Used Car Prices Aren’t Helping Lease & PCP Rates

Saturday, 25. July 2020

Used car values for models less than two years old have dropped in June while prices for older, cheaper cars have risen, according to Cap HPI.

The average movement of five-year old cars is 1.2%, or £70, up during June, while 10-year old cars have increased by an unprecedented average of 5.7% or £140, at a time of the year when values invariably drop.

The overall price movement at the typical three-year, 60,000-mile fleet replacement point was an increase of 0.3%, the first average upward movement in June since 2009.

Values for younger vehicles dropped by 0.4% in the same period, however, they started to strengthen by June 15 as dealers became more active.

Derren Martin, head of valuations UK at cap hpi, said: “The strength of the used car market through June has taken even the most optimistic within the industry by surprise.

The question ‘how long does this carry on for?’ is one being asked far and wide at the moment, and there is no historical precedent to reference.

“Our Live valuation service will continue to track the market daily, and any fluctuations over the coming weeks will be reported real-time. As has happened in June, values for specific models can change in different directions over days or weeks, so keeping a close eye on daily valuations is essential at this time.”

Convertibles and cabriolets are among those that have been sought after, particularly models more than three-years-old.

While demand has been a significant factor in the average price movements, shortages of supply have also played their part says Cap HPI. The lack of new car activity has led to a shortfall in the numbers of part-exchanges being generated.

Logistics issues have also become a significant problem for the industry, with delivery lead times going from around 72-hours in early March to approximately 15-days in June.

Martin added: “Generally, the adage ‘what goes up must come down’  rings true with used car prices and is proven by movements in cap hpi used values over the years.

Once the current pent-up demand is exhausted and the supply chain gets back up to closer to full capacity, the market is likely to see volumes appear from lease and other finance extensions.

While this may not happen in July, it seems almost inevitable that the current strength is unsustainable and supply will at some point outweigh demand, maybe towards the end of the summer.”

Following the Coronavirus pandemic, fleet operators expect to have fewer cars and lower average mileages as the country faces severe economic decline. As the fleet sector curretly accouns for more than half of new car registrations, the knock on effect for the used market could be significant.  By Graham Hill thanks to Fleet News

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Large Numbers Of Unsafe Vehicles Have Returned To Our Roads Since Lockdown Ended

Saturday, 25. July 2020

A surge of unsafe vehicles are returning the UK’s roads as Coronavirus lockdown restrictions ease, warns Aviva.

It found that more than a quarter (28%) of drivers have not performed any checks on their vehicles at all throughout lockdown.

Aviva’s research into motorists’ attitudes to driving post-lockdown reveals there could be an increase in the number of potentially dangerous vehicles on roads, with many motorists forgoing vehicle safety checks in recent months.

More than two thirds of drivers have not checked their tyre treads (68%) or engine oil levels (68%). In addition, six out of 10 (60%) haven’t tested their tyre pressures and two thirds (67%) haven’t looked at their lights.

In contrast, almost half of drivers (43%) have ensured their vehicles have looked the part by cleaning them during this time.

Sarah Applegate, head of global strategy and insight at Aviva, said: “This latest research reveals motorists’ caution about driving as lockdown conditions ease. Drivers will inevitably be using their cars more often as restrictions lift and non-essential shops start to reopen, so they should prepare for this by ensuring their vehicles are up to scratch.

“To make sure our roads stay as safe as possible, drivers should carry out basic checks before they use their cars again. If people have any concerns about their vehicles, they should ask a professional mechanic to investigate, particularly before embarking on longer journeys.

“It’s also important for drivers to make sure their insurance policy suits their future driving needs. If people are likely to use their car significantly more or less post-lockdown, or drivers need to be added or removed from policies, they should inform their insurance provider so their cover can be updated.”

Since the start of lockdown, there have been five million fewer MOT tests carried out in April and May 2020 than in the same months last year.

Any motorists with an MOT test due from March 30 have automatically been given a six-month extension as part of the Coronavirus lockdown, leaving many cars, vans and motorcycles unchecked, potentially allowing unroadworthy vehicles to be driven.

Despite this, many drivers plan to take long journeys using their car as lockdown restrictions ease. One in five (20%) plan to use their car to travel to a holiday destination in another part of the UK in the next three months, while one in ten (10%) will use their car to drive to the countryside.

Ian Leonard, head of fleet operations at Yodel, advises all drivers to check their vehicles thoroughly before returning the road. By Graham Hill thanks to Fleet News

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First Moves Towards Predicted Supermarket EV Charge Points

Friday, 10. July 2020

Something I’ve been predicting for years now looks likely to happen. It’s an obvious move for supermarkets to encourage customers to ‘Charge and Shop’ and encourage customers to shop out of peak hours in order to easily access chargers.

Engenie will install electric vehicle (EV) rapid chargers at 10 Brookhouse Group retail sites across the UK, as part of a new partnership.

The EV charging network will provide destination charging for customers visting large retail brands such as Sainsbury’s, Tesco, Argos, Next, Aldi, and M&S.

Mike Nuttall, property director at Brookhouse, said: “The way we travel is changing like never before and already we are seeing a wholesale shift towards electric mobility.

Customers will expect to be able to charge their vehicles wherever they shop, and our tenants will expect us to provide the infrastructure which enables them to do so.

Engenie’s convenient, easy to use and rapid chargers provide the perfect solution to attract the rapidly growing number of EV driving customers to our sites.”

Engenie covers all costs associated with installing and servicing the rapid charging points, eliminating the financial risk for Brookhouse.

The full rollout will see a total of 17 Engenie rapid chargers installed across ten sites throughout the UK. Seven charging sites, hosting a total of 13 rapid chargers, are already open to the public, with the remaining three sites expected to be completed before the end of the year.

The charging points will be located at the following sites:

  • Meteor Shopping Park, Bournemouth
  • Canal Road, Bradford
  • Manchester Road Shopping Park, Stockport
  • Queens Shopping Park, Preston
  • Parsonage Retail Park, Leigh
  • Barnfield Retail Park, Chichester
  • Alexandra Retail Park, Oldham
  • North Quay Retail Park, Lowestoft
  • Cables Shopping Park, Prescot
  • Hamilton Shopping Park, Hamilton

Customers can access Engenie’s rapid charge points without the need for membership or subscription. They operate on a contactless payment method. The chargers are compatible with every EV on the market today and can provide up to 80 miles of charge in 30 minutes, depending on the vehicle’s charging speed.

Patrick Sherriff, business development director at Engenie, said: “By ‘grabbing the grid’ and securing vital connections for rapid EV chargers before its competitors, Brookhouse is staying ahead of the curve, and positioning its sites as the go-to shopping destinations for EV drivers. 

What’s more, our partnership is further proliferating easy-to-use charging infrastructure across the UK, enabling thousands of customers to top up their vehicles while they shop at their favourite retail outlets with the simple tap of a smartphone or contactless card.”

This announcement is Engenie’s latest deal in the retail park sector, following previous announcements with Reef, M7, Northumberland Estates and more due to open this year. The company plans to double the number of rapid chargers in the UK by 2024.  By Graham Hill thanks to Fleet News

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Car-Sharing Could Be At An End Forever!

Friday, 10. July 2020

One in three people questioned say they are permanently planning to stop car-sharing, with two in five declaring that giving people a lift to work is now a thing of the past.

The results of the Motorpoint online poll suggest fears over Covid-19 could put pay to the arrangement for a significant minority of people.

That would result in passengers returning to public transport or more likely still, considering their fears over contagion, deciding to drive instead, with the potential for increased congestion.

The latest figures from the Department for Transport (DfT) show how low traffic levels fell at the start of the lockdown, but also reveal they starting to return to pre-lockdown levels.

During the first full day of lockdown (Tuesday, March 24), car use fell to less than half (44%) of the expected level. Light commercial vehicle (LCV) use stood at 55%, HGV use at 84%.

Three months later and the day after retail outlets were allowed to open for the first time on Monday, June 15, car use had risen, but was still only at 70%. Van use and HGV use had grown to 84% and 92%, respectively.

Mark Carpenter, chief executive officer of Motorpoint, said: “The results of our poll are clearly understandable given Covid-19 and definitely reflect the desire by people to maintain social distancing at all times when outside of their home, whether it’s travelling to work, visiting friends or simply popping to the shops for a loaf of bread and some milk.”  By Graham Hill thanks to Fleet News

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Working From Home & Using A Private Car Will Have Serious Consequences.

Friday, 10. July 2020

Long-term changes to the way people work could result in more employees becoming grey fleet drivers.

As the lockdown is slowly lifted, employers are wrestling with what the ‘new normal’ might entail, including where staff will work in the future.

Millions of employees have been working from home during the pandemic and many expect that, with technologies like Miscrosoft Office Teams and Zoom allowing people to connect virtually, it’s a trend that will continue.

A Fleet News survey showed an overwhelming majority of fleet decision-makers – close to three-quarters (73.4%) – were working from home; one in 10 were dividing their working day between the office and home, and just 15.4% were still in the office full-time.

The latest picture will be revealed in the June digital edition of Fleet News, which will be published next week.

Meanwhile, a separate Fleet News poll suggested that for many, some two-thirds (68.1%) of respondents, working from home will become their ‘new normal’.

Paul Hollick, co-chair of the Association of Fleet Professionals (AFP), warns this could have significant consequences for fleets, with more employees joining the ranks of those that drive their car for work, the so-called grey fleet.

Employers have a legal obligation to ensure that grey fleet vehicles are reasonably safe to use, are fit for purpose and are lawfully on the road.

Companies also typically pay Approved Mileage Allowance Payments (AMAPs) to reimburse fuel used in the course of a work trip at 45p per mile.

“Grey fleet could become a bit of a battleground, because of Covid-19,” warned Hollick. “Employees won’t be office-based (in the future), they’ll be home-based, which means their contract of employment might be changed.

“If the employee is classed as home-based rather than office-based a journey from home to the office will then become a business trip.”

Furthermore, Hollick says that, with people wary of public transport, employees are turning to used vehicles in the sub-£3,000 bracket to stay mobile, which could end up being driven for work purposes. 

New figures from the Department for Transport (DfT) show how hard public transport has been hit. Journeys by national rail are 8% of typical levels and London tube use stands at just 14%.

During the first full day of lockdown (Tuesday, March 24), car use fell to less than half (44%) of the expected level. Light commercial vehicle (LCV) use stood at 55%, HGV use at 84%.

Three months later and the day after retail outlets were allowed to open for the first time on Monday, June 15, car use had risen, but was still only at 70%. Van use and HGV use had grown to 84% and 92%, respectively.

In line with Government advice to avoid public transport, cycling use has doubled during some weekdays and trebled at the weekend.  By Graham Hill thanks to Fleet News

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Drivers Taking Huge Risks When Driving CarsWith Dangerous Defects

Friday, 10. July 2020

One in 10 cars on the road could be classified as having ‘dangerous defects’, according to analysis of the latest Driver and Vehicle Standards Agency (DVSA) data by BookMyGarage.

Department for Transport (DfT) figures show that defective tyres were a contributing factor in 17 fatal accidents in 2018 and caused a total of 459 accidents in the year.

Faulty brakes were also to blame for more than 500 accidents and 15 fatalities.

Karen Rothberg, managing director at BookMyGarage, said: “It was a sensible policy during lockdown, when vehicle use was limited, but the whole point of the MOT is to make sure dangerous vehicles are not on our roads for the sake of the driver, passengers and other road users.

“The Government is taking a serious safety risk now though and we urge motorists to take a common-sense view.”

Following the DVSA announcement that it is ending the MOT exemption on August 1, BookMyGarage said, “millions on could still be driving without a valid certificate until end of January 2021”.

Vehicles were granted the six-month exemption from MOT testing in March, to help slow the spread of the virus.

However, as the lockdown is gradually lifted, all cars, motorcycles or vans due a MOT test from August 1, will now be required to get a test certificate.

The RAC has warned that hundreds of thousands of vehicles due to be tested this summer could end up causing a backlog if drivers take advantage of the six-month extension.

BookMyGarage expects the average failure rate during 2020 to increase as a result of the exemption.

Testers classify failures as minor, major and dangerous defects, with one in three vehicles failing their MOT every day in normal conditions.

The most dangerous defect recorded by more than 65,000 MOT testers across the UK between July and September 2019 were tyres, which made up 58.1% of all dangerous defects recorded, followed by brakes (29.3%), suspension (5.5%), chassis (2.4%) and lights (2.0%).

Two-in five (40%) fleets have postponed non-essential service, maintenance and repair (SMR) work, during the coronavirus crisis, according to a Fleet News survey.

Five million fewer MOT tests carried out in April and May 2020 than in the same months last year, according to DVSA figures.

BookMyGarage is advising motorists not to risk ‘maxing out’ on the August 1 exemption if they can, and get their vehicles tested as soon as possible.  By Graham Hill thanks to Fleet News

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Vehicle Thefts Increase By Over 50%

Friday, 10. July 2020

Vehicle thefts have risen to highest level in four years, as more than 150,000 cars, vans and motorcycles were reported as stolen in 2018-19.

It’s an increase of 10,000 vehicles when compared to the year before and a 56% (54,932) increase compared to four years earlier, according to data analysed by RAC Insurance.

All but three of the police forces that responded to a Freedom of Information request recorded an increase in the numbers of vehicles stolen in their force areas from 2014-15 and 2018-19.

The largest increases were recorded by Kent Police (up 12,550 to 40,726 thefts in 2018-19, a 45% increase), Metropolitan Police (up 9,635 to 30,773 thefts, a 46% increase) and West Midlands Police (up 5,677 to 10,372 thefts, a 121% increase).

Six forces recorded a more than doubling in the number of vehicles stolen between 2014-15 and 2018-19, with the biggest jumps in Suffolk (up 172% from 347 to 945 thefts), Surrey (up 133% from 661 to 1,543 thefts) and the West Midlands.

Only Lincolnshire, the City of London and Police Scotland recorded a reduction in thefts during this period, with reductions of 28, 29 and 473 thefts respectively.

Most police forces (32) also recorded a rise in vehicle thefts year-on-year, between 2017-18 and 2018-19. Kent, again, saw the largest rise, as well as the largest number of overall vehicles stolen in 2018-19 (up 2,575 to 40,726 thefts, 7% more than in 2017-18), followed by Essex (up 1,056 to 5,409 thefts, 24% more than in 2017-18) and the West Midlands (up 836 to 10,372 thefts, 9% more than 2017-18).

When looking at the biggest percentage increases over this 12 month period, Suffolk witnessed the highest jump with 44% more thefts (945 in 2018-19 compared to 655 a year earlier), followed by Bedfordshire (37% increase, from 1,056 to 1,445 thefts) and North Wales (32% increase, from 464 to 612 thefts).

RAC Insurance spokesperson Simon Williams said: “These figures paint a rather disturbing picture – vehicle thefts are on the rise almost everywhere, and in some parts of the country numbers are rocketing.

“It’s also not the case that the rises in crime are confined to a few larger urban areas, with many police forces covering more rural areas also seeing big increases.

“While vehicle crime is at far lower levels today than it was in the early 1990s, thanks to improvements in vehicle security, and the number of vehicles licensed to be driven on the UK’s roads is higher than at any point in the past, it’s still concerning that so many more vehicles are being stolen than just a few years ago.”

The average fleet loses around £16,000 per year as a result of vehicle or equipment theft, according to Verizon Connect.

Its research found that businesses have at least one vehicle stolen each year.

The average loss increases to nearly £50,000 for those businesses that have between 101-250 vehicles, as the number of vehicles stolen rises to three for businesses of this size.

Some of the increases in recent years can be put down to a rise in thefts of vehicles that are easier to steal, such as motorbikes and mopeds that are less likely to have immobilisers. Government data also shows that thieves generally use keys to access vehicles in around half of crimes, which suggests that drivers need to do more to keep their keys safe.

Tracker data suggests that nine out of 10 van thefts were performed using the keys.

In a fifth of cases (18% in 2018), thieves were able to access vehicles because they weren’t locked in the first place.

Company car drivers and fleets are being warned by Tracker to be wary of opportunistic criminals looking to steal cars to fill a replacement parts gap caused by COVID-19.

The stolen vehicle recovery company says that police across the country are already fighting an increase in ‘chop shops’ – where stolen vehicles are stripped down and expensive parts sold on. But, it argues, the lack of legitimate parts could increase their popularity and profitability still further. By Graham Hill thanks to Fleet News

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Surprising Conditions That Drivers Must Report To The DVLA

Friday, 10. July 2020

If you suffer from illnesses that could affect your ability to drive, you’re required by the DVLA to inform them.

However, while some might be quite obvious, the DVLA has a list of health conditions that you might be surprised to learn put you at risk of a £1,000 fine if you don’t declare them.

Car hire comparison site StressFreeCarRental has scoured the full list of conditions to find the less obvious ones you should know about…

Diabetes

If you have diabetes that is treated by insulin, and the insulin treatments last more than three months, you must inform the DVLA. This also applies to gestational diabetes, or if you are at risk of low blood sugar, known as hypoglycaemia.

Vertigo

While most people associate vertigo with being at height, this is specifically known as ‘height vertigo’. Regular vertigo sufferers can get attacks anywhere, making it feel like the world around them is spinning. If you suffer from sudden, disabling, or recurrent vertigo you must tell the DVLA.

Déjà vu

This is something mostly written off as an odd feeling that you’ve been somewhere before, but it can be much more serious. The DVLA must be informed if you suffer from seizures or epilepsy that cause déjà vu.

Sleep apnoea

Obstructive sleep apnoea is a condition that causes the throat to relax and narrow during sleep, which can cause difficulty breathing. It’s one of a number of sleeping disorders that the DVLA must be told about, including narcolepsy and cataplexy.

Labyrinthitis

Labyrinthitis has nothing to do with mazes, it’s actually an inner ear condition that causes dizziness, nausea and loss of hearing. Since all of these things could affect your ability to drive, you must inform the DVLA if you have it.

Heart palpitations

This condition results in the sufferer becoming more aware of their heartbeat, which may feel like it’s pounding or fluttering, or perhaps beating irregularly. While the NHS says they are usually not a sign of something serious, the DVLA requires you to declare if you regularly suffer from them.

By Graham Hill thanks to AOL Cars

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Calls For Driver Eyesight Rules To Be Strengthened

Friday, 3. July 2020

What is the minimum vision standard required to drive on UK roads? And how can you check your own eyesight before driving?

Your eyes are obviously a crucial tool for driving a car safely, and the DVLA (Driver and Vehicle Licencing Agency) lays down detailed rules describing the standards of vision required for driving a car in the UK.

Drivers have their vision checked when they take their driving test, but from that point on, it’s the responsibility of individual drivers to report any problems that develop with their eyesight to the DVLA.

You should NOT drive a car if you believe that your eyesight may fall below the required standard. If you need to confirm that your eyesight is up to standard, visit an optician, and definitely do not drive there, no matter how far.

Standards of vision required for driving

The basic eyesight standard required for driving is simple. To drive a car legally in the UK you must be able to read a car number plate from a distance of 20 metres.

If you need to wear glasses or contact lenses for driving, you should be wearing them when you attempt to read the number plate, and the number plate should be of the current design that’s been standard on UK cars since September 2001.

In addition to this basic requirement, you must have a visual acuity measurement of at least 6/12 (or 0.5) on the Snellen scale, again while wearing any glasses or contact lenses that you need for driving.

While this sounds ominous, if you’ve visited an optician, the Snellen scale will be familiar to you as the wall chart with the rows of letters or numbers that get smaller as you read down. This chart is used to measure visual acuity, your central vision that you use to see detail.

Normal visual acuity is called 6/6, which means that from 6 metres away (the first number) you can read all 6 lines of the chart. Someone who could only read the first line of the chart would receive a rating of 6/60 which means that from 6 metres they could only read what someone with normal vision could read from 60 metres away.

If the second line of the chart is the ‘36’ line, someone with standard vision could read it from 36 metres, but if your Snellen score was 6/36 you would only be able to read it from 6 metres.

The 6/12 minimum vision standard for driving a car in the UK means that you can read from 6 metres what someone with standard vision could read from 12. This is half the distance, hence the conversion to the decimal 0.5.

Driving test eyesight check

Before your practical driving test, the examiner will test your eyesight by asking you to read the number plate of a parked vehicle that’s 20 metres away. If you can’t do this, then your test is immediately over and you will not be permitted to drive the car. Your provisional driving licence will also be revoked.

If you reapply for your driving licence, the DVLA will ask you to take a full eye test with the DVSA (Driver and Vehicle Standards Agency) which will take place at a local driving test centre. You’ll have to pass this before you get your licence back and then pass the number plate eye test before you take your practical driving test.

Online driving eyesight tests

There are a number of online driving eyesight tests that you can find on the Internet that may give you some idea if there is a problem with your eyesight.

However, these have no diagnostic value and should not be taken as the only indication of whether you’re safe to drive.

A better course of action is to test yourself by trying to read a car number plate from 20 metres and contacting your doctor and the DVLA if you struggle to do so.

What if there’s a problem with your eyesight?

There is no mandatory retesting of driver’s eyesight in the UK, and it is the driver’s responsibility to report any deterioration in their eyesight to the DVLA.

If you believe that your eyesight has diminished to the point that you are no longer safe to drive, or if you have any concerns that this could be the case, you should not drive a car. See a doctor and have your eyesight evaluated before getting behind the wheel.

If you do not tell the DVLA about any medical condition that affects your driving, you could be liable for a fine of up to £1,000 and you could be prosecuted if you are involved in an accident.

The DVLA publishes a list of health conditions that can affect your driving that may be useful to check whether you need to contact them. If there’s any doubt, however, contact your doctor before driving.

Eyesight tests for HGV and bus drivers

The eyesight standards required to drive an HGV or a bus in the UK are more stringent than for cars. To get your HGV licence, you must have a visual acuity of at least 6/7.5 (or 0.8) on the Snellen scale in your best eye. Your worst eye must be at least 6/60 (or 0.1).

If you take the test wearing glasses, their corrective power can’t be more than 8 dioptres and you must have an uninterrupted visual field of at least 160 degrees. This field of vision must include an extension of at least 70 degrees left and right plus at least 30 degrees down.  By Graham Hill thanks to Auto Express

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Could Volvo ‘Big Brother’ Controls Spread Through The Industry

Saturday, 20. June 2020

Volvo has limited all its new cars to a maximum speed of 112mph, as part of its commitment to road safety.

 

The Swedish brand announced the initiative last year and started limiting vehicles from the beginning of 2020.

 

As well as the speed cap, every Volvo car will now also come with a Care Key, which allows Volvo drivers to set additional limitations on the car’s top speed. The new initiative is similar to the Ford MyKey, which enables owners to set a maximum speed and other restrictions, such as loud the stereo can be turned up.

 

“We believe that a car maker has a responsibility to help improve traffic safety,” said Malin Ekholm, head of the Volvo Cars Safety Centre. “Our speed limiting technology, and the dialogue that it initiated, fits that thinking.

 

The speed cap and Care Key help people reflect and realise that speeding is dangerous, while also providing extra peace of mind and supporting better driver behaviour.”

 

The top speed limit has proven to be controversial since it was announced, with some observers questioning the rights of car makers to impose such limitations through available technology.

 

From 2022, all new cars sold in the UK must be fitted with a speed limiter linked to traffic sign recognition or GPS data, however they can still be overridden by the driver.

 

The Volvo system has no override, meaning flagship models such as its S60 and S90 T8 twin engine variants may be less desirable when compared to rivals, which are limited to 155mph.

 

Volvo says that above certain speeds, in-car safety technology and smart infrastructure design are no longer enough to avoid severe injuries and fatalities in the event of an accident, however.  By Graham Hill thanks to Fleet News


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