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New analysis from used vehicle pricing specialist Indicata has revealed the potential impact Coronavirus will have on the daily rental and leasing sectors.

 

In its free-to-download White Paper, Indicata looks at the short, medium, and long-term effects of Covid-19 on the European used car industry, particularly rental and leasing companies.

 

The research includes analysis of nine million used vehicle advertisements across Europe each day. It highlights that Northern Europe saw a sales fall of 21.5% between March 11 and 18, while southern Europe, including Italy saw sales fall by 44% during the same period.

 

A clear correlation between infection rates and the fall in used car sales between March 11-18 versus the same period in February, was uncovered.

 

As the virus progresses, Indicata says re-marketers will need to know the country-by-country market trends to identify the most effective sales channels.

 

Andy Shields (pictured), global business unit director at Indicata, authored the White Paper. He said: “The relationship between the increase in the number of people with Covid-19 and the measures each individual government introduces to fight the pandemic is already having a detrimental impact on European rental and leasing companies.

 

“Countries will have different challenges at different times and it’s all about equipping companies with the right data to help assist them in making fast decisions.”

 

He says that rental companies are likely to have contracted their annual volumes with OEMs already and now need to re-assess current contracts.

 

“In many cases contracts will be defaulted on, such is the loss of demand in the rental industry,” Sheilds explains.

 

This will leave OEMs with a stock of unregistered, and in some cases registered ready for delivery, new vehicles the rental industry does not want.

 

In addition, de-fleets will be happening, and rental companies may try and hold risk vehicles until after the initial social distancing. However, when there is significant volatility on demand and differences between country the capacity to absorb stock at any one time becomes more challenging.

 

According to Sheilds, the challenge for the leasing industry will be to manage the current volatility in the market while respecting the fact that there may be no short-term recovery in residual values.

 

In 2008/9, many leasing companies extended vehicle contracts. With the risk used vehicle prices will be depressed for an extended period, an immediate run on vehicles may not be ideal. Even so, vehicles will still need to be remarketed over the downturn.

 

The White Paper also looks at how the last recession played out for both the new and used car markets across Europe and how those same trends may repeat in a world dominated by Covid-19.  By Graham Hill thanks to Fleet News

New car sales across Europe have plummeted, reaching a four-year low for the month of February.

 

Jato Dynamics revealed in its monthly report on the European region’s 27 car-selling nations that a total of 1,063,264 new vehicles found owners last month, compared to 1,143,852 in February 2019 – a decline of 7% year-on-year and just 11.3% up on 2015’s 955,113 units.

 

The performance leaves the sector 7.3% down by volume year-to-date, at 2,194,706 units.

 

Felipe Munoz, global analyst at Jato, said that the situation in Europe’s new car sector was “rapidly deteriorating” – even ahead of March’s escalation of the COVID-19 coronavirus outbreak – due to complex regulation, lack of available homologated cars, and increasing pressure on the economy.

 

“All of these factors are having a detrimental impact on consumer confidence”, he added.

 

 

 

 

 

 

 

 

 

 

 

 

At the top end of the new vehicle sales rankings, the region’s long-time best-seller, Volkswagen’s Golf, was dethroned by the new Renault Clio.

 

Jato says this is a result of Renault’s new Clio having been available to the market for a longer period of time than the recently-launched eighth-generation Golf.

 

Other changes included a shift away from SUVs, with none appearing in the top 10 ranking.

 

Mid-size cars posted the highest growth among all segments, thanks to strong performances by the BMW 3 Series and the Volkswagen Passat.

 

The BMW and VW models’ combined registrations made up 31% of the whole midsize segment volume, while sales of the Tesla Model 3 fell by 6%.

 

 

 

 

 

 

 

 

 

 

 

 

According to Jato’s data, alternative fuel vehicles (AFV) were once again delivered growth in February, despite the market’s downward trajectory.

 

It showed that AFV registrations jumped from 75,400 units in February 2019 to 135,500 units last month.

 

The increase of over 80% came at the expense of diesel and petrol cars which saw significantly fewer registrations, however.

 

Munoz said: “So far this year, electrified vehicles have been the only lifeline for manufacturers operating in Europe.

 

“This is good news, as the industry’s electrification plans have finally seen a positive response from consumers.”

 

The shift towards AFVs is now starting to place pressure on the previously buoyant SUV market, according to Jato.

 

Registrations for SUVs fell by 1.7% to 415,300 units last month, taking the year-to-date total to 865,500 units – down 1.4% year-on-year.

 

The SUV segment still retains the largest overall market share, however.

 

Jato said that the fall in registrations was due to the compact SUVs, declining by 3.7% in contrast to the strong growth experienced by large SUVs, which saw an increase of 17%.  By Graham Hill thanks to Fleet News

The cost of electric vehicle (EV) base models has risen by 18% since 2013, according to research from Cap HPI.

 

However, it says drivers are now enjoying significantly more technology and performance to compensate for the higher investment.

 

The analysis shows that selected EVs have 48% more battery life, almost two thirds (60%) extended range and a quarter (23%) improvement in higher engine performance.

 

The research reviewed base versions of the BMW i3, Kia Soul Electric, Nissan Leaf and Renault Zoe. All of the automobiles reviewed fell into a price range of £18,000 to £35,000.

 

The number of models in this category has jumped 360% since 2012 to now account for 23 models and 132 derivatives.

 

To accommodate this growing sector and meet market demand, Cap HPI has made significant increases in the data volumes available for battery electric vehicles over the past 12 months.

 

The company has also added new data fields including battery capacity and fast charging information during a recent major upgrade of EV data.

 

The increase in data volume and accessibility will empower the automotive industry to provide more accurate vehicle identification and drive accurate valuations, the total cost of ownership figures and a host of other data services, says Cap HPI.

 

Jon Clay, head of vehicle identification at Cap HPI, explained: “We continue to invest and innovate to ensure the industry has the depth and accuracy of data required to work efficiently.

 

“Advancements in technology mean the process of harnessing new vehicle data is speeding up and can be used in new ways to drive a digital customer journey.

 

“The pace of changes continues to accelerate with the number of EV derivatives doubling in the last year.

 

“As technology advances, Cap HPI will continue to look at new ways to use the data for the benefit of customers across the supply chain.”

 

The EV data offers a detailed list of fields to cater for several variables within the category. As an example, there are four stages of battery charge speed relating to all the different manufacturer information along with more standard fields.

 

The new set of fields is available in three formats in total, NVD SQL, NVD CSV (Car Enhanced Technical CSV) and NVD JSON (Car Enhanced Technical) JSON and will receive updates alongside the standard engine types currently available. By Graham Hill thanks to Fleet News.

Compensation could be owed to UK business that bought or leased new cars and vans between October 2006 and September 2015, as a result of legal action taken against five shipping firms for price fixing.

 

MOL, “K” Line, NYK, WWL/EUKOR and CSAV were found to have violated EU competition law by the European Commission on February 21, 2018. The EC held that the shippers had coordinated rates, allocated tenders, coordinated reductions of capacity in the market and exchanged commercially sensitive information to maintain or increase the price of intercontinental shipping of new vehicles.

 

The companies were fined £343m by the EU and now class representative Mark McLaren has filed a claim against them for overcharging UK consumers and businesses, instructing law firm Scott+Scott UK LLP.

 

McLaren said: “When UK consumers and businesses purchased or leased a new car, they paid more for the delivery of that car than they should have done, as a result of a long-running cartel by five of the world’s leading maritime shipping companies. I have spent much of my career working in consumer protection and I strongly believe that compensation should be paid when consumers are harmed by such deliberate, unlawful conduct.”

 

Affected vehicles include those from Ford, Vauxhall, Volkswagen, Peugeot, BMW, Mercedes, Nissan, Toyota, Citroen and Renault.

 

The claim is being brought in the Competition Appeal Tribunal as a collective action on an opt-out basis, so that all eligible consumers and businesses will benefit from any damages awarded without incurring any legal fees or risk of adverse costs.  The value of the claim is believed to be in excess of £150 million – or up to £60 per vehicle.

 

Businesses or consumers that purchased one or more new cars, or light commercial vehicles, between October 2006 and September 2015 are automatically included within the class.

 

Class members will not pay costs or fees to participate in this legal action. The legal action is being funded by Woodsford Litigation Funding.  There are no legal or other fees, or any risk of adverse costs, for class members.

 

For additional information or to register interest, visit https://www.cardeliverycharges.com  By Graham Hill thanks to Fleet News

 

The electric vehicle homecharge scheme and workplace charging scheme have been confirmed for another year by the Office for Low Emissions Vehicles (OLEV).

 

It has also confirmed the continuation of the on street residential chargepoint scheme for another year.

 

From April 1, 2020, the grant will be set at £350 towards the cost of purchase and installation of a chargepoint at home through the electric vehicle homecharge scheme, and £350 towards a chargepoint socket at work through the workplace charging scheme. This is a reduction from £500.

 

Businesses are now allowed 40 sockets under the workplace charging scheme, up from 20.

 

The grant has also been extended to include larger electric motorbikes.

 

Local authorities can apply for a grant to cover part of the capital costs of installing chargepoints for residents who lack off-street parking. The grant rate will be set at £6,500 per chargepoint – extendable to £7,500 in certain circumstances.

 

To date, more than 120,000 domestic chargepoint installations have benefited from grants as well as more than 6,500 workplace installations, across the UK.

 

The Government says reducing the grant rate will enable more people to benefit from both schemes and provide better value for money for the taxpayer. By Graham Hill thanks to Fleet News

The Government has announced a series of measures to improve the safety of Smart Motorways, following a review commissioned by Transport Secretary Grant Shapps.

In October 2019, the future of Smart Motorways, which don’t have a hard shoulder and rely on cameras and signage for all-lane running, was called into question following an admission by Highways England that the dangers of removing the hard shoulder had not been fully investigated.

Today’s announcement secures the future of the roads, with an 18-point improvement plan (detailed below).

Analysis commissioned by the Transport Secretary reportedly found that “in most ways”, smart motorways are as safe as, or safer than, conventional ones.

The report highlights risks that are lower on smart motorways compared with conventional motorways; include tailgating, rapid changes of vehicle speeds, vehicles drifting off the carriageway and vehicles being driven too fast.

There was also an admission that some risks are higher than on conventional motorways, for example the risk of a collision between a moving and stationary vehicle.

In order to address these risks, the Transport Secretary’s new measures include abolishing confusing “dynamic hard shoulder” motorways and substantially speeding up the deployment of “stopped vehicle detection” – a radar-based system which spots stationary vehicles – so that it is installed across the entire smart motorway network within 36 months.

This will enable broken down drivers to typically be detected within 20 seconds, with lanes closed more quickly.

Shapps said: “I’ve been greatly concerned by a number of deaths on smart motorways, and moved by the accounts of families who’ve lost loved ones in these tragic incidents.

“I commissioned an urgent stocktake of smart motorways to provide a clearer picture of their safety and make recommendations on next steps. I envisaged it to be swift, but during the course of our investigations a complex picture emerged – which warranted further work.

“That work has now concluded and overall, evidence shows that in most ways smart motorways are as safe as or safer than conventional ones.

“But I am clear that there is more we can do to raise the bar on smart motorway safety. The extended package of measures I have set out will help rebuild public confidence in our motorway network and ensure that safety is firmly at the heart of the programme.”

The AA has commended the review, having spent a decade campaigning for improvements to the design and safety of Smart Motorways.

Edmund King, AA president, said: “The fact that 38% of breakdowns happen in live lanes on smart motorways means drivers have been at risk. Tragically people have lost their lives, and in some cases coroners have indicated this could have been avoided.

“No driver wants to be stuck in a live lane with nowhere to go; at best it is incredibly distressing, at worst it can be fatal.”

Anthony Smith, chief executive of the independent watchdog Transport Focus, added:

“We know road users are concerned about safety when they think what would happen if they broke down on a motorway with no hard shoulder. So we welcome this package of improvements including more technology to detect breakdowns quickly and for there to be extra effort to spread the word about what to do if you break down.

“We will be pressing Highways England further in two areas. First, to confirm that the M4 smart motorway, between Reading and Heathrow, will have additional safety features from day one. Second, to check that red ‘X’ gantries on all smart motorways are spaced appropriately so they can protect people if something goes wrong.”

The 18 points outlined in Shapp’s plan are:

• Abolishing the confusing “dynamic hard shoulder” smart motorways, where the hard shoulder operates only part-time and is a live running lane the rest of the time
• Substantially speeding up the deployment of “stopped vehicle detection” technology across the entire “all lane running” smart motorway network, so stopped vehicles can be detected and the lanes closed more quickly. Highways England is to accelerate its plans and install the technology within the next 36 months, setting a clear public timetable for the first time
• Faster attendance by more Highways England traffic officer patrols on smart motorways where the existing spacing between places to stop in an emergency is more than one mile, with the aim of reducing the attendance time from an average of 17 minutes to 10 minutes
• Reducing the distance between places to stop in an emergency to three quarters of a mile where feasible so that on future schemes motorists should typically reach one every 45 seconds at 60mph. The maximum spacing will be 1 mile
• Installing 10 additional emergency areas on the existing M25 smart motorways on the section of smart motorway with a higher rate of live lane stops and where places to stop in an emergency are furthest apart
• Considering a national programme to install more emergency areas where places to stop in an emergency are more than one mile apart
• Investigating M6 Bromford viaduct and the M1 at Luton, Sheffield and Wakefield where there is evidence of clusters of incidents. Where an intervention is considered likely to make a difference, we will look to make changes at these locations
• Making emergency areas more visible – all emergency areas will have a bright orange road surface, dotted lines on the surfacing showing where to stop, better and more frequent signs on approach and signs inside giving information on what to do in an emergency. These will be installed by the end of spring 2020
• More traffic signs giving the distance to the next place to stop in an emergency, so you will almost always be able to see a sign. Typically, these will be between approximately 330 and 440 yards apart
• More communication with drivers. We recognise that we could do more therefore we are committing to an additional £5m on national targeted communications campaigns to further increase awareness and understanding of smart motorways, how they work and how to use them confidently
• Displaying ‘report of obstruction’ messages automatically on electronic signs, triggered by the stopped vehicle detection system, to warn drivers of a stopped vehicle ahead, this is currently being trialled on the M25 and then a further trial on the M3
• Places to stop in an emergency shown on your satnav by working with satnav providers to ensure the locations are shown on the screen, when needed
• Making it easier to call for help if broken down by working with car manufacturers to improve awareness of the use of the eCall ‘SOS’ button in newer cars to call for help
• We have changed the law to enable automatic detection of ‘red X’ violations and enforcement using cameras and we will be expanding the upgrade of smart motorway cameras (HADECS) to identify more of those who currently ignore the ‘red X’. The penalty is 3 points on the driver’s licence and a £100 fine, or the driver can be referred to an awareness course
• An update of the Highway Code to provide more guidance
• Closer working with the recovery industry on training and procedures
• Reviewing existing emergency areas where the width is less than the current 15 foot wide standard. If feasible and appropriate we will widen to this standard
• A review of the use of red flashing lights to commence immediately. We have listened to the calls for recovery vehicles to be allowed to use red flashing lights. We will commence work immediately on a review.

By Graham Hill thanks to Fleet News

Fewer than half of van drivers use hands-free or Bluetooth technology to make calls, according to research conducted by Volkswagen Commercial Vehicles.

 

Van drivers make on average seven calls a day whilst driving and spend an average of 37 minutes on the phone for work each day however, only 41% of drivers use hands-free and Bluetooth technology on a frequent basis, according to a Volkswagen Commercial Vehicles survey.

 

Claire English, head of fleet at Volkswagen Commercial Vehicles, said: “Mobile phone use behind the wheel is a topic that we’ve been monitoring over the past couple of years and the recent statistics show it’s still a huge safety problem on UK roads.

 

Despite carrying a hefty punishment, it lacks the taboo of other offences such as drink-driving and this needs to change.

 

Van drivers ignoring mobile phone laws risk getting a £200 fine and six penalty points on their licence.

 

According to the RAC Report on Motoring, 17% of drivers in the UK admitted to sending and receiving texts, checking e-mails or posting on social media while driving. Last year, Volkswagen Commercial Vehicles revealed 23% of drivers do not have hands-free kit in their van.

 

The Volkswagen Commercial Vehicles research also revealed that van drivers in London, Yorkshire and the Humber, and the North East are most likely to dial using the handsfree-technology while Scottish van drivers are twice as likely to give hands-free a miss compared to any other region.

 

Volkswagen Commercial Vehicles offers a Bluetooth hands-free kit as standard across its entire model range. English said: “As part of our Working With You promise, we’re committed to improving safety on UK roads for both our customers and other road users, always ensuring we provide the right equipment for the job, for example offering Autonomous Emergency Braking (AEB) and a handsfree kit as standard across the range.”  By Graham Hill thanks to Fleet News

While 2020 got off to a strong start with demand from Britain’s car dealers keeping wholesale values of used cars above the usual seasonal levels, and the strongest February since 2012, the market is now showing signs of weakness.

 

As you would expect, we are keeping a very close, daily, eye on retail footfall, auction attendance and prices in the trade and retail data. Today (23/3/2020) the values in Live are down 1.5% since last month on average, but there has been a marked change in the market since the beginning of last week.

 

There is the likelihood that demand will continue to decline, and with it, values in the short term. Our forecasting team is currently predicting values to drop by more than the seasonal norm over the coming weeks.

 

Our short-term forecasts for the coming months will be worse than otherwise would have been the case, as the effects of COVID-19 continue to be felt.

 

At present, our longer-term forecasts for one to five years in the future are likely to remain broadly unchanged, as we wait to see longer-term impacts on new car registrations, especially following plant closures from many manufacturers.

 

A fall in registrations this year could help support used values in the long term, and there are also a great many other factors which could yet influence values in various directions.

 

The automotive industry is navigating uncharted waters, and the coming months will provide an unprecedented challenge as the UK has to adapt to new ways of working, socialising and shopping.

 

To keep customers informed on a fast-moving market Cap HPI is reviewing daily data feeds that are received from trade and retail sources, and the changes reflected accordingly.

 

The team of experienced industry experts is supported by data analysts and scientists who ensure that the data is reflected in all valuation products. Our Business Continuity Plan has been enacted and our valuation services will continue to function as normal.

 

Be assured that values are set by Cap HPI using an unrivalled breadth of data sources, big data technology and a team of editors who scrutinise trends and movements in the market in real-time.

 

The team of experts is supported by data analysis and audit managers, who ensure the quality of the data.

 

As a call to action, I would encourage all customers to use the data and tools at their disposal. The market is changing daily, and situations such as this are the reason Cap Live was developed.  By Graham Hill Thanks To Fleet News

FleetCheck has added coronavirus symptoms to its Vehicle Inspection App’s fit-to-drive section.

 

The app is designed to increase fleet safety for cars, vans, HGVs, buses and coaches and is widely used, having been used to complete two million checks.

 

Peter Golding, managing director at FleetCheck, said: “The fit-to-drive declaration is an essential part of the app as well as fundamental fleet risk management itself. It means that a driver is making a declaration each day that they consider themselves OK to work.

 

“Clearly, when we’re all dealing with something as contagious as coronavirus, this takes on a whole new dimension, especially as many of the fleets still working on a daily basis are home delivery companies that are dealing with the public.”

 

The new, coronavirus-based declaration that FleetCheck has written and made available to our customers aims to provide a simple and easy reminder for drivers of the symptoms that they are likely to be experiencing if infected, says Golding.

 

The Vehicle Inspection App was introduced in April 2017 and creates the means for drivers and fleet managers to schedule, carry out, confirm, follow-up and audit all kinds of legally-required inspections from daily walkarounds to weekly or monthly checks.

 

It has been continually enhanced, notably to incorporate a range of features such as support for languages commonly used among UK fleet drivers, the fit-to-drive declaration, enhanced damage, defect and collision reporting and shift recording.

 

A new, streamlined version of the app, called FleetCheck Driver, was launched earlier this year and provides a simplified solution for fleets that currently have no risk management measures in place.

 

Golding said: “Last week, as an example, 170,000 checks were undertaken using the app so it is no exaggeration to say that the fit-to-drive declaration could help to play a useful part in stopping the spread of the virus among and by drivers.”  By Graham Hill Thanks To Fleet News

The following information is guidance provided by the Government. During the MOT 6 month exemption period you must ensure that the vehicle is still roadworthy and safe to drive.

 

You’re responsible for making sure your vehicle is always safe to drive (‘roadworthy’). It can be unsafe even if you have a current MOT certificate.

 

You can be fined up to £2,500, be banned from driving and get 3 penalty points for driving a vehicle in a dangerous condition.

 

Checks you should carry out

 

Every time you drive you should check:

• the windscreen, windows and mirrors are clean
• all lights work
• the brakes work

 

Your vehicle’s handbook will tell you how often to check the:

• engine oil
• water level in the radiator or expansion tank
• brake fluid level
• battery
• windscreen and rear window washer bottles – top up with windscreen washer fluid if necessary
• tyres – they must have the correct tread depth and be free of cuts and defects

 

The handbook will also tell you when your vehicle needs to be serviced.

 

Tyre tread

 

Tread must be a certain depth depending on the type of vehicle:

• cars, light vans and light trailers – 1.6 millimetres (mm)
• motorcycles, large vehicles and passenger-carrying vehicles – 1mm

Mopeds only need to have visible tread.

 

There must be tread across the middle three-quarters and around the entire tyre.

 

By Graham Hill – reprinted from Government website