Autumn 2020
The quarterly newsletter of the British Vehicle Rental & Leasing Association
YOUR ASSOCIATION
One size does not fit all in fleet decarbonisation
Brand Partnership Opportunities 2 Welcome to the BVRLA family 4 Updated Fair Wear & Tear Guide 5 Prepare customers for driving abroad 8 Fleets in Charge proves a hit 10
The BVRLA has welcomed the Government’s decision to take a phased approach to ending the sale of petrol and diesel cars and vans but warns that setting dates is only the start of the process. Responding to the Government’s recent consultation, the BVRLA had cautioned that setting a single date for ending the sale of new petrol, diesel and hybrid vehicles would be a mistake, making clear that one size does not fit all when it comes to fleet decarbonisation. The association highlighted the diversity of vehicles and business models used within the fleet sector and made clear that although the 2035 deadline would be an unambitious target for some market segments, it would be a near impossible challenge for others. The BVRLA urged policymakers to focus on the different fleet segments, providing the appropriate support and phase out targets for the relevant
Security vigilance
Read more on page 13.
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GOVERNANCE & COMPLIANCE
vehicle use cases, only ending new hybrid car and van sales if battery electric vehicle supply, affordability and infrastructure is able to meet the requirements of all fleet segments. BVRLA Chief Executive Gerry Keaney said, “2030 is an extremely aggressive phase-out target, but one that will be embraced by many drivers and fleet operators. The 2035 extension for plugin and full hybrids provides an essential lifeline for those facing a greater zero-emission challenge. Vehicle rental companies and van fleet operators will be very relieved to have this additional breathing space but will need clarity on exactly what types of hybrid are in scope.” u
SECURITY
Customer complaint trends Rental inspections ramp up
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LEARNING & DEVELOPMENT
Did you know? The BVRLA’s lobbying secured a VAT reduction for motorhomes and campervans This summer, HMRC updated its VAT guidance for hotels and holiday accommodation to cover a broader range of eligible accommodation types, including motorhomes. The BVRLA had been lobbying government to make the case for the inclusion of motorhomes, as the original VAT exemption, covered static caravans but did not explicitly include motorhomes and campervans. The temporary reduced VAT rate will now be available for those 30+ BVRLA member organisations who provide holiday accommodation in the form of a motorhome or campervan. u
New enhanced remote learning opportunities 9 RESEARCH & INSIGHT Covid-19 Survey Personal leasing helps offset market decline
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AIR QUALITY Timeframe set for ICE phase out 13 EU EXIT EU Exit Business Advice
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Connect your brand to the key decision makers in the vehicle rental, leasing and fleet industry. Digital advertising
Sponsorship There are a number of opportuni es for sponsorship at BVRLA key events throughout the year. All sponsors will have their brand promoted on all event material and event-related communica ons. • Exhibition stand • Headline/Supporting sponsor • Conference networking partner
Thought leadership Members, partners and industry experts share knowledge, views and opinion on a range of topics of interest to the vehicle rental, leasing and fleet industry. As well as invited guests, there are also opportuni es for brand partners to share their views and exper se. • BVRLA Blog partner • BVRLA LinkedIn partner • Conference speaker
Brand Partnership Opportunities 2020
t leadership Digital advertising · Sponsorship · Though makers Connecting your brand to the key decision . vehicle rental, leasing and fleet industry
in the
For more information contact: brandpartnerships@bvrla.co.uk tnerships@bvrla.co.uk or call 01494
For more information contact: brandpar
545703
Gerry’s note: This year has been tough, challenging even the most resilient and responsive of businesses. We have all had to adapt and respond quickly to a global health pandemic, the subsequent fall out of a national recession and a series of lockdowns, all whilst preparing for the end of the EU Exit transition period. Next year could be even tougher and the BVRLA team will be on hand to support you. We will continue to do what we can to protect the interests of members and their customers. Our strong relationships with policymakers have paid dividends this year, bringing direct and tangible benefits to members.
Access to ministers, policymakers and regulators appears to have been enhanced by digital. This was particularly evident at our recent Fleets in Charge event, which saw around 500 members and guests be addressed by the Transport Secretary of State, Business Minister, Officials from the Cabinet Office, OLEV and the CBI as well as many senior leaders from across our industry. A stellar line up of speakers for our first ever digital conference. We have enhanced our digital capabilities to provide more opportunities for members to get involved with the association; expanding our online training, carrying out remote inspections and introducing digital events and other communication channels to give members new platforms to share their expertise.
We obtained a closure exemption for vehicle rental operators enabling the sector to continue operating during lockdown, ensured that motorhomes and campervans were included within scope of the VAT reduction, and secured removal of the VED surcharge for BEVs over £40,000 as well as obtaining longer-term clarity on company car tax rates.
I would encourage every member of the BVRLA family to take advantage of the opportunities available to get the greatest value from membership. Thank you for your support. u
Accelerating digitisation has been one of the few positive impacts of the pandemic.
Gerry Keaney, BVRLA Chief Executive
BVRLA, River Lodge, Badminton Court, Amersham, Buckinghamshire HP7 0DD Tel 01494 434747 Email info@bvrla.co.uk Web www.bvrla.co.uk
© COPYRIGHT BVRLA 2020
THE BVRLA TEAM • THE BVRLA TEAM • THE BVRLA TEAM • THE BVRLA TEAM
Chief Executive: Gerry Keaney Secretary to the Chief Executive: Kate McLaren Management Accountant: Bharti Ladwa Sales Ledger Administrator: Wilma Bowles Director of Corporate Affairs: Toby Poston Public Affairs Manager: Rachael Hewish Senior Policy Advisors: Catherine Bowen & Thomas McLennan Research & Insight Manager: Phil Garthside Communications Manager: Andrea Davies Senior Communications Officer: Helen Lawrence Senior Digital Officer: Maya Thomson Events Manager: Fran Hampson Director of Human Resources: Nora Leggett Head of Learning & Development: Mark Pow Learning & Development Coordinator: Tessa Warn Director of Legal & Membership: Shashi Maharaj Compliance & Governance Specialist: Amanpreet Kalu Membership Manager: Greg Theaker Membership Support Officer: Joshua Saunders Senior Compliance Officer: Adam Holt Compliance & Governance Officer: Hayleigh Morris CRM Data Manager: Robert Burford Director of Fleet Services: Amanda Brandon Fleet Services Executive: Laura Birdsey Conciliation Service Manager: Sallie Catchpole Conciliation Service Officers: Stephen Dix Laura Pite Sarah Philp
BVRLA News articles may be used copyright free by members provided that an acknowledgement is given. Chairwoman Nina Bell Vice-Chair Nick Brownrigg Honorary Treasurer Brian Back | Autumn 2020
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YOUR ASSOCIATION
Welcome to the BVRLA family Introduce us... Since the previous edition of BVRLA News we have welcomed seven new members: four corporate members and three leasing broker members.
Corporate members
Beehire Car and Van Rentals Leighton Buzzard Care by Volvo Maidenhead Jarmite Car Rentals Colchester Norfolk Hire Great Yarmouth
BVRLA members buy nearly half of all new vehicles sold in the UK, support around 465,000 jobs and contribute nearly £49bn to the economy each year
Leasing broker members
Grange Contract Hire and Leasing Hatfield Leasing Gorilla Staffordshire Zest Vehicle Leasing County Durham
BVRLA members operate a combined fleet of over 5 million cars, vans and trucks
2021 Membership renewal The membership team has written to nominated renewal contacts requesting that the details we hold on your organisation are checked and updated to reflect any changes to fleet size, office address or contact details. Updating your details is a simple three step-process: 1. Login to your BVRLA website account. 2. Ensure that your Organisation details are correct and up to date, then complete the confirmation survey on the right-hand side of the page and press ‘confirm’. 3. If we require Fleet Details you will see a link to the Fleet Details page, select this link and update, then complete the confirmation survey on the right-hand side of this page and press ‘confirm’. You will receive an email confirmation once the details have been updated. Should you not receive an email confirmation, or have any problems logging into your BVRLA website account, please contact membership@bvrla.co.uk.
“We continue to work tirelessly to protect our members. Securing a closure exemption for vehicle rental operators enabled the sector to continue operating during lockdown, getting motorhomes and campervans included within scope of the VAT reduction, and securing removal of the VED surcharge as well as longer-term clarity on company car tax rates were all good examples of our work bringing direct and tangible benefits to members. The year ahead is likely to continue to be challenging and the BVRLA team remains committed to supporting you and your business as we work together throughout 2021 and beyond.” BVRLA Membership Manager, Greg Theaker
As a member of the BVRLA family you may know an industry colleague who is passionate about the sector and would also benefit from becoming a BVRLA member. Why not introduce us… BVRLA Membership Manager, Greg Theaker would be delighted to hear from any organisation interested in joining the BVRLA family: Corporates – those who own and operate fleets. Leasing Brokers – those acting as an intermediary in the leasing of vehicles. Rental Brokers – those acting as an intermediary in the rental of vehicles. Fleet Operators – companies who supply products or services to our industry. The new Value of Membership brochure outlines all the benefits. u
95%
of members say that the BVRLA provides status and credibility to their organisation.
2019 Member Survey
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Autumn 2020 |
YOUR ASSOCIATION
NEW Communication toolkit for lease customers
Updated Fair Wear & Tear Guide
The BVRLA has produced a new communications toolkit to support leasing members with their customer communication. The Return your lease toolkit is the third in a suite of toolkits available to members, including Plan your lease and Love your lease.
An updated Fair Wear & Tear Guide for commercial vehicles over 3.5 tonnes and minibuses up to 17 seats is now available. The BVRLA Fair Wear & Tear Guide provides a widely-adopted industry standard that covers every aspect of a vehicle’s condition when it is returned to a lease company at the end of a contract. The association produces three guides – for cars, vans and commercial vehicles over 3.5t.
The toolkits include a range of print, digital and social media communication resources that can be accessed freely by members who log in to the BVRLA website. All Communications Toolkits can be found in the News & Media section of the BVRLA website.
This new guide for commercial vehicles over 3.5t has been updated following a comprehensive review by an expert group of representatives from the BVRLA, fleet operators, auction houses, de-fleet organisations, the Road Haulage Association and the Freight Transport Association. A number of changes have been applied to the guide in relation to:
The BVRLA publishes trusted information and advice for members’ customers to help them at all three stages of the leasing process: • When considering leasing – Plan your lease • During the lease period – Love your lease • At the end of contract – Return your lease Members are encouraged to promote this information to customers by using the resources available. Members can also contact the BVRLA communications team to request co-branded material. u
Need a BVRLA website account? Any individual working for a BVRLA member can access all member-only content by logging into the BVRLA website. Register for an account on the BVRLA website.
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• • • •
Chips, dents and scratches Minor repairs Passenger vehicles D irect Vision Sensors and ADAS, in-cab cameras
• Windscreens • Major repairs • Curtains and Pelmets
The BVRLA Fair Wear & Tear Guide forms an important part of the BVRLA’s governance regime and it sets the industry standard when it comes to best practice for assessing fair wear and tear on leased vehicles. Members are encouraged to provide lease customers with a copy of the BVRLA Fair Wear & Tear Guide which provides essential advice on vehicle maintenance and upkeep to help prevent unacceptable wear and tear from occurring and defines the industry standard for every aspect of the vehicle’s condition. As well as printed copies, the BVRLA provides an e-licence version of its Fair Wear & Tear Guides. Both print and digital versions can be co-branded for members. For further information and pricing email fleet@bvrla.co.uk. u 5
SECURITY
GOVERNANCE & COMPLIANCE
Security vigilance
Customer complaint trends
With the UK threat level currently at ‘Severe’, meaning an attack is highly likely, members are being reminded of the importance of security vigilance and the resources available from the BVRLA to help embed vigilance across your organisation.
2020 has seen a reduction in the number of complaints being escalated to the BVRLA’s Alternative Dispute Resolution (ADR) Service, with around 1,767 cases being handled during the period January to October 2020, down 25% year-on-year.
BVRLA Counter Terrorism Awareness Free self-delivery training resource A bespoke counter-terrorism awareness training resource tailored specifically for those operating in daily rental of cars and vans. This course is designed to raise awareness of effective customer qualification procedures and instil confidence in this vital area. Designed to be delivered by local managers to their staff, this is a self-delivery course which includes a presentation for learners, tutor notes, pre-course security assessment and a copy of the BVRLA report Vehicles as Weapons. There is also a recording of a tutor delivering the presentation, providing insight into how the materials can be used.
Did you know?
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Action Counters Terrorism Free e-learning package This package is relevant to all BVRLA members as it provides general awareness training to support security plans. The course can be completed in around 45 minutes and is split into 7 modules. There is a suite of Action Counters Terrorism communications material for members to display to promote security vigilance. The communications toolkit can be accessed via the BVRLA website. u There is a dedicated Security page under the Guidance section on the BVRLA website containing more information and useful resources to help members to promote and embed a culture of security vigilance.
The fall in complaints is likely to be caused by a reduction in the volume of customer transactions across the industry due to the Covid-19 pandemic. Although volumes of cases being handled have been less this year, the proportion of complaints found in favour of the member or customer remained similar to that seen last year:
• 6 8% of rental complaints found in favour of the company, whilst • 7 9% of leasing complaints found in favour of the company 2020 has seen a notable increase in the number of complaints being raised by leasing customers requiring support with cancellation fees where their circumstances have changed, and they are no longer in a position to afford the lease. The BVRLA has published a set of FAQs for customers during the Covid pandemic on the BVRLA website as well as further information on the Covid-19 Business Advice page. u
Case study: Rental complaint
A customer escalated a complaint to the BVRLA, concerned that they had entered into an agreement for a 6-month vehicle rental and had understood the amount being charged was for the full 6-month term when it was actually the monthly cost. When the BVRLA looked into the case, it was clear that the rental firm had sold the customer a regulated hire agreement without making the pricing for the agreement clear in line with Financial Conduct Authority requirements. The case was found in favour of the customer and the BVRLA made the member aware of their obligations and provided advice to help them improve their processes.
Did you know? If you are a rental company that hires vehicles for 90-days or more, you must be FCA regulated. Members can login to the BVRLA website to find out more about the FCA. Autumn 2020 |
GOVERNANCE & COMPLIANCE
Rental inspections ramp up Taking part in the BVRLA Governance programme is a mandatory requirement of membership and helps to provide customers with the reassurance that they are renting from a company that delivers the highest professional standards and adheres to an industry Code of Conduct. Prestige Fleet Servicing from The AA has been carrying out rental inspections on behalf of the BVRLA in line with Covid safe guidelines as the sector has continued to be exempt from business closure during the national lockdown period. During 2020, eleven new areas have been added to the rental inspection which are all now being assessed as part of the audit, so members are advised that inspections may take a little longer than usual. Many of the new areas being assessed relate to health and safety matters:
1. Covid-19 measures 2. Appearance and cleanliness of premises and vehicles 3. First Aid 4. Access and parking for disabled customers 5. ‘No Smoking’ awareness 6. PAT checks 7. Reporting of suspicious behaviour 8. Child seat processes and maintenance 9. ICO – Data Protection 10. Fuel bunkering procedures and calibration 11. Management and process for hazardous waste
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Did you know?
Information about Preparing for your governance programme audit can be found on the BVRLA website. The BVRLA Compliance team is on hand to support members and can be contacted at compliance@bvrla.co.uk.
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Ask Adam S end your questions about the BVRLA inspection programme to Senior Compliance Officer Adam Holt at adam@bvrla.co.uk. Q: Now that I am signed up to the Rental Vehicle Security Scheme, do I need to do anything further to be compliant? A: Although all BVRLA rental members are signed up to the RVSS as a mandatory part of membership, members are required to send details of their named ‘security contact’, and ideally a deputy, to the BVRLA. Members should also conduct a risk assessment and implement a security plan. Further information can be found on the BVRLA website. Q: Is Financial Crime training a mandatory BVRLA requirement? A: Employees should be trained to recognise financial crime and should understand how to help prevent it. Firms should have a documented Financial Crime policy/procedure to evidence their efforts in doing so. The BVRLA e-Learning Platform added a new Financial Crime Training module this year to its ‘Essentials Package’ to support members with ensuring that staff are adequately trained in this area. The system also provides evidence of training received, which can help to satisfy FCA requirements. Q: Is the SM&CR delayed until 2021 due to the impact of Covid-19? A: HM Treasury has agreed to delay the deadline for solo-regulated firms to have undertaken the first assessment of the fitness and propriety of their Certified Persons from 9 December 2020 until 31 March 2021 to give firms affected by the Covid-19 pandemic time to make the changes they need. The Financial Conduct Authority extended the deadline for the following requirements with all other deadlines remaining unchanged: • the date the Conduct Rules come into force • the deadline for submission of information about Directory Persons to the Register • references in FCA rules to the deadline for assessing Certified Persons as fit and proper (which has been agreed by the Treasury) u 7
YOUR ASSOCIATION
Repair guide published for ADAS-equipped vehicles
Prepare customers for driving abroad
Thatcham Research has published an ‘Insurance Industry Requirements’ guide, also referred to as the ‘IIR’ to provide the motor insurance and repair industries with clarity to ensure the safe calibration and repair of ADAS-equipped vehicles.
The easing of lockdown restrictions during the summer brought a welcome boost to the vehicle rental sector as an increasing number of holidaymakers chose to hire cars, motorhomes and campervans to travel to their UK and European holiday destinations.
It has been introduced following the rapid expansion of Advanced Driver Assistance Systems (ADAS) in the automotive market as the number of ADAS-enabled vehicles on UK roads has reached 4.5 million – a figure that is set to grow exponentially as manufacturers add the technology to new models. ADAS equipment on a vehicle provides critical safety functions. Repairers and technicians working on those vehicles must be sufficiently competent to ensure that any repairs that directly involve, or impact ADAS sensors, are carried out to best practice standards. To prepare the guide, Thatcham consulted with the BVRLA as well as other leading industry bodies including the Society of Motor Manufacturers and Traders (SMMT), National Body Repairers Association (NBRA), Independent Automotive Aftermarket Federation (IAAF), Independent Garage Association (IGA), Garage Equipment Association (GAE), the Institute of the Motor Industry (IMI) and representatives from the Motor Insurance Engineers Technical Committee (ETC). The Insurance Industry Requirements can be read in full on the Thatcham Research website. u
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During July, the BVRLA saw demand surge for its VE103B certificates, the documentation required by drivers taking a rented or leased vehicle overseas and although current travel restrictions have brought a halt to many holidaymakers’ plans, members are being advised to stock up now, in preparation for the next upsurge in demand when travel restrictions ease.
The BVRLA saw a 79% increase in the number of people visiting the Taking a Vehicle Abroad information on the BVRLA website during the summer, as vehicle rental customers looked to the BVRLA for the latest advice. Members needing stock can purchase VE103B pads or single certificates via the BVRLA website. u
Did you know? To support members with their communications to customers, the BVRLA has produced a Taking a Vehicle Abroad Communications Toolkit containing a suite of printed, digital and social communications resources to help make customers aware of the importance of carrying a Vehicle on Hire certificate (VE103) when taking their rented or leased vehicle overseas. It is free to access and co-branded versions can also be supplied. Members can log in to the BVRLA website to access the material.
Autumn 2020 |
RISK MANAGEMENT AND SECURITY WEBINAR 8 December
LEARNING & DEVELOPMENT
New enhanced remote learning opportunities The Covid-19 pandemic has changed the way we work, live and learn and the BVRLA has further developed and enhanced the number of remote learning opportunities through its Online Learning Hub. The Hub provides members with access to e-learning self-study modules, online qualifications, webinars, free resources and the association’s new instructor led remote learning courses which provide a complete interactive experience, by using:
3 virtual breakout rooms for group activities 3 chat boxes for constant and instant interactivity 3 live polls so learners can engage with material 3 live exercises and quizzes to check the learners’ knowledge
BVRLA Fair Wear & Tear Standard for Cars course Assessing the condition of a vehicle at the end of a lease is fundamental to BVRLA members’ business needs, the BVRLA Fair Wear & Tear Standard for Cars course, now available in remote learning format is designed to teach anyone in the industry about the practical application of the association’s Fair Wear & Tear Standards and Code of Conduct. For the remote learning experience, changes have been made to facilitate the hands-on vehicle inspection section of the course with interactive methods using real vehicles.
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Reboot Selling Contract Hire course for 2020 The BVRLA’s virtual Reboot Selling Contract Hire for 2020 allows delegates to connect on topics that are relevant for salespeople in these unprecedented times. Living with and coming out of Covid-19 means a lot of uncertainty and this remote learning course gives fleet managers new opportunities that they can explore. This programme is about asking the right questions to reassure your clients that they are making a worthwhile investment making time to communicate with you. SM&CR Development Programme Since 2019, regulated members have been preparing for the Financial Conduct Authority (FCA)’s Senior Manager and Certification Regime (SM&CR), training existing certified staff and well as others who need to understand the conduct rules required for the second phase implementation of the regime. The deadline for compliance is 31 March 2021 and the FCA is encouraging firms to implement relevant changes sooner rather than later so the BVRLA has developed a remote SM&CR Development Programme to support members with preparations. u
Keep updated Sign up for a BVRLA website account and select your communication preferences, ensuring that you tick the Industry Standards & Professional Development option to keep updated on all the latest learning & development opportunities.
FORUMS
TECHNICAL AND OPERATIONAL MANAGEMENT FORUM 4 February 2021 RESIDUAL VALUE AND REMARKETING FORUM 11 February 2021
WEBINAR
RISK MANAGEMENT AND SECURITY WEBINAR 8 December 2020 INDUSTRY OUTLOOK WEBINAR #4 10 December 2020
REMOTE LEARNING COURSES
REBOOT SELLING CONTRACT HIRE FOR 2020 1 December 2020 COMPLAINTS MANAGEMENT 7 December 2020 BVRLA FAIR WEAR & TEAR STANDARD FOR CARS 9 December 2020 REBOOT SELLING CONTRACT HIRE FOR 2021 14 January 2021 SM&CR DEVELOPMENT PROGRAMME 26 January 2021 For more information email training@bvrla.co.uk 9
YOUR ASSOCIATION
Fleets in Charge proves a hit On 6 October, around 500 members and guests attended Fleets in Charge, the BVRLA’s first ever digital conference. With not one, but two Cabinet Ministers giving a keynote address. A stellar line up of speakers took part in Q&A sessions, panel discussions and presentations focussing on road transport decarbonisation and busines recovery.
BVRLA Interview Peter Campbell, the Financial Times’ Global Motor Industry Correspondent, interviewed Natasha Robinson, Joint Head of Office for Low Emission Vehicles as part of the morning session at the Fleets in Charge event.
At the event, BVRLA Chief Executive Gerry Keaney unveiled the industry’s updated 2020 Plug-in Pledge, outlining the vehicle rental, leasing and fleet industry’s commitment to owning and operating around 900,000 Battery Electric Vehicles (BEVs) within five years. The Pledge, which sees the sector registering 400,000 BEVs per year by 2025, making it responsible for 80% of new battery electric car and van sales, was welcomed by both the Transport Secretary Grant Shapps MP and Business Minister Nadhim Zahawi MP. Both ministers acknowledged the valuable contribution of BVRLA members in driving business recovery and delivering the UK’s zero emission road transport ambitions during their address to delegates at the Fleets in Charge event:
“ It’s fantastic that so many BVRLA members are making commitments to introduce zero-emission fleets ahead of the Government’s phase-out target. BVRLA members are fundamental to the transition to cleaner road transport.” Grant Schapps MP, Sectretary of State for Department for Transport Grant Schapps and Nadhim Zahawi’s speeches can be viewed in full via the BVRLA website. u 10
“ I want to acknowledge the vital contribution that the vehicle rental and leasing sector has made to supporting businesses and consumers during the ongoing Covid-19 challenge. Your input to the safer workplace guidance is a fantastic example of how effective the partnership between us in Government and the private sector can be.”
Watch the full 15-minute interview on the BVRLA website.
Did you know…. If you are an industry expert and have insights and knowledge to share that will be of interest to members, then you too can take part in a BVRLA Interview. Find out more on the BVRLA website or email brandpartnerships@bvrla.co.uk. u Thank you to the following sponsors and partners for supporting the BVRLA 2020 Fleets in Charge event:
Nadhim Zahawi MP, Under Secretary of State for Business and Industry Autumn 2020 |
RESEARCH & INSIGHT
Covid-19 Survey
Industry Insight
The BVRLA has been assessing the impact of the Coronavirus pandemic on members’ businesses via a series of surveys.
The BVRLA has enhanced its website and expanded its digital offering to make it easier for members to access industry insight and share expertise and insights with peers.
The first Wave took place between 19 and 30 June. Wave 2 was carried out between 19 August and 4 September and the findings from Wave 3, which was carried out between 26 and 30 October, have now been published in the Industry Insight section of the BVRLA website. 92 organisations took part in Wave 1 and 52 in Wave 2. The vast majority of participants were from small and medium sized businesses and 86% of those who responded were decision
makers holding director, managing director or CEO positions. When asked about the barriers preventing business returning to normal, social distancing, vehicle supply and access to funding all increased notably in Wave 2 compared to Wave 1. Lack of demand for business, customers no longer trading, and lack of cash flow consistently remain a concern for members, cited in both Wave 1 and Wave 2 as being barriers to recovery. The responses from Wave 2 were more optimistic overall than in Wave 1, although this was prior to the second wave of coronavirus hitting and the subsequent introduction of tougher restrictions in towns and cities across the UK.
Supporting members during Covid-19
The BVRLA emails its regular Covid-19 Bulletin to over 5,000 individuals registered to receive updates from the BVRLA. These provide members
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with the latest information, advice and guidance of interest to those operating in the vehicle rental, leasing and fleet sectors. Anybody working for a BVRLA member organisation can sign up to receive updates. There have been almost 14,000 visits to the BVRLA Covid-19 Business Advice page since March. u
Members now have the opportunity to take part in a BVRLA Interview or host a BVRLA Blog, to share industry knowledge, expertise and insights that will be of interest to those operating in or working with the vehicle rental, leasing and fleet sectors.
Matt Freeman, managing consultant at cap hpi talks about the transition to alternatively fuelled vehicles, the state of the market, and what member businesses should be thinking about for 2021.
Recent bloggers and interviewees include:
To get involved in a BVRLA Interview or to host a BVRLA Blog, email brandpartnerships@bvrla.co.uk. u
Beverley Wise, Director UK & Ireland, Webfleet Solutions, discusses some of the challenges of electrifying fleets and how data holds the key to EV transformation. Chris Horbowyj, Channel Sales Director at Trakm8, talks about the importance of becoming data driven to keep fleets road ready. Steve Gooding, Director at the RAC Foundation shares his thoughts on the future of cars and driving, whilst looking ahead to the end of internal combustion engine vehicles.
BVRLA Research & Insight… The full catalogue of BVRLA research reports can be found under three new easy to navigate pages of the Industry Insight section: • Sector reports • Policy research • Membership data
Members can access restricted content by logging in to their BVRLA web account. Anybody working for a member organisation can sign up for a web account. 11
RESEARCH & INSIGHT
Personal leasing helps offset market decline The BVRLA has published findings from both its half-year Leasing Broker Survey and Quarterly Leasing Survey, showing an overall market decline despite increasing demand for personal contracts. The overall BVRLA lease fleet shrank by 3.6% year-on-year according to the latest Q2-2020 Quarterly Leasing Survey, as a 2.1% growth in the LCV fleet size partially offset the 5.2% drop in the total car fleet. At the end of Q2-2020 the total BVRLA lease car and van fleet stood at 2,532,972, with 83% being cars and 17% vans. This excludes all rental and PCP vehicles. Business contract hire saw its largest ever fall since the survey began, with cars down by -9.7% year-on-year to 793,171. In contrast, the personal contract hire car fleet increased by 5.7% to 271,264, representing respectable growth, albeit the lowest growth rate yet recorded for this fast-growing segment. The latest Leasing Broker Survey shows that brokers continue to represent a growing sector of the market with the BVRLA leasing broker channel fleet growing by 7% year-on-year, with 362,461 cars and vans on fleet. 12
Despite seeing an increase in the number of consumer contracts for cars, the Covid pandemic has adversely affected brokers, with new contracts for both cars and vans dropping sharply in the first half of 2020, compared to H1-2019, down 13% and 12% respectively. Battery electric vehicles up, average emissions down The study shows a growth in the number of battery electric vehicles on the BVRLA fleet, up 1.8% year-on-year and new BEV registrations were up 5.5% compared to the same period last year. The surge in uptake of battery electric vehicles is coinciding with a reduction in CO2 emissions with average CO2 emissions for BVRLA members’ new car registrations and the total car fleet down. Members can login to the BVRLA website to access the full Q2-2020 Quarterly Leasing Report. u
Tax and the EV transition report The BVRLA worked with expert research group, Cambridge Econometrics, to assess the impact of different fiscal policies on future electric vehicle volumes across the passenger car fleet. The report provides detailed insights into what measures are required if the Government is to deliver its ICE phase out targets, including: 1. Without additional policies measures, a 2040 phase out of ICE sales can be achieved, but a 2035 phase out cannot. 2. A significant increase in policy measures is required to deliver 95% of new registrations as EVs in 2035, a level which would make an outright ban on the sale of ICEs feasible. The analysis shows that this range of measures should include: • a strong differential in Company Car Tax rates between EVs and other vehicle types. • a continued Plug-in Car Grant for EVs. • a reduction in purchase taxes through extension of Enhanced Capital. Allowances to lease vehicles and a VAT exemption for EVs. 3. Deployment of new EVs into the fleet market is expected to be more rapid than the private market, due to rapid turnover rates and a stronger set of tax incentives. 4. There are environmental benefits from a more rapid transition. The shift away from ICEs will reduce tailpipe emissions of CO2, NOx and particulates on UK roads, by 10.4%, 9.3% and 2.7% respectively over the period 2020-50. 5. Over the period 2020-50 Cambridge Econometrics estimate that the Government will need to invest nearly £100 billion in policies to make its phase out target possible. The BVRLA Tax and the EV transition report can be read in full on the BVRLA website. u Autumn 2020 |
AIR QUALITY
Phase out Timeframe set for ICE phase out policy asks
On 18 November, Prime Minister Boris Johnson unveiled a Ten Point Plan for a ‘Green Industrial Revolution’, designed to stimulate green growth across a range of industries and UK regions. Road transport featured heavily, with the Government confirming that:
The BVRLA will continue to make clear to ministers and policymakers that the Government needs to create a supportive environment that will enable fleets and motorists to step up to the challenge of decarbonising road transport. The association believes that there are three support areas that the Government must focus on:
• T he UK will end the sale of new petrol and diesel cars and vans by 2030, a decade sooner than was originally planned. •H ybrid cars will have a further five years, with the sale of plug-in and full hybrids ending in 2035. They will be expected to deliver ‘significant’ zero emission range, and the Government will consult on a definition for this.
1. The Government needs to maintain a set of powerful tax incentives and grants that will drive demand across all segments of the UK fleet and retail automotive market.
• I n 2021, the Government will produce a delivery plan with key milestones for the phase out, a suggested way forward for post-EU emissions regulations in the UK and a consultation on the phase-out of HGVs.
2. Electric vehicles are in high demand across the globe and the Government must ensure that the UK remains an attractive market for manufacturers to sell their products.
The BVRLA family is already leading the transition to cleaner road transport and will not only embrace the 2030 phase out but will lead the way to drive the switch to electric.
3. The UK needs a comprehensive strategy on charging infrastructure. This must include an adequate supply of affordable, accessible and reliable public charge points and incentives to unlock private sector investment. To get involved with our decarbonisation workstream, either by taking part in a Working Group, Webinar, Online Training, Digital event, Interview or Blog, members can find out more on the BVRLA website or can email policy@bvrla.co.uk. u
| Autumn 2020
The important role our industry plays was acknowledged in a recent letter from Transport Secretary of State, Grant Shapps MP:
“ I would like to take this opportunity to recognise that the UK vehicle rental and leasing industry is an important part of our economy and will remain so in the future. The industry not only directly employs tens of thousands of people and generates significant value in GDP terms but also has a vital role in UK’s transition to zero-emission road transport which I am committed to drive.” u
Did you know?...
The BVRLA has published a new independent tax modelling report from Cambridge Econometrics which shows that the Government will need to invest nearly £100 billion between now and 2050 if it is to have any chance of meeting its phase out target for the new car market. Read more about the BVRLA’s Tax and the EV Transition report on page 12.
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EU EXIT
EU Exit Business Advice Since 11pm on 31 January 2020, the UK legally left the EU and entered an eleven-month transition period which is due to expire on the 31 December 2020. During this time, all trading terms and regulations have remained unchanged and negotiations between the UK Government and the EU have been underway. However, with resources being diverted to the Covid-19 response, progress with negotiations has been slow.
Supporting BVRLA members.
Since July, the UK Government has been redirecting resources back to EU Exit and ramping up its preparedness activities, launching a series of communication campaigns to encourage businesses and individuals to prepare now, as regardless of the outcome of the trade negotiations, things will change for everybody who trades with and travels to the EU after the end of the transition period.
A new EU Exit Bulletin has also been launched to keep members regularly updated by email on developments affecting the vehicle rental, leasing and fleet sectors. These are also promoted via the association’s social media channels. u
On 13 August, the BVRLA launched a dedicated EU Exit Business Advice web page to support members by sharing the latest advice and guidance to help prepare for the end of the transition period.
EU Exit policy asks With 72% of fleet cars and 68% of vans estimated to be sourced from the EU, the impact of not having a free trade deal would be disastrous for the UK fleet industry. The BVRLA has written to senior Government officials warning of the estimated costs that will burden the fleet industry if the UK and EU fail to reach a free trade agreement. The BVRLA estimates that tariffs would add… £2.1 billion a year to the UK fleet sector’s car renewal costs. £310 million a year to the sector’s van renewal costs. £2.8 billion on battery electric cars over the next five years. In a letter sent to senior ministers and policymakers, the BVRLA has asked the Government to: • C ontinue to work with the EU to reach a deal
Did you know?... Anybody working for a BVRLA member organisation can sign up to receive the EU Exit Bulletin. 14
• P rotect order banks by confirming that, in the event of no EU-UK free trade agreement, there will be a waiver on the tariffs on cars, vans, HGVs and parts ordered before the end of the year which arrive after 1 January 2021.
• I mplement a tariff review process now for certain key sectors to request tariff level reviews post 1 January 2021 once their full impact is apparent. • C reate a process now for firms to apply for temporary tariff waivers on specific products when there is not sufficient UK supply. • Support the BEV market by providing additional tax incentives and grants that will maintain the supply and cost competitiveness of BEVs in the UK. u
Autumn 2020 |
YOUR ASSOCIATION
In the spotlight… Press releases published between April and August 2020: 1 Government to postpone Clean Air Zones until 2021 2 Maintaining vehicle supply is essential in COVID-19 relief effort 3 BVRLA welcomes Mayor’s delay of Direct Vision Standard enforcement 4 FCA and government must work together on motor finance 5 Shashi Maharaj joins the BVRLA director team 6 BVRLA welcomes the continued financial support for business 7 BVRLA issues guide to support industry’s safe return to work 8 Now is not the time to reintroduce charges in London, says BVRLA 9 New look leasing survey tracks surge in EV leasing 10 UK’s leading car buyers provide blueprint for a green scrappage scheme 11 BVRLA comments on Committee of Climate Change 2020 Progress Report 12 BVRLA’s Nora Leggett takes new human resources role 13 Updated BVRLA Fair Wear & Tear Guide for commercial vehicles 14 One size does not fit all when it comes to fleet decarbonisation 15 Vehicle rental is popular choice for UK holidaymakers
