Association calls for a Budget of tax incentives

BVRLA News www.bvrla.co.ukMarch 2010

— Promoting responsible road transport since 1967 —

The newsletter of the British Vehicle Rental and Leasing Association

Association sets out its lobbying goalsEnding premature testing of trucks and accessing payload data head the listpage 2

Regulation reduction is on the agendaThe BVRLA has told the government how to cut regulatory burdens page 3

Toyota recall trauma shows need for reviewIt’s time for a for a hi-tech approach to vehicle recalls, says the BVRLA page 3

The Big Event: Annual Dinner 2010 Were you there to applaud our industry heroes and hear Michael Portillo and Frankie Boyle?page 4

Latest statistics on conciliation serviceVery few rentals lead to disputes – see where they’re likeliest to occur page 6

Figures show problem hirer incidents riseRISC Online, the BVRLA’s problem hirer database, is more effective than ever at flagging risky renterspage 7

The BVRLA has called on the government to make its tax incentives for early adopters of electric vehicles available to leasing companies and their customers.

In a document submitted ahead of the Budget on 24 March, the association has asked the Treasury for details of the 100% first-year allowance it is introducing for companies purchasing electric vans. This allowance enables firms buying one of these vehicles to offset its full cost against their corporation tax bill in the first year.

The BVRLA is pushing for leasing companies to be able to access the allowances and pass on savings to their customers.

“The van market is in the doldrums and in the current economic climate most companies cannot afford to go out and buy new vehicles outright,” said BVRLA chief executive John Lewis. “Many of them turn to a leasing provider and our industry is absolutely vital to the new van market.”

The BVRLA also asked the Treasury to ensure that future tax incentives incorporate all zero tailpipe emission vehicles and not just electric ones.

In a meeting with Exchequer Secretary Sarah McCarthy-Fry the association asked the

government to consider a number of other issues ahead of the Budget:

❱ An immediate removal of the 3% diesel supplement from benefit-in-kind tax.

“Removal of this out-of-date pollution-related penalty would accelerate corporate adoption of these vehicles and help to push company car emissions even lower”, said Lewis.

❱ An investigation of the continuing use of over-generous advisory mileage allowance payments (AMAP) which encourage staff (particularly public sector) to use their own cars instead of potentially much greener and safer forms of transport.

❱ Inclusion of payload data in the Vehicle Certification Agency’s van CO2 database.

“If the government is serious about introducing emissions-based taxes for vans, it needs to sort this out,” said Lewis.

❱ Clarification of the government’s position on road pricing. The BVRLA is in favour of a national scheme to optimise use of the road network. It should replace existing forms of motoring tax, rather than become an additional revenue earner.

“Road pricing is a fairer tax that is based on road use, not vehicle ownership,” said Lewis. n

BVRLA News

bvr la .co .uk

In this issue

Annual general meeting

Notice is hereby given that the annual general meeting of the British Vehicle Rental and Leasing Association Ltd will be held at 9.30am on Thursday, 20 May 2010 at the association’s offices at River Lodge, Badminton Court, Amersham, Bucks HP7 0DD for the following purposes:

❱ To receive the chairman’s report.

❱ To receive the report of the Committee of Management.

❱ To receive the report of the auditors.

❱ To elect the Committee of Management.

❱ To elect auditors and to arrange their remuneration.

By order of the Committee of Management.

John Lewis, Chief Executive

Comment

BVRLARiver Lodge, Badminton CourtAmersham Buckinghamshire HP7 0DD

T 01494 434747 F 01494 434499 E info@bvrla.co.uk W bvrla.co.uk

Honorary Life PresidentFreddie Aldous

ChairmanKevin McNally

Vice ChairmanNigel Stead

Honorary TreasurerBrian Back

Chief ExecutiveJohn Lewis

Those members who weren’t lucky enough to attend the BVRLA Annual Dinner earlier this month missed two very entertaining speakers in the form of former government minister Michael Portillo and comedian Frankie Boyle.

Both provided plenty of laughs, but Michael also supplied some food for thought. Firstly, he predicted that the looming election would result in a hung Parliament, which is rarely good news for an electorate or economy. Secondly, he warned that the recession we saw during 2009 would get worse for many people and businesses before any substantial recovery occurs.

Sounds like we are in for another interesting year!

Editor Toby Poston, toby@bvrla.co.uk 01494 545700

Production Manager Steven Prizeman, steven@bvrla.co.uk 01494 545710

Advertising Nora Leggett, nora@bvrla.co.uk 01494 545713

© Copyright BVRLA 2010

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

The BVRLA is lobbying for a change in legislation that would remove the need for one or two-year-old heavy commercial vehicles to have an annual test.

Theassociationbelievesthatacombinationofmorereliabletechnologyandaregularpreventativemaintenanceprogrammemeansthatanannualtestshouldnotberequiredsoearlyinatruck’sworkinglife.

Removalofthetestforoneandtwo-year-oldtruckswouldsaveoperatorsthetestfeeandwouldreducevehicledowntimeandassociatedadministrativecosts.

“Thisrelativelysimplemeasurewouldremovesomeoftheimmenseregulatory

burdenfromoperatorsandcouldhelpstimulatethemarketfornewtrucks,”saidBVRLAchiefexecutiveJohnLewis.

FurtherlobbyingisalsobeingundertakeninabidtopersuadetheDepartmentforTransportthatitneedstoaddvitalpayloadinformationtoitsvanCO2database.LaunchedlastJune,thedatabasegivesfiguresforemissions,grossvehicleweight,milespergallonandloadlength,butwithoutpayloaddataitdoesn’ttellprospectivepurchaserswhetheravanisfitforpurpose.

“Weareshockedthatthisinformationisnotinthedatabase,especiallywhenoverloadingisoneofthemostcommonoffencesreportedbyroadsafetyenforcementofficials,”addedLewis. n

Our aims: yes to payload data, no to early truck test

DfT reveals its £260m incentive for buyers of new ultra-low carbon carsThe Department for Transport has announced details of its ultra-low carbon vehicle incentive plans, including the Plug-in Car Grant and the Plugged-in Places support for charging infrastructure.

The Plug-in Car Grant will provide 25% of the cost of purchasing a new ultra-low carbon car, up to a maximum of £5,000. The £230m fund will be open to both private and business fleet buyers.

“Business fleets already buy more than half of all cars registered each year, so it makes sense that they will be able to take advantage of this incentive,” said BVRLA chief executive John Lewis.

“A discount of up to £5,000 is attractive, but buyers are not stupid. Fleets will need some assurance that the electric vehicle they are buying will have a second-hand value in three, six or even ten years’ time. The three-year battery warranty outlined in the DfT’s qualification criteria is a bare minimum requirement, so we are pleased that buyers will have to be given the option

of paying for an extended five-year warranty.”

The DfT has outlined its safety criteria: vehicles will need EC whole vehicle type approval or meet the EuroNCAP protocol or a similar crash test regime.

“Most car manufacturers have used the EuroNCAP safety standard as a marketing tool. Fleet buyers take their duty of care responsibilities very seriously and will demand the same levels of safety from any electric or plug-in hybrid vehicles,” said Lewis.

The vital role that the vehicle rental industry can play in helping to reduce carbon emissions was also recognised last month, with news that Enterprise, Europcar, Hertz and Streetcar will share in Transport for London’s winning bid for a grant from the £30m Plugged-in Places fund.

“It is great to see the car rental industry playing such an important role in the development of London’s electric vehicle charging infrastructure,” said Lewis. n

BVRLA News | March 2010�

BVRLA News | March 2010 �

The BVRLA has challenged the government to reduce some of the regulatory burdens on the vehicle rental and leasing industry and its customers – and has explained how to do it.

The association has submitted its ideas to the Department for Business, Innovation and Skills, which is co-ordinating the government’s attempts to further simplify and streamline regulation over the next five years.

The BVRLA has had success with simplifying government regulations in the past, securing amendments to distance

selling requirements to the benefit of rental companies.

The association has now identified a number of key areas it believes the government should address. These include:

❱ removing the need for an annual test for commercial vehicles that are less than two years old

❱ removing the lease rental restriction applied under the current corporation tax regime, which discriminates against leasing as a method of funding

❱ harmonising the way rental and leasing firms can transfer liability for road traffic offences, including bus lane and London congestion charge penalties.

The BVRLA believes that if it is successful in removing these regulatory burdens it will save the industry and its customers approximately £35m each year.

Full details of the BVRLA’s goals can be found in the ‘Consultation responses’ section of the association’s website. n

www.bvrla.co.uk

BVRLA blueprint for reducing regulation

The BVRLA has welcomed the Department for Transport’s recognition of the need for clearer guidance on which businesses must be licensed to operate private hire vehicles.

The DfT’s announcement of a review came after the BVRLA highlighted the concerns of rental members who were threatened with legal action by some local authorities on the grounds that their vehicles had to be licensed to drop off or pick up customers.

The BVRLA has worked with the DfT on an impact assessment, highlighting the burden that compliance would place on its members. It showed that compliance could cost the industry up to £70m a year depending on the number of staff and vehicles licensed.

The association remains committed to working with the DfT to ensure that the proposed guidance creates a uniform approach across the country that will keep car rental firms outside the scope of private hire licensing. n

HM Treasury has endorsed the BVRLA’s position that vehicle rental firms selling insurance, such as personal accident insurance, should not be regulated by the Financial Services Authority (FSA).

Since 2005 the FSA has regulated the sale and administration of general insurance in accordance with the Insurance Mediation Directive that harmonised insurance sales across the European Union (EU). In 2005 the BVRLA secured an exemption from FSA regulation for vehicle rental firms.

However, the European Commission is now considering a review of the way insurance is sold in all member states. This raises the possibility of BVRLA members losing their current exemption. The BVRLA believes such a move would have an adverse effect on both its members’ costs and their customers’.

At a meeting with senior Treasury officials last month the BVRLA was assured that the government would back its call to maintain the current exemption and defend this position at a European level. n

Firms that sell insurance ‘don’t need FSA control’ says Treasury

The furore surrounding Toyota’s vehicle recall has demonstrated the need for an electronic notification system to replace the current mass mail-out, the BVRLA believes.

Although the UK’s recall system is one of the most robust in Europe many leasing companies are concerned that it is flawed and inconsistent. Fleet operators cannot initiate a recall until they receive a written notice in the post, which can take up to four weeks. And, rather than

a single comprehensive list of affected vehicles, there is literally one notice per vehicle, adding greatly to administration.

For some time, the BVRLA has been working with vehicle manufacturers, the Vehicle and Operator Services Agency (VOSA) and the Driver and Vehicle Licensing Agency (DVLA) to try and establish a more 21st-century solution. An online database and emailed notices could bring major savings in the time and cost involved and improved safety. n

Toyota’s vehicle recall trauma shows need for hi-tech system

DfT moves to clarify potentially costly private hire licensing rules

Early March is a great time of year. Spring has arrived; snowdrops and daffodils are appearing; the days are getting longer; but most importantly of all, it is the time when the whole vehicle rental and leasing industry gets together for a party at the BVRLA Annual Dinner.

Asusual,wecongregatedinthelavishsurroundingsoftheLondonHiltononParkLane.Thisyeararound800membersandtheirguests

assembledinthehotel’sballroom,uponthe600or

soattendingin2009–ausefulbarometerofhowmuchmoreconfidentwearefeelingasanindustry.

TheBVRLAwouldliketothankallthosewhoattendedtheeventforhelpingtomakeitagreatnight.Ifyouweren’tabletocomealong,hereisalittletasterofwhatyoumissed–wehopewewill

seeyoutherein2011!n

BVRLA News | March 2010�

And the winners are… BVRLA hails unsung heroesThe BVRLA Annual Dinner provides a great opportunity to celebrate some of the people who play a vital role in enabling our industry to deliver safe, efficient and cost-effective road transport to its customers.

ThisyearBVRLAchiefexecutiveJohnLewisannouncedeightawards,giveninrecognitionofsomeofourmembers’toptalent.

Thefirstthreeawards,sponsoredbyAonRentalBusinessServices,werepresentedtothosecandidateswhoscoredthehighestmarksintheBVRLACity&GuildsVehicleRentalOperatorSkillsExamination2009.Nearly3,000peoplehavesattheseexamssincetheywereintroducedin1989.

NatalieWilliams(firstplace)andBrianRoberts(thirdplace),bothofPracticalCar&VanRental,andShelaghReeofArnoldClark(Finance),whocamesecond,werepresentasguestsof

theassociationtopickuptheirawards.

AlsopickingupanawardwasFranWarburtonofleasingcompanyALDAutomotive.Franwasrecognisedas

Our heroines! BVRLA Industry Hero Award winners (from left)

Claire Piggott, Bally Nagra and overall winner Jacki Stevenson

Spring is in the air – so it’s time to celebrate

McNally: applauded the industry for coping so well with the recession

Sue Brownson OBE with BVRLA

life president Freddie Aldous

Achievement Awards: Shelagh Ree, Brian Roberts, Fran Warburton, Rosemarie Spiers of award sponsor Aon, and Natalie Williams

The Big Event Annual Dinner 2010

McNally rallies troops for the year ahead“We have survived the worst recession in living memory. We are stronger, we are fitter, and we look forward with great confidence to

the future.”

BVRLAchairmanKevinMcNallyproducedthis

rousingendingtohisfirstspeechattheassociation’sAnnualDinner.HeusedtheopportunitytopaytributetotheexcellentworkofhispredecessorNigelSteadandpraisedtheBVRLAexecutiveforkeepingmembersinformedandadvised.Kevinalsohighlightedtheexcellent

lobbyingworktheBVRLAhasundertakentotryandimprovetheflowoffundingtotheindustryandreduceredtape. n

thetop-performingstudentoftheBVRLA’srecentlyintroducedFleetConsultantProgramme.

IntroducedforthefirsttimethisyearweretheBVRLAIndustryHeroAwards,recognising

someoftheunsungheroesworkingtirelesslybehindthescenestohelpourmembersthrive.Theassociationreceivedentriesfromawidecross-sectionofmembers,largeandsmall,alldeservingofpraise.

Threetrophieswereawarded,oneforeachoftherentalandleasingindustry’smainsectors.ThewinnerintheLeasingandFleetManagementcategorywasJackiStevenson,asalesexecutivewithAgilityUK.TheCommercial

VehiclecategorywinnerwasClairePiggott,

anadministrativeassistantwithNorthgateVehicleHire.BallyNagra,acustomersalesrepresentativewithHertz,receivedtheRentalaward.

Agility’sJackiStevensonwasawardedtheoverallaccoladeofBVRLAIndustryHero2009.n

BVRLA News | March 2010

Boyle: bold, bearded - and unrepeatable!

Our heroines! BVRLA Industry Hero Award winners (from left)

Claire Piggott, Bally Nagra and overall winner Jacki Stevenson

Achievement Awards: Shelagh Ree, Brian Roberts, Fran Warburton, Rosemarie Spiers of award sponsor Aon, and Natalie WilliamsThe venue: the Hil

ton’s

lavish Grand Ballroom

Lewis: recognised members’ dedicated, talented staff

Portillo: full of praise for our sector

BVRLA News | March 20106

The BVRLA was asked to conciliate 286 complaints against members in 2009, a slight fall on 2008 (1% down). There was a drop of nine percentage points in the proportion of complaints that were directed at rental members, while those against leasing firms and leasing brokers both rose.

Over the past seven years, the conciliation service has seen a 93% rise in the number of disputes referred to it. This reflects increased awareness of the service and the fact that members are encouraging more customers to use it when their own complaints process has reached an impasse.

It’s important to bear in mind that although the percentage rise seems large it actually represents a minute fraction of the 13.5 million rental and leasing transactions in the UK last year: just 0.000002%.

Of the complaints referred to the BVRLA, 52% were found in favour of members. Considered by sector, it can be seen that leasing performed best, despite an increase in the proportion of leasing-related complaints relative to those against rental firms.

There was a marked difference in the outcome of these complaints, with 73% of the cases involving leasing firms being decided in their favour, compared with 46% for rental.

Disputes relating to return standards dominated leasing, involving 62% of complaints. In most cases members were able to provide enough information about the state of returned vehicles to justify damage charges imposed on customers. The BVRLA will continue to work with leasing members to improve how they inform customers of the vehicle return process, especially the return standards.

Where a rental complaint was found in favour of the complainant, it was generally apparent that the BVRLA member had either not followed correct procedures or was unable to contest the complaint against it due to poor record keeping.

It was also clear that a small number of members were not meeting their own service level agreements by failing to acknowledge or resolve complaints in a timely fashion.

As with leasing, the BVRLA intends to help rental members improve the way they inform customers of their responsibilities and the charges they might incur for failing to adhere to the conditions of hire. n

BVRLA Conciliation Service Annual Report 2009canbedownloadedfromtheBVRLAwebsite.www.bvrla.co.uk

Complaint report shows little change on 2008 – but areas of concern remain

54%

42%

4%

Rental

Leasing

Leasing broker

Complaints by sector since 2006 NB: Leasing brokers since 2008

Rental Leasing Leasing broker

�009 54% 42% 4%

�008 63% 36% 1%

�007 75% 25% N/A

�006 77% 23% N/A

BVRLA News | March 2010 7

Committee meetings 2010

CommitteeofManagement 20May(agm) 19Aug 18Nov

Chairman’sCommittee 29April 21July 28Oct

CommercialVehicleCommittee 19May 7Sept 30Nov

Leasing&FleetManagementCommittee 29June 21Sept 7Dec

LeasingBrokerCommittee 18Mar 22June 19Oct

RentalCommittee 27April 6July 5Oct

RVRForumCommittee 21April 20July 23Nov

RiskManagement&SecurityCommittee 9June 16Sept 9Dec

SMRForumCommittee 24Mar 14July 25Nov

CertificateinFleetConsultancy Amersham 30-31March(module one)

SellingContractHire Midlands 21-22April

CertificateinFleetConsultancy Amersham 26-27May(module two)

Service,MaintenanceandRepair(SMR)Forum Reading 30June

ResidualValueandRemarketing(RVR)Forum locationtbc 7July

For further information about all BVRLA courses, contact Nora Leggett: nora@bvrla.co.uk, 01�9� 5�571�

Training programme 2010

Certificate in Fleet ConsultancyModule One: 30 – 31 MarchModule Two: 26 – 27 MayBuckinghamshireAccordingtotheUK’sleadingfleetcustomersatisfactionindex,thefleeteyeCSisurvey,whichmonitorsscoresfromover600fleetoperators,fleetsaremostsatisfiedwithvehicleorderinganddeliveryagainstagreementsbyfleetproviders(81%),butareleasthappywithaccountmanagementandcommunications(bothrunningat72%).

CantheBVRLA’sCertificateinFleetConsultancyhelp?Itisanaccreditedtrainingprogrammeforaccountmanagersandcoverstheprinciplesoffleetmanagement,providinginnovativesolutionstofleetdeliveryrequirements.

Itisdeliveredfromtheclients’perspective,and,bycallingonthetrainingexpertiseoftheInstituteofCarFleetManagement,enablesparticipantstobenefitfromthisorganisation’sknowledgeoffleetoperators.

Contact:NoraLeggett,nora@bvrla.co.uk01494545713

Selling Contract Hire21 – 22 AprilMidlands Thistwo-daycoursewillprovideastructuredanalysisofhowtosellcontracthire,lookingatthebenefitsaccruedbycustomersandgenerallyimprovingthetechniquesofsalesstaff.

Attendeeswilldiscussthe‘factfind’,designingandpresentingtheproposal,howtoovercomeobjectionsandclosingthedeal.Theywillalsowidentheirknowledgethroughinformalcontactwithothersalesstaff.

Thiscoursemayprovidetheidealanswertomembers’overstretchedin-housetrainingbudgets,offeringformal,value-for-moneytraining.

Contact:StephCzaplinska,steph@bvrla.co.uk01494545702

Professional development

An analysis of the 2009 figures from RISC Online, the BVRLA’s problem hirer database, indicates that rental outlets have found it more effective than ever at flagging potentially risky renters.

In 2009 a total of 63,534 searches were performed (up 26% on 2008) resulting in 580 positive matches – almost twice as many as in 2008. The number of notifications was roughly equal with the previous year – 679 – but associated incidents rose by 10% to 2,295.

These figures suggest that rental outlets are increasingly likely to experience

problem rentals, so strict adherence to customer qualification procedures should be encouraged.

The two most frequent types of problem hirer incident were: not paid in full for rental and other charges (no change on 2008), and failed to return vehicle at agreed time and place (up 41%). In joint third place were: allowed an unauthorised person to drive the rental vehicle (up 22%), and giving false or misleading information (up 32%). n

Contact: Steph Czaplinska, steph@bvrla.co.uk 01494 545702

RISC Online database proves its worth as problem hirer incidents rise

HaloInsuranceServices

Halo Insurance Services Ltd – and its registered trading name, iCarhireinsurance.com – has become an associate member of the BVRLA. Ernesto Suarez, CEO of Halo and iCarhireinsurance.com, said: “We are

delighted that we have been accepted by the BVRLA. Halo and iCarhireinsurance.com is committed to

following the BVRLA’s aims to ensure customers receive the highest level of service and value for money at all times.” www.icarhireinsurance.com

New associate member

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