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The average sticker price of a used car grew by 4.6% to £13,888 in July, marking the fourth consecutive month of price growth, according to data from Auto Trader.

The growth is being driven by the strong performance of used internal combustion engine (ICE) vehicles, especially petrol, which last month saw average prices increase 5.6% (£12,604), marking the highest rate of growth since October 2018.

Diesel recorded a similarly strong performance, with average prices increasing 4.1% (£14,705), the highest rate of growth since September 2014.

Prices for used electric vehicles have dropped by 4.3% however, due to increased supply, while alternatively fuelled vehicles (AFV) fared a little better, contracting at a rate of 1.1% (£22,508), marking five months of declining prices.

Richard Walker, Auto Trader’s director of data and insight, said: “Over the last few months, used car prices have benefited from high demand in the market whilst the supply side has emerged more slowly from lockdown.

Even when auctions reopened, the supply of new stock in the market has been slow to return to pre-Covid-19 levels, whilst demand has remained at record levels.

“Looking ahead, at a time of economic uncertainty and with so many variables at play, we will continue to be data driven rather than publish opinion-based statements about the future.

Whilst consumer demand shows no signs of slowing into August, we have seen that supply constraints are working their way through, so we expect the growth rate we’ve seen in recent month to stabilise somewhat, rather than continue to accelerate each month.”

Taking a more granular view of the market, due to growth in demand outstripping supply, price increases were recorded in every price band of used car. Demand for vehicles aged 10-15 years saw a year-on-year growth of 23% in July, while supply fell by -16%.

This resulted in vehicles aged 10-15 years recording the highest price growth among any age group, surging 10.4% (£4,254). In contrast vehicles up to 12 months naturally had the lowest, at 2.6% (£26,500).

In terms of premium and volume brands, both saw demand outstrip supply last month. As a result, both saw an increase in average prices, with premium recording an average growth of 1.8% (£20,779) and volume 9.8% (£9,143).

Sue Robinson, director of the National Franchised Dealers Association, added: “It is encouraging to see sustained growth in used car prices as it demonstrates that, despite the challenging economic circumstances, the public are placing their trust in cars as a means of safe and secure transport. It is interesting to see the greatest increase in value of diesel cars since September 2014.”  By Graham Hill thanks to Fleet News

The Government is being warned a ‘no deal’ Brexit could impact vehicle costs and prove fatal to the wider UK automotive sector.

A recent Society of Motor Manufacturers and Traders (SMMT) survey showed one-in-three automotive employees was still on furlough, with up to one-in-six jobs at risk.

The impact of the coronavirus crisis is being felt across the sector, but jobs could also be threatened by the prospect of a ‘bare bones’ or no-deal Brexit, says the UK automotive trade body.

If the EU and UK do not agree a deal by the end of the year, the UK will leave the EU’s single market and the customs union without any agreement on future access from January 1, 2021.

The SMMT wants a full, zero-tariff deal in place by the end of the transition period to give businesses on both sides the chance to prepare.

Chief executive Mike Hawes said: “Before Covid-19, we expected to produce 1.3 million vehicles this year; the pandemic means we’re already looking at scarcely 900,000.

“A ‘no deal’ Brexit would wreak further long-term damage on the sector. Tariffs would add cost, custom duties and complexity, which would disrupt supply.”

The SMMT suggests a ‘no deal’ scenario could see UK vehicle volumes falling below 850,000 by 2025 – the lowest level since 1953. This would mean a £40 billion cut in revenues, on top of the £33.5bn cost of Covid-19 production losses over the period for UK automotive.

“The industry cannot withstand the shock of a hard Brexit,” explained Hawes.

“Covid-19 has consumed every inch of capability and capacity. There is not the resource, the time nor the clarity to prepare.”

Almost all countries in the world are part of the World Trade Organisation (WTO) which regulates international trade. Should the UK leave the EU without a deal, its trade with the EU will be governed by WTO rules.

When joining the WTO, each country negotiates the maximum tariffs it can set on various types of goods. The tariff charged by the EU on imported cars is 10%.

Leaving without a deal would mean UK-built cars facing a 10% tariff cost and vice versa, says the SMMT’s annual UK Automotive Trade Report.

Tariffs would result in a price increase of almost £3,000 on the average UK exported car to the EU, a £2,000 price increase on UK vans exported to the EU and a price increase of £1,800 on cars and vans imported from the EU, if fully passed on to UK consumers.

The report adds that additional customs duties, costs and complexity would significantly disrupt sourcing of parts and components from the EU.

Executive director, business transformation at Ford of Britain, Graham Hoare, said the manufacturer had implemented measures to ensure product is available for fleets.

He explained: “We’ve brought a lot of cars into the UK and have maintained that availability. That’s really important so we don’t have disruption to our supply chains as the change happens.”

But he warned: “A Free Trade Agreement is necessary for the viability of our business. If you think about all the other changes we’re embarking upon… another burden just makes the activities we’re performing in the UK a little less viable.”

JUST-IN TIME

Frictionless trade within the EU has been critical for enabling the UK car industry to develop supply chains that cross EU borders several times.

A separate report, produced by The UK in a Changing Europe on Manufacturing and Brexit, highlights how supply chains have to operate with supreme efficiency, and parts have to be delivered ‘just-in-time’ throughout the day.

As an example, 350 trucks arrive from the EU every day at Honda’s plant in Swindon, bringing in about two million parts. Components arrive from five-24 hours after ordering. The plant is scheduled to close a year from now.

Meanwhile, a typical driveline system produced by GKN, the British-based supplier, incorporates specialist forged parts from the UK, Spain, Italy, France and Germany.

These are assembled at GKN Driveline’s factory in Birmingham and supplied to automotive assemblers in the UK and EU.

The components, assembled drivelines and the final assembled car could cross the English Channel several times, says the report.

It is a similar story for BMW, which assembles engines at its Hams Hall engine-assembly plant near Birmingham.

Engine blocks come from France and are processed at the plant. They may go to Germany for further work before being assembled.

The engine may go into a Mini assembled in Oxford or the Netherlands, or into a BMW assembled in Germany.

“The final car could be sold anywhere in Europe or globally,” the report says. “This close integration and the need for minimal trade friction becomes even more important as most UK car producers operate on very low profit margins (around £450 on a £15,000 car).”

BREXIT TALKS

After a meeting between Prime Minister Boris Johnson and the EU Commission president Ursula von der Leyen last month, both agreed new momentum was needed in negotiations.

Official talks resumed at the start of this month, but ended with the EU’s chief negotiator, Michel Barnier, saying that “regardless of the outcome” there would be “inevitable changes” from January 1, 2021. The next round of negotiations began last week, with no apparent progress made.

The commission has also told member states and businesses to revisit plans for a ‘no deal’ Brexit.

In a press briefing, prior to the SMMT’s annual International Automotive Summit, Hawes insisted: “We must secure a comprehensive Free Trade Agreement that maintains tariff- and quota-free trade. With such a deal, a strong recovery is possible.”

The UK in a Changing Europe report says the potential danger is that carmakers may simply decide that production in the UK is no longer profitable and shift their assembly plants to the EU.

Many manufacturers with plants in the UK also have plants in the EU to which they could move production. Moreover, many of these plants have spare capacity.

“Such relocations usually happen when new vehicle models are introduced, and the decisions about sites are normally taken at least two years in advance of planned production starts,” it says.

‘MULTIPLE CHALLENGES’

Key companies in the UK automotive sector, that account for the bulk of UK automotive production – Nissan, Jaguar Land Rover (JLR), and Groupe PSA (Vauxhall’s owner) – have all planned new models in the next couple of years.

“There is a real danger they will decide to produce them in the EU, not the UK,” says the report. “This would have a knock-on effect on other industries in the UK.”

UK steel, for example, despite not being subject to tariffs itself, would suffer because the car industry would contract, reducing demand for steel.

“Manufacturing matters,” said Professor David Bailey, senior fellow of UK in a Changing Europe.

“Much of the sector has already taken a hit through the Covid-19 pandemic and Brexit risks further disruption for manufacturers which they are keen to minimise.

“A no-trade deal is seen as the worst-case scenario for sectors like automotive given the impact of tariffs. But even a minimal Free Trade Agreement could bring

disruption for manufacturers, for example via its impact on supply chains and in terms of regulatory divergence. Whatever the form of Brexit at the end of the transition period, manufacturing faces multiple challenges.”  By Graham Hill thanks to Fleet News

Fiat Chrysler Automobiles is being investigated for potential emissions cheating by authorities.

The car maker’s offices, including those of truck maker CNH, in Germany, Switzerland and Italy were raided following claims that some of the company’s engines produced illegal levels of emissions.

Potentially illegal software was allegedly detected in Multijet diesel engines used in Alfa Romeo, Jeep and Fiat cars, plus Iveco and Fiat commercial vehicles.

Prosecuters claim that more than 200,000 vehicles could be affected in Germany alone.

Affected engines include Euro 5 and 6 variants of the 1.3-litre, 1.6-litre and 2.0-litre Multijet diesel engine.

A statement from Eurojust, a European Union agency for criminal cooperation across member states, said: “Defeat devices are illegal according to the European Union regulations in place. Vehicles with defeat devices are not approved for road usage in the EU and consumers with such devices installed in their cars face possible driving bans.”

The probe is said to be looking into a “number of people” who may have been involved in allegedly allowing use of the devices.

An FCA spokesman confirmed that a number of the company’s offices in Europe were visited by investigators in the context of a request for assistance by magistrates in Germany. The spokesman said the business is cooperating fully with authorities.

FCA and CNH Industrial are both controlled by Exor, the holding company of Italy’s Agnelli family.

Renault and Nissan were recently accused of emissions cheating following allegations made against Mercedes-Benz.  By Graham Hill thanks to Fleet News

A loss of confidence in public transport looks set to change how employees will travel to work as the Covid-19 pandemic lockdown eases, new research has found.

A survey by private hire company Addison Lee has found six out of 10 London commuters will change the way they travel when the return to work begins after lockdown.

Meanwhile, recruiter Robert Walters discovered 34% of UK employers surveyed are considering changing working hours to avoid busy commuting periods.

The Addison Lee research of 1,000 commuters across the capital’s 32 boroughs found 55% of commuters plan to change the time of their commute to avoid peak hours, 49% plan to use their own vehicle (up from 23% pre-pandemic), while 28% plan to complete at least part of their journey on foot.

It also found 40% plan to use private hire vehicles as part of their journey.

Liam Griffin, CEO of Addison Lee, said: “Our research shows a clear shift away from commuting on public transport due to safety concerns.”

It reports 69% of respondents say that, even with the introduction of face coverings, taking public transport to and from work makes them feel anxious, while 72% say they will avoid using the tube during their commute unless essential when they return to work.

In response to the research, Addison Lee is asking the London Covid-19 Transition Board to make the safe return to work a priority and actively work with all the capital’s transport providers on a common set of safety standards.

It says this will give commuters confidence to return to work using a variety of means of transport that respect social distancing and the capital’s environmental needs.

The Robert Walters survey found 49%of employers are planning to stagger return to work based on employees’ own health risks related to Covid-19, while 46% will be staggering their return depending on how critical their role is to the business.

Its full findings are:

What strategies are UK employers considering (or have implemented) to bring employees back to work
Staggering return to work based on employees’ own health risks related to COVID-19 (e.g. respiratory or chronic conditions)	49%
Staggering employees return depending on how critical their role is to the business	46%
Creating smaller workgroups to limit mixing of employees/groups in the workplace	40%
Changing working hours to avoid busy commuting periods	34%
Offering employees the opportunity to volunteer to come back to the office	33%
Splitting employees into shifts based on specific criteria (e.g. by name A-M and P-Z work different days)	28%
Returning to work strategies will be based on local infection rates and risk (e.g. different strategies by location)	28%
Not sure, we have not yet considered a return to work strategy	29%

Lucy Bisset, director at Robert Walters, said: “What the research highlights is that despite the success of home working, employers are keen to start encouraging their staff back into the workplace and are happy to take necessary steps and put procedures in place to help enable this.

“A return to office brings about many perks, including social inclusion, better workplace collaboration, a separation of homelife, and a reinforcement of company values.

“What employers need to do is merge the perks of office-life with what people have been enjoying about working from home; for example – flexi-hours, a relaxed atmosphere, and avoidance of busy commute times.”

Robert Walters also found 87% of employees would like more opportunities to work from home post-return, with 21% stating they would like to work from home permanently.

While 83% of firms have stated that the experience of Covid-19 will encourage business heads to have employees to work from home more often, they also cite concerns over employee productivity (64%), senior leadership preferring traditional ways of working (57%), and the nature of the business e.g. face-to-face sales (36%), as the key barriers to achieving this.

They also expect the long-term impact of coronavirus on operations to include reduced mileage, greater use of technology and fewer company cars.  By Graham Hill thanks to Fleet News

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

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

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

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

Initial analysis of the impact of the coronavirus pandemic on used car values does not show a “seismic” shift in prices being achieved, suggests Cap HPI.

 

However, it is urging caution and warned vendors to expect “volatile” price movements over the coming weeks.

 

Cap HPI says that more vehicles are beginning to be sold at auction, with pricing data volumes increasing by 70% in the week commencing May 4, compared to two weeks earlier, in the middle of April.

 

From the start of the lockdown, the company stated that it would be analysing both used car retail and wholesale data, but it would not adjust used values while there was insufficient data to portray the market accurately.

 

Between March and May 10, no values were moved, but now that cars are selling in more volume, it says they need to be adjusted to reflect sold prices and allow the trade to buy and sell optimally.

 

The latest data shows that average wholesale selling prices have increased steadily from around £4,000 to more than £7,000, suggesting vendors are now more confident of selling slightly more expensive cars.

 

Early indications suggest a 2% to 5% downward movement for some of those models and ranges older than five-years-old.

 

Derren Martin, head of valuations UK at Cap HPI, explained: “The previous five years have seen an average drop of 4% during April and May at the five-year-old age point, and last year witnessed a 6.3% drop. So, the movements we are currently seeing in the middle of this pandemic are by no means seismic. We are reflecting the data as volumes slowly increase.”

 

Cap HPI reported a 2.2% fall in used car values on March 27. The total cumulative Live movement during March, leading to April’s monthly values, was an average drop of 2.2% (-£275) at the three-year, 60,000-mile point, the majority of which happened in the final 10-days of valuing. For newer used cars, the drop was 1.8% (-£425) at the one-year, 20,000-mile point.

 

In April, Cap HPI observed around 7,500 sold records and that number has already been exceeded by the middle of May.

 

Furthermore, both Manheim and CD Auction have reported they have started online sales, while BCA has continued its online offering during the pandemic.

 

Cap HPI says that, while wholesale records are still well below usual volumes, there is now enough data for prices to be reflected to assist the industry.

 

Martin continued: “We are now in a position to confidently move values in line with the market, taking a prudent approach using our editorial expertise, no algorithms, to analyse the data.

 

“Initially, we will be moving values on older vehicles in mainstream sectors, where there is enough evidence to accurately reflect current prices, by looking at each generation of model individually.”

 

However, he said: “No overall market movements will be applied. At the current time, younger used cars will not be moved in value as that end of the market is still very much in a hiatus.”

 

The data company says outliers, unrepresentative volumes and prices will not be reflected to move values.

 

It has also made the decision not to move values of younger cars or of cars in niche sectors, due to the paucity of data available.

 

For now, it says that valuation movements will only be made on cars between around five and 20-years old. The situation will be reviewed on an ongoing basis.

 

The analysts at Cap HPI are also analysing retail advertised prices in large volumes, although it says movements on retail price have been negligible.

 

Martin concluded: “We can see how retail and trade values operate differently in the market and this continues to be true during the pandemic.

 

“It’s more important than ever to take a careful, considered view from the evidence and it is likely to be a volatile time for used car prices over the next few weeks, whilst supply and demand dynamics work themselves out.

 

“We would recommend the industry keeps a very close eye on our daily valuations as they may move in either direction.”  By Graham Hill thanks to Fleet News

The volume of motoring fines and penalties incurred by company car and van drivers increased by 3% in 2019, new figures from Lex Autolease show.

 

This compares to a 60% year-on-year cumulative increase over the past three years, suggesting a slower rate of increase than in previous years.

 

This was also reflected in the value of fines incurred by drivers, which did not grow for the first-time last year, bucking the trend of yearly increases from £10.7 million in 2016 to £17.1m 2019.

 

The percentage of drivers caught by bus lane cameras fell for the first time by 17% year-on-year, with fines issued for congestion charges and council parking also falling by 6% and 4% respectively.

 

Mersey Flow and Dartford Crossing fines also saw a year-on-year decrease with the total number of penalty notices issued falling by more than two fifths (44%) from 54,618 in 2018 to 30,391 in 2019.

 

However, the picture is not entirely positive, says the country’s largest vehicle leasing company.

 

The percentage of motorists penalised in private car parks rose by 6% year-on-year to £6.2m, and illegal junction-box stops and red-route driving fines increased by almost a fifth (19%) to £6.3m during the same period.

 

Lex Autolease analysed data from more than 361,000 company cars and vans to identify trends in behaviour and driver safety.

 

Kim Morris, motor operations director at Lex Autolease, said: “Company car drivers are often more likely to incur fines and penalties on the roads when compared to ordinary motorists, as the pressure to hit deadlines and attend meetings on time can sometimes lead to poor driver behaviour.

 

“The majority of fines can be easily avoided and if not closely monitored can quickly add up to expensive outgoings for employers – especially those with larger fleets.”

 

She believes that the emphasis fleet managers have placed upon driver health and safety in recent years is starting to pay off, with a considerable slowing in the rise of the number of fines incurred and a decrease in the number of fines for commonplace offences, including bus lane driving and congestion charges.

 

However, she said: “Our analysis shows that there’s still more businesses can do to educate their employees to bring these numbers down further.

 

“Continuing to invest further in driver education can help to modify employees’ driving habits and in turn save businesses unnecessary outgoings each month.”

 

She concluded: “As the new tax changes for alternatively-fuelled vehicles gather momentum, driver education will become even more important for fleets to make sure avoidable fines and penalties do not offset the cost saving benefits of low or zero emission vehicles.”  By Graham Hill thanks to Fleet News