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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

Whilst new technology is introduced to make driving more comfortable and less stressful there is a limit as to how far it should go before drivers get lazy and reactions reduce making driving more dangerous.

As a result a majority of fleet managers have questioned the effectiveness of in-vehicle technologies, such as parking sensors, new research suggests.

The survey, by Alliance Insurance, found that almost three-quarters (70%) of fleet managers either agreed or strongly agreed that technologies such as parking sensors de-skill drivers to the detriment of driver safety.

However, with more than 90% of motor accidents the result of human error, according to RoSPA, fleet decision-makers think that the arrival of autonomous vehicles should make the UK’s roads much safer, with more than half (53%) of respondents saying ‘advanced’ vehicle technologies will deliver road safety benefits.

Interestingly, however, more than one third (35%) of fleets also believe that, if autonomous vehicles become more commonplace, the number of insurance claims will increase.

A study released in America in May, by the Insurance Institute of Highway Safety (IIHS), found the perceived safety benefits of autonomous vehicles could be significantly lower than commonly believed.

It claimed self-driving vehicles might prevent only one-third of crashes if automated systems drive too much like people.

Gerry Ross, head of motor at Allianz Insurance, said: “As our roads and the vehicles using them change over the next decade these technological advances need to be used appropriately.

“Fleet managers need to ensure that their drivers understand the capabilities of the vehicles to maximise the benefits the additional safety features bring.

“It’s important that fleet drivers use the available technology to their advantage to supplement their professional skills.”

The survey results are published in a new report – ‘Fleet Managers, the pressures, challenges and opportunities’ – released today by Allianz Insurance.

It found that 71% of fleet managers say the cost of vehicle repair influences the choice of vehicles in their fleet. Being green is also a key factor with 56% making choices around the composition of their fleet based on protecting the environment.

Fleet managers face a number of pressures and challenges, it suggests, from ensuring the health and safety of their drivers and other road users to addressing environmental concerns and meeting their organisation’s financial targets.

Encouragingly, the research conducted by Allianz found that more than three-quarters (78%) of fleet managers feel they are able to offer their drivers the level of support and training they need to help them drive more safely. However, alongside the one in five (22%) that don’t provide enough support, 70% say they’d like to dedicate more time to explore the support that’s available.

“Insurers and brokers are a great source of risk management information and support,” explained Ross. “As well as providing advice to reduce risk, they can analyse claims data to help fleet managers prioritise where they should take action.

“Given the changes and opportunities ahead, it’s essential that fleet managers, brokers, insurers and vehicle manufacturers work together.”

He added: “By sharing knowledge, experience and insight it will ensure that fleet managers are able to minimise the risks and maximise the benefits for their fleets, their drivers and other road users.”  By Graham Hill thanks to Fleet News

Two thirds (68%) of motorists say they have seen an increase in other drivers being distracted by infotainment systems, sat navs and mobile phones, research from Venson Automotive Solutions suggests.

However, only 13% of the survey respondents admitted to being side-tracked themselves by in-car technology when driving.

The results come in the wake of a Department for Transport (DfT) review of roads policing, which is asking for evidence on how in-car technology could be increasing accidents as well as reducing them.

Simon Staton, client management director at Venson, said: “We may have some of the safest roads in the world, but anything that can be done to reduce the number of casualties on our roads is to be welcomed.

“The advances made in in-car technology have moved on very quickly, and as they become standard in new vehicles, the scope for driver distraction also grows.

“We look forward to the results and recommendations from the DfT review and would encourage businesses and fleet managers to get involved in the consultation process.”

More than a third (38%) of drivers surveyed said that they used hands-free/Bluetooth in-car technology for making phone calls while driving, however when it comes to using their phone as a satnav, nearly a fifth admitted to balancing the phone somewhere to keep an eye on it, such as a cup holder.

Businesses and fleet managers are recommended to impress on drivers the dangers of being distracted by their in-car tech and ensure robust processes are in place to meet their duty of care obligations.

Drivers currently risk six penalty points on their licence and a £200 fine if they use a hand-held phone or satnav when driving.

For motorists who passed their driving test within 2 years of being caught, the consequences are even more severe – they will automatically lose their licence and have to reapply and pay for a new provisional licence – passing both theory and practical parts of the driving test again to get a full licence.

However, the Venson survey shows that people’s appetite for more advanced in-car tech is growing – even if it isn’t in their current vehicle;  67% saying they would use a dashboard satnav if it were available in their car and nearly 50% of people surveyed said that they would like to have an emergency call button in their car in case of being involved in a road accident.

An app which informs the driver about the health of their vehicle’s tyres would also be welcomed by 48% of people and 43% would make use of driver assistance technology such as cruise control, lane departure detection and speed limit exceeded notifications.

In contrast, only one in four (26%) people surveyed said they would like to see entertainment or lifestyle dashboard technology such as apps that play music or offer concierge services.  By Graham Hill thanks to Fleet News

The UK’s largest motorway services provider has announced it’s trialling an 8p-per-litre fuel price cut at some key locations.

The scheme is taking place at five forecourts run by Moto Hospitality on three of their sites: Frankley on the M5 near Birmingham, Lancaster on the M6 and Donington Park on the M1 near Derby.

It will see petrol and diesel prices brought down to levels more competitive against both local fuel stations and supermarkets.

The trial prices will start at 111.9p per litre for unleaded petrol and 117.9p per litre for diesel. For comparison, the latest RAC Fuel Watch figures peg petrol at 113.47p and diesel at 117.17p per litre.

If the scheme proves successful by getting more drivers to fill up by the motorway, rather than search out cheaper fuel at off-highway locations, Moto will roll it out across all 47 of its UK forecourts. The firm is also calling on the Government to cut VAT on petrol and diesel, allowing retailers to pass the savings on to drivers.

Ken McMeikan, chief executive of Moto, said: “Times are tough and we know from our customer insight that motorists want to see lower fuel prices to help them make their money go as far as possible. We are hoping that, subject to a successful trial, we will be able to roll out these fuel price cuts to all of our Moto operated petrol stations.

“We are doing our part, but we hope the Government can provide some much needed help to motorists, too. I have written to Rishi Sunak, urging him to make an immediate cut to VAT on fuel in line with his recent VAT cut from 20 per cent to 5 per cent for the hospitality industry.

“We welcomed that decision and immediately passed the full VAT cut on to our customers, which has gone down extremely well as people seek support during these tough economic times. “A cut in VAT on fuel would instantly put more money into people’s pockets at precisely the time they need to be travelling again for work, visiting loved ones and during the expected increase in staycations.” By Graham Hill thanks to Auto Express

New route optimisation technology for fleets operating in urban areas, based on the behaviour of ants, has been developed by university researchers.

Computer scientists, at the College of Engineering and Physical Sciences at Aston University in Birmingham, say it could help fleets halve their emissions, while helping towns and cities meet clean air targets.

The researchers based their computer modelling algorithm on the way ants forage for food to schedule tasks to vehicles in a fleet and optimise their routes.

Developed under the Think Beyond Data initiative, part-funded by the European Regional Development Fund (ERDF), the research team used a technique known as ‘meta-heuristic technology’.

The method mimics how colonies of ants solve problems and improves upon their existing behaviours. For example, each ant keeps a record of the best solution it has individually found and passes on this knowledge to other ants. This ‘best practice’ then permeates through-out the colony, updating its store of know-how in a way comparable to computer algorithms.

The researchers further developed the technique by creating even ‘smarter’ ant algorithms by reducing the amount of decisions they make such that they can solve city-scale fleet routing problems. 

Dr Darren Chitty, lead researcher at Aston University, explained: “Algorithms based on the foraging behaviour of ants have long been used to solve vehicle routing problems, but now we have found how to scale these up to city-size fleets operating over several weeks in much less time than before.

“It means much larger fleet optimisation problems can be tackled within reasonable timescales using software a user can put on their laptop.”

The route optimisation technology was tested on several Birmingham companies that operate fleets of vehicles to help them minimise their road usage.

Tests with the maintenance company comprised of up to 45 vehicles and 437 customer jobs over a six-week period.

They observed savings of more than 50% over the company’s original time spent on the road. This enabled the maintenance company to make equivalent savings in their fuel costs, boost profit margins, while cutting vehicle emissions in half, said researchers.

Dr Chitty said: “We feel that while Clean Air Zones will improve air quality for some residents, there could be better ways to tackle the health and environmental problems caused by emissions. Instead of taxing commercial vehicles to enter these zones, our research can act as an incentive to companies as they will not only reduce emissions but also save money.

“If all companies in a city operated with this technology, then emissions from these vehicles – which are some of the most polluting – could be significantly reduced, improving air quality for all concerned.”

Many fleets already employ telematics and tracking software to optimise route planning and improve driver behaviour, but these results suggest the scope for cost savings and improved environmental performance.

For example, the scientists were able to reduce CO2 emissions by 4.25 kg per van per day and reduce more harmful emissions such as nitrous oxide by 98-grams per van per day from a fleet of vehicles tested in Birmingham.

The improved schedules were able to service all the required customer demand but with fewer vehicles. This came as a direct result of better routing, saving time for the fleet, but also taking some vehicles off the road altogether, reducing traffic and congestion, said the researchers.

They are now looking to roll out the technology further by testing the system with different types of vehicle fleets such as larger vans or HGVs, as well as larger fleets of vehicles.

The team will continue to approach other companies to use as a testbed for the technology as the project is funded for another two years.  By Graham Hill thanks to Fleet News

Highways England will increase the basic speed at which motorists can drive through roadworks to 60mph.

After extensive research and trials, the organisation has confirmed that where it is safe for road users and roadworkers, and where shown on road signs, vehicles can be driven at up to 60mph.

That is 10mph faster than the current 50mph limit.

The move comes in response to feedback from road users who said they were frustrated at not being able to go quicker. The trials showed that as well as saving time, more people were sticking to the higher speed limit bringing safety benefits.

Jim O’Sullivan, Highways England chief executive, said: “All of our research shows that road users benefit from 60mph limits in roadworks. They have shorter journey times and feel safe.

“Road users understand that roadworks are necessary, but they are frustrated by them. So testing 60mph has been about challenging the norm while ensuring the safety of our people working out there and those using our roads.

“We have a huge programme of work planned, so being able to use 60mph where safe will continue to improve everybody’s experience of our roads.”

Highways England recently completed delivery of the Government’s first road investment programme. It was found to have delivered most of its commitments and to have made good progress over the first road period, but the programme set out for major improvements was too optimistic, according to latest Office of Rail and Road (ORR) report.

The ORR had made observations on the delivery risk of the programme which saw re-planning from 112 schemes that were due to have started construction in the first road period to 73, agreed with the Department for Transport (DfT). 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

As we move from lockdown to a relaxing of the rules around travelling, office working and social distancing, what will be the long-term impact on business transport and travel?

There are some short-term implications, including a reluctance to use shared services, from car share to public transport, and far less road travel due to people working from home (note – while Department for Transport stats show daily traffic levels now rising again, the peak congestion times remain way below usual levels, indicating new reasons for travelling during the day).

Local authorities are spotting an opportunity to consolidate new active behaviours with pop-up cycle lanes and wider pavements, but, ultimately, what does all this mean for fleets?

Many businesses are now considering new agile working practices which will allow their staff to work more often from home. Their need to commute will reduce, but will this change their need for a car?

I don’t think so. If you work in the city, chances are you commute on public transport; and if not now, you may not have a choice in the future as congestion charging and workplace charging schemes accelerate across major conurbations. But you will still need a car for leisure purposes, and, maybe, the occasional business trip.

Would you rent or join a subscription scheme? Possibly, and there are plenty now on offer. But they don’t offer ‘drop-of-a-hat’ access; you have to plan ahead. And the emergence of electric vehicles arguably knocks all of this into a cocked hat.

This year, a company car driver will pay no taxfor a pure electric car. Next year, they will pay 1% benefit-in-kind tax – or £60 a year on a £30,000 car – and for each of the three years after that, they’ll pay £120 for same car.

Show me the subscription scheme that can compete with that price.

Employee demand for company cars will remain. It might drop slightly, but it might even rise as cash takers wake up to the savings. And this is supported by Fleet Intelligence research which shows fleet sizes will, on balance, increase, with much of the growth driven by electric cars.  By Graham Hill thanks to Fleet News

I’m not really sure why I would include such an article in my newsletter other than the fact that some people actually like this sort of information. So for the nerds amongst us – and I mean that in a cuddly friendly way here is the best motorway as well as the best A Road!

The M11 has been rated the best motorway in England in Transport Focus research covering the year to March 2020.

In the 2019/20 Strategic Roads User Survey the motorway from London and Cambridgeshire had the highest overall satisfaction of 92%.

The best ‘A’ road was at the other end of the country, the A66 route across the Pennines from Scotch Corner to Penrith.

This is the second year of the independent watchdog’s new survey looking at the views of over 8,000 road users about their last journey on a motorway or major ‘A’ road managed by Highways England.

Anthony Smith, chief executive of Transport Focus, said: “In the 12 months before the coronavirus lockdown, more than three out of four drivers were satisfied with their journey on England’s motorways and major ‘A’ roads – but some roads score much better than others.”

Drivers were least satisfied with the M20 (which links London and Dover), for the second year in a row.

Commenting on the M20, one driver said: “Get the roadworks done – it’s been 50mph for too long – must be two years possibly…”

Commenting on an M11 journey, a driver said: “Easy way to go, everything went well, no roadworks or holdups.”

Commenting on their experience on the A66, another said: “Quick journey, no hold ups.”

The survey also found that 92% of drivers felt safe on their journey and the overall satisfaction with road surface quality was 83%.

81% of road users were satisfied with their last journey using a motorway or major ‘A’ road managed by Highways England and 79% were satisfied with the journey time.

However, the management of roadworks was lower, 68% of those surveyed were satisfied in this area.

Smith said: “As drivers return to the roads it is vital that management of roadworks is looked at. With just 68 per cent of drivers satisfied this is clearly an area for Highways England to keep focussing on.

“Our research shows that if you’re happy with journey time, you’ll be happy with your journey overall. That’s an important message for Highways England as traffic starts to get back to pre-lockdown levels.”

The least happy road users were commuters at 76% satisfied, followed closely by those travelling on business at 77%. Among drivers of vans and lorries 78% were satisfied with their journey.

The Strategic Roads User Survey became the formal measure of satisfaction among users of Highways England’s roads in April 2020 as part of the Government’s second Road Investment Strategy. By Graham Hill thanks to Fleet News