g/km

Year-on-year change

1,343,000 (+0.6%) 967,000 -1.8%

NO CHANGE

Total car leasing (all 73.0% 5.8% 0.2% 59.2% 8.8% 0.2% leasing types) grew by 2% year-on-year, down from 6% in Q3 2017 and down 12% year-on-year.

Although PCH grew by +0.3% Q4-2017 MARKET ESTIMATE 20% in Q4 2017, the growth rate has continued to decline since it peaked BVRLA Business fleet leasing Year-on-year change at 55% in Q2 2016.

FUEL TYPE

FUEL TYPE

BVRLA total car fleet

Q3 2017 - Q4 2017

+0.5%

TREND

TREND

TREND

TREND

+0.6%

CAR & LCV CONTRACT DURATION

Mean contract duration

No noticeable year-on-year change

20%

Upper medium

TREND

* MARKET SHARE BY VEHICLE TYPE

NO CHANGE

| April/May 2018

Dual purpose

*MVRIS Motor Vehicle Registration

©Copyright BVRLA 2018

The average fleet emissions of newly registered cars coming onto the BVRLA fleet exceeded the average for the entire fleet in Q3 and Q4 2017.

This is partly explained by an increase in the proportion of higher emission PCH-financed cars in the BVRLA fleet.

16%

376,000 11% +7.4% Executive

NO CHANGE

Information System.

Members confidence about the economy has improved quarter on quarter.

Members remain concerned about used car values but have become progressively less negative since Q4 2015.

Q4-2017 MARKET TRENDS

All BVRLA car leasing up 2%

CAR & LCV CONTRACT MILEAGE

Mean contract mileage

This yr-on-yr growth comprises:

7/10 contracts are under 20,000 miles 15,000 MILES

17,000 MILES

Rental & Established in 1967, the British Vehicle UK trade body for Leasing Association (BVRLA) is the and leasing. companies engaged in vehicle rental fleet of almost Its 900+ members operate a combined members buy 5 million cars, vans and trucks. BVRLA the UK, supporting nearly half of all new vehicles sold in nearly £25bn to around 317,000 jobs and contributing with government the economy each year. By consulting the BVRLA helps its and maintaining industry standards, affordable road members deliver safe, sustainable and businesses. transport to millions of consumers and www.bvrla.co.uk

+20%

Personal contract hire

TREND

The BVRLA’s figure for the 967,000 average emissions of new -1.8% registrations is 112.7g/km CO2, up 1.8g/km CO2 yearon-year. The national new registrations average of 122.3g/km CO2 is also up from 120.8g/km CO2 in Q4 2016.

PURE EV

-2%

Business fleet leasing

TREND

48 MONTHS

1,343,000 (+0.6%) 36 MONTHS

376,000 +7.4%

TREND

HYBRID

TREND

D-M

C

B

TREND

TREND

TREND

Q4 2017 year-on-year change

-0.9%

DIESEL

-3%

Other*

* includes HP, Contract purchase, PCP, ECOS & salary sacrifice

A greater percentage of dual purpose cars, which have a higher average CO2, is also a contributory factor.

The proportion of diesel cars on fleet continues to decline. Under threequarters of the total BVRLA fleet is now diesel (73%) and under 60% of new registrations (59.2%). The substitution is fromBVRLA diesel petrol, Newsto MarApr 07.indd up 10 from 29.7%

This yr-on-yr growth comprises:

+20%

-2%

-3%

The Personal BVRLA carries outBusiness leasing broker Other* research twice to provide leasing contract hirea year fleet the industry with an understanding * includes Contract purchase, PCP,the ECOS & salary sacrific of the size,HP, scope and scale of leasing broker sector. The data includes market trends and activity within the broker community.

BUSINESS CONFIDENCE

VED BAND PROFILE

Fall in share of Band A vehicles

A

21.0%

PETROL

PURE EV

HYBRID

DIESEL

PETROL

TREND

TREND

TREND

31.7%

TREND

BVRLA fleet new car registrations

TREND

BVRLA Business fleet leasing

Q4-2017 MARKET TRENDS

TREND

BVRLA fleet

New registrations

Q4 2017

112.6 g/km

Other*

S AVERAGE CAR FLEET EMISSION NEW REGISTRATIONS

AVERAGE EMISSIONS BVRLA CAR FLEET

Whole fleet

-3%

TREND

Personal contract hire

-2%

Business fleet leasing

TREND

TREND

TREND

376,000 +7.4%

+20%

TREND

1,343,000 (+0.6%)

TREND

Year-on-year change

TREND

All BVRLA car leasing up 2%

BVRLA Business fleet leasing

967,000 -1.8%

Q4-2017 MARKET ESTIMATE

Q4-2017 MARKET TRENDS

Q4-2017 MARKET ESTIMATE

broker research shows growth All BVRLA car leasing up 2% plateauing TREND

The BVRLA has published its Q4-2017 Quarterly Leasing Survey, which shows that the size of the total business leasing sector for cars and vans has grown to 1.343 million, an increase of 8,000, up 0.6% year-on-year.

The latest BVRLA leasing broker research, published in February, shows that the total number of vehicles on contract is up 10% from the end of 2016 (Jan-Dec 2017), with new contracts in this period sitting at 98,129.

The total number of contracts is 287,683, a net increase of 25,573.

in Q3 2017 to 31.7% in Q4 2017. New deliveries of electric vehicles increased in Q4 2017 from 6.9% to 9.0%. Other research conducted by the BVRLA suggests that the future is with hybrid rather than pure electric vehicles. u

The sector continued to grow in the first half of 2017 but plateaued in the second half of the year. Growth is most evident in the van sector, whilst for cars growth is driven largely by personal contract hire (PCH). u

The Quarterly Leasing Survey Report can be accessed via the BVRLA website: www.bvrla.co.uk

The Leasing Broker Statistics Report can be accessed via the BVRLA website: www.bvrla.co.uk 7

YOUR ASSOCIATION

Members are encouraged to check VE103B stock As holidaymakers start to plan their summer vacations, the BVRLA is urging members to replenish stocks of VE103B certificates ahead of the holiday season and is encouraging members to be proactive in reminding customers of their obligations to carry the certificate when taking vehicles abroad.

For leased or rented vehicles, the Vehicle on Hire certificate (VE103) provides overseas authorities with the necessary authenticated proof that the hirer has permission, from the vehicle owner, to take the vehicle abroad.

Photocopies, and/or letters of authority, are not acceptable alternatives to the VE103B certificate 8

Did you know?

and although the consequences of not having the original certificate will vary from country to country, the driver may face long delays, a fine, and, in some cases, the vehicle may even be impounded.

BVRLA Director of Member Services Nora Leggett said: “Whether it’s because they are not aware of the rules, or they decide to take the risk, there are drivers who travel abroad in a leased vehicle without the correct VE103 documentation. And we aren’t just talking about company cars; there are a significant number of commercial vehicles that leave the UK without a VE103 too. It is essential that businesses understand their responsibilities and educate drivers to avoid significant disruption.

The BVRLA provides members and their customers with an emergency next-day delivery service for VE103B certificates provided that the order is received before 3pm.

This is available Monday to Friday (excluding Bank Holidays).

“We are encouraging members to be proactive in communicating the importance of the VE103, not only to protect their customers from disruption, but to also protect their valued asset from being potentially impounded.” u Members can order VE103B certificates via a form on the BVRLA website: www.bvrla.co.uk

Certificates needed for Saturday delivery can be arranged, provided the order is received before 3pm on a Friday (excluding Bank Holidays) but will incur a further postage charge.

If your customer doesn’t give you enough notice for you to get a VE103B certificate to them, please contact the BVRLA to purchase an emergency certificate or to obtain advice.

April/May 2018 |

REGULATION & COMPLIANCE

Governance programme helps raise Financial Times gives standards and reassure customers BVRLA membership can reassure members’ customers that the company they are dealing with adheres to the highest standards of professionalism and fairness. The association achieves this by maintaining industry standards and regulatory compliance via its mandatory Code of Conduct, inspection programme and conciliation service u

The BVRLA 3-step governance programme raises standards BVRLA conciliation service... is a government-approved Alternative

STOP

GET READY

GO

green light to BVRLA members

Dispute Resolution service available free to members and their customers who find themselves unable to resolve a dispute directly. By highlighting trends and emerging issues, the conciliation service alerts members of areas of concern and works with the BVRLA inspection team to consider what more can be done to improve standards and help to deliver a better customer experience.

An article published in the Financial Times that provided advice to holidaymakers hiring vehicles in the UK and overseas encouraged readers to use a BVRLA member – or an ECRCS member if hiring in Europe.

BVRLA inspection programme... is an ongoing programme designed

The article, published on 10 May 2018 said…

BVRLA advice, guidance and training... is available for members

“If hiring in the UK, check to see if the company is a member of the British Vehicle Rental & Leasing Association (BVRLA). If hiring in Europe, use members of the European Car Rental Conciliation Service (ECRCS). This gives you more rights in the event of a problem.

to ensure that members are meeting the appropriate standards in line with the Code of Conduct and regulatory requirements. The inspection regime consists of desktop audits and on-site visits. A post-inspection report provides advice and guidance on steps to take to make necessary improvements where needed, to get ready for delivering the highest industry standards.

to help build corporate knowledge, develop employees’ skills and ensure compliance with industry best-practice. The association supports members via a range of tools including telephone advice, factsheets, guidance documents and a wide range of learning and development resources, including an e-Learning Platform, forums, training courses, seminars, webinars and conferences.

The BVRLA Code of Conduct sets the standard | April/May 2018

“Use a dispute resolution scheme.

Both the BVRLA and ECRCS run alternative dispute resolution schemes (ADR) for member companies. Should you not be happy with the provider’s response you can use the ADR scheme free of charge. Companies are bound by the adjudicator’s decisions.” u 9

LEARNING & DEVELOPMENT

“The last two events have really focused on new technology, and the presentations teach us much about the developments.

Really well done to BVRLA in identifying this technology.”

FORUMS

LEASING BROKER FORUM 23 May, Manchester TECHNICAL AND OPERATIONAL MANAGEMENT FORUM 7 June, Daventry RESIDUAL VALUE AND REMARKETING FORUM 13 June, Birmingham

BVRLA TOM Forum 8 February 2018

CONFERENCE

“I learnt a lot on the day.”

FLEET TECHNOLOGY CONGRESS 5 July, Grove, Oxfordshire INDUSTRY OUTLOOK CONFERENCE 29 November, Venue TBC

BVRLA Forums help members to stay ahead of the game The BVRLA’s TOM Forum gives members the opportunity to hear the latest industry thinking and discuss innovations and developments in a range of specialist areas relating to Technical and Operational Management.

The most recent TOM Forum, held in February, was joined by 60 members who took part in discussions around powertrains with a focus on hybrids and connected vehicles.

10

“The presenters knew their subjects and backed them up with useful data.”

“By attending the Forum, I was able to see what leasing companies think, and how we can help, as an OEM, to support them moving forward.”

The next event, which takes place on 7 June at Volvo’s Training & Development Centre in Daventry, will focus on vehicle and driver safety, discussing topics such as advanced driver assistance systems (ADAS), crash repair research and accident statistics. u To find out more about BVRLA Forums contact BVRLA Events Manager Fran Hampson.

April/May 2018 |

WEBINAR

COUNTER TERRORISM AWARENESS FOR RENTAL FIRMS 16 May, 11am Online

COURSES

PROFESSIONAL FLEET CONSULTANT DEVELOPMENT PROGRAMME (#19 MODULE 1) 5-6 June, Amersham INTRODUCTION TO THE DAILY RENTAL INDUSTRY 23-24 May, Amersham NLP SKILLS FOR SALES PROFESSIONALS 31 May, Amersham SELLING CONTRACT HIRE 6-7 June, Bournville For more information email training@bvrla.co.uk

AIR QUALITY & EMISSIONS

Stay in touch and keep updated with the latest news and views from the BVRLA:

Working together for HGVs The BVRLA has partnered with the Road Haulage Association (RHA), Freight Transport Association (FTA), and the National Franchised Dealers Association (NFDA) to raise concerns about the way HGVs are treated in future Clean Air Zones (CAZ).

The coalition of associations has written a joint letter to Transport Secretary Chris Grayling, calling for Government support in ensuring that the introduction of CAZs will not unfairly hit businesses who rely upon HGVs. The proposed HGV charges for all trucks other than the latest Euro VI models is typically £100 per day, which could equate to an additional 25% on the daily running cost of a noncompliant vehicle. Unfortunately, it is SMEs and small businesses that will be worst affected under the current approach, as these operators are often those that are least equipped to absorb such a financial blow.

“Our members own, operate or fleet manage more than 110,000 trucks across the UK, which can be hired by the minute, hour, day, week, month or year,” said BVRLA Chief Executive Gerry Keaney. “The vehicle rental and leasing sector has spent the last ten years helping commercial vehicle

| April/May 2018

operators meet the requirements of the London Low Emission Zone and understands the cost and operational challenges they face with the potential introduction of new CAZs across the UK.” RHA Chief Executive Richard Burnett said: “The current approach to charge 50% of trucks in the country to enter Clean Air Zones will do little to improve air quality where the improvement is needed. “It discriminates against smaller hauliers, those with specialised lorries, and those businesses that have no alternative but to enter the zones with Euro V and older vehicles. We want to see a smarter approach – one that focusses only on the oldest vehicles and only in those places where there are recognised problems.”

FTA’s Head of UK Policy, Christopher Snelling, commented: “We support the need to improve the quality of our air in the cities but given CAZs only bring forward the beneficial change that is coming anyway by a couple of years, we don’t want this to be at the cost of small businesses’ ability to trade.” u A press release and the letter to the Minister can be read on the BVRLA website: www.bvrla.co.uk

BVRLA

Did you know…?

@bvrla

1. The UK is split into 43 zones for the purposes of monitoring air quality against EU limits. In 2015, 37 out of these 43 zones were not compliant with the EU Air Quality Directive for annual concentrations of nitrogen dioxide (NO2).

Facebook “f ” Logo

CMYK / .eps

Facebook “f ” Logo

CMYK / .eps

BVRLA

View the latest film footage and photos: www.bvrla.co.uk/ videos

2. DEFRA claim that transport is responsible for 80% of nitrogen dioxide pollutants in areas of poor air quality. Diesel vehicles were responsible for most of these.

@bvrla www.flickr.com/ photos/bvrla/ albums

3. 99% of the country’s 4.4 million commercial vehicles are powered by diesel.

Missed a BVRLA webinar?

Watch it on our YouTube channel:

4. The commercial vehicle sector transports 152 billion tonnes of goods each year.

5. Birmingham, Leeds, Derby, Nottingham and Southampton are set to have Clean Air Zones by 2020.

6. Central London is implementing its Ultra-Low Emission Zone in 2019/20 and plans to be emission-free by 2025.

11

SOCIAL & NETWORKING

BVRLA Annual Dinner went down a storm Despite the ‘Beast from the East’, over 800 guests braved the elements on what was the worst weather-day in the history of the BVRLA Annual Dinner. The snow did not dampen the spirits of guests, who congregated at the London Hilton for what is widely acknowledged as the industry’s most illustrious event. Canadian comedian Katherine Ryan entertained guests, standing in last minute for Al Murray, who was stranded in Scotland. u SAVE THE DATE: Next year’s Annual Dinner will take place on Thursday 7 March 2019.

Photographs from the event can be viewed via the BVRLA Flickr channel.

The BVRLA would like to thank sponsors Auto Windscreens, Enterprise Rent-a-Car, Ford Motor Company, Lombard, MS Automotive, Vehicle Rental Services and United Rental Group, who all helped to make the evening a great event.

12