Europcar

Bridging the supply gap: Long-term rental can offer a flexible and agile option

Debbie Wallace, Head of SME at Europcar Mobility Group UK, looks at the benefits of flexible rental solutions when it comes to dealing with the current delays in new vehicle supply.

At a time when many businesses have seen an uptick in workload due to increased customer demand following the easing of Covid-19 restrictions, it seems that the availability of everything from building materials through to new vehicles is down, due to supply issues.

Car manufacturers, in particular, have been affected from all sides. Factory closures during the pandemic, a factory fire in Japan and extreme winter weather conditions in Texas earlier this year have all led to a shortage of semi-conductor chips. The upshot is that they have been unable to produce enough new vehicles to meet a suddenly ramped up demand.

As a consequence, prices of second-hand vehicles have increased dramatically. According to BCA the average sold value of second-hand light commercial vehicles is up 57% year on year – putting an additional financial burden on businesses already challenged by the effects of the pandemic.

While recent SMMT figures show that production levels of new commercial vehicles, are on the increase, it will take time for these to filter down to the showrooms. In the meantime businesses need to look at alternative ways to meet their extra vehicle needs.

Because of the interruptions and delays to the supply of new vehicles, companies who own or lease their vehicles only have two options – extending leasing agreements or in the case of ownership not replacing older vehicles. Yet both can be costly and have implications for driver safety.

One option to bridging the supply gap is long-term rental, which offers a flexible and cost-effective solution that supports businesses with their ongoing plans and ensures that they have the vehicles they need when, where and for as long as required. While the outright purchase of vans and commercial vehicles is proving challenging, working with a trusted and experienced rental supplier can offer businesses easy access to new or nearly new vehicles with no deposit or early termination fees.

Flexible usership

The uncertainty of the last year has put huge stresses on businesses but the key to success is the ability to remain agile, to grasp opportunities as and when they arise. For organisations that rely on their commercial vehicles and company cars to drive their business forward, flexible ‘usership’ can give them the edge in uncertain times.

Europcar has one of the youngest fleets in the industry and through our strong relationships with car manufacturers we have been able to keep a good supply of new, technologically up-to-date vehicles coming on fleet.

With service and maintenance included it means organisations can have peace of mind and concentrate on the day-to-day running of their business

For more information on how Europcar can help you with your vehicle planning, visit www.europcar.co.uk/business or call the team on 0371 384 0140.

Birmingham sets new standards for urban air quality

Birmingham has become the latest urban area in the UK to launch its Clean Air Zone, following Bath and with plenty more cities to come.

The CAZ is within the area of the A4540 Middleway (but not the Middleway itself) and will be used to encourage the drivers of the most polluting vehicles to upgrade or replace their vehicle. People are also being encouraged to think about walking, cycling or using public transport more – especially for shorter journeys.

A daily fee will be charged on vehicles that do not meet the emission standards for the zone. If owners do not pay the daily fee after this date the registered keeper of the vehicle will be issued with a penalty charge notice.

Cars, taxis and LGVs which do not meet the Clean Air Zone emission standard will be charged £8 a day and non-compliant coaches, buses and HGVs will be charged £50 per day.

The Clean Air Zone charge runs midnight to midnight. Drivers can pay six days in advance of their visit, the day of their visit and six days after the day of their visit, giving a total payment window of 13 days.

Payments can be paid online using the Government’s payment system or over the phone by calling 0300 029 8888 (Monday to Friday, 8am to 4:30pm). To avoid being charged in a Clean Air Zone, your vehicle must meet the following minimum standard:

• Buses, coaches, heavy goods vehicles:

Euro VI

• Vans, minibuses, taxis, private hire

vehicles, cars: Euro 6 (diesel) and Euro 4 (petrol) • Motorcycles: Euro 3.

A range of support measures have been brought in to support those immediately impacted by the changes. This includes temporary exemption permits and financial incentives as well as the Heavy Duty Vehicle (HDV Fund) – but there’s no support for fleets.

However, the majority of modern vehicles – certainly those built in the past six-seven years – should be okay, though fleets still running older vehicles, particularly diesels, should pay close attention to the rules.