Michelin Provides Car Care Advice During Lockdown

Saturday, 2. May 2020

Michelin has issued special guidance for vehicles parked up for extended periods during the Coronavirus pandemic.

 

The company has detailed steps to follow before laying up vehicles, along with advice on periodic inspections and preparing them to re-enter service.

 

Brian Porteous, Michelin’s technical manager – Car, Van, 4×4 and Government Contracts, said: “Tyres can be damaged if certain precautions are not taken before the weight of a parked car or light commercial is supported for long periods, so it’s important owners follow some basic advice to ensure vehicles can be quickly put back into operation when normal business resumes, and without the need to replace tyres unnecessarily.

 

This isn’t just advice for big fleets; it’s as important for smaller operators, sole traders and consumers

 

Preparing vehicles

 

Before laying up a car or van, the tyres should be checked for damage and any cuts or penetrations that may deteriorate over time should be assessed by an expert. Many tyre dealerships remain open, often with mobile technicians available.

 

Inflation pressures should be set at the normal levels for the vehicle. Any tyre which is found to be under-inflated by up to 7psi can normally be re-inflated safely if there are no obvious signs of damage. However, if a tyre is under-inflated by more than 7psi, it should be removed and inspected by an expert to make sure that no structural damage has been caused.

 

Tyres inflated with nitrogen should have their inflation pressure checked in just the same way as those inflated with air. Whatever the inflation medium, ensure that a valve cap with a rubber seal is fitted to every tyre valve.

 

Make sure that tyres are not parked on stones or objects that might dig in. Also avoid tyres sitting for long periods in pools of water or other liquids, such as oils.  For longer periods, covering tyres to avoid exposure to sunlight will also prolong their life.

 

Clean tyres with mild detergent only and rinse well with cold water.

 

During extended parking

 

Even when not in use, tyre inflation pressures should still be regularly checked and corrected as necessary – ideally on a monthly basis, in line with standard Michelin recommendations. Any pressure loss should be investigated and the cause remedied.

 

Every four months, if a vehicle has not been moved, the tyres should be rotated a quarter turn.

 

Re-entry into service

 

Any tyre and wheel assembly which has been stored for a long period, on or off the vehicle, should be visually inspected for damage and any unusual signs before re-entering service. Pressures should be checked and set to the vehicle manufacturer’s recommendation.

 

Remember that tyres may reach the end of their service life whilst in storage. Tyres which have been in use for five years or more should continue to be inspected by a specialist at least annually.

 

Any tyres in service 10 years or more from the date of manufacture, including spare tyres, should be replaced with new tyres as a simple precaution – even if they still appear serviceable and have not reached the legal wear limit.

 

The date when a tyre was manufactured is located on the sidewall. Consumers should locate the code which begins with the letters DOT. A DOT code ending in “2210” indicates a tyre made in the 22nd week (May) of 2010.

 

“We appreciate that for most businesses and consumers, the very idea of parking vehicles for extended periods is an unfamiliar process and not something they want to be doing. However, by spending a few minutes inspecting and preparing a vehicle first, you will help to protect the condition of its tyres and ensure it is in the best possible condition for getting back on the road when the time comes,” Porteous added.  By Graham Hill thanks to Fleet News

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Will CoronaVirus Have A Positive Effect On Electric Cars?

Saturday, 2. May 2020

The views of Charley Grimston, co-founder of Altelium and CEO of CNC Asset Ltd

 

There have been plenty of good news stories coming from the automotive sector since the covid-19 outbreak, including car manufacturers switching their production lines to make ventilators. But, of course, there are concerns about the industry’s economic stability, at the beginning of April 2020 car sales were down 44 per cent.

 

However, there are three powerful reasons why the electric vehicle market will be supercharged by this dreadful virus and lockdown when it’s over.

 

Clean refuelling

 

Firstly, drivers will want electric vehicles because diesel and petrol forecourts will be perceived as unclean.  You have to hold the pump the previous person has used, touch the screen or enter the shop to pay. With electricity you can fuel up at your own home for consumers, or at a centralised depot for fleet owners.

 

We may all want to get back to normal but some things you can’t unknow, and one of those things is how infection is transmitted.

 

Preserving environmental gains

 

Secondly, people will want to do things differently and better. Those who can afford to buy cars will want to play a part in making the world a better, greener place. Already we are seeing how nature is recovery as a result of the lockdown:  “This is the first time I have seen such a dramatic drop-off over such a wide area for a specific event,” said Fei Liu, an air quality researcher at NASA’s Goddard Space Flight Centre describing levels of nitrogen dioxide over China.

 

The nationwide shutdown has led to a big drop in air pollution across the UK’s major cities.  For nitrogen dioxide pollution, new data shows that this has almost halved in London, Birmingham, Bristol and Cardiff.  Transport contributes 23 per cent of global carbon emissions and driving is by far the largest element of that, contributing 72 per cent of transport carbon emissions.

 

When the engines of the economy start again, we’ll want to try and preserve these gains. A report just published by the Journal of Nature has proved that electric vehicles produce less carbon dioxide than petrol cars across the vast majority of the globe.  There were lingering doubts in some quarters about the environmental credentials of electric cars, centred around the battery. This report lays those concerns to rest. So, when people start buying again, they will buy with the environment in mind – and that means electric.

 

Buy once, buy well

 

And thirdly those investing in new cars, especially fleet owners, will want to buy well. This global lockdown and coronavirus is like nothing we have ever experienced, but what many of us have experienced is recession. At times of recession, or worse, warranties become far more important to both the car owners and manufacturers.

 

To fleet owners, a long warranty is a sign of quality and reassurance. To the manufacturer it provides a way to demonstrate your belief in your product quality. A warranty allows a product to be sold on quality and therefore protects profit margins. Profitably is also protected further downstream, where a warranty allows the manufacturer to offer range of customer service and support, underwritten by their insurance.

 

How do we know this is the case?  We have been providing damage and breakdown extended warranty and renewable energy insurance for plant and machinery for over thirty years.  We have seen ourselves and our customers through huge fluctuations in the market, and what has provided consistent protection throughout this time is the warranty.

 

Developing warranties for EV batteries

 

Until now it has been difficult to develop warranties on electric vehicles, specifically the battery, because the technology is so new. Traditional lead acid batteries come with a raft of data and industrial standards, developed and refined over many years, which inform investment or warranty decisions.

 

There was a lack of data around electric batteries which held back investment decisions about the single most important component part – the electric battery. There’s too much risk involved to offer a good, long warranty if you don’t know what affects the product’s performance and longevity.

 

Now this final issue has been addressed. Intelligent data can now be gathered in real time from electric batteries and then enhanced with AI learning to describe the current, past and likely future performance of the battery at an individual cell level. Systems like Altelium are at the forefront of this. They unlock market potential because armed with this data the battery can be given second life uses.

 

Intelligent planning

 

Here again the warranty is the catalyst of change. A comprehensive warranty at individual cell level can include service and breakdown cover for the cell in it its second life situation as part of a static energy storage system. This extends the revenue stream for the manufacturer or the owner of the storage facility.

 

It also extends significantly any carbon footprint calculations for the car itself because the battery cells will be in operation for so many years.   Unlike Bernard London who suggested that recession could be ended through ‘planned obsolescence’ in 1930s, now the approach must be the total opposite. We must recognise intelligent planning and electric vehicles are the exemplar of how to energise the automotive market.  By Graham Hill thanks to Fleet News

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Bridgestone Tyres Resume Production

Saturday, 2. May 2020

Bridgestone EMIA has announced that several plants across its manufacturing network will slowly ramp up production in response to business and customer needs.

 

As of Tuesday (April 14), production resumed in all plants located in Spain (Burgos, Bilbao and Puente San Miguel) and Russia (Ulyanovsk).

 

The passenger tyre plant in Bari (Italy) and retreading facility in Lanklaar (Belgium) are anticipated to restart later this month.

 

Factories in India, South Africa and France will remain closed for the time being.

 

Production facilities in Poland (Poznan and Stargard) and Hungary (Tatabanya) have remained operational throughout this period, but have been running at reduced capacity.

 

The restart plans reflect the demand trend seen in several of Bridgestone EMIA’s market segments, including OEM passenger tyres and the commercial sector – which has been less severely affected by the economic downturn.

 

Bridgestone EMIA says it is continuing to work closely with its customers and suppliers to ensure adequate supply, while closely monitoring fluctuation in demand.

 

It also insisted that the health and safety of employees remains the most important priority. Therefore, Bridgestone is taking the appropriate preventive measures in accordance with its protocols for the prevention of occupational hazards, and strictly following the guidance and recommendations of the health authorities to ensure social distancing and adequate protection of its workforce.

 

In addition, thorough procedures and checklists to ensure safety in the workplace have been put in place before resuming or expanding activities, it said.

 

The company continues to monitor the situation closely and abide by the advice from the Centers for Disease Control and Prevention (CDC) and World Health Organization (WHO), as well as government regulations in countries in which it operates. By Graham Hill thanks to Fleet News

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Latest News On VW Group Production Re-starts

Friday, 1. May 2020

Volkswagen car plants were planned to restart production this week, with factories in Zwickau and Bratislava (Slovakia) the first to open.

 

The other plants in Germany and in Portugal, Spain, Russia and the USA were also to restart production this week.

 

Subsequently, in the course of May, production will be resumed successively in South Africa, Argentina, Brazil and Mexico.

 

Volkswagen Commercial Vehicles (VWCV) plants in Hannover and in Poland at Poznań and Września are also gradually starting production at reduced capacity levels.

 

Ralf Brandstätter, chief operating officer of Volkswagen, said: “With the decisions by the federal and state governments in Germany and the loosening of restrictions in other European states, conditions have been established for the gradual resumption of production.

 

“Volkswagen has prepared intensively for these steps over the past three weeks. In addition to developing a comprehensive catalogue of measures for the protection of our employees’ health, we have also forged ahead with the re-establishment of our supply chains.”

 

On this basis, short-time working is to continue at the Volkswagen plants in Germany. However, the number of employees affected by short time working will be successively reduced in line with the resumption of production.

 

Production will be resumed in line with the current availability of parts, Government requirements in Germany and Europe, the development of sales markets and the resulting modes of operation of the plants, it said.

 

Irrespective of these developments, compliance with the stringent health protection measures for employees will always be the top priority.

 

Andreas Tostmann, Volkswagen board member responsible for production and logistics, said: “We are resuming production and logistics with a staged approach in a well-organised way.

 

“The health of our employees has the highest priority. We are providing safe workplaces and the maximum possible level of health protection with a 100-point plan.

 

“In full awareness of our responsibility, we are ensuring that the economy regains momentum and cars once again leave the plants and reach our dealers and customers.”

 

Volkswagen Group Components had already started to resume production step-by-step at its plants in Brunswick and Kassel from April 6, followed by the Components plants in Salzgitter, Chemnitz and Hanover, as well as the Polish plants, starting production from April 14, to safeguard component supplies for vehicle production in China.

 

Thomas Schmall, CEO of Volkswagen Group components, said: “The step-by-step reopening of our plants was important in order to safeguard supplies to overseas locations. Now we need to restart the entire production network while taking comprehensive protective measures and to supply all the vehicle plants of the various brands with components. The same high requirements for the health protection of our employees apply to all our plants.”

 

In the resumption of production, the company can also call upon the experience gained with the production ramp-up at its plants in China, where a large number of consistent health protection measures have been successfully implemented.

 

Overall, 32 of the 33 plants in China have now returned to production. No cases of coronavirus have been reported among the employees there.

 

Volkswagen says it continues to closely monitor the global situation arising as a result of the coronavirus pandemic. Further action will be based to a large extent on dialogue and procedures within the Volkswagen Group and recommendations including those of the Robert Koch Institute.  By Graham Hill thanks to Fleet News

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Following A Massive Collapse Of Crude Oil Prices Why Is There No Drop In Pump Prices?

Friday, 24. April 2020

The price of US oil has turned negative for the first in history as the coronavirus pandemic has caused global demand to collapse – but this is not yet being reflected fully at the fuel pumps.

 

Earlier this month, oil producing countries agreed to collectively slash global output by an unprecedented 10 million barrels a day, or about 10%. However, demand has dropped by 30 million barrels a day or more.

 

The price of a barrel of West Texas Intermediate (WTI), the benchmark for US oil, fell as low as minus $37.63 a barrel as oil producers are paying buyers to take it over fears that storage capacity could run out in May.

 

The impact on Brent Crude – the benchmark used by Europe and the rest of the world, has been less as there is still capacity in which to store it: it has fallen 8.9% to less than $26 a barrel.

 

According to the Fleet News Regional Fuel Prices tool, average petrol prices in the UK have fallen 11p a litre in the past month, but the wholesale cost of fuel has dropped by much more than that.

 

Currently, the average price of a litre of diesel is 111.64p, with unleaded at 106.91ppl. One month ago, they were 122.01ppl and 118.69ppl respectively.

 

Once tax and fuel duty have been factored in, the RAC calculates that under normal circumstances petrol prices should be about £1 a litre.

 

RAC fuel spokesman Simon Williams said: “The oversupply of oil continues to suppress the barrel price and it’s clear now that plans by some of the world’s largest oil-producing nations to limit production haven’t yet been enough to lift the price – there’s currently too little demand for oil in the first place.

 

“It’s right that retailers charge a fair price for fuel that reflects the price of the raw product, and in theory petrol prices could fall below £1 per litre if the lower wholesale costs were reflected at the pumps – but at the same time people are driving very few miles so they’re selling vastly lower quantities of petrol and diesel at the moment.

 

“This means many will be at pains to trim their prices any further.

 

“We also continue to be concerned about smaller forecourts that provide a vital service in areas where the supermarkets don’t have a foothold as many are already finding conditions tough with sales having fallen off a cliff since lockdown.

 

“It would be bad news all round if these forecourts shut up shop for good.”

 

Luke Bosdet, fuel price spokesman for the AA, added: “It is likely that once Covid-19 is defeated there will be calls for a review of UK pump prices during the current oil and commodity fuel price crash, as there were in the years after the 2008 to 2012 price spikes.”

At the end of March supermarket giants Morrisons and Asda reduced their fuel prices by 12p per litre for petrol and 8ppl for diesel as the coronavirus Covid-19 crisis continues.

 

The cuts follow a plunge in oil prices caused by a trade war between Russia and Saudi Arabia, which saw Saudi Arabia – which produces about 10% of the world’s oil – decide to slash prices and ramp up its production.  By Graham Hill thanks to Fleet News

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Thousands Of Drivers Being Caught Speeding During Lockdown.

Friday, 24. April 2020

Drivers are being urged to slow down during the lockdown after Greater Manchester Police said it has caught 6,200 drivers breaking the speed limit since Monday, March 23.

 

With all non-essential travel currently banned under Government guidance, the majority of people are staying at home and if they need to go out, they are sticking to the speed limits.

 

Department for Transport (DfT) data shows motor vehicle use in Great Britain has fallen by two thirds over the past month.

 

However, Greater Manchester Police has seen an 57% increase in vehicles travelling above the speed limit over the past few weeks and other forces have reported similar problems.

 

One driver was recorded at 115mph on a 40mph road in Greater Manchester, while another was clocked at 134mph in a 40mph limit in London.

 

Superintendent Julie Ellison from GMP’s Specialist Operations Team said: “Sadly we have seen a huge increase in speeding offences and numerous examples of drivers who are putting their own lives and others at risk.

 

“My officers are working tirelessly to track down these offenders who are using the quieter roads as their own personal racetrack.”

 

Scottish police reported a man was recorded travelling at more than 130mph on the A90 between Peterhead and Ellon, Aberdeenshire, on April 12, while a driver was stopped in Sudbury, Suffolk, travelling at 80mph in a 30mph limit with no insurance and no driving licence.

 

Police in Wales, meanwhile, have seen speeds of 114mph in a 70mph limit on the A55 in Rhuallt Hill, another at 105mph in a 60mph limit on the A5 in Halton, Wrexham, and a third at 104mph in a 70mph limit on the A48 in Pensarn, Carmarthen.

 

Nick Lloyd, head of road safety at RoSPA, said: “We’re alarmed by the latest reports of speeding across the UK, and the reckless disregard with which some drivers treat the rules of the road just because they are more quiet than usual.

 

“Excessive speed at any time is dangerous, and you put other people, as well as yourself, at risk of death or serious injury. Please don’t be selfish, and stick to the limit – it’s there for a reason.”

 

Lloyd says that drivers also need to be extra vigilant given the lockdown.

 

“There are currently more children, pedestrians and cyclists out and about for their daily exercise, all throughout the day,” he said.

 

“Additionally, if you cause a crash, you will be putting frontline resources and health professionals under needless strain at a time when they should be dealing with getting the pandemic under control.”  By Graham Hill thanks to Fleet News

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Massive Rise In Vehicle Thefts Over Last 3 Years

Friday, 24. April 2020

The number of vehicles stolen in England and Wales rose by more than one-fifth (21%) between 2016 and 2019, according to a freedom of information request by AX.

 

Responses obtained from police forces across England and Wales found much of that increase occurred between 2016/2017 and 2017/2018, with a ride of 14.1%.

 

The report follows research by Verizon Connect earlier this year, which found the average fleet loses around £16,000 per year as a result of vehicle or equipment theft.

 

Neil Thomas, director of investigative services at the provider of intelligent vehicle protection and management technologies and a former detective inspector, said: “While the lockdown may temporally reduce some types of car theft, criminals are using increasingly intelligent ways to steal vehicles and continue to find success.

 

“The combination of organised crime getting smarter and ability to make quick returns has drastically increased pressure on police forces to control the theft of motor vehicles.

 

“Car thieves are opportunists and have no respect for property and will remain determined to carry on illegal activity despite the current restrictions on movement across the UK. I have even seen recent reports of vehicles belonging to key workers being stolen.

 

“During this period of lockdown, it’s even more important that car owners remain vigilant and do what they can to keep their car safe while they’re using them less frequently, if at all.”

 

Of the 17 police forces that responded, Nottinghamshire and Staffordshire Police saw the largest increases, with Nottinghamshire Police reporting an overall rise of 60%.

 

Hertfordshire, Surrey, West Midlands and Essex Police each saw overall surges of more than 40%.

 

However, some forces have seen a decrease in motor vehicle thefts, including Merseyside Police and Avon and Somerset Constabulary. Humberside Police reported the largest drop, with a decrease of 36%.  By Graham Hill thanks to Fleet News

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Car Manufacturers To Restart Production

Friday, 24. April 2020

Following VW, Audi will restart car production at its plants in Europe during the coming weeks, with ‘normality’ expected by the end of the month.

 

The company announced the temporary suspension of production at its European sites in mid-March due to supply bottlenecks and a drop in demand due to the Coronavirus pandemic.

 

Suppliers and service providers will also restart at the same time, in an effort coordinated with the Volkswagen Group.

 

“We will manage the restart as a joint European act,” said Board of Management member for production Peter Kössler. “This is because supply chains and production and logistics processes are closely interlinked within the Group and with partners at the international level.”

 

Some Volkswagen plants have already reopened, with factories in Zwickau and Bratislava (Slovakia) the first to return to normality.

 

Audi is following the guidelines of the Robert Koch Institute and the regulations of the health authorities of the respective country to ensure employee safety.

 

“The focus is on the employees, because they need a safe working environment. Audi teams of experts have therefore adapted processes with a view to health protection in consultation with the specialist departments and works councils. I would like to thank all Audi employees and our partners around the world for their flexibility and joint efforts in times like these,” Kössler added.

 

There will be a package of measures in place to ensure that the employees’ health is protected,  including clear rules on distance and hygiene, a modified shift system to avoid contact, and the obligation to use mouth and nose protection in areas where distances of 1.5 metres are not possible.

 

Vehicle production at the Audi sites will be gradually ramped up from the end of April onwards according to a fixed plan. Engine production in Győr already started gradually ramping up again this week.

 

PSA Group has also announced a gradual restart of its facilities, including the Ellesmere Port Vauxhall plant.

 

The European Automobile Manufacturers’ Association (ACEA) says a successful re-launch of the car industry will be vital to the wider economic recovery of the continent. By Graham Hill thanks to Fleet News

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Dealership Group To Start Deliveries And Collections Again

Friday, 24. April 2020

Holdcroft Group Fleet will begin vehicle deliveries and collections from Wednesday (April 29), after adapting processes to provide a contactless home delivery service during the COVID-19 pandemic.

 

Vehicle collections and deliveries have been suspended by leasing companies during the lockdown, while carmakers have put production on hold across the world.

 

However, the Department for Transport (DfT) says in a letter to the logistics sector that logistics, including the collection and delivery of vehicles, should carry on during the lockdown, provided that it can be done in accordance with coronavirus safety guidelines.

 

The British Vehicle Rental and Leasing Association (BVRLA) urged dealerships and other delivery agents to start moving vehicles again, earlier this month.

 

Group fleet director at Holdcroft Group Fleet, Malcolm Pearson, told Fleet News: “In light of recent advice from the Government regarding delivery of new cars to customer’s homes and their desire to keep the UK economy going, we have adapted our process to accommodate a contactless home delivery service whilst ensuring social distancing and safety for all parties.

 

“From Wednesday (April 29), we will be recommencing deliveries albeit starting with a low volume while we gradually bring a number of employees back from furlough.”

 

However, he added: “Due to manufacturers not delivering new stock to us at the moment we can only deliver vehicles we have physically with us.”

 

Some manufacturers have announced plans to slowly begin production at plants in Europe.

 

Audi will restart car production at its plants in Europe during the coming weeks, with ‘normality’ expected by the end of the month.

 

The company announced the temporary suspension of production at its European sites in mid-March due to supply bottlenecks and a drop in demand due to the coronavirus pandemic.

 

Suppliers and service providers will also restart at the same time, in an effort coordinated with the Volkswagen Group.

 

PSA Group has also announced a gradual restart of its facilities, including the Ellesmere Port Vauxhall plant.

 

A multi-franchise dealer group based in the Midlands and North West, Holdcroft is one of largest vehicle retailers in the UK and Holdcroft Group Fleet is a fully licenced transport company operating its own fleet of transporters.

 

Pearson said: “We are taking all necessary precautions to deliver safely to customer addresses and have recently introduced contactless home delivery for new fleet vehicle orders.

 

“When booking the delivery this process will be outlined with the customer and will only progress and take place if both parties are completely satisfied with the process.

 

“All vehicles will be delivered on a transporter – to both reduce the number and length of time we have to spend in a customer car as well as eliminating the need for the use of any public transport ensuring safe return of our employee.”

 

Delivery drivers will also follow strict protocols in ensuring the vehicle is disinfected. “Drivers are fully equipped with gloves and the correct hand sanitisers,” explained Pearson.

 

“They will re-wipe all areas they have come into contact with once the new vehicle is parked in the correct new location, before finally wiping the keys and placing at the customers front door and stepping back to allow them to be picked up for the car checked over.”

 

Customers will not need to sign any paperwork or handheld device but will be asked in advance for permission to sign on their behalf once they have checked the vehicle over externally.

 

Pearson said: “A down-side to social distancing means the usual level of vehicle demonstration will not be able to take place, but this may also not be possible for many months to come depending on future government guidance around social distancing.

 

“If the customers are self-isolating, shielding or are nervous, but they still want the car delivered, we will leave the car and allow two hours after to inspect the car and advise us of any concerns.”

 

In terms of vehicle returns, Holdcroft Motor Group will be instructing the customer that they must be able to clean the car with appropriate anti-bacterial wipes and then not enter the car for three days prior to collection.

 

The keys must also be wiped at that time and placed in a bag or envelope and be left at the door in the same way it is approaching deliveries of new cars.

 

“This will reduce the risk of any virus remaining on hard surfaces after three days,” said Pearson. “We will re-wipe handles and keys as necessary before we move the vehicle as well.”  By Graham Hill thanks to Fleet News

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Motor finance expert warns that FCA Coronavirus proposals could leave NHS and other essential workers without cars.

Friday, 24. April 2020

This is a piece written for the press:
Last Friday the FCA issued a consultation document aimed at providing drivers with the most popular forms of finance some respite by forcing the finance providers to allow drivers a 3 month payment holiday.
Monday the 20th was the cutoff for interested parties to make their feelings known to the FCA before they issued their final instructions on the target date of Friday 24th April.
Leading car finance expert Graham Hill welcomed the move, ‘Whilst several funders have already announced that they would be offering drivers reduced payments or holiday periods this is a welcome industry-wide instruction’.
‘Personal contract hire is a much easier product to adjust as it’s a more simple rental product but PCP, by far the most popular consumer car finance product, is more complex as it raises the question that if the contract is extended by 3 months will that affect the optional Guaranteed Minimum Future Value?
‘Also the holiday period accrues interest, how will that be recovered by the finance provider? And given the way that PCP interest is calculated if the contract is only a few months old nearly all of the monthly payment is interest.
The FCA has gone further than recommending a payment holiday they have also proposed a way that PCP providers should deal with cars that end their contracts during lockdown:
Rob here is the complete section. The first part is fine, it’s the second part that causes concern:

PCP agreements reaching term end during the period this guidance is in force

Where a customer wishes to retain the vehicle, but does not have funds to cover the balloon payment due to coronavirus related financial difficulties, firms should work with the customer to find an appropriate solution. Given the increased potential for disparity between the balloon payment and the value of the vehicle in the current climate, firms should ensure that solutions do not lead to unfair outcomes. For example, refinancing the balloon payment might not be appropriate in the circumstances.
Where a customer wishes to return the vehicle, but this is impractical due to the coronavirus situation, firms should inform the customer that they are unable to use the vehicle once the agreement has been terminated or come to an end (if that is the case). The firm should inform the customer of the need to make a Statutory Off Road Notification (SORN) declaration if the customer is the registered keeper of the vehicle and they want to stop taxing and insuring it because it is ‘off the road’.
If the customer doesn’t want to buy the car he would normally have two choices, either use the car as a part exchange if there is equity in the car or simply hand the car back.
According to Hill, ‘With car dealerships on lockdown it is not possible for drivers to negotiate a part exchange and given the collapse of used cars it’s unlikely that there would be any equity in the car anyway.’
‘So with most drivers that are at the end of their PCP agreements with little choice but to hand the car back they are potentially looking at a situation that could leave them without a car unless the FCA adjusts its proposals, i.e. that drivers should be informed by the funder that they are no longer able to use the car.’
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‘This could result in those who are dependent on their cars such as emergency service workers, NHS workers, doctors, midwives, care home workers and other essential workers being without their cars. This must not happen.’
The FCA have also recommended that if a driver reaches the end of his PCP agreement that he is told not only to stop driving it but also, if the car can be stored off-road on a driveway or private land, to file with the DVLA a Statutory Off Road Notice (SORN) that will enable the driver to cancel his insurance and stop paying the car tax.
According to Hill that is a highly dangerous recommendation. As he points out, ‘Without insurance what happens if the car is stolen off the drive or the land it’s parked on or damaged in any way? There has also been an increase in theft of Caralytic Converters from cars because of their precious metal content. If any of this happens without insurance drivers could be severely out of pocket. The FCA really needs to reconsider this proposal’
‘It also raises a more fundamental question. If the car is parked on the road the driver will have to keep the car taxed and insured even though he has been told he cannot drive it per the FCA instructions. But if he has told the finance company that he wants to hand the car back under the terms of the agreement if the car cannot be collected the tax and insurance should be the responsibility of the finance company as they are the legal owners of the car.
‘As the driver has been told he cannot drive the car he cannot be seen to be the keeper so again the responsibility rests on the shoulders of the finance provider. The instructions – as they are could have some very serious consequences.
Asked about the number of consumers the proposals could affect Hill explained, ‘I have calculated that there could be around 3 million new car PCP’s that are active and therefore could be requesting payment holidays. Used car PCP’s are more difficult to assess but there could be around 3 – 4 million active agreements looking for payment holidays.
‘With regard to PCP’ agreements coming to an end, as collections of end of PCP cars stopped in March, the highest month of the year for registrations, I believe that we could be looking at 450,000 cars coming to the end of their agreements between March and June.’
With the final instructions due out on Friday it is important that we don’t leave PCP customers without their wheels if only to get then to and from their local shops, whilst avoiding as much contact as possible, and keeping them off public transport.  By Graham Hill
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