The Best Car Finance Blog In The World

The number of vehicles requiring recovery due to pothole damage has increased rapidly according to the RAC.

It rescued almost 3,500 motorists with pothole damaged cars in the first quarter of 2020, an increase of 64% on Q4 2019.

The number of cars damaged by potholes requiring recovery, between January and March, is 4.5% higher than in the same period last year, despite the Coronavirus lockdown reducing the number of vehicles on the road in the last nine days of the March.

Breakdowns resulting from damaged shock absorbers, broken springs and distorted wheels – that are most likely to be attributable to poor road surfaces – made up 1.6% of all the RAC’s call-outs for its individual members.

This was considerably up on Q4 2019 when the figure stood at 0.9% and marginally up on the same period a year ago – 1.5%.

The RAC’s Pothole Index suggests the overall standard of the roads has improved a little as the Index currently stands at 1.6, down from 2.3 in the same period last year and slightly down on Q4 2019 (1.7).

This does mean however that drivers are still 1.6 times more likely to break down as a result of pothole-related damage than they were back in 2006 when the RAC first started collecting data.

RAC head of roads policy Nicholas Lyes said: “The jump in pothole-related breakdowns from the last three months of the year to the first quarter of the next year is always the largest as winter weather has the greatest effect of all in wearing down our roads.

“Many parts of the country suffered very wet weather conditions throughout February. It’s still likely that the storms and floods were major factors in why the number of pothole-related breakdowns was higher than the same period last year.

“In his Budget in March, the Chancellor committed to funding our local roads and it is clear that the economic recovery as the UK emerges from the COVID-19 pandemic will need to be built on solid infrastructure – which of course needs to include good quality roads.

“Moreover, it will also be interesting to see if lower traffic volumes during the UK’s lockdown will help prevent further deterioration of roads as fewer wheels going over weaknesses in the asphalt should contribute to less surface wear.”  By Graham Hill Thanks To Fleet News

Electric cars are driven for 26% more miles in their first three years on the road than petrol models, research from the RAC Foundation has found.

The analysis, which pre-dates the steep fall in road traffic seen since the start of the coronavirus pandemic, is based on the MOT data for 516,936 vehicles.

It found battery electric cars cover an average of 9,435 miles per year over their first three years, compared to a petrol car’s 7,490.

Diesel cars are driven the most, and cover an average of 12,496 miles in each of their first three years.

Steve Gooding, director of the RAC Foundation, said: “Unsurprisingly people with diesels have been doing most mileage, probably seeking better long-distance fuel economy, but this study is also evidence that battery-electric powered cars are not just trophy vehicles signalling their owners’ green credentials but prior to the lockdown were racking up the miles as everyday transport.

“Tens of millions of people still drive petrol and diesel-powered cars, but this data suggests that owners of electric cars have found them to be a practical proposition, running up the sort of big annual mileages that many of us need to do, challenging preconceptions about their range and the ease of re-charging.

“The next big question is what will happen when the Covid-19 lockdown ends?

“Some say our travel behaviour might change quite dramatically as we’ve mastered on-line meetings in place of the office routine, but any ongoing desire for social-distancing might yet draw us back to our own cars for the trips we make once the travel restrictions are lifted.”

The research found a Mitsubishi Outlander plug-in hybrid – the most common PHEV on the road – averages 12,500 miles a year.

RAC Foundation reports the battery electric Tesla Model S covered an average annual mileage of 12,392, the Nissan Leaf 8,241 and the Renault Zoe 5,736.

The analysis also found there was a big difference between petrol and diesel versions of the same model. By Graham Hill thanks to Fleet News

The Driver and Vehicle Standards Agency (DVSA) issued guidance towards the end of last month that a car, van or motorcycle’s MOT expiry date could be extended by six months if it was due on or after March 30.

The DVSA currently carries out 30 million MOTs a year through 23,000 test centres. But, with all this summer’s MOTs effectively being pushed back into the autumn/winter period, that could put unprecedented pressure on the system and leave drivers scrambling to find MOT slots.

Terry Hiles, general manager at Licence Check which is now part of the Ebbon-Dacs Group, said: “The six-month MOT extension raises concerns about the potential backlog of tests that will need to be carried out later this year.

“Centres will be twice as busy as normal during the autumn/winter period as 12 months’ demand will be effectively shoehorned into a six-month time frame.

“Employers will need to have in place robust systems in place to ensure MOTs are carried out on the new dates rather than the regular anniversary date that they may have become accustomed to.

“So MOT reminders and alerts to drivers will be vitally important.

“MOTs will need to be attended to once lockdown ends and many drivers may need a prompt to help them remember the new expiration date.

“One option could be to sign with the .gov.uk website for its text message reminder service so that drivers are sent reminders of their new date.”

Currently, some 10% of vehicles fail an MOT due to defective brakes, 13% for suspension faults and 8% for illegal tyres.

With a percentage of the nation’s cars not being MOT’d for a further six months, the chances of some of them being driven in an unroadworthy state could rise dramatically.

Drivers could face fines of up to £2,500, be banned from driving and get three penalty points for driving a vehicle in a dangerous condition, regardless of whether they are being operated under a six-month MOT extension or not.

The DVSA’s official guidance on its website says that insurance will still be valid, that drivers can still tax their vehicle and the vehicle’s record will be updated so the police can see they have a valid MOT during the six-month extension.

But insurance cover is likely to be invalidated if the vehicle is driven in a dangerous or defective state and the emphasis is on drivers to keep their vehicles in a roadworthy condition.

The DVSA advice is to take your vehicle to be repaired at the nearest open garage if it’s unsafe. These are allowed to stay open during the Coronavirus outbreak.

Licence Check said this uncertainty puts the onus on employers, especially those with large numbers of grey fleet drivers who use their own vehicles on company business, to have in place robust systems to ensure that vital checks are being carried out,  such as MOTs, as soon as possible once lockdown is over to ensure continuing compliance. By Graham Hill thanks to Fleet News

Goodyear has launched a new scheme to celebrate the ‘Highway Heroes’ who are continuing to keep the country moving during lockdown.

From the delivery drivers keeping supermarkets stocked to the haulage companies transporting vital supplies, the purpose of the initiative is to shine a light on those who are continuing to go the extra mile within the logistics industry.

In order to recognise these individuals for their vital efforts, Goodyear wants the public to nominate its ‘Highway Heroes’ via the company’s commercial page on LinkedIn.

For each #HighwayHero nomination, Goodyear will donate 2 Euros to the COVID-19 Solidarity Response Fund for the World Health Organization (WHO) for the first 5,000 nominations up to a maximum of 10,000 Euros.

Each month, starting in April, a deserving nominee will be chosen at random and awarded a set of Goodyear EfficientGrip Performance 2 tyres for their personal vehicle.

David Howe, commercial sales general manager at Goodyear UK&I, said: “It’s no secret that this is an unprecedented period, for businesses and families alike. While the rest of us are safe at home though, we want to show our thanks to those who are still on the roads.

“From delivery drivers, many of whom we are proud to call customers, to those providing vital roadside support, such as our very own TruckForce technicians, now, more than ever, we are pleased to show our appreciation of these Highway Heroes.”

As well as the Highway Heroes scheme, Goodyear has also provided a Driver Tyre Check Guide. Also available via the company’s commercial LinkedIn page. The guide will help fleet managers and drivers to carry out thorough pre-trip inspections of their tyres, ensuring their fleets are ready to hit the road.

“While the nation observes social distancing measures, many drivers and fleet managers will be relying on their own experience to keep their vehicles operational. It’s a great honour to be able to support many of these essential fleets, and we want to continue to do our part.

To that end, we’re pleased to offer our Driver Tyre Check Guide, providing advice that will help to keep tyres in top condition and vehicles on the road. Together, we can keep our nation moving,” Howe added. By Graham Hill thanks to Fleet News

The price of US oil has recently 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 last 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 Hil thanks to Fleet News

The number of vehicles registered for use on UK roads has exceeded 40 million for the first time, according to data from the Society of Motor Manufacturers and Traders (SMMT).

Analysis shows that more than 35 million cars and five million commercial vehicles were in use in the UK in 2019, an increase of 1% on the previous year.

The total includes more than 750,000 low, ultra-low and zero emission vehicles. The number of these cars grew by 26% last year, with 11,832 hybrids, 144,335 plug-in hybrids and 92,913 battery electric vehicles now in use.

Birmingham has the second highest number of battery electric and plug-in hybrid vehicles after Greater London, with some 24,000 zero and ultra-low emission cars on the city’s roads.

Light commercial vehicles grew by  2.7% on the previous year to 4.5m units, surging by 28% in the last decade. Passenger cars, meanwhile, increased 0.8% in the same period. The number of heavy goods vehicles grew by 0.4% to 608,000 – the largest number delivering for Britain since 1990.

Many of these vehicles are helping to provide transport for essential workers, deliveries and emergency services. Some 25,000 ambulance and fire service vehicles, together with more than 20,000 supermarket delivery trucks and lorries are keeping the nation safe, supermarket shelves stocked, and the flow of food, medicine and care to vulnerable people going during the coronavirus crisis.

Mike Hawes, SMMT Chief Executive, said, “As the UK continues to battle the coronavirus pandemic, keeping food, medical supplies and the people serving on the front line moving has never been so important – and these figures show the essential role Britain’s vehicle fleet plays for society. They also provide evidence that industry’s ongoing investment into ever cleaner, safer and more reliable vehicle technology is paying off, even as demand for mobility grows. To ensure this trend continues, we must get the right support for businesses and their workers in place now so that when this crisis is over, the sector can help get the whole country and our economy back on the move.”

Most popular cars

The SMMT’s Motorparc data reveals black as the most commonly seen car colour on the UK’s roads, with more than a fifth (7.1m) clad in the paint.

There are more superminis on UK roads than any other category of car, with the Ford Fiesta and Vauxhall Corsa the most common models.

The BMW 3 Series is the only premium badge car to feature in the top 10 list, with more than half a million examples on UK roads.

By Graham Hill thanks to Fleet News

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

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

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

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