Driving Business - Summer 2016

DRIVING

Issue 16 Summer 2016 £4.50

Helping you make better decisions

THE MINI CLUBMAN.

GO WITH YOUR GUT.

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The MINI One D Clubman achieves new levels of efficiency with CO2 emissions from just 99g/km, and is filled with must-have features such as MINI Navigation and Cruise Control, to enhance time spent on the road.

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DRIVING

Issue 16 Summer 2016 £4.50

Helping you make better decisions

BUSINESS INSURANCE RISK Nine in 10 drivers conceal points on their licence

END OF CONTRACT CHARGES

END-OF-CONTRACT CHARGES

THE STING IN THE TAIL SMEs face many charges when returning vehicles, from damage to excess mileage.

Find out how to minimise the cost inside

IMPRA-GAS The Apprentice winner Joseph Valente on how vans boost business

The

Lombard Vehicle Solutions product

An innovative new direction for business fleets Created to meet the needs of today’s business fleets, Lombard Vehicle Solutions is a vehicle contract hire and fleet management solution that combines the trusted brand values of Lombard with the innovative products and support services of ALD Automotive, one of the UK’s leading fleet service providers. Offering a wide range of leasing options – for a single vehicle or the largest of fleets – LVS is here to help you meet the challenges of cost control, risk management and CO2 reduction and improve the efficiency of your operations.

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Lombard Vehicle Solutions is a contract hire and fleet management product provided by ALD Automotive Ltd, trading as Lombard Vehicle Solutions, Oakwood Park, Lodge Causeway, Fishponds, Bristol BS16 3JA. ALD Automotive is registered in England No. 987418.

Contents FRONT END

6 Working hours

ISSUE 16 Summer 2016

10 Impra-Gas

The Government has updated its advice to include travel to a first job for employees without a fixed office as part of the working week.

7 Drink-driving More than half of drivers are not aware of current drink-drive limits.

9 Licence points Just 13% of drivers surveyed would inform their employer if they received points on their licence.

BROADER VIEW

10 Impra-Gas Joseph Valente, the 2015 winner of The Apprentice, has learned first-hand the effect his vehicles’ livery has had on his business.

FINES AND CHARGES

14 The sting in the tail Leasing companies usually base end-of-contract charge decisions on the BVRLA’s guide, but interpretations can differ. We look at areas where you may fall foul of the standards – and incur a heavy toll.

es Avoiding fin and charges

 14

16 Avoiding damage charges Leasing companies answer questions about how best to avoid end-of-contract damage charges.

19 The end game Use our FAQs to avoid losing out on excess mileage and early-termination charges.

21 Daily rental charges

14 Fines and charges Coming soon

26

Beware unexpected charges for damage, refuelling, cleanliness and out-of-hours collection or delivery.

CARS

26 Coming soon Forthcoming model launches, including the Kia Optima Sportswagon. mydrivingbusiness.co.uk ❚ Summer 2016 ❚ 3

ALIGNED WITH YOUR NEEDS The Volvo V60 isn’t simply designed for your business, but for the people within it, too. For instance, its ergonomic seats are designed to assist driver posture, which increases oxygen flow to the lungs.

This is understood to not only enhance concentration, but also minimise the risk of back-related issues. And with the added support of the Business Edition benefits below, you and your drivers can always feel comfortable.

• 98g/km CO 2 • 19% BIK • Up to 76.3mpg (combined) • City Safety system • Sensus Connect with Navigation HUMAN MADE FOR BUSINESS DISCOVER MORE VISIT VOLVOCARS.CO.UK /V60SEATS

The Volvo V60 D2 Business Edition. From only £209* per month + VAT on Business Contract Hire.

• Initial rental of £1,254 + VAT • 36-month agreement • 10,000 miles per annum • VAT payable at 20% • Excess mileage charges apply Official fuel consumption for the Volvo V60 D2 Business Edition manual in MPG (l/100km): Urban 67.3 (4.2), Extra Urban 80.7 (3.5), Combined 76.3 (3.7). CO2 emissions 98g/km. MPG figures are obtained from laboratory testing intended for comparisons between vehicles and may not reflect real driving results. *Important information: Business users only. Subject to status. You will not own the vehicle. Vehicle must be returned in good condition to avoid further charges. Excess mileage of 10.20p + VAT per mile.

Subject to availability at participating dealers for vehicles registered 01/0+/2016 to 3'/0-/2016. Not available with other promotions. Provided by Lex Autolease Ltd trading as Volvo Car Leasing, SK3 9RB.

DRIVING

Helping you make better decisions

Contact us Driving Business, Media House, Lynchwood, Peterborough PE2 6EA. If you or someone you know is aged between 16 and 24 and is interested in work experience opportunities at Bauer Media, visit: gothinkbig.co.uk Editorial Editor-in-chief Stephen Briers 01733 468024 stephen.briers@bauermedia.co.uk Editor Sarah Tooze 01733 468901 sarah.tooze@bauermedia.co.uk News editor Gareth Roberts 01733 468314 gareth.roberts@bauermedia.co.uk Features editor Andrew Ryan 01733 468308 andrew.ryan@bauermedia.co.uk Web producer Christopher Smith 01733 468655 christopher.smith@bauermedia.co.uk Contributors John Charles Production Head of publishing Luke Neal 01733 468262 Designer Erika Small 01733 468312 Production editors Richard Davis 01733 468310 Finbarr O’Reilly 01733 468267 Head of project management Leanne Patterson 01733 468332 Project managers Lucy Peacock 01733 468327 Kerry Unwin 01733 468578 Advertising Commercial director Carlotta Hudgell 01733 366466 (maternity cover) Group advertisement manager Sheryl Graham 01733 366467 Account managers Sean Hamill 01733 366472 Lucy Herbert 01733 366469 Lisa Turner 01733 366471 Stuart Wakeling 01733 366470 Marcus Woods 01733 366468 Publishing Managing director Tim Lucas 01733 468340 Group marketing manager Bev Mason 01733 468295 Office manager Vicky Meadows 01733 468319 Group managing director Rob Munro-Hall Chief executive officer Paul Keenan Subscriptions: subscription@mydrivingbusiness.co.uk Printing: PCP, Telford. © 2016 Bauer Media No part of this magazine may be reproduced without the permission of the publisher.

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Welcome Like many small business owners, The Apprentice winner Joseph Valente chose to buy his vans when he started his plumbing and heating business, but has since made the switch to leasing, freeing up much-needed capital (see pages 10-11).

He’s not alone in choosing to lease rather than buy his vehicles. While buying is still the most popular way to fund vehicles for small businesses, a growing number are using leasing companies. The UK’s largest leasing company, Lex Autolease, saw a 22% rise in SME customers from the end of 2014 to the end of 2015, with SMEs now making up about 45% of its fleet.

Many of the larger leasing companies have a dedicated SME division and offer products and services aimed at small businesses. SMEs can also access leasing products through brokers.

While leasing means businesses are able to have brand-new vehicles (typically every three to five years), with fewer breakdowns than older vehicles, lower emissions and up-to-date technology, there is a sting in the tail.

Fail to look after your vehicles during the term of the lease and you could be hit with high damage charges when you return them at the end of the contract. Leasing companies can also charge for excess mileage or early termination if you decide to return the vehicle before the contract is up.

If you rent your vehicles, you’ll find similar charges from daily rental companies.

We’ve put together a special report (pages 14-24) to show you what leasing and rental firms will charge for and what measures you can put in place to avoid the charges.

Sarah Tooze Editor, Driving Business

Complaints: Bauer Consumer Media Limited is a member of the Independent Press Standards Organisation (www.ipso.co.uk) and endeavours to respond to and resolve your concerns quickly. Our Editorial Complaints Policy (including full details of how to contact us about editorial complaints and IPSO’s contact details) can be found at www.bauermediacomplaints.co.uk. Our email address for editorial complaints covered by the Editorial Complaints Policy is complaints@bauermedia.co.uk.

mydrivingbusiness.co.uk ❚ Summer 2016 ❚ 5

■ F RO N T E N D

Government updates its advice on working hours The Government has updated its advice on contracts of employment and working hours as employers get to grips with a verdict in a travel-to-work case.

The European Court of Justice (ECJ) ruled last year that employees without a fixed or habitual office – so-called peripatetic workers – should include the time spent travelling between their homes and the premises of their first and last jobs as part of their working hours.

Government advice on calculating working hours has been updated to explain what a working week includes.

The following all count as work: job-related training; time spent travelling as part of your job; working lunches; time spent working abroad; paid overtime; any unpaid overtime you’re asked to do; time spent on call at the workplace; any time that is treated as ‘working time’ under a contract; and travel between home and work at the start and end of the working day (if you don’t have a fixed place of work).

However, a working week does not include: time spent on call away from the workplace; breaks when no work is done; travelling outside of normal working hours; unpaid overtime that’s volunteered for, such as

Arval appoints new head of broker Arval has appointed Todd Williams, right, as the new head of broker, to support increasing demand from smaller customers for vehicle leasing.

As head of broker, Williams will be responsible for a field team of five regional managers as well as 22 customer support staff, all dedicated to developing the broker channel and supporting the brokers they work with.

In the past few years, Arval has seen significant UK growth in the broker channel and it has long-standing relationships with more than 70 UK brokers.

Elliott Woodhead, director of SME and partnerships, said: “Smaller businesses are very important to us and we believe that we can add significant value to them through the costeffective products and services that we provide.

The broker channel is an important way of doing this and one where our partnership approach is proving very successful.”

6 ❚ Summer 2016 ❚ mydrivingbusiness.co.uk

staying late to finish something off; paid or unpaid holiday; and travel to and from work if you have a fixed place of work.

The TUC said the judgment could have implications for many of the 951,000 employees who use home as a base.

But it will have the biggest impact on some 250,000 workers, including 37,000 skilled tradesmen, 13,000 professional drivers who take their vehicles home and 12,000 mobile carers.

The ECJ ruling relates to the Working Time Directive.

It gives workers the right to a minimum 28

days of paid holidays each year, a 20-minute rest break after six hours of work, rest of at least 11 hours in any 24 hours, 24 hours off after seven days of work, and provides for a right to work no more than 48 hours per week over a cycle. It also restricts excessive night work.

However, TUC policy officer Paul Sellers said: “To ensure changes comply, it is important to remember that individual opt-outs from the 48-hour week do not provide complete protection against this judgment, as it also affects the rest break entitlements in the directive. In addition, the 48-hour limit opt-out cannot be used by night workers.”

Customers ‘deterred’ by unsafe company drivers Two thirds of motorists are less inclined to do business with companies whose drivers are unsafe or discourteous, according to research from TomTom Telematics.

The survey, which addressed more than 1,000 British consumers, found van drivers were the least likely to be considered the safest or most careful road users, with only 3% of respondents selecting them in this category.

High-performance and sports car drivers (4%), taxi drivers (8%) and truck drivers (8%) were also in the bottom four.

When it came to the most polite and courteous road users, van drivers were again bottom of the list, tied with drivers of high-performance and sports cars (both 3%). They were closely followed by SUV drivers (4%) and truck drivers (5%).

At the other end of the scale, drivers of small and compact cars were considered the safest on the road (27%), closely followed by drivers of saloon cars (23%), while bus

Drivers of small and compact cars were considered the safest on the road and coach drivers came in third with 17%.

Small and compact car drivers also finished top when it came to the most polite and courteous drivers on the road, taking 26% of the vote.

Drivers ‘using petrol and oven cleaner to unblock DPFs’

More than half of drivers not aware of drink-drive limits More than half of drivers are not aware of current drink-drive limits, according to a survey by law firm Rothera Dowson.

The survey, which looked at limits for a range of offences, showed 63% of road users could not identify the legal limit of 80mg of alcohol per 100ml of blood in England and Wales.

Other findings from the survey showed that: • Two fifths of drivers did not know the correct speed limit of 70mph for a standard car on a dual carriageway (unless a lower limit is posted).

• One in five drivers had no idea they can receive an automatic three points and a fixed penalty fine if caught using a mobile phone while driving.

• Two fifths of people were not clear on the rules regarding smoking in vehicles.

• About half (53%) of respondents did

not know that not having the correct address on their driving licence could lead to a fine of £1,000.

Anton Balkitis, motor transport solicitor and partner at Rothera Dowson, said: “This survey has revealed some very worrying results. There seems to be a lack of education when it comes to drink-drive limits and speed limits so it is vital that drivers take the time to understand the laws of the road.

“The Government has a responsibility too. Motoring law is an area that is constantly developing with the arrival of new technologies and challenges, so any changes to the law must be well communicated.

“There are obviously glaring safety concerns here. We must collectively take action to reinforce the laws in place to ensure all drivers are safe on the road.”

Petrol, oven cleaner and paint thinner are just some of the ways diesel vehicle owners attempted to resolve blocked diesel particulate filters (DPF) during 2015, according to DPF Clean Team.

The automotive reconditioning specialist analysed the call history for its blocked DPF helpline for last year to find some of the most bizarre methods customers have attempted to unblock their DPFs, catalytic converters and silencer units.

Other failed attempts at unblocking DPFs included jet washing the filter and setting fire to the unit.

Such practices are only serving to further damage DPFs, making regeneration impossible, and significantly harming the interior of the filter.

Cameron Bryce, director at DPF Clean Team, said: “Once a DPF warning light appears on your dashboard, the worst thing you can do is pour any kind of treatment into the filter.

“Substances such as drain cleaner can remove the interior coating of the filter, stopping future regenerations from working effectively.

“The result in many of these cases is that the customer has required a complete DPF replacement, which has been more expensive than a professional clean.”

DPF Clean Team encourages diesel vehicle owners to seek professional advice as soon as their DPF, catalytic converter or silencer unit becomes blocked, and consider having a professional clean.

Vans important to SME growth, research shows Commercial vehicles play a key role in the growth of new and small businesses in the UK, according to the Centre for Economic and Business Research (CEBR).

The CEBR, which was commissioned by Volkswagen Commercial Vehicles, analysed data from 2009 to 2015 to investigate the relationship between the growth of the commercial vehicle industry and use of vehicles by businesses.

It found that van-dependent enterprises contributed £120 billion to the UK economy and

travelled more than 63bn miles in 2014 alone.

Since 2009, the number of registered commercial vehicles in the UK has increased by 400% as business and consumer confidence recovered and demand for services and goods increased. Over the same period there has been a 17.5% increase in self-employment as entrepreneurs and small businesses break away across a range of sectors.

The research also shows how parts of the UK economy have shifted from established ‘bricks

and mortar’ organisations to online and start-ups with more than a million new businesses registering since 2009. By 2017, there are expected to be 11.7 million start-up businesses in the UK. Carl zu Dohna, director of Volkswagen Commercial Vehicles, said: “Commercial vehicles play a huge role in start-up and small businesses and we’re proud to supply the future drivers of British business with vehicles that help to deliver their goods and services.” mydrivingbusiness.co.uk ❚ Summer 2016 ❚ 7

■ F RO N T E N D

Nine out of 10 motorists ‘would conceal licence points from their employer’ Almost nine in 10 motorists would not tell their employer if they received points on their licence, potentially invalidating insurance and contravening risk management policies, a survey has found.

Research by RAC Insurance found just 13% of drivers surveyed would inform their employer if they received points.

It also found nearly a fifth (18%) of motorists would not tell their insurer if their licence was endorsed, while 25% of those who already had penalty points did not inform any organisation when they received them.

Mark Godfrey, director of RAC Insurance, said: “Our research points to one of two likely scenarios: either motorists are simply forgetting to inform the relevant authorities when they receive points, or they are intentionally not telling them in order to keep their insurance premium lower. In either case, the result is hundreds

of thousands of drivers on our roads who are effectively uninsured by default.

“This could have very serious, and indeed costly implications should they be involved in an accident, and could cause no end of problems should they need to make an insurance claim themselves.”

The DVLA, which holds data on each motorist’s penalty points, launched a joint initiative called MyLicence with the Motor Insurers’ Bureau in late 2014, to combat fraud.

This gives insurers automatic access to the past five years of a motorist’s driving history, including points, if a motorist provides their driving licence number.

However, the system is a voluntary one and not all insurers will insist on a driving licence number being provided, so in many circumstances a motorist can just choose to declare points and convictions when applying for an insurance policy.

Ford to introduce mobile servicing nationwide Ford intends to roll out its mobile servicing initiative across the UK over the next year, offering scheduled maintenance for cars and vans at a company’s premises or their employees’ homes.

It launched the mobile service within the M25 last year, using eight vehicles and focusing primarily on vans.

However, Ford chairman and managing director Andy Barratt aims to have more than 100 mobile units operating from Ford Stores and Transit centres.

“It will give us a great platform for nationwide coverage,” Barratt said.

“It also lengthens our relationships with the customer; it’s not just for new cars [and vans] but for used as well and that will increase the propensity for them to continue their relationship with their dealers.”

In-car technology boosts productivity, says Škoda Technology advancements in company cars have made British workers about a third more productive, adding almost £36 billion to the economy, according to research from Škoda.

The car manufacturer’s survey looked at how much workers whose jobs require time on the road rely on their in-car gadgetry.

When asked which technology they couldn’t ‘work without’, about one in six (14%) chose smartphone connectivity systems, while one in 10 selected cruise control and sat-navs.

However, for bosses across the country, the real bonus of automotive technology is how much more efficient it makes their employees.

8 ❚ Summer 2016 ❚ mydrivingbusiness.co.uk

Škoda’s poll of 600 company car drivers found the right equipment can save time (according to 42%), make navigation easier (37%) and ultimately save money (31%).

The knock-on effect is an improvement in productivity, with Škoda’s figures showing each worker completes, on average, 33% more work than they would do without their vehicle’s tech.

Henry Williams, head of fleet at Škoda UK, said: “At Škoda, we know that in-car technology is hugely important to company car drivers and their employers, to help save time and money.

“We regularly investigate which gadgets are most effective in improving business productivity and safety.”

Your competitors save time paying to park with RingGo Corporate Why don’t you?

Find out about RingGo Corporate corporate.myRingGo.com

■ BROADER VIE W

IMPR A-G A S

‘Vans provide our company with mobile advertising’ From apprentice plumber to Apprentice winner, Impra-Gas founder Joseph Valente values his vehicles’ branding, he tells John Charles

J

oseph Valente, the 2015 winner of BBC’s The Apprentice, is a man on a mission to expand his business into a national brand – and his company vehicles will be critical to its success.

Valente, 26, launched Peterborough-based Impra-Gas, a plumbing and heating business specialising in the service, maintenance and installation of gas appliances, in August 2012 with a second-hand Ford Transit Connect bought from a local dealer. Today, the business – a 50:50 joint venture with Lord Sugar following Valente’s triumph on the BBC 1 television programme last year – operates seven vehicles and has placed two more on order following the decision to launch the brand across Cambridgeshire.

It is the first step in a five-year vision to expand nationally on a county-by-county basis and in London, ultimately operating as many as 50 vehicles.

Valente, who was expelled from school as a 14-year-old for being disruptive, learned early on that his vehicles played a vital role in projecting his company’s image and reputation.

He realised that operating second-hand vans was not cost-effective or conducive to offering top-notch customer service if they broke down, so he now acquires new vans on three-year contract hire with maintenance packages.

“Buying a second-hand van is a great start and it got me on the road, but it was simply not sustainable. In the first two years, I spent money buying dud vans as I didn’t have the finance to buy new. The vans kept breaking down and I spent a lot of money on repairs,” he says.

Learning on the job, Valente discovered contract hire with maintenance and five of his vehicles are now funded that way, providing him with budgeted monthly motoring costs and peace of mind.

“Vans are critical to the business so my message to other start-up companies is to be brave and make a decision early to get a good fleet early on,” he says.

As a “memento of how it all started”, Valente says his original Ford Transit Connect remains part of the fleet, which also includes a Vauxhall Vivaro, Vauxhall Combo and Volkswagen Transporters sourced via local dealers. Each does about 30,000 miles annually.

Valente says Volkswagen Transporters will become the mainstay of the fleet: “It is the right size of van for the

10 ❚ Summer 2016 ❚ mydrivingbusiness.co.uk

business and I have always thought Volkswagen build quality was good. Adopting a single vehicle brand also helps with company identity and importantly, the contract hire package has delivered value for money.”

Van livery is equally important for Valente. Vehicle advertising is one of the most cost-effective ways for a business to attract customers, but there are ‘golden rules’ to observe in ensuring the graphics work.

Clearly liveried company cars or commercial vehicles can raise a company’s identity. They are also calculated to generate a significant number of inquiries, with industry research by 3M suggesting that more than 3,000 people an hour see a liveried vehicle operating in a busy area.

Valente says: “Van signage gives the company identity. I like large livery because it is easy to read.”

However, he thinks it is just as important for the vans to be clean and tidy inside and out and in good condition with no dings or dents. This is why Valente introduced a policy a year ago of engineers carrying out daily vehicle checks when they log in to their tablets each morning to view their work schedule. Those checks are focused on tyres, lights, fluid levels, brakes and damage as well as vehicle cleanliness.

In addition, Impra-Gas supervisor John Montgomery carries out visual internal and external checks on vans when the engineers arrive at the company’s headquarters for team meetings every week. This also helps Impra-Gas meet its duty-of-care obligations.

“Vans are key to the image of Impra-Gas because they provide the company with mobile advertising. Therefore, they need to be clean and the engineers need to be

Valente insists engineers carry out daily vehicle checks

Impra-Gas founder Joseph Valente: ‘In the first two years, I spent money buying dud vans as I didn’t have the finance to buy new’

mydrivingbusiness.co.uk

“ ”

Van signage gives the company identity. I like large livery because it is easy to read Joseph Valente, Impra-Gas

respectful of other road users in the way that they drive,” says Valente.

Earlier this year, Impra-Gas selected BigChange’s ‘JobWatch’ platform to accelerate the growth of the business.

Billed as an “all-in-one mobile workforce management solution”, it includes live vehicle tracking to boost mobile workforce productivity and customer service and runs on smartphones or tablets so requires no special hardware.

The system also includes features of the company’s JourneyWatch – a telematics tool with built-in defect management that also encourages safe and fuel-efficient driving as it monitors vehicle mpg, speed, engine idling, turn-by-turn history of each journey, fleet management and service reminders, excessive driving hours and route optimisation information.

While the system has been running in vehicles for only a number of weeks, Valente says: “The engineers have

3,000 people an hour see a liveried vehicle operating in a busy area, according to 3M

bought into the technology because it is there to help them improve their driving. We use the data collected in review meetings with employees to advise them of their driving behaviour.”

The technology was selected because it combined a comprehensive suite of tools in one system. This enables Valente and his management team to manage the entire business operation from customer quotation all the way through to invoice, with integrated planning, management and job scheduling.

Valente says: “We looked at a number of software companies and after a rigorous tender process chose BigChange because the technology provided everything we required as a business in one solution.”

He may be the joint owner of Impra-Gas and speaks to Lord Sugar almost daily, but Valente is also effectively Impra-Gas’s fleet manager.

However, as the business continues to expand and his vehicles swell in number, Valente says he will recruit someone to take over the responsibility as part of their job.

“We will require someone to monitor and manage the fleet as it continue to grow because it is a key part of the business.”

Alternative fuel types are also on Valente’s radar. He says: “New fuel types are emerging and we will look at how feasible they are. Currently, they are not right for our business, but technology is improving rapidly and we want to be as efficient as possible, reduce business costs and ensure the company is as energy-efficient as possible.”

Valente, who started work as a 16-year-old apprentice plumber in Peterborough before qualifying as a gas engineer, won Lord Sugar’s £250,000 backing after seeing off 17 other candidates in the BBC programme.

Ironically, it was a Christmas present of the self-made peer’s autobiography from his mother that inspired Valente to take out a bank loan and launch Impra-Gas. Reflecting on what he has already learned from Lord Sugar, Valente, who has two apprentices of his own among a 13-strong workforce, says: “My biggest lesson has been don’t run before you can walk. You have got to find the right balance between seizing opportunities and having the ability to deliver.

“My life has changed. I’ve got a fantastic opportunity and I’m learning every single day. From being a plumber, I’m now managing a team of people that is expanding. It is a completely different job.

“Every day is hard work, but exciting. It’s blood, sweat and tears, but I intend to do it until we make it big.” mydrivingbusiness.co.uk ❚ Summer 2016 ❚ 11

The UK’s premier driving event where you can drive, compare and evaluate nearly 300 vehicles in one place THE TRACKS

THE CITY COURSE

THE HILL ROUTE

Experience the reality of stop-start urban driving, and replicate the lowspeed challenges such as tight turns and parking manoeuvres without holding up traffic.

Perfect for testing steering, responses, cornering grip, ingear acceleration and body control. The Hill Route features three loops over four miles on gradients up to a challenging 26%.

THE HIGH SPEED BOWL

THE OFF ROAD COURSE

On Millbrook’s five lane, two mile, banked high speed bowl drivers can assess comfort at speed, including noise intrusion from the engine, wind and tyres in realistic motorway conditions.

Put the latest 4x4s through their paces on this purpose built off-road course to get a true feel for a vehicle’s all-terrain ability.

CCIA offers a unique opportunity to test drive unaccompanied on circuits not usually open to the public.

Tracks at Millbrook are specifically designed to simulate ‘real world’ driving conditions, unlike a lot of other venues or events, which take place on a race track or public road.

Millbrook allows cars to be tested in a safe environment that demonstrates the abilities of the vehicle in motorway, A-Road and urban settings.

Free to attend Debates Tuesday: The ACFO (Association of Car Fleet Operators) Debate – Another Fine Mess Fines for parking and motoring offences are an administrative nightmare for fleet decision-makers.

They are issued on an ‘industrial scale’ and there is widespread concern around processing and administration handling.

Volvo S90

Hyundai Ioniq

An exclusive first drive, the S90 comes with LED headlights, Volvo’s Sensus infotainment system with a nine-inch touchscreen, sat-nav (including lifetime annual map updates), voice-control system and internet access as standard. Volvo Pilot Assist keeps the S90 at a set speed or distance from the vehicle in front, braking and accelerating with the flow of traffic, and gives steering inputs to keep the car within lane markings at speeds up to 80 mph.

Hyundai’s new model offers a choice of hybrid, plug-in hybrid or full electric in the same vehicle.

The petrol engine in the hybrid variants comes with a dual-clutch gearbox for a more dynamic driving experience. The Ioniq plug-in offers up to 31 miles on a single charge, while the fully electric version will travel up to 155 miles. Hyundai is targeting CO2 emissions of 79g/km for the hybrid, and 32g/km for the plug-in.

Mercedes-Benz E-Class

Jaguar F-Pace

The new Mercedes-Benz E-Class has standard automatic parking system, advanced collision avoidance systems, LED headlamps and heated front seats. Optional features include lane-keeping with blindspot warning, and an additional pack that will allow the car to follow and stop with the vehicle in front in traffic jams. The E220d offers CO2 emissions from 102g/km and comes with a nine-speed automatic transmission.

The F-Pace is Jaguar’s first SUV and comes with three engine choices, offering CO2 emissions from 129g/km. With rear-wheel drive as standard on the entry 2.0-litre diesel, or all-wheel drive as an option, the F-Pace has surprising multi-terrain ability, which fleets will be able to sample on the off-road course, as well as the road circuits.

Caroline Sheppard, chief adjudicator of the Traffic Penalty Tribunal, chairs the debate, which will include panelists from: • Highways England • Independent Parking Committee • Parking Eye • A Daily Rental Company • An ACFO Fleet Manager

Wednesday: The Great Fleet Management Debate – In-house or outsource?

In-house or outsource is one of the biggest debates in fleet. Views often centre on a fleet’s core purpose, a business philosophy over risk and control or from a previous bad experience.

Renault Mégane The new Mégane raises the bar for quality, and new technology brings added driver appeal, including a four-wheel steering system that helps improve agility at low speed and stability at high speed. The GT Line grade, which has styling cues from the top GT model, is expected to be popular with user choosers.

Vauxhall Astra Sports Tourer The British-built Vauxhall Astra Sports Tourer takes the high-quality package of the Vauxhall Astra five-door hatchback and offers it as a practical estate car. Ideal for drivers who need to carry work-related equipment, the Astra Sports Tourer will be available to drive in fuel efficient

This debate will look at the options, ask which is best for you and consider some of the pitfalls to avoid.

The panel includes: • Jo Hammonds, group fleet manager, Mears Group • Mike Vickers, fleet manager, Portsmouth City Council • Stuart Donnelly, international sales director, Fleet Logistics • Caroline Sandall, deputy chairman, ACFO • The leasing view

Volkswagen Tiguan The second-generation is bolder than before, with more road presence and a chunkier SUV look. This early driving opportunity for fleets will demonstrate the car’s step up in quality, as well as adopting new technology and safety features. The Tiguan will be available 150hp diesel power with two-wheel drive and four-wheel drive variants, as well as a four-wheel drive 2.0 TSI petrol varients.

14-15 JUNE 2016 MILLBROOK PROVING GROUND

REGISTER TODAY

WWW.COMPANYCARINACTION.CO.UK

■ FINES AND CHARGES

END-OF-CONTR AC T CHARGES

DAMAGE CHARGES UNDERSTANDING FAIR

WEAR

TEAR

Leasing companies usually base end-of-contract charge decisions on the BVRLA’s guide, but interpretations can differ. Andrew Ryan looks at areas where you may fall foul of the standards – and incur a heavy toll

D

amaged vehicles are worth less than pristine examples. This truism is the basis for leasing companies charging their customers for damage when cars or vans are handed back.

Research carried out by Driving Business’s sister title Fleet News found 38% of cars returned to the UK’s 50 largest leasing companies incurred damage recharges, at an average of £280, while 44% of vans incurred a recharge, at an average £385.

Some leasing companies use a matrix to assess vehicle damage charges while others base their costs on actual charges. Ogilvie Fleet, for example, operates a standard fixed cost end-of-contract damage recharge matrix that customers sign up to in their master hire agreement.

In November 2014, its end of-contract damage recharge costs (to return a vehicle with damage outside the British Vehicle Rental and Leasing Association’s (BVRLA) fair wear and tear standard) were £75 for a door panel, front PAUL HILL, wings and rear quarter panels; £120 for a bonnet, boot lid, tailgate, bumper or roof.

Other charges included £35 for alloy wheel refurbishment, £40 for a full valet and £40 for windscreen chips (to maximum of three).

Sample recharge prices for commercial vehicles included £75 for door panels and front wings, £120 for side sliding doors, large mage Average dacording side panels or bonnet, tailgate and ac , ge ar rech s bumpers, and £250 for a roof. to Fleet New Some damage, often due to its type and extent, may not be repaired by a leasing company before a car or van is put up for sale, but not refurbishing a vehicle has wider implications than just the resale price, says Paul Hill, director of logistics and inspection services at Manheim.

The National Association of Motor Auctions (NAMA) grades

“WHILE

SALES PRICE IS POSITIVELY IMPACTED BY RECONDITIONING, WE FOUND THAT THERE ARE THREE OTHER AREAS WHERE IT HAS A POSITIVE IMPACT: BUYER ENGA GEMENT, CONVERSION RATE AND DAYS IN STOCK”

£280

14 ❚ Summer 2016 ❚ mydrivingbusiness.co.uk

MANHEIM

vehicles from one (needing minor repairs, e.g. a small dent without paint damage or touch in-type repair) to five (needing more than two major repairs) when they are sold.

“While sales price is positively impacted by reconditioning vehicles into a higher grade, we found that there are three other important areas where reconditioning has a positive impact and these are often overlooked: buyer engagement, conversion rate and days in stock,” says Hill.

“Looking at the high-level data in each area, we clearly see that buyers find cars in grade one and two to be more attractive than lower-grade cars.

“Conversion rates are also positively affected by grade, with 89% of grade one cars being sold at the first time of offering, compared with only 60% of grade five cars being sold at this point.

“Days in stock numbers show that grade five cars are in auction stock for eight days longer than grade one cars, so this have a significant impact on stocking cost.”

■ AT-A- G L A N CE GU ID E TO U N ACCEP TA B L E DA M AG E , ACCO R D IN G TO T H E BV R L A’S FA IR W E A R A N D T E A R IN D US T RY S TA N DA R D

PAINTWORK, BODY, BUMPERS AND TRIM Small areas of chipping, including door-edge chipping, are acceptable. If the areas of chipping require the entire panel, bumper or trim to be repaired or repainted, the damage is not acceptable.

Dents (up to 10mm in diameter) are acceptable, provided there are no more than two per panel and the paint surface is not broken.

Dents on the roof or swage line on any panel are not acceptable. Scratches and abrasions up to 25mm are OK, relative to the vehicle’s age and mileage, and providing the primer or bare metal is not showing.

VEHICLE INTERIOR The interior upholstery and trim must be clean and odourless with no burns, scratches, tears, dents or staining. Carpets should not have holes. Interior fittings such as seatbelts, rear-view mirrors, courtesy lights, sun visors, door bins etc, must be present, intact and free of damage.

TYRES All tyres, including any spare, must meet minimum UK legal requirements and comply with manufacturer’s recommendations. There must be no damage to sidewalls or tread.

MOST COMMON DAMAGE/ SMART REPAIRS 1: Alloy wheel refurbishment 2: Scuffs and scratches to corner bumpers 3: Dents 4: Stone chips and scratches to paintwork 5: Interior trim repairs

MOULDINGS, WHEEL ARCH TRIMS Scuffs and scratches up to 25mm are acceptable provided the moulding or trim is not broken, cracked or deformed.

WINDOWS/WINDSCREENS Chips, cracks or holes are not acceptable. Repaired chips within the driver’s line of sight are not acceptable.

DOOR MIRRORS Missing, cracked or damaged door mirrors are not acceptable.

WHEELS Scuffs totalling up to 50mm on the total circumference of the wheel trim and on alloy wheels are OK. But damage to the wheel spokes and the hub of the alloy wheel is not.

LAMP AND LENSES All lamps must work. Minor scuff marks or scratches up to 25mm are acceptable.

Holes or cracks in the glass or plastic covers of lamp units are not acceptable.

Source: BCA Source: BVRLA fair wear and tear industry standard

mydrivingbusiness.co.uk ❚ Summer 2016 ❚ 15

■ FINES AND CHARGES

END-OF-CONTR AC T CHARGES

AVOID THE END OF

STING IN THE TA Leasing companies are often accused of using end-of-contract damage charges as a ‘profit centre’. Not so, say the UK’s three largest leasing companies.

Andrew Ryan compares answers to businesses’ key concerns

E

nd-of-contract damage recharges are “the biggest bane of my life”, according to a fleet manager with 25 years’ experience – and it is a sentiment shared by many of his counterparts.

“Judging what is fair wear and tear is not an exact science and is open to interpretation,” says Nigel Rowden, fleet manager at ISS. “Leasing companies need to be more consistent and realistic.”

Other concerns include interpretation of the British Vehicle Rental and Leasing Association (BVRLA) fair wear and tear rules, the differing belief that damage recharges are used as a ‘profit centre’, and the fact that not all the money is used to repair vehicles before they are sold.

Here, we put a number of businesses’ concerns and questions to the UK’s three largest leasing companies.

What steps can businesses take to minimise end-ofcontract damage recharges while negotiating a contract for leasing vehicles?

Andy Hartley, commercial director at Lex Autolease: A discussion of end-of-contract damage recharges should form a central part of any negotiations. Both the business and the leasing company should be fully aware of the other’s expectations and all end-ofcontract processes should be clearly defined before any agreement is signed. Fleet policies can be designed strategically so that company car drivers are liable for all or part of any end-of-contract charges incurred. Putting the onus on employees goes a long way to encourage

“MOST

SIMPLY, BUSINESSES CAN COMPLETE ALL REPAIRS THEMSELVES, OR THROUGH THEIR ACCIDENT MANA GEMENT PROVIDER, PRIOR TO RETURNING THE VEHICLE”

ANDY HARTLEY, LEX AUTOLEASE 16 ❚ Summer 2016 ❚ mydrivingbusiness.co.uk

£500 Potential penalties from loss of spare set of keys

Find out how to recharge drivers for damage at our sister website: fleetnews.co.uk/ damagepolicies

them to take better care of their vehicle during its lease.

Additionally, restricting the vehicle specification and options available to drivers can have a significant impact on reducing the likelihood of end-of-contract charges. Large alloy wheels, for example, have a greater chance of being damaged than standard-fit wheels, and are expensive to repair or replace, sometimes even necessitating a new tyre. Prohibiting free rein on vehicle choice and add-ons can drastically reduce the potential for damage to occur.

What can businesses do during a vehicle’s time with the company to minimise end-of-contract damage recharges?

AH: Most simply, businesses can complete all repairs themselves, or through their accident management provider, prior to returning the vehicle. This places the customer in full control, though any potential impact on insurance costs must be balanced against savings made by avoiding end-of-contract costs.

Julia Thirtle-Watts, general manager, remarketing operations at LeasePlan UK: Appraise vehicle condition in the months before returning a vehicle. This check-up gives managers the opportunity to control and manage any possible end-of-contract damage charges, in line with their agreed contract.

Steve Shaw, head of remarketing and logistics at Alphabet: First and foremost, uphold the manufacturer’s servicing intervals. If those aren’t maintained, then the recharge is potentially hundreds of pounds straightaway.

Drivers should also be cautious, particularly when parking. A lot of damage recharges are from scuffs and dents when parking, or when a vehicle is left.

What are the most common misunderstandings over end-of-contract damage recharges?

AH: There can be confusion and misunderstanding around pricing structures for different types of damage and where charges have been incurred. At Lex Autolease, we launched iPad technology at the end of 2014 to simplify the de-hire process for our customers. We also introduced a simplified pricing matrix, detailing all charges by vehicle size and damage type, which helps customers to make informed decisions about whether to undertake repairs ahead of returning a vehicle. As with all aspects of fleet management, clarity of communication between drivers, employers and fleet companies is crucial.

SS: We find the biggest area of confusion among fleets

F CONTRACT

AIL

is understanding the extent of damage: one person’s ‘polish out’ is another person’s ‘repaint the side’. With some of the colours and paint finishes available now, it is no longer the case that you can just touch up a scratch and it’ll be fine, so we either have to repair it or we have to lose money on the vehicle when it comes to reselling it.

If you’re unsure about any damage, speak to your leasing company.

How do you decide what damage is repaired before a vehicle is sold? Can you understand the frustration when a damage recharge is not used to repair a vehicle?

AH: Lex Autolease does not repair vehicles that are being returned to the used car market. Most ex-fleet vehicles are returned to auction rather than directly to retail, and the majority of people who bid on ex-fleet vehicles are independent traders who will choose the level of refurbishment for vehicles and complete repairs themselves cost-effectively. Taking this route quickly turns a vehicle into cash for a leasing company, and the lower value commanded by a non-repaired ex-fleet vehicle sold at auction is more than offset by the speedy sale and absence of repair costs that a leasing company might normally incur. However, the vehicle will still deliver lower sales proceeds when returned in a damaged condition than if it had been returned in a condition in accordance with the BVRLA’s fair wear and tear guidelines, with the damage recharges levied being used to compensate for this loss in value.

SS: Customers don’t always see how much damage costs to repair. Our auction guys are well trained and they know what they’ve got to look for: it tends to be the extent and location of the damage that determines whether a repair is carried out. I completely understand customers’ frustrations that we might not always be working in their favour, but we always are.

Residual values can rise or fall between the point when they are set at the beginning of the contract and when a vehicle is defleeted. Many companies feel end-ofcontract charges are increased to make up any shortfall, referring to them as a ‘profit centre’. Does this happen?

AH: Such behaviour from a leasing business would be completely inappropriate. Lex Autolease’s end-ofcontract inspection technology is available to empower customers to see exactly what damage is being charged for, and any associated costs will have been clearly outlined from the contract outset. Our damage charges

£1,000 a Cost of replacing le lost electric vehic charging cable

“LEASEPLAN

DOESN’T WANT TO A DMINISTER END -OF-CONTRACT CHARGES IF THEY CAN BE AVOIDED — IT’S NOT IN ANYONE’S INTEREST TO CAUSE DISPUTE” JULIA THIRTLE-WATTS, LEASEPLAN

are levied solely in relation to the condition of vehicles returned and prevailing used market conditions have no impact upon our damage recharges.

JTW: LeasePlan doesn’t want to administer end-ofcontract charges if they can be avoided – it’s not in anyone’s interest to cause opportunity for dispute, even if the charges are in accordance with the agreed contract.

SS: This is absolutely not the case. We are not in it to make a revenue stream from damage recharge at all.

Julia Thirtle-Watts, general manager, remarketing operations at LeasePlan UK

Steve Shaw, head of remarketing and logistics at Alphabet

What is your top tip to businesses that want to reduce end-of-contract damage charges?

AH: A missing spare set of keys can incur penalties of up to £500 once the vehicle’s security system has to be reset, yet it is one of the most common causes of endof-contract charges we encounter. Providing drivers with a standard checklist of items that come with the vehicle, such as keys, spare wheels, parcel shelves and log books is a simple yet effective way for fleets to reduce unnecessary charges.

JTW: Something as simple as returning both the master key and spare key can save significant sums. When returning electric vehicles, return the charging cable, as this can cost up to £1,000 to replace.

SS: Be honest at the start of the contract as to the usage of the vehicle. Also, always go around the car a couple of days before the vehicle is collected and, if there is any particular issue, contact the leasing company, as we are best placed to give you an opinion on it. Make sure everything is returned that came with the car, such as spare keys, any sat-nav discs or SD cards, service records and locking wheel nuts. mydrivingbusiness.co.uk ❚ Summer 2016 ❚ 17

Advertisement feature

Is it time to consider ultra-low emission vehicles?

Lower running costs, tax savings, grants and other incentives may make ULEVs an attractive option for your business

T

he diesel car segment has recently come under pressure in a number of areas. Emissions have been an issue for months and in November the Government announced its U-turn on ending the 3% diesel surcharge.

The levy was due to be removed from April this year, as announced in the March 2012 Budget, but will now continue until April 2021. As a result, drivers – and businesses operating cars – will be hit by extra costs.

The past few weeks have also seen controversy over the European Parliament’s decision not to implement tougher nitrogen oxide (NOx) limits for future car emissions testing.

So are the days of the diesel car numbered? The answer is an emphatic no.

However, the latest issues do provide incentives for businesses to weigh up the benefits of ultra-low emission vehicles (ULEVs).

There is already a wide range of reasons for businesses to consider ULEVs. These include the growing number of such vehicles on sale and their increasing suitability for everyday use.

There is also the financial case. As well as offering the potential for lower running costs, ULEVs benefit from reduced road tax, enhanced capital allowances and the possibility of 100% exemption from the London Congestion Charge. Although the Chancellor announced a drastic increase in driver Benefit in Kind taxation rates over the next five years – and the resultant Class 1A NIC contributions – the lowestemitting vehicles can still offer significant tax savings.

Meanwhile, the Office for Low Emission Vehicles (OLEV) confirmed in December that it will continue its Plug-in Car Grant for EV, hydrogen and plug-in hybrid purchases until March 2018 – but with different grant levels to focus inducements on the cleanest cars.

Electric and other low-emission vehicles can offer significantly lower whole life costs

“As well as potentially lower running costs, ULEVs benefit from reduced road tax, enhanced capital allowances and 100% exemption from the London Congestion Charge” Finally, drivers and businesses will also increasingly benefit from practical, everyday incentives to drive ULEVs under the Government’s Go Ultra Low Cities scheme.

Helped by £40 million in funding, cities such as Nottingham, Bristol, Milton Keynes and London are to launch ULEV innova-

To find out more, contact Lombard Vehicle Solutions on 0117 908 6490 or visit www.lombardvehiclesolutions.co.uk Lombard Vehicle Solutions is the contract hire and fleet management product provided by ALD Automotive. Registered address: Oakwood Park, Lodge Causeway, Fishponds, Bristol BS16 3JA

tions, such as rapid charging hubs and street lighting that can double as charging points, along with driver benefits, such as free parking and access to bus lanes in city centres.

That’s not to say that ULEVs are for everybody. Many businesses will continue to find diesel vehicles offer the most practical solution to their – and their drivers’ – needs, helped by manufacturers’ ongoing work to make such vehicles leaner and cleaner.

There are also a large number of considerations that businesses must make when assessing ULEVs, including day-today operational requirements and indepth analysis of the vehicles’ whole life costs, possibly using a specialist such as Lombard Vehicle Solutions to provide advice.

Now may be the time to start weighing up the case for ULEVs to see if your business could benefit from their introduction.

■ FINES AND CHARGES

END-OF-CONTR AC T CHARGES

THE END GAME Don’t be a loser when it comes to excess mileage and early-termination charges – our FAQs will make you a winner, says Andrew Ryan

■ E A R LY-T ER M IN AT I O N CH A RG E S How much do early-termination charges cost? There are a number of methods for calculating early termination charges. The simplest is based on the rentals payable and the point at which a contract is terminated.

For example, a leasing company may be due 18 months’ rental for an early termination in the first year of a contract. Alternatively, the charge may be determined by a percentage of future rental.

If a vehicle has been written off in a collision, a customer’s insurance company may settle an early-termination fee.

What is the first step to reducing early-termination charges? It may be possible to agree a set number of early terminations per year without charge.

Are there any other measures businesses can take?

Generally, it is cheaper to reallocate a vehicle than to send it back to the leasing company early. Many businesses reallocate cars to new members of staff or to an employee whose own car is being returned.

Also, consider whether the vehicle could be a pool car to reduce short-term rental costs.

■ E XCE SS M I L E AG E CH A RG E S How much do excess mileage charges cost? The latest research by Driving Business’s sister title Fleet News found that average end-of-contract mileage charges were £456, with 20% of returned vehicles incurring charges. The highest average excess recorded by a leasing company was £1,400, with the lowest at just £25.

What is the first step to reducing charges?

Businesses should be realistic about mileage when negotiating leases. Aiming for the fewest miles possible when determining a new contract will reduce a vehicle’s monthly rentals. But this can be a false economy, as any cash saved through these lower payments could be swallowed by an excess mileage charge.

Companies should also avoid adopting a ‘one-size-fits-all’ approach to mileage, says Simon Staton, director of client management at Venson Automotive Solutions.

“Fleet policies should be designed to tailor mileage to the driver, ensuring that the contract is being based on actual mileage, not a ‘rule of thumb’ for the whole fleet,” he adds.

How can businesses monitor a vehicle’s in-life mileage? Fleet operators can use information included in fuel card and maintenance reports. If it looks like a vehicle will go over its specified mileage, a manager can speak to their leasing company about rewriting the contract. Nick Hardy, sales and marketing director at Ogilvie, says: “Any vehicles travelling in excess of 10% above contract mileage should be rescheduled.”

Are there any other measures customers can take? Many leasing companies offer a ‘pooled mileage’ arrangement where customers can balance rebates for vehicles that have travelled below their contracted mileage against others that have exceeded theirs.

Mike Cooke, fleet operations manager, FleetEurope, adds that, for businesses without pooled mileage agreements, highmileage drivers should swap vehicles with low-mileage ones mid-contract.

How can you overcome driver objections to taking on ‘old’ cars? Pool car reallocation can have P11D and tax consequences, which may lead to objections, says Mike Cooke, fleet operations manager at Fleet Europe.

Some companies may offer financial incentives to drivers to encourage the take-up of those cars, while Cooke adds: “One of the strongest methods for minimising and avoiding early-termination charges is to have a simple policy: find a standard car or specification that is right for the majority of the workforce and limit options.”

20%

of returned vehicles incur charges

mydrivingbusiness.co.uk ❚ Summer 2016 ❚ 19

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■ FINES AND CHARGES

RENTAL CHARGES

UNDER THE MICROSCOPE: DAILY RENTAL CHARGES Unexpected end-of-hire charges can be an eye-opener when closely examined, but what policies do the sector’s major companies have for these costs? Ben Rooth reports

D

▲

aily rental can have many advantages for a business: convenience for employees not entitled to company cars to use for occasional business trips and covering vehicle downtime, for instance.

However, daily rental can also deliver a sting in the tail through unexpected charges for damage, refuelling, cleanliness and out-of-hours collection or delivery. These issues can arise as drivers may not exercise the level of care that they do for their own vehicles, according to John Pryor, chairman of

mydrivingbusiness.co.uk ❚ Summer 2016 ❚ 21

■ FINES AND CHARGES

RENTAL CHARGES

“COMPANIES

NEED TO EDUCATE THEIR DRIVERS ABOUT WHAT’S EXPECTED FROM THEM – IN TERMS OF CLEANLINESS AND REFUELLING” ▲

JOHN PRYOR, ACFO

fleet operators’ association ACFO. A lack of clarity about which department is responsible for rental cars can also result in drivers not being aware of appropriate procedures.

“A lot of companies treat rented cars as being entirely separate from their fleet,” says Pryor. “For example, if an employee flies from London to Glasgow and then uses a rental car, it isn’t always seen as part of their fleet – but it needs to be treated in the same way a company car would.

“At the end of the rental period, the vehicle needs to be checked over. And to avoid unexpected bills, any damage needs to be reported to both the fleet manager and the rental company. Companies need to educate their drivers about what’s expected from them, in terms of cleanliness and refuelling, when it comes to driving rented cars.”

Pryor adds that another problem arises when rental cars are deposited in car parks and are subsequently damaged prior to collection.

He believes that businesses want greater transparency about end-of-hire charges from rental companies, which will also help to end any uncertainty they may have when using these vehicles.

To help give business users a greater understanding of this area, we asked five of the country’s major daily rental companies about their policies.

WHAT IS YOUR POLICY ON DAMAGE CHARGES AND JUSTIFICATION? Avis: Customers are encouraged to join us at the postrental assessment, which gives them a chance to ask any questions they may have, as well as making the process totally transparent. If damage is found, the amount charged to the customer will depend on what they opted for in their rental agreement. As standard, all customers who booked on our UK website will have a collision damage waiver. With our standard cover, customers would be liable for the lesser of either the total repair costs plus a damage processing fee of £66,

22 ❚ Summer 2016 ❚ mydrivingbusiness.co.uk

or an agreed fixed excess. There is a set of standardised definitions of what damage is chargeable and what is not. These are defined in the rental terms and conditions. Avis UK customers can choose our excess reduction cover for total peace of mind and assurance that nothing will be due in the instance of any damage.

Enterprise Rent-A-Car: We evaluate all damage and prepare complete estimates for all repairs, rather than using a pricing matrix. These are auditable by our customers and provide total transparency and are standardised across the UK. We also employ a simple hand-held damage evaluator tool that makes it clear what constitutes fair wear-and-tear and what is damage. This is a small cardboard template with a circular hole that our employees and customers use before and after rental to assess if damage is minor and therefore non-chargeable, if it falls inside the hole, or major, in which case it will be bigger than the hole.

Europcar: Our goal is to provide customers with a Damage process fee transparent repair process. The damage report and charged by Avis, on top of quotation are sent to the customer prior to any charges any repair costs being made. All members of our repair network utilise Glassmatix repair estimation software, which enables quick and accurate estimating.

We have also adopted the use of tablets to help manage the delivery and collection handover process for our Advantage long-term rental scheme. Traditional rental paperwork is replaced by an app, ensuring that each delivery or collection follows a consistent process.

Digital images of any damage are stored at the time for both us and the customer.

This innovation has helped to dramatically reduce damage disputes, with the result we are committed to rolling the process out across all rentals in 2016.

Hertz: If damage is identified as part of our post-rental vehicle condition report and agreed with the customer, we will charge them in line with the current damage matrix for smaller repairs. If damage is not agreed with the customer, or is not covered by the damage matrix, we will refer it to our specialist damage team for evaluation.

Our collections department will then assess the evidence and arguments provided and re-evaluate the case. If the customer is still not satisfied with our assessment, they can contact our customer relations department, who will review the matter. If we are still unable to resolve it we will, where possible, refer them to an external adjudicator, such as the European Car Rental Conciliation Service, for an independent review.

Thrifty Car & Van Rental: We’ve introduced a new fair wear-and-tear policy which gives clear identification on what is considered damage and what is considered fair wear-and-tear. This will mean the damage claim procedure is clear and transparent as the policy is based on the BVRLA guidelines. On repairs costing more than £150, one bodyshop estimate Fee charged by Avis for smoking in vehicle

£66

£47

will be provided and is calculated using Audatex, which bases its calculations on the manufacturers’ suggested repair times and uses their recommended processes and techniques in repairing the vehicle.

This system is becoming the industry standard across the majority of bodyshops and insurance companies, ensuring that the amount charged is justified given the damage caused to the vehicle. We are able to provide a Thatcham-calculated estimate on request by the customer as the Audatex system is able to calculate by either manufacturer or Thatcham process.

WHAT IS YOUR POLICY ON OUT-OFHOURS COLLECTION AND DELIVERY?

Cost for delivery and collection each way from Avis

400 Number of Enterprise Rent-A-Car branches

▲

Avis: To ensure flexibility, we offer two options: ● Where agreed, customers may return a vehicle to a rental location outside business hours – although not all locations offer this service. The customer will be given clear and concise instructions as to where to leave the vehicle and return the keys, dependent on location. ● For individual customers we also offer Avis Delivers: delivery to, and collection from, a customer’s home.

When the rental agreement has come to an end, the customer parks the vehicle at their home and they will not be charged after this period, provided they’ve not driven the vehicle. We will then pick up the car from the customer’s home the next working day. The cost for this service is £20 for delivery and £20 for collection. This service is available to customers within 40 miles of an Avis UK rental location.

Enterprise Rent-A-Car: Our network of 400-plus branches either open for extended hours or seven days a week, or both. This reduces out-of-hours delivery and collection costs for fleets to a minimum. We constantly assess the need to open new branches and offer longer opening hours so we can be there when and where our customers need us and avoid unnecessary charges.

Europcar: We aim to deliver every vehicle within a twohour window and have the ability to deliver on the same day of booking, even when the reservation is received

£20

after 4pm. Europcar aims to offer its fleet and corporate customers as much flexibility as possible with regard to when they can receive and return their vehicles. The charges applied for out-of-hours delivery and collection are related to the cost of extended working hours for staff and are based on the client’s specific requirements.

Thrifty Car & Van Rental: We don’t deliver or collect vehicles outside our normal working hours. We do, however, pre-deliver for customers who require a vehicle outside our normal working hours for a nominal fee, which is agreed at the start of the contract. The charge is levied against the rental to offset some of the standing cost of the vehicle.

Hertz: In some circumstances, we can make special arrangements to meet the customer out of hours to deliver or collect the vehicle. An out-of-hours fee may be charged. Regarding returns, customers need to have

RS U O F-H O T OU

Y C I L O P

“WE

AIM TO DELIVER EVERY VEHICLE WITHIN TWO HOURS AND HAVE THE ABILITY TO DELIVER ON THE SA ME DAY OF BOOKING” EUROPCAR

mydrivingbusiness.co.uk ❚ Summer 2016 ❚ 23

RENTAL CHARGES

▲

■ FINES AND CHARGES

our prior permission to return the vehicle outside the location’s operating hours. The customer needs to park in the Hertz car park or, if unavailable, a secure place nearby.

The return details on the back of the rental terms booklet should be completed and posted with the keys, instructions on where to find the vehicle and any other documents through the location’s key box.

WHAT IS YOUR POLICY ON ENDOF-HIRE VEHICLE CLEANLINESS? Avis: In instances where the vehicle has been returned in a less satisfactory condition, we ask customers to pay for the additional cleaning required. This is: ● On-site full valet requiring cleaning above the standard valet including heavy mud, grass and sand in the boot or footwell, and debris left in the car. This fee is £23. ● Off-site full valet requiring cleaning above the standard valet where the vehicle is heavily soiled and cannot be completed on site. This fee is £74. ● Smoking. If the vehicle has ash or cigarette butts present or smells of smoke, the fee for cleaning will be £47.

Enterprise Rent-A-Car: If it was returned outside business hours or with a third party, the hirer remains responsible for the vehicle and its condition until it has been inspected by a member of our staff. In terms of cleanliness, we simply request that vehicles be returned in a reasonable condition. We will charge a cleaning fee if required. That fee is always transparent and depends on the level of cleaning required. A typical charge could be about £60.

Europcar: Customers are asked to return vehicles in the same condition in which they were provided at the start of the rental. If more than normal cleaning is required, this will incur an additional cost, based on a tiered approach. Charges start from £16.67 plus VAT. Hertz: If the vehicle requires more than the standard cleaning on return, customers incur a cleaning charge. In the case of a customer having smoked in the car, we have to take a vehicle out of service for up to 24 hours. We clean, vacuum and treat the vehicle with a natural deodoriser and an oxidation process, transferring the cost to the customer in the form of a smoking charge.

Thrifty Car & Van Rental: Vehicles are not expected to be returned to the same level of cleanliness as they were delivered and acceptable day-to-day usage is expected.

Vehicles returned in what is deemed to be an unacceptable state are assessed individually. If it is

24 ❚ Summer 2016 ❚ mydrivingbusiness.co.uk

“WHERE THE

VEHICLE HAS BEEN RETURNED IN A LESS SATISFACTORY CONDITION WE ASK CUSTOMERS TO PAY FOR THE A DDITIONAL CLEANING REQUIRED” AVIS

£23 Avis full valet clean charged as extra

Find out how to challenge invoices at our sister site: fleetnews.co.uk/ rental-recharges

deemed that it would take more than an hour to clean the vehicle, we would get a valet company to quote and clean the car and this charge would be passed on to the customer.

WHAT IS YOUR END-OF-HIRE REFUELLING POLICY? Avis: We offer four options: ● Bring Back Full – customers return the vehicle with a full tank and there will be nothing further to pay. ● Fuel Up Front – customers buy a full tank of discounted fuel upfront so they do not have to refuel when they return. The price is benchmarked against local fuel stations and will be 5p below the EU Energy Commission average market pump prices. ● EZ Fuel – for customers driving 75 miles or less, we request a flat fee of £14.40 for cars and £21.60 for vans. ● Pay on Return – customers who haven’t got time to refuel, or who would prefer to avoid this, pay the cost of fuel used and a refuelling service surcharge.

Enterprise Rent-A-Car: We aim to simplify refuelling costs by operating a use and replace policy. If the vehicle is returned with the same level of fuel as supplied, no refuelling charge is payable. If not, the cost of any fuel used to match the original level noted at the beginning of the rental will be charged at pump prices plus 20% to cover the costs of time and personnel to refuel the vehicle. We note the fuel levels at the point of delivery and collection rather than at the branch and measure in 1/16s of a tank, to ensure total transparency throughout.

Europcar: The vehicle should be returned with a full tank, with a fuel tolerance of two litres. Should the vehicle return with less than a full tank, it will be refuelled by Europcar at the contractually agreed rate, based on the cost of the refuelling, administration and time involved.

Hertz: Customers can decide how they wish to pay for the fuel they use during the rental. They can: ● Buy a full tank at the start of the rental and forget about refuelling before returning the vehicle. ● Return the vehicle with a full tank. We ask customers to refill the tank within 10 miles of the return location and bring the fuel receipt. ● Return the vehicle without refuelling. On top of the fuel price, we will charge a refuelling service charge.

Thrifty Car & Van Rental: Vehicles returned with less than a full tank need to be refuelled prior to the next rental. There is a charge per litre which is normally pump price plus an admin fee.

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EVs offer big savings for business Electric vehicles’ lower wholelife costs make sense for SMEs and their employees o Ultra Low, the joint Government and industry campaign for electric vehicles (EVs), is urging businesses to continue as early adopters of new technologies and spearhead the push towards an electric future.

Last year, 28,188 EVs were registered in the UK, more than the previous five years combined. Businesses were responsible for almost two thirds of those and have a pivotal role to play if the Government’s EV ambitions are to be realised.

In the first three months of this year, an EV was sold on average every 13 minutes.

Poppy Welch, Head of Go Ultra Low, said: “Electric car sales are booming and businesses are leading the charge. Every business should have an electric vehicle on its fleet and offer them as company cars

G

EXAMPLE WHOLELIFE COST DATA Model BMW i3 hatch 5dr auto BMW 116d SE 5dr auto Audi A3 2.0 TDI SE 3dr BMW 118i SE 5dr auto Nissan Leaf Acenta 5dr auto Ford Focus 1.5 TDCi 120 Zetec S 5dr auto Ford Focus 1.5 EcoBoost Zetec S 5dr Volkswagen Golf 1.6 TDI BlueMotion 5dr Volkswagen Golf 1.4 TSI GTE 5dr DSG Volkswagen Golf 1.4 150 TSI GT 5dr Volkswagen Golf 1.6 TDI 110 GT 5dr DSG Volkswagen Golf 2.0 TDI GT 5dr DSG BMW i3 hatch Range Extender 5dr auto BMW 120d Sport 5dr step auto BMW 118i M Sport 5dr Nav

too. It is clear electric vehicles can save both businesses and employees money.”

The CO2-based company car tax regime has meant fleets have consistently been ahead of the retail market when it comes to adopting low-emission vehicles, and this trend has continued with EVs. Greater awareness of EVs is contributing to their increasing uptake, while advances in plug-in technology have also had an impact.

These advances mean they are a practical option for many business uses as the number of models on offer increases.

More fleet decision-makers are also discovering that running EVs no longer requires compromises on wholelife costs, practicality, reliability or popularity with drivers.

Wholelife cost figures from Lex

P11D value

Fuel type

CO2 g/km

Monthly fuel cost

£30,925 £23,205 £22,410 £22,270 £27,835 £21,515 £21,315 £22,275 £33,940 £24,215 £24,770 £26,135 £34,075 £26,800 £24,105

Electric Diesel Diesel Petrol Electric Diesel Petrol Diesel PHEV Petrol Diesel Diesel Electric R.E. Diesel Petrol

0 96 108 112 0 99 127 89 39 115 104 119 13 109 126

£38 £84 £96 £115 £38 £89 £132 £80 £72 £117 £94 £108 £72 £96 £129

2016/17 whole life cost £432 £460 £479 £483 £391 £404 £468 £468 £549 £602 £584 £636 £543 £541 £546

All whole life costs are based on four-year/60,000-mile, with-maintenance contracts. Fuel costs based on manufacturers’ official combined cycle MPG and UK average pump prices at March 2016. 3p per mile has been used as the ‘fuel’ cost for electric vehicles. All whole life costs included plug-in grant where applicable.

Source: Lex Autolease

Autolease illustrate how the higher P11D value of plug-in vehicles compared with their diesel and petrol counterparts is more than offset by significant fuel savings, notwithstanding recent falls in the pump price of petrol and diesel. EVs also offer an estimated 20-40% reduction in service, maintenance and repair (SMR) costs and tax benefits.

For example, running a BMW i3 over four years/60,000 miles will deliver a potential saving of £51 a month over rival models, or £2,448 over a four-year operating cycle. Multiply that for a company running 10 cars and the savings escalate to almost £25,000.

The Nissan Leaf Acenta saves an impressive £77 a month over a Ford Focus 1.5 EcoBoost Zetec. That equates to almost £3,700 over a four-year operating cycle, or £37,000 for a company running 10 cars.

Chris Chandler, Lex Autolease principal consultant, said the greater choice of plug-in vehicles had contributed to their appeal: more than 30 EVs are available in the UK, from family hatchbacks and city runarounds to 4x4s and sports cars.

The UK is the second-largest EV market in Europe and one of the fastest-growing regions in the world for electrification and low-emission motoring.

The Government has increased its support for plug-in vehicles to £600 million to cut emissions, create jobs and support the UK’s cutting-edge industries.

■ To find out more about adding electric vehicles to your business, visit: goultralow.com/fleet

■ NE W MODEL S

Coming soon...

We take a look at what manufacturers have in the pipeline AUDI Q2

FORD KA

ON SALE: November PRICE: from £22,000 (estimated) CO2 EMISSIONS: less than 110g/km (estimated) WHAT’S NEW: Audi will extend the Q family to four models when the new compact crossover Q2 goes on sale in November.

It will be launched with a range of five engines: three petrol – 1.0-litre three-cylinder TFSI, 1.4-litre and 2.0-litre (the latter from 2017) – and two diesels – 1.6-litre 116hp and 2.0-litre 150hp.

Audi claims to have taken the Q2 in a “bold new styling direction” in an attempt to appeal to a younger audience, and has combined this with a level of connectivity, infotainment and assistance systems that are usually found higher up in its model portfolio.

ON SALE: Autumn PRICE: From £9,000 (estimated) CO2 EMISSIONS: less than 100g/km (estimated) WHAT’S NEW: The current Ford Ka is derived from Fiat’s successful 500 city car. For the next-generation model, expected to arrive in the second half of 2016, Ford will be taking the model back to its roots.

The original Ka of 1996 was based on an earlier Fiesta, shortened and restyled, but with many of the same components. The next Ka will also use an earlier Fiesta as its base, which is no bad thing.

We can expect power from efficient three-cylinder 1.0-litre engines and CO2 emissions comfortably below 100g/km.

SEAT LEON FACELIFT

KIA OPTIMA SPORTSWAGON

ON SALE: Autumn PRICE: From £18,000 (estimated) CO2 EMISSIONS: From 85g/km (estimated) WHAT’S NEW: We don’t expect much to change with how the car looks, although a light cosmetic redesign is likely, and perhaps greater availability of LED headlights.

The interior is likely to undergo a bigger update with a new interface and compatibility with Apple Carplay, Android Auto and MirrorLink systems, which allow some of your smartphone apps to be displayed and interacted with on the car’s touchscreen.

Engines will remain largely the same as in the current car, but it wouldn’t surprise us to see some very small reductions in the new model’s CO2 emissions.

Current Seat Leon model

26 ❚ Summer 2016 ❚ mydrivingbusiness.co.uk

ON SALE: September PRICE: £22,000 (estimated) CO2 EMISSIONS: 110g/km CO2 (estimated) WHAT’S NEW: The new Optima Sportswagon will boost Kia’s coverage of the family car D-segment from one third to three quarters of annual registrations, according to Paul Philpott, president and CEO, Kia Motors UK. “We had volumes of 500 to 1,000 over the past five years; it will go to 3,500 to 5,000 units per year – that’s a significant increase in the D-segment,” Philpott said.

A forthcoming plug-in hybrid will allow drivers to travel up to 33 miles electric-only at speeds of up to 75mph before the 2.0-litre GDI petrol kicks in. Kia is targeting CO2 emissions of 37g/km.

Save the date 19-20 October 2016 NEC, Birmingham

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Exhibition Seminars Workshops ...more 񡑀

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www.fleetmanagementlive.co.uk

We deliver, so you deliver

The complete fleet package from the AA When it comes to business, you’ll want a service you can rely on. Cue the AA. From lost keys to accident management, whatever the problem, we can handle it.

As Britain’s largest breakdown provider* we can get your business back on the road fast.

So you can keep delivering a top-notch service to your customers.

For AA Business Breakdown Cover call 0800 294 2994 quoting 0771 or visit theAA.com/business

AA Business Breakdown Cover 0800 294 2994 quoting 0771 theAA.com/business

AA Tyres 0800 810 0980 tyres.theAA.com

Fleet Risk Management from AA DriveTech e: TellMeMore@AAdrivetech.com

AA Fuel Assist e: FuelAssistEnquiries@theAA.com 0800 072 6870

AA Key Assist e: Fleet.Enquiries@theAA.com

AA Accident Management e: AAAccidentManagement @theAA.com

*Source: Mintel – UK vehicle recovery report, September 2015.

Automobile Association Insurance Services Limited is an insurance intermediary authorised and regulated by the Financial Conduct Authority. Registered Office: Fanum House, Basing View, Basingstoke, Hampshire RG21 4EA. Registered in England and Wales number 2414212.

THE MINI 5-DOOR HATCH. A WINNING SOLUTION. Having won ‘Best Supermini’ in The Sunday Times Top 100 and voted as BusinessCar magazine’s Premium Supermini for fourteen years in a row, the MINI Hatch has been a runaway success since its launch.

It’s easy to see why. Sporting two extra doors, impressive leg room and bags of luggage space, it sets itself apart from competitors with a range of technology as standard, including MINI Navigation and Bluetooth®.

Visit minibusinesspartnership.co.uk

Winner of the BusinessCar Premium Supermini of the Year 2016.

THE MINI 5-DOOR HATCH. One, One D, Cooper, Cooper D, Cooper S, Cooper SD

92g/km CO2 | 80.7 mpg (combined) | BIK 18%

Official Fuel Economy Figures for the MINI 5-door Hatch Range: Urban 35.8-70.6 mpg (7.9-4.0 l/100km). Extra Urban 57.6-88.3 mpg (4.9-3.2 l/100km). Combined 47.1-80.7 mpg (6.0-3.5 l/100km). CO2 Emissions 139-92 g/km.

Figures may vary depending on driving style and conditions.

THE MINI 5-DOOR HATCH.

BUSINESS AS UNUSUAL. MINI Business Partnership