BVRLA News Jan/Feb 2019

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January / February 2019

The bimonthly newsletter of the British Vehicle Rental & Leasing Association

YOUR ASSOCIATION

2018: A year of growth

Welcome to the BVRLA family 2019 Business Plan published Industry Outlook Report A voice of influence… BVRLA launches new website The BVRLA Blog

2018 BVRLA by numbers: Combined fleet size tops 5 million Membership numbers up by 6% Over 980 member organisations Workforce expanded by 25% Research budget increased by 70% 21 industry research & insight projects 30 MPs at Parliamentary reception 39 meetings with ministers and MPs 40 new e-learning modules launched 300 industry leaders at conferences 941 tickets sold for Annual Dinner 1,000+ people register for e-learning 1,456 individuals attended webinars BVRLA media mentions up by 56% 500 member-inspections carried out 5,000+ requests for advice answered 68,000+ Fair Wear & Tear Guides issued 2,100 UK disputes resolved 52% increase in event attendance

2018 was a year of investment and impact for the BVRLA, as the association implemented its first ever Three-Year Plan and committed the largest financial investment seen in its 50-year history. The workforce increased by a quarter, boosting internal capabilities within the association’s policy, communications, training, governance and dispute resolution teams. By scaling up its operations and investing in infrastructure, the association continues to strengthen its industry representation, provide a louder voice of influence, develop deeper industry insight and boast a wider service offering – all helping to deliver greater value to members. British Vehicle Rental & Leasing Association

River Lodge

Badminton Court Amersham Buckinghamshire Tel 01494 434747 Email info@bvrla.co.uk www.bvrla.co.uk

HP7 0DD

© COPYRIGHT 2018

hosted by ministers, government officials, local authorities and other industry leaders. This is evidence that policymakers and influencers are becoming increasingly aware of the importance of the BVRLA and its members and appreciate the value of having the industry represented. As part of its expansion plans, the BVRLA has expanded its research budget with the aim of providing greater insight into the trends shaping the rental and leasing market as well as building more evidence to support the association’s policy asks and demonstrate members’ influence to drive behaviour change. The BVRLA Annual Review summarises the association’s 2018 activities and highlights feedback from over 280 member organisations who took part in the association’s annual Member Survey. u 26/11/2018 15:26

2018 saw a step-change in the amount of times that the association was invited to participate and speak at meetings and events

Annual Review 2018 FINAL.indd

40-1

4 5 6 7 15 15

SECURITY & INSIGHT RESEARCH Membership up, fleet size up

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SECURITY Rental Vehicle Security Scheme

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PROFESSIONAL DEVELOPMENT Learning offer continues to grow 11 Upcoming courses 11 BREXIT Supporting members through Brexit 12 REGULATION & COMPLIANCE Complaints: 2018 trends 13 BVRLA updates Codes of Conduct 13 Ask Adam 13



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 Accounts Assistant: Melanie Richardson Director of Communications & External Relations: Toby Poston Public Affairs Manager: Rachael Hewish Research & Insight Manager: Phil Garthside Media Relations & Communications Manager: Andrea Davies Senior Communications Officer: Helen Lawrence Senior Digital Officer: Tamsin Stuczynska Director of Member Services: Nora Leggett Events Manager: Fran Hampson Member Services Executive: Laura Birdsey Learning & Development Programme Manager: Ina Hobden Training & Development Administrator: Tessa Warn Director of Policy & Membership: Jay Parmar Membership Manager: Greg Theaker Senior Compliance Officer: Adam Holt Compliance Officer: Hayleigh Clayton Compliance & Membership Co-ordinator: Diane Alexander CRM Data Manager: Robert Burford Senior Policy Advisor: Jinmi Macaulay Government Affairs Manager: Paul Thompson Legal & Policy Executive: Amanpreet Kalu Operations Manager: Amanda Brandon Conciliation Service Manager: Sallie Catchpole Conciliation Service Officers: Stephen Dix Sarah Philp Laura Pite

Gerry’s note: 2018 brought unprecedented levels of uncertainty for UK business and we can expect more of the same in the year ahead. The need for business support and advice has never been greater. This is where the BVRLA can really add value, especially for those SMEs who may not have access to in-house teams of specialists. We are delighted to be supporting more businesses than ever this year, with 2018 seeing growth in all membership categories, including rental, leasing, brokers and associates. (See Pages 8 & 9.) We now look forward to welcoming fleet operators into our new membership category, which opened in January 2019. With the support of our board, we committed considerable investment into infrastructure and expertise in 2018, and we are already starting to see the impact. Greater levels of engagement, higher volumes of interactions, and increased operational effectiveness are being delivered across all areas of the association.

Supporting members through these tumultuous times will remain a priority for the BVRLA. Through regular communications, guidance and training, we will continue to keep members informed of the latest developments affecting the sector, providing support and advice to promote compliance and help you meet the highest levels of industry standard and best practice. Our commitment to delivering greater membership value continues and the recently published BVRLA Business Plan sets out the association’s strategic priorities as we start 2019 – see page 5. u

Gerry Keaney, BVRLA Chief Executive

The BVRLA’s next Annual General Meeting is taking place on Thursday 23 May at 9.30am in Amersham

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 2019

BVRLA News articles may be used copyright free by members provided that an acknowledgement is given. Chairman Matt Dyer Vice-Chair Nina Bell Honorary Treasurer Brian Back | January / February 2019

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YOUR ASSOCIATION

Welcome to the BVRLA family Since the previous edition of BVRLA News was published, the association has welcomed 18 new members: seven corporate members, seven leasing broker members and four associate members.

Corporate members

Admiral Financial Services Ltd Cardiff Daimler Fleet Management UK Limited Milton Keynes Edinburgh Executive Car Hire Ltd Edinburgh Indelease Ltd Telford Leasing Plus Ltd Hemel Hempstead Station Motors (Sutton) Ltd Nottingham Swift Van Hire Ltd Tamworth

Associate members KPMG LLP London www.home.kpmg/uk/en/home.html KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 16,300 partners and staff. KPMG LLP is part of a global network of professional firms providing Audit, Tax, and Advisory services.

Remote Asset Management Leeds www.ramtracking.com Remote Asset Management are an award-winning vehicle tracking and dash cam specialist. With over 15 years’ experience in the vehicle industry, they’ve designed a fleet management tool to help businesses save time and money.

PEAC (UK) Ltd Bracknell www.peacfinance.com PEAC Finance (Pan-European Asset Company) provide leasing solutions across a broad range of asset classes, from business equipment to plant and machinery. PEAC Finance offer fast and effective financing solutions to equipment manufacturers, dealers and distributors with transactions varying in size from £1,000 up to £5m.

Tomorrow’s Journey Milton Keynes www.tomorrowsjourney.co.uk Tomorrow’s Journey provides an asset and serviceagnostic platform that allows vehicle sharing and access between asset owners and mobility services, responding flexibly to consumer demand. This increases usage, lowers costs and maximises the benefits of new mobility for people, communities, businesses and the planet.

Leasing broker members ALA IB Ltd Carparison Ltd City West Country Ltd Lets Talk Finance Ltd M C Turner and Son Ltd Smartfish Group Ltd Walker Vehicle Solutions Ltd

North Yorkshire Devon Exeter Macclesfield Reading Manchester Portsmouth

Membership was made easy and we felt welcomed.” 70% would recommend the BVRLA – 2018 Member Survey

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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

BVRLA members operate a combined fleet of over 5 million cars, vans and trucks

January / February 2019 |


YOUR ASSOCIATION

BVRLA publishes 2019 Business Plan Last year the BVRLA launched its first-ever threeyear Business Plan outlining the association’s key strategic priorities and setting out plans for how these priorities will be delivered. Twelve months on, the association has made significant progress across all areas.

With the support of its board, the association committed considerable investment into building the BVRLA’s capabilities during 2018. The workforce has been expanded, the building extended and a new CRM-integrated website has been launched.

The BVRLA has now published its updated Business Plan, which removes completed activities, adds new activities and now also includes three long-term strategic priorities: Business Growth, Brand & Reputation and Future Mobility. The Business Plan continues to be built on the foundations of strengthening industry representation, providing a louder voice of influence, developing deeper industry insight and boasting a wider service offering – all to deliver greater value to members. u

Expanding our team The association’s plans to strengthen internal capabilities across policy, communications, training, governance and compliance are now in place, with eight new starters joining the BVRLA during 2018. The most recent addition to the team is Helen Lawrence, who joins as Senior Communications Officer, reporting to BVRLA Communications Manager Andrea Davies. Helen (left) joined the BVRLA in December, bringing with her over 20 years’ experience in marketing and communications, having worked in private, public sector and not-for-profit organisations. Helen will be focusing on media relations and PR, member communications, and consumer-facing communications to help increase member engagement, strengthen consumer confidence and enhance the industry’s reputation. u

| January / February 2019

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YOUR ASSOCIATION

Review of the Industry Outlook Conference The BVRLA welcomed around 200 members, guests and speakers to its annual Industry Outlook Conference, which took place in Leicester in December. At the conference, the BVRLA unveiled its 2019 Industry Outlook Report, providing a collective industry view on nine key subject areas, including the ‘Road to Zero’, urban mobility and vehicle data. After a presentation on the report’s findings, members had the opportunity to listen to industry leaders and guest speakers, as well as take part in one of a series of breakaway discussions, on topics including Brexit, motor finance, air quality, counterterrorism, residual values and taxation. The BVRLA would like to thank event sponsors cap hpi, Locke Lord LLP and Trak Global for their contributions and support. u

You can now view the presentations and event photo album.

Industry Outlook Report reveals business leaders’ views The BVRLA’s new 2019 Industry Outlook Report foresees that the next 12 months will be a very challenging period, but there is clear evidence that BVRLA members are seizing the initiative and not waiting for an upturn in the economy or government support. The report, which combines the collective views and insights of 19 industry leaders, looks at several key subjects, including: the ‘Road to Zero’, congestion and emissions, electric vehicles, Brexit, the used market, vehicle data, personal leasing, car subscriptions, urban mobility and Clean Air Zones, and repairability. 6

BVRLA Chief Executive Gerry Keaney said: “The vehicle rental and leasing industry continues to see opportunities everywhere. It is perfectly placed to deliver the revolution in autonomous, connected and electric mobility, and is already benefiting from growing demand for vehicle usership rather than ownership. “Members may not be able to fulfil every mobility services need right now, but they are keeping a

very open mind about what is possible and spotting new ways of adding value. Whether it is electric vehicles, prognostics data, last mile logistics or car subscriptions, members are increasingly willing to explore new business models, technology platforms and partnerships.” u The Industry Outlook Report can be read on the BVRLA website. January / February 2019 |


YOUR ASSOCIATION

A voice of influence…

Having recently been invited to take part in key roundtables with policymakers and industry leaders, as well as with ministers and the Secretary of State for Transport, the BVRLA is increasingly being seen by the government as an important voice to have at the discussion table. The association’s views have been sought on a range of key issues important to BVRLA members:

Brexit…

In December, BVRLA Chief Executive Gerry Keaney attended a meeting at 10 Downing Street with the Secretary of State for Transport, Chris Grayling, and the Minister for Transport, Jesse Norman, who were seeking the views of industry relating to the transport challenges of a potential no-deal Brexit. Gerry raised the BVRLA’s concerns about VE103 Vehicle on Hire Certificates and International Driving Permits, and about the supply of vehicle parts and new vehicles from Europe in the event of a no-deal scenario. The Transport Department encouraged organisations to continue to feedback their thoughts.

Future Mobility…

Gerry also represented the BVRLA and its members at a Future of Mobility Grand Challenge roundtable discussion, also attended by the Transport Minister. These were early discussions to shape thinking on the government’s Four Grand Challenges, that sit within the UK Industrial Strategy. Led by the Department for Business, Energy and Industrial Strategy, and the Department for Transport, the minister wanted to hear the BVRLA and other interested stakeholders’ thinking on principles that might drive its future mobility challenge.

| January / February 2019

WLTP…

Air Quality…

The BVRLA is providing data to inform analysis and highlight the effect of WLTP on members and their businesses, as well as the wider environmental and economic impact.

JAQU has been considering where it can add value to the roll out of Clean Air Zones (CAZs) across the UK and welcomed the views of the BVRLA. Thousands of motorists and businesses will be affected by the introduction of CAZs and the BVRLA has been actively engaging with local authorities to ensure that the voice of the rental, leasing and fleet industry is heard. The next step is to ensure that drivers and fleet operators have information about the different zones and their respective requirements. View the BVRLA Interactive Clean Air Zone map. u

The BVRLA also recently met with government officials from HM Treasury to debate the new Worldwide Harmonised Light Vehicle Test Procedure (WLTP) fuel consumption and emissions testing scheme. The scheme is a really important issue for the sector, having caused distortion in the market, affected demand and caused an unintentional tax rise. The BVRLA wants to raise awareness of the problem with policymakers in HM Treasury with a view to collaborating to find a solution. The government committed in the Autumn Budget to undertake a review of the impact of WLTP on company car tax and Vehicle Excise Duty (VED).

In the Autumn the BVRLA held a highly constructive and informative meeting with members of the Joint Air Quality Unit (JAQU) – a team comprising representatives from both the Department for Transport and the Department for Environment, Food and Rural Affairs.


RESEARCH & INSIGHT

Membership up, fleet size up 2018 Membership 2018 Membership 2018 Membership up 6% year-on-year

BVRLA membership hit a 20-year high in 2018. More than 980 organisations are now signed-up with a combined fleet size of over 5 million vehicles. The latest data from the BVRLA shows that membership has increased in the rental, leasing & fleet management, commercial vehicle, broker and associate categories. The association recruited 140 new members throughout 2018 and saw a net gain of 53 members across all sectors, a 6% year-on-year increase. Cars continue to be the most dominant vehicle type on fleet, now at over four million. The number of vans and trucks on fleet continues to grow, with both the LCV and HGV fleet sizes increasing significantly, up 4% and 10% respectively. In line with the increase in the number of rental members, the BVRLA rental sector grew by over

4,000 units, with most growth in the number of rental cars and LCVs. Personal contracts saw the highest level of growth at 14%, accounting for nearly 1.9 million vehicles. The number of personal contracts taken out on LCVs grew, increasing by over 10,000 vehicles – that’s 25% up year-on-year. An 11% fall in the number of fleet-managed LCVs limited the total growth of the LCV fleet. The number of business contract hire vehicles increased by 5% year-onyear, but all other areas of corporate leasing fell, with the fleet size down 1% on 2017. u

up 6% year-on-year up 6% year-on-year

Rental Rental 300 300 Rental 300 Leasing & Leasing & Fleet Fleet Management Leasing & Fleet Management Management

96 96 96

Commercial Commercial 101 Vehicles Commercial Vehicles 101 Vehicles 101

138 138 138

984 984

984 Organisa ons Organisa ons Organisa ons

341 Leasing Brokers Brokers 341 Leasing 341 Leasing Brokers 8 8 8

Rental Rental Brokers Brokers Rental Brokers

Jan 2019 Jan 2019 Jan 2019

2018 2018 Fleet Fleet size size by by vehicle vehicle type type up year-on-year 2018 Fleet size by vehicle type up 4% 4% year-on-year up 4% year-on-year

Find out more about membership data on the BVRLA website.

The BVRLA is an industry body I can trust. A great reputation.

Associate Associate Members Associate Members Members

124,840 124,840

Cars CarsCars4,060,489 4,060,489 4,060,489

5,025,809 5,025,809 5,025,809

124,840

Vehicles Vehicles Vehicles

840,480 LCV 840,480 840,480 LCVLCV

2018 Member Survey Jan Jan 2019 2019 Jan 2019

8

HGV HGV

HGV

January / February 2019 |


RESEARCH & INSIGHT

2018 2018 Personal Personal contracts contracts fleet fleet size size up year-on-year 2018 Personal fleet size up 14% 14% contracts year-on-year

Members’ Views

up 14% year-on-year

1,549 1,549

Cars CarsCars1,844,312 1,844,312 1,844,312

1,897,446 1,897,446 1,897,446

1,549

HGV HGV

HGV

Vehicles Vehicles Vehicles

51,585 LCV 51,585 51,585 LCVLCV

up 2018 Short-term rental fleet size up 1% 1% year-on-year year-on-year up 1% year-on-year

Cars CarsCars 281,920 281,920 281,920

23,747

HGV HGV

HGV

474,637 474,637 474,637 Vehicles Vehicles Vehicles

168,970 168,970 LCV 168,970 LCVLCV

2018 2018 Corporate Corporate leasing leasing fleet fleet size size Jan Jan 2019 2019 Jan 2019

down 2018 Corporate leasing fleet size down 1% 1% year-on-year year-on-year down 1% year-on-year

99,544 99,544

Cars CarsCars1,934,257 1,934,257 1,934,257

2,653,726 2,653,726 2,653,726

99,544

HGV HGV

HGV

Vehicles Vehicles Vehicles

619,925 LCV 619,925 619,925 LCVLCV Jan Jan 2019 2019 Jan 2019

The Value of Membership What members consider to be the TOP 5 most important benefits of membership:

Jan 2019

Jan 2019 2019 Jan 2018 2018 Short-term Short-term rental rental fleet fleet size size

23,747 23,747

The 2018 Annual Members Survey canvassed the opinions of over 5,000 individuals from across all sectors of membership to gain valuable insight into members’ views. These views and opinions enable the BVRLA to understand members’ priorities, which informs where the association’s resources and services should be focussed in the year ahead.

91% 87%

Status and Credibility

Voice of the Industry

78% 68%

87%

Information and Advice

Training & Events Conciliation Service 9


SECURITY

Government launches Rental Vehicle Security Scheme The new scheme, launched by the Department for Transport on 6 December 2018, has been developed in collaboration with BVRLA members, including United Rental Group and other key industry partners. The scheme aims to increase counterterrorism awareness and preparedness across the vehicle sector and mitigate the risk of rental vehicles being used as weapons in acts of terror. The association believes that the DfT scheme will demonstrate participating firms’ commitment to taking security seriously and will help in the fight against terrorism. The voluntary scheme, which is free to join, requires participating firms to meet a set of requirements outlined in a 10 point Code of Practice. This includes a commitment to: 1 Appoint a recognised security contact. 2 Lawfully share data and information with law enforcement. 3 Train staff to identify and report suspicious behaviour. 10

4 Only accept electronic payment. All firms engaged in short-term vehicle rental are being encouraged to register to join the scheme, whether operating a franchise, or managing a location as part of a manufacturer dealership programme or as a licensee of United Rental Group. The BVRLA has updated its Rental & CV Codes of Conduct to reflect the importance of security vigilance, placing emphasis on the need for staff training to include identifying and reporting suspicious behaviours and for companies to support counter-terrorism campaigns. u You can read the full DfT 10 point Code of Practice and register to join the Rental Vehicle Security Scheme via the GOV.UK website.

What people say about the scheme: Arnold Clark Operations Manager and BVRLA Rental Committee Chair Margaret Spiers said: “At Arnold Clark we were quick to sign-up to the new Rental Vehicle Security Scheme, largely because we were keen to do our bit to help combat the threat of terrorism. We have always taken security matters seriously and the introduction of the scheme prompted us to remind staff of their obligations around vigilance. “By registering for the scheme, rental firms are reaffirming their commitment to helping protect their communities, which inspires trust in both the company and the sector.” Chief Superintendent Nick Aldworth, Counter Terrorism Policing, National Coordinator for Protective Security said: “The introduction of the Rental Vehicle Security Scheme shows a real commitment by industry to increase the levels of security awareness, promote the reporting of suspicious behaviours, enhance security checks and encourage support for law enforcement activity against crime and terrorism across the industry. This can only be a positive thing when helping keep people safe.” BVRLA Chief Executive Gerry Keaney said: “Although there is no single panacea for combating terrorism, the vehicle rental sector is committed to doing all it can to deter those seeking to inflict harm on our communities. Although those working in daily rental cannot, and should not, be expected to carry out the role of law enforcement, all UK citizens, including those working in our sector, have an important role to play in the fight against terrorism by being vigilant and reporting anything suspicious. We would encourage all those operating in short-term vehicle rental to register for the scheme.” January / February 2019 |


PROFESSIONAL DEVELOPMENT

Learning and development offer continues to grow The BVRLA continues to act on members’ feedback and respond to the learning and development needs identified. For 2019, two new courses have been added in the area of sales – the first suitable for all members and the second for those involved in the sale of leasing products.

NLP for Effective Selling Suitable for those working in sales or account management.

Learning outcomes:

Neuro-linguistic programming (NLP) is a technique which allows us to model successful behaviours and understand them so that, in turn, we can use the same behaviours to

underpin our own individual style and approach. It also allows us to better understand our customer’s thinking and motivations so that we can adapt our approach accordingly. The NLP for Effective Selling course will be delivered by new training consultant Roy MacDonald (pictured left), who has extensive experience in sales and management. He is a

WEBINAR

qualified coach, trainer and NLP master practitioner and clinical hypnotherapist. Roy is pleased to be bringing the benefit of his expertise to members: “I look forward to working with the BVRLA and in supporting their goal to provide a range of relevant and impactful courses.” u Course duration: One day. Check availability and book on the BVRLA website.

Learning outcomes:

Designed to help reduce misselling, this course allows delegates to look at sources

of funding, understand how procurement decisions are made, review the product types on offer and understand the influence of VAT, taxation and the new IFRS16 lease standard, which came into effect on 1 January 2019.

consultant Mark Biggs (pictured left), who has experience in various areas of finance, is a chartered accountant and has worked as a finance director in vehicle leasing, vehicle retailing and parcel distribution. u

The Finance Essentials for Account Managers course will be delivered by new training

Course duration: One day. Check availability and book on the BVRLA website.

| January / February 2019

FORUMS

TECHNICAL AND OPERATIONAL MANAGEMENT 7 February, Coventry RESIDUAL VALUE AND REMARKETING 14 February, Birmingham

TRAINING COURSES

BVRLA FAIR WEAR AND TEAR TRAINING 6 February, Sutton Coldfield

Finance Essentials for Account Managers Suitable for those working in sales and business development managers in the leasing sector.

NO DEAL BREXIT – IMPLICATIONS AND CONTINGENCIES 6 February, 14.00 to 15.00

BVRLA SELLING CONTRACT HIRE 20 and 21 February, Amersham INTRODUCTION TO THE DAILY RENTAL INDUSTRY 26 February, Amersham INTRODUCTION TO THE VEHICLE FLEET INDUSTRY 13 March, Amersham NLP SKILLS FOR EFFECTIVE SELLING 20 March, Amersham 11

For more Check availability information and email book online training@bvrla.co.uk at bvrla.co.uk


BREXIT

Supporting members through Brexit The BVRLA’s Brexit priority is to keep members informed about developments and regulatory changes and provide access to advice from independent business advisors and legal experts. The BVRLA will continue to notify members of the latest advice coming from government and will provide a platform, through webinars, forums and conferences, for specialist business advisers and legal experts to share their views on what our sector should be considering as part of pre- and post-Brexit preparations.

Preparing businesses for EU-Exit The government has launched an online guidance tool dedicated to helping businesses with preparations ahead of the UK’s exit from the EU on 29 March. The guidance tool asks seven simple questions to direct businesses to the most relevant information, including: › what your business may need to do to prepare for the UK leaving the EU; › what’s changing in your industry; › information on specific rules and regulations. Members are encouraged to access the online guidance tool via the GOV.UK website. 12

Preparing to drive in the EU post-Brexit The government has published advice and guidance on requirements for all UK citizens driving abroad post-Brexit:

1. VE103 certificate

Government has confirmed that drivers of rented or leased vehicles will still be required to carry a VE103 certificate when taking their vehicle abroad, regardless of the outcome of the EU-Exit deal. The VE103 is the only legal alternative to the vehicle registration document (V5). Letters of authority and photocopies of the V5C (log-book) are not valid substitutes. Drivers caught without the correct documentation can face long delays which can be time consuming and costly. The consequences will vary according to the country, but a driver may be fined, and the vehicle could be impounded. Members are encouraged to remind customers of this obligation. VE103 certificates can be ordered on the BVRLA website.

From 29 March 2019, drivers from the UK will also need extra documentation to drive in the EU and EEA:

2. Trailer registration

Commercial trailers weighing over 750kg and non-commercial trailers weighing over 3,500kg must be registered before they can travel to or through most EU and EEA countries. Find out more about trailer registration on the GOV.UK website.

Stay informed… Register to receive Brexit updates from government via GOV.UK. Keep on top of DVLA changes by subscribing to updates via the DVLA website.

Also, in the event of a no-deal… › VEHICLE TYPE-APPROVALS would no longer be valid and vehicle manufacturers would need to ensure that they have the correct type approval for each market, including the UK. › For individuals DRIVING IN THE EU (whether for private or commercial purposes), driving licences may no longer be valid, and an additional International Driving Permit (IDP) may also be required. › Recognition of VEHICLE INSURANCE will cease and UK motorists will need to carry a ‘Green Card’ as proof of thirdparty motor insurance cover when driving in the EU. › REPORTING CO2 EMISSIONS FOR NEW CARS AND VANS may also change in a no-deal scenario. Current reporting is mandated and governed by Regulation (EC) 443/2009 (cars) and Regulation (EU) 510/2011 (LCVs), which both set mandatory annual fleet CO2 emissions targets, and specific targets for each manufacturer’s fleet.

January / February 2019 |


REGULATION & COMPLIANCE

Complaints: 2018 trends The BVRLA’s government-approved Alternative Dispute Resolution (ADR) service provides members’ customers with the added reassurance of knowing that they have somewhere to go should they need to escalate a complaint that has not been resolved directly. Demand for the ADR increased by almost a third during 2018, driven largely by the continued increase in personal contract hire (PCH) and a greater awareness of the service. Key trends were: › fewer complaints found in favour of the customer;

that members can more successfully defend their decisions. A time-saving 2,100 tip here is for members to ensure cases handled that responses sent to the ADR service during 2018 are comprehensive and address all the points raised by the customer. This will reduce the need for multiple contacts between the ADR and members.

20 Days average time to conclude cases

› fewer complaints about excess reduction; › more complaints about bookings with budget brands and brokers. The drop in outcomes found in favour of the customer – now 35% – indicates that better processes are in place and

73% of members say BVRLA ADR is important

BVRLA updates Codes of Conduct Four of the BVRLA’s Codes of Conduct: Rental, Commercial vehicle & minibus, Leasing broker and Leasing & Fleet Management now contain additional standards and guidance. Members are encouraged to get the latest version of the Codes, which are now available on the BVRLA website.

| January / February 2019

Damage liability continues to dominate as the main reason for complaint – representing 51% of all complaints in the rental sector and 71% in leasing. The downward trend in the number of complaints concerning the selling of excess reduction products indicates that improved processes have been introduced and products are being sold correctly. The BVRLA has expanded its ADR team to ensure that service levels continue to be met. u

Ask Adam Send your questions about the BVRLA inspection programme to Senior Compliance Officer Adam Holt at adam@bvrla.co.uk. Q: Why have I been asked to move to full credit broking permissions when the FCA advised that limited permission was enough when I applied a few years ago? A: Firms need to ensure they have the correct permissions. FCA advice would have been based on information given by the firm at the time. If a firm did not correctly and fully describe its activities, the FCA advice would be based on incomplete information. Information given by the inspector during a BVRLA audit is consistent with current FCA guidance. Q: For affordability checks, I only ask the questions that are generated from the relevant funder. Is this OK? A: Affordability checks should be part of a firm’s due diligence. It is best practice to record all notes from customer conversations via a discussion document or call recording. This can help identify issues that may not appear from the funder’s standard questions and will help if there is a dispute regarding the customer’s affordability. Q: How often should I record my vehicles’ tyre pressure and tread depth recordings? A: It is best practice to record a vehicle’s tyre pressures and tread depths before and after every rental. This not only ensures that the vehicle is safe, it is evidence if disputes are raised from the rental. This should be part of both the check-in and check-out processes. Remember to also record when tyre pressure gauges and torque wrenches are calibrated, if applicable (optimally every six months). 13


YOUR ASSOCIATION

In the spotlight… In 2018, the BVRLA was mentioned in 1,727 news articles, up 56% year-on-year. There were 352 mentions in print and 1,373 online. Stories relating to regional Clean Air Zones, the BVRLA Plug-inPledge, company car tax, motor finance and vehicle terrorism were all of interest to the mainstream media and 2018 saw the association receiving unprecedented levels of national, regional and trade media coverage. Stories focused on the BVRLA’s Industry Outlook report which set out rental and leasing challenges for 2019, the government’s introduction of the Rental Vehicle Security Scheme and the £23m van scrappage scheme to help SMEs prepare for the Ultra-Low Emissions Zone in London. u


YOUR ASSOCIATION

BVRLA launches new website

The BVRLA Blog

The BVRLA’s new website, launched in December, requires members to take a couple of minutes to update their account details to ensure that they get the best from the site’s new personalisation technology.

The new BVRLA website now features the BVRLA Blog, which shares knowledge, experiences and views of specialists and industry experts, covering a range of topics of interest to members.

What’s new?

The new and improved site includes: › Dedicated consumer advice section. › Interactive member directory. ›

E-commerce capabilities enabling purchasing of event tickets, training courses, Fair Wear & Tear Guides and VE103 Certificates.

BVRLA Director of Communications & External Affairs Toby Poston said: “Our new website’s new personalisation technology enables users to update their settings to deliver content that is relevant to their interests. The new site also hosts the new BVRLA Blog, the latest in a series of new communication channels being launched this year to help keep members informed and abreast of all the latest news, industry developments and insights.” u Any questions relating to the setting up of the new website account should be emailed to BVRLA Senior Digital Officer Tamsin Stuczynska.

Hayleigh’s overarching advice is to start preparations now, as although December may seem a way away – it will be here in a flash.

› New BVRLA Blog channel.

She says: “The sooner you get preparations underway, the better. It will quickly become apparent what changes need to be made within your organisation to ensure compliance. As always, you will have the BVRLA team on hand to provide advice and guidance.

Members should follow these five easy steps to get the best from the site: 1 Visit the login page of the BVRLA website. 2 Enter your email address as the username. 3

Click the ‘Forgotten password’ link, enabling you to set a new password.

4 Log on using new password details. 5 Check that your personal details are correct via ‘my account’.

| January / February 2019

One of the BVRLA’s recent blogs, FCA-regulated firms must get ready, get set… was written by BVRLA Compliance Officer Hayleigh Clayton. Hayleigh looks at the FCA’s new Senior Managers & Certification Regime (SM&CR) which comes into play from 9 December 2019.

Call out to Bloggers! The BVRLA welcomes blogs from members who would like to share views and expertise on a subject of interest to fellow members. The blog is not a platform for sales messages or business promotion but is great for sharing knowledge and expertise. All blog entries are subject to an approval process prior to publication. If you have a blog idea in mind, please contact Helen in the BVRLA communications team. Keep calm and blog on! u

“The FCA believes that firms should be able to get ready for the new regime themselves, without having to pay someone to do it for you, but only if you give yourself enough time and don’t wait until the last minute.” Hayleigh suggests some starting points for preparation and advises on the BVRLA’s SM&CR help and guidance that will be coming up throughout 2019. u Read Hayleigh’s blog in full on the BVRLA website. 15


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