The Best Car Finance Blog In The World

I don’t think that it would surprise anybody that new car registrations were drastically down in 2020 but the interesting statistic is the split of cars. Private registrations suffered the least with the larger fleets doing slightly better but the business registrations were down 43.3% (see chart below).

However, I would suggest that whilst these figures look dreadful many customers, both corporate and consumer extended lease contracts last year and those that had to change their cars decided to go down the used car route as there was a grave lack of new car stock available.

Here is the report and breakdown of the figures for 2020:

Fleet and business registrations fell by 32% in 2020, with 400,000 fewer company cars registered compared to 2019, but fleets were behind a massive increase in the uptake of electric vehicles (EVs).

The new figures, published today by the Society of Motor Manufacturers and Traders (SMMT), show overall demand in the new car market fell to the lowest level since 1992.

They also reveal the continuing decline of diesel, with 55% fewer diesel cars registered in 2020 compared to 2019.

The SMMT sales figures show there were 883,557 cars registered to fleet and business during 2020, compared to almost 1.3 million vehicles the previous year.

However, the latest sales data also reveals that in December, fleet and business registrations were only 9% down compared to December 2019.

It suggests a recovering company car market, with 85,489 fleet and business registrations, equating to 64% market share.

Overall, the UK new car market fell by almost a third (29%) in 2020, with annual registrations dropping to 1,631,064 units.

Against a backdrop of Covid-19, the industry suffered a total turnover loss of some £20.4 billion, with private vehicle demand falling by 27% overall, amounting to a £1.9bn loss of VAT to the Exchequer, says the SMMT.

Mike Hawes, chief executive of the SMMT, says that 2020 will be seen as a “lost year” for automotive, with the sector under “pandemic-enforced shutdown” for much of the year and uncertainty over future trading conditions taking their toll.

However, he said: “With the rollout of vaccines and clarity over our new relationship with the EU, we must make 2021 a year of recovery.

“With manufacturers bringing record numbers of electrified vehicles to market over the coming months, we will work with Government to encourage drivers to make the switch, while promoting investment in our globally-renowned manufacturing base – recharging the market, industry and economy.”

Demand fell across all segments bar specialist sports, which grew by 7%, although Britain’s most popular class of car remained the supermini, retaining a 31% market share despite a 26% decline in registrations.

Meanwhile, although falling by a combined 33%, petrol and mild hybrid (MHEV) petrol cars made up 63% of registrations, while diesel and MHEV diesels, down 48%, comprised almost a fifth of the market.

Fleets adopt more electric vehicles

Battery and plug-in hybrid electric cars accounted for more than one in 10 registrations – up from around one in 30 in 2019.

Demand for battery electric vehicles (BEVs) grew by 186% to 108,205 units, while registrations of plug-in hybrids (PHEVs) rose 91% to 66,877.

Most of these registrations (68%) were for company cars. Gerry Keaney, chief executive of the British Vehicle Rental and Leasing Association (BVRLA), says that 2020 has been a “tipping point” for EV uptake and demonstrates what can be achieved when Government works closely with fleets to develop a set of powerful grants and tax incentives and invest in a robust public charging network.

“While only a handful of EVs were on sale in 2011, there are now more than 100 models available.” Poppy Welch, head of Go Ultra Low

“The latest BVRLA data shows that the fleet sector continues to lead the charge towards zero emission motoring, with battery electric vehicles responsible for 21% of company car registrations in the three months to October 2020.”

With so much uncertainty surrounding the impact of EU Exit, coronavirus and the economic downturn, Keaney says that the Government must do everything it can to support the vehicle buyers that underpin the UK’s new car market.

“With the next Budget just weeks away, the Chancellor must continue to ring-fence the long-term grants and tax incentives that make electric vehicles affordable,” he said.

“He must also resist the urge to pile more motoring tax increases on fleets and drivers that have yet to make the transition to zero emission motoring.

“Many of these businesses and individuals are struggling financially and can’t yet find an electric vehicle that meets their needs or budget.” 

More than 100 plug-in car models are now available to UK buyers, and manufacturers are scheduled to bring more than 35 to market in 2021 – more than the number of either petrol or diesel new models planned for the year.

Poppy Welch, head of Go Ultra Low, believes that in the context of the new car market, 2020 will be remembered as the breakthrough year for EVs.

“After a ninth successive year of growth in EV registrations, we’ve now seen market share rise to 10.7%,” she said.

“This has been made possible, in large part, by the Government’s ongoing support and long-term vision, combined with the automotive industry’s commitment to developing a wide range of zero-emissions vehicles that are clearly convincing the public with their performance, financial and environmental credentials.

“While only a handful of EVs were on sale in 2011, there are now more than 100 models available.”

When will the market get ‘back on its feet?

Ashley Barnett, head of consultancy at Lex Autolease, said that the 29% year-on-year drop really “hammers home” just how challenging the coronavirus pandemic has been for the motor industry.

“The market will take some time to get back on its feet,” he said. “How long that is remains to be seen.”

He added: “The growth in EVs is comforting but ultimately is from an extremely low base – only 6.6% of vehicles on the roads are EVs (including PHEVs).

“All eyes will be firmly on the spring Budget and the rumoured plans for a road pricing scheme which may go some way to recoup lost tax revenue when EVs begin to overtake conventional ICE models.

“The Chancellor has an opportunity to reassure would-be EV drivers that fiscal incentives will remain on the table and incentivise them to take the first step into alternatively-fuelled vehicles.”

Jon Lawes, managing director of Hitachi Capital Vehicle Solutions, expects economic uncertainties to continue into the first quarter of 2021, while the pandemic dampens consumer confidence.

However, he said: “The UK’s long negotiated tariff-free trade agreement with the EU should provide a welcome boost for the motor industry to lay the foundations to support a recovery in the sector.

“Similarly, the positive trend in EV uptake demonstrates that the transition to electric will gather momentum in the months ahead heightened by the wide range of new EV models coming to market in 2021 and growing consumer demand.”

By Graham Hill thanks to Fleet News & SMMT

A £120,000 Range Rover Autobiography was stolen from a supermarket carpark in Walthamstow, London, in just 80 seconds by thieves taking advantage of weaknesses in the keyless entry system.

Keyless car thefts are increasingly common, as criminal groups reverse-engineer the latest manufacturer security tech to steal valuable vehicles quickly and discreetly.

The vehicle was recovered by the Metropolitan Police within 12 hours, thanks to the fitment of a tracking device.

Clive Wain, head of Police liaison for Tracker, said: “It is believed that this vehicle was stolen by professional criminals who followed the owner to the supermarket from her home, waiting for an opportunity to steal the prestige model.

“At home, the valuable car was always well protected on the driveway, with a wheel clamp fitted and a van parked across the driveway entrance to prevent any chance of theft. CCTV footage of the supermarket carpark clearly shows the thieves breaking into the car and driving away in less than two minutes, in an undisputable case of organised crime and keyless car theft.”

The car’s owner, Mrs Syuleyman, initially did not believe the car would ever be recovered. She said: “I know the risk of theft is high for such a valuable car, particularly as it has had some additional modifications. That is why we always protect the car so carefully when it is parked at home. I never imagined it could be stolen so quickly and easily from a public carpark while I was shopping a few metres away.

In 2019, 92% of the cars Tracker recovered were taken without using the keys, up from 88% in 2018 and 26% higher than four years earlier.

Wain continued: “When Mrs Syuleyman’s car was recovered, it appeared that the thieves had searched it for tracking devices before leaving it parked unaccompanied to see if the police would track its whereabouts.  Because the Tracker device was professionally installed, the thieves were unable to find it, leaving the police to quickly track its location. Without a Tracker installed, it is unlikely this story would have had a happy ending.” By Graham Hill thanks to Fleet News

Highways England could be charged with manslaughter following the death of a 62-year-old woman on a stretch of smart motorway.

A coroner investigating the death has said she may refer the case to the Crown Prosecution Service to consider if the charges are appropriate.

Nargis Begum, from Sheffield, was killed on the M1 in South Yorkshire in September 2018 when another vehicle collided with her husband’s Nissan Qashqai, which had broken down.

Begum had exited the Nissan, which was stranded in a live lane, and was waiting for help when the incident happened.

The smart motorway section had no hard shoulder.

More than 16 minutes elapsed between the Nissan breaking down and the collision, plus a further six minutes before warning signs telling other drivers not to use the lane in which the Nissan was located were activated

At a pre-inquest review Mundy said: “I want to know why, essentially, it’s as simple as that.”

The case, at Doncaster Coroner’s Court, was adjourned until February 11 to allow Government lawyers time to prepare a response

The CPS has decided against prosecuting the driver who hit the Nissan.

Mundy added that she was also considering whether to refer this decision back to the CPS based on the evidence she had seen.

Almost 40 people have been killed on smart motorways in the last five years.

In March, the Government announced a series of measures to improve the safety of smart motorways, following a review commissioned by Transport Secretary Grant Shapps.

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

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. By Graham Hill thanks to Fleet News

SUV Sales Across Europe Drop For First Time In 6 Years

The growth in demand for SUVs across Europe has slowed for the first time in six years as smaller, electrified models start to claw back sales.

Between January 2016 and January 2020, the market share of SUVs grew significantly – from 25% to 40%.

For the majority of the year, the market share of SUVs remained stable – between 40% to 41%. However, their registrations fell by 13% in November, and 21% YTD when compared to 2019.

Felipe Munoz, global analyst at JATO Dynamics, said: “The market has benefitted hugely from a wider SUV offering provided this year. But with the impact of Covid-19 still in full force, demand is no longer growing in parallel to new product launches, nor at such a fast pace.”

Conversely, B and C cars experienced declines below the overall average, in fact, their market share increased in November due to new arrivals and a more competitive electrified offering.

Overall, Europe registered 1,045,129 new cars – 13% less than for the same period in 2019. November 2020 has recorded the lowest volume since 2014, when just 989,500 units were registered.

Year-to-date figures continue to point to a downward trend, with YTD volume dropping by 26%. European consumers registered 10.71 million units between January and November – the lowest YTD figures so far this century.

Munoz added: “The global pandemic and its impact on mobility has been extremely painful for the automotive industry, indeed more painful than any other economic crisis that has hit Europe over the last two decades.”

The overall ranking by models in November confirms that the Volkswagen Golf (pictured) kept its position as the most popular car in Europe. The hatchback registered 24,800 units in November – just short of 255,000 units since January.

Only two SUVs made it into the top 10 – the Peugeot 2008, followed by the Renault Captur. Further down the ranking, Ford Puma, Volvo XC40, Audi A3, Renault Zoe, Volkswagen ID3, Kia Niro, Mercedes GLA, Skoda Kamiq, Jeep Compass, Mercedes GLB, Nissan Juke, Audi Q3 Sportback, Kia Xceed, Suzuki Ignis, and BMW 2-Series, all posted healthy results.

By Graham Hill thanks to Fleet News

Britishvolt’s new UK battery gigaplant will start production of electric vehicle (EV) batteries from 2023 and will scale to 300,000 units a year.

Global construction specialist ISG has been appointed to lead the build of the £2.6 billion project located at Blyth, Northumberland.

Construction will start in the second half of this year (2021) and once the plant is up and running it will produce lithium-ion batteries for the automotive and renewable energy industries at the end of 2023.

Construction of further phases will continue until the end of 2027.

The Blyth gigaplant is located 20 miles north of Nissan’s Sunderland factory, which makes the Leaf EV.

Orral Nadjari, Britishvolt chief executive, said: “We’re delighted to have engaged ISG as the construction partner for our Blyth gigaplant.

“Its long expertise of delivering global projects will be crucial to meeting our exacting standards and tight timeframe.”

ISG built Jaguar Land Rover’s production facility in Slovakia and it is also currently working on two flagship schemes in London: University College’s £280 million neuroscience hub and the Oak Cancer Centre at the Royal Marsden Hospital.

Paul Cossell, ISG chief executive, said: “This landmark project to build the UK’s first gigaplant is one of the most visible signs that we are confidently stepping up to meet the challenge of new zero emissions by 2050 and closely aligned with the government’s key commitment to cease petrol and diesel car manufacturing by 2030.

“The construction phase alone will directly support thousands of jobs in the North East and create a wealth of training and upskilling opportunities for local communities.”

The gigaplant is being designed by Italian design company Pininfarina.

It will be built on a 95-hectare site, formerly the site of the Blyth Power Station.

The plant will exclusively use renewable energy, including the potential to use hydro-electric power generated in Norway and transmitted 447 miles under the North Sea via the world’s longest inter-connector from the North Sea Link project.  By Graham Hill thanks to Fleet News

In almost half (47%) of thefts from vehicles in England and Wales, new figures from the Office for National Statistics (ONS) suggest that the vehicles were left unlocked. How stupid is that?

Analysis from insurer Aviva also shows that more than one in five drivers (23%) don’t always lock their vehicles and, in cases where a vehicle was taken, 14% were left unlocked.

Broken windows (19%) and forced doors (13%) were the next most common points of access after doors were left unlocked.

Aviva is warning drivers to take extra care when leaving their vehicles during the darker winter months.

The data shows that four out of five vehicle-related thefts in England and Wales happen during the hours of darkness.

In tandem with these figures, Aviva data reveals motor theft claims in 2019 were higher during October to December when daylight hours were shorter.

Compared to the monthly average for 2019, vehicle-related theft claims were 10% higher during these months, and 29% higher than in June 2019, when nights are shortest, it said.

Sarah Applegate, risk and governance lead at Aviva UKGI, says there are “simple steps” people can take to reduce their risk.

“Nearly half of vehicle-related thefts occur when people haven’t locked their vehicles, and an Aviva study finds almost a quarter of motorists don’t always do so,” she said.

“The same research suggests even when people have items which could protect their vehicles, they don’t always use them.”

Only around a third (34%) of drivers with garages store their vehicles in them all the time – and almost the same (33%) never put their vehicles in their garage.

Applegate continued: “Simply locking vehicles and not leaving items on show inside reduces the risk, while items like steering locks, parking posts and garages put physical barriers in the way of a possible theft.

“Taking a few extra minutes to lock up and secure a vehicle can make a big difference in the eyes of a thief.”

More than a third of businesses have had a van stolen within the last 12 months, a recent study by Logistics UK revealed.

The company’s Van Security Report, collated data from police forces across the UK and sought real-life examples and insights from van users through a Van Security survey.

Aviva has the following advice to vehicle owners to reduce the risk of vehicle-related thefts:

• Always lock the door. No matter where you park, even if you need to leave your vehicle unattended for just a minute. Make sure to close the windows and sunroof if you have one.
• Keep your vehicle keys or fobs in a secure place and ensure they’re out of sight and away from external doors and windows where they’re more likely to get stolen by thieves. It’s also a good idea to keep digital key fobs inside a security pouch to prevent them being scanned, thus enabling thieves to open and steal your vehicle.
• Don’t leave anything in your vehicle. Anything worth stealing makes your vehicle more attractive to thieves. Keep your car as ‘clean’ as possible and try not to leave anything inside, especially valuables. If you must store something in your vehicle for a short length of time, make sure it’s out of sight.
• Consider additional security. Any extra security features will further reduce the risk of theft from the vehicle or/and of the vehicle itself. Consider installing steering wheel locks, a tracking system or a car alarm if your car doesn’t have a factory-fitted model, especially if you park on the street.
• Park on a driveway or in a garage if possible. This will reduce the risk of both vehicle thefts and break-ins. You may also consider installing a retractable parking post on your driveway, to block a potential ‘escape route’. If you can’t park on a drive, try to park in a busy, well-lit area. 

By Graham Hill thanks to Fleet News

The Government is being urged to work with the fleet sector to ensure any changes to motoring taxation are carried out in a timely, effective and proportionate way.

Reports suggested that the Government was considering reviving road pricing plans to counter lost tax revenues from the increasing adoption of electric vehicles (EVs).

The fleet sector has already shown it is receptive to road pricing as a replacement to other road and fuel duties. Fleet News has been calling for the Government to launch a feasibility study since its Fleet Industry Manifesto report in 2015.

The National Infrastructure Strategy, launched to coincide with the Spending Review, emphasised the need for motoring tax revenues to ‘keep pace’ with the uptake of EVs. It did not, however, mention road pricing as a potential alternative to the current regime.

Gerry Keaney, chief executive of the British Vehicle Rental and Leasing Association (BVRLA) says any changes need to be fair to the fleet industry.

He recognises that the Government’s future motoring tax strategy must strike a “fine balance” in maintaining vital revenues and encouraging people into newer and cleaner vehicles.

But he stressed: “The Government must avoid placing a crushing tax burden on businesses and individuals that are unable to upgrade their cars, vans or trucks and are already struggling to cope with the economic implications of Covid-19 pandemic and EU exit.” 

The Government has already spent £280 billion to help support the economy through the pandemic and will spend a further £55bn next year to support the recovery.

“We will very soon need a system that can levy tax on both conventionally fuelled and battery electric vehicles fairly,” Nicholas Lyes, RAC

In total, taxes on UK motoring, including vehicle excise duty (VED), fuel duties and VAT, raise around £40bn per year or 7% of total revenue to the Exchequer. Of this, benefit-in-kind (BIK) tax payments, covering the provision of company cars, raise close to £1.8bn.

Darren Handley, head of infrastructure grants at the Office for Low Emission Vehicles (OLEV), told attendees at Virtual Fleet and Mobility Live that, while the question of future motoring taxation is one for the Treasury, it should not necessarily follow that lost fossil fuel revenues will be recouped from EV drivers.

He said: “If you look at a parallel with something like health and smoking, any reduction in tax (take) from (a reducing number of) smokers isn’t regained by taxing somebody who is healthy.”

Covid-19 impact on tax revenues

In Budget 2020, the Treasury outlined expected tax receipts from fuel duty each year up to 2024/25. It expected to collect £27.5bn this tax year, a £200m decline on £27.7bn in 2019/20. But, then it was predicted to increase to £28.1bn the following year (2021/22), before reaching £30.5bn in 2022/23, £31.2bn in 2023/24 and £31.7bn in 2024/25.

VED receipts are expected to fall by £100 million to £7bn in 2021/22, before increasing by £200m each year for the next three years, reaching £7.6bn in 2024/25.

Revenues, however, have already been impacted by Covid-19, with lockdown restrictions reducing fuel duty by £2.4bn in April and May compared with the same time last year.

Nicholas Lyes, RAC head of roads policy, said: “While not paying car tax is clearly an incentive to go fully electric at the moment, we will very soon need a system that can levy tax on both conventionally fuelled and battery electric vehicles fairly.

“If this isn’t addressed, we risk finding ourselves in a situation where petrol and diesel drivers continue to pay all the tax for using the roads which is unsustainable.”

Four-in-10 drivers believe that some form of ‘pay-per mile’ system would be fairer than the current system of fuel duty, says the RAC, while half (49%) agree that the more someone drives, the more they should pay in tax.

Insurance and Mobility Solutions (IMS), which is part of Trak Global Group, has successfully piloted road pricing projects in several US states.

Dr Ben Miners, chief innovation officer for IMS, explained: “Road user charging (RUC) and electronic toll collection (ETC) are both important solutions to fairly generate revenue from road users.”

ETC focuses on specific concessions or fixed points with a roadside/infrastructure approach, whereas RUC focuses on the broader transportation network with an infrastructure-free, wireless infrastructure, process.

Miners said: “The additional flexibility of RUC enables new virtual tolls to be introduced and transform any road segment or fixed asset into a ‘tolled’ road, which eliminates lengthy construction times and shortens time-to-market.”  By Graham Hill thanks to Fleet News

Cash-takers are returning to company car schemes in “noticeable” numbers thanks to the attractiveness of electric vehicles (EVs), reports Arval UK.

The Government introduced a new zero percentage benefit-in-kind (BIK) tax rate for pure EVs from April this year, and the leasing company says that plug-in company cars are now really gaining traction in the market.

Shaun Sadlier, head of consulting at Arval UK, explained: “Many cash takers liked their company car but didn’t like paying what they perceived as high benefit-in-kind and that was why they opted-out.

“Now, with low benefit-in-kind in place for EVs for at least five years, many more are now returning to company car schemes.”

Arval predicted that this would start to happen some time ago, but Sadlier said: “It’s now becoming noticeable In several of the major fleets with which we work.

“It’s a welcome development that will feed demand for zero-emission vehicles and lead to wider, faster adoption.”

New BIK rates are driving the choice in zero emission vehicles, but Arval believes that there are also a range of other factors in play.

“If you talk to fleet managers and their drivers, there’s a lot of enthusiasm around the vehicles themselves,” continued Sadlier. “We are beyond the early adopter phase and heading into mass-acceptance.

“All it takes is a couple of EVs on a fleet to disprove the reservations some people hold about these vehicles.

“They can see that misgivings such as range anxiety are actually of limited importance for the vast number of journeys that are made.”

Arval UK recently updated its own company car scheme to increase adoption of EVs and the move paid off with almost two thirds of its company car drivers making the switch so far.

Sadlier said: “All of our consultants and many of our sales team have switched to EVs.

“They act as ambassadors for the technology, developing personal experience to share with customers, friends and family – as more people drive EVs, consumer confidence will increase.

“Coupled with the growing number of different models that are available, plus the recent 2030 announcement, it’s not an exaggeration to say that we can all play our part in a zero-emission future and choosing an EV is a step in that direction.”  By Graham Hill thanks to Fleet News

Europcar Mobility Group has partnered with a Tchek, a tech start-up that has developed an automated inspection system.

The drive-thru device uses artificial intelligence and 3D scanning to capture images of and detect damage on vehicles.

Europcar Mobility Group will begin the digitalisation and automation of check-in check-out inspections of its traditional rental model. But, ultimately, the project will also include new mobility solutions, with a view to improving overall operational efficiency, which may require more maintenance and repair than conventional vehicles.

“The integration of a digital and autonomous solution into a customer journey is a subject that can be complex and we are very happy to have removed this thorn from the side of the leaders and managers on the company.

“We are very proud to have Europcar Mobility Group as the first major partner of the industry because we share in the vision; to always save time and profitability for users and employees by combining technological know-how with irreproachable customer service,” said Léa Chevry, co-founder of Tchek.

Tchek Scan is the first autonomous scanner in the world which increases productivity by automating and mechanising the inspection of the entire vehicle with great precision, thanks to 3D reconstruction, image capture and the rapid analysis of new repairs to be carried out by artificial intelligence.  By Graham Hill thanks to Fleet News

Michelin has announced it will incorporate Radio Frequency Identification (RFID) chips into all its car tyres by 2023.

The manufacturer said RFID technology is a cost-effective way of tracking tyres and a ‘significant contributor’ to predictive maintenance services.

It will also enhance driver safety by allowing Advanced Driver Assistance Systems (ADAS) such as ESP to adjust responses according to specific tyre characteristics, says Michelin.

Michael Ewert, vice president of Global Sales for Original Equipment at Michelin, said: “Since RFID technology ensures this exact tyre identification, it is conceivable in the future that drivers will see a tyre status display next to their fuel gauge.

“RFID in tyres makes many new business models possible and can also further increase safety when driving. We are convinced it represents a significant step forward in the tyre industry.”

The technology could also be used to improve recycling rates, allow proof of recycling and help improve the efficiency of energy recovery programmes.

Michelin says it is working with car manufacturers to develop algorithms that could pave the way for several new advances as cars become more connected.

Dealers and workshops will also benefit as exact tyre identification and data will be easily accessible, reducing fitting errors and helping with stock control, it says.

Up to 15 million chips a year will be encased in rubber at Michelin’s Homburg plant in Germany before they are installed in new tyres on site or shipped to other Michelin factories in Europe, China, Thailand and Brazil.

Michelin recently warned fleet managers to ensure they are selecting the right replacement tyres for their cars and vans, to avoid unnecessary costs. By Graham Hill thanks to Fleet News