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TfL issued £130 million of fines over 12 months to drivers not paying the Congestion Charge, over twice the revenue raised from drivers paying the daily fee!

Motorists have been fined £130 million over a 12-month period for driving into the London Congestion Charge zone without paying, it has been revealed.

The fine for failing to pay the Congestion Charge is £160 – reduced to £80 if paid within 14 days – and Transport for London (TfL) issued over 817,000 such penalty charge notices (PCNs) in the 12 months up to September 2020.

Of these PCNs, more than 60 per cent were issued after June 2020, when the daily Congestion Charge fee was increased from £11.50 to £15, with hours of operation increasing from 7am to 10pm, and the toll moving from five, to seven days a week.

Data obtained from TfL by Citroen via a freedom of information request also shows the organisation received £52 million in revenue from Congestion Charge payments over the same period, meaning fines resulted in significantly more income.

Drivers who enter the Congestion Charge zone, which covers a small area of central London, have three days to pay. Electric vehicles are currently exempt from the charge, as are plug-in hybrids that emit under 75g/km of CO2 and have an electric-only range of at least 20 miles.

Eurig Druce, Citroen UK’s managing director, suggested electric cars were one way drivers could avoid paying the Congestion Charge, saying EVs “help drivers save significantly on running costs” and also “eliminate the chance of unexpected and expensive fines for forgetting the Congestion Charge zone payment and other low emission zone tariffs.”

The £12.50 per-day ULEZ (ultra-low emission zone) applies to drivers of pre-Euro 4 petrol or pre-Euro 6, and covers the same area of central London as the Congestion Charge zone, with affected motorists having to pay both fees.

The ULEZ will extend to cover regions of London within the North and South Circular roads, although there are currently no plans to extend the Congestion Charge Zone.  By Graham Hill thanks to Auto Express

It is always risky predicting The Next Big Thing, but Abarth might just have it. It’s not the 595 Scorpioneoro you see here which, while unquestionably a stylish special edition, is based on a car that’s been on sale for well over a decade. No, the really exciting thing is how potential owners can try the car out.

Because Abarth has just started a trial that will see prospective 595 buyers sent a wooden crate, inside which rest Bose headphones and a virtual reality (VR) headset. Pre-loaded on this headset is a three-minute film, which takes viewers on a ‘virtual test drive’ through stunning Welsh vistas in a 595 Scorpioneoro.

I’ve tried VR in the past, and let’s just say that when used for corporate videos, the experience is underwhelming. But what Abarth has done with its virtual test drive – the world’s first, no less – is nothing short of spectacular.

Beginning on Black Rock Sands beach in North Wales, we’re introduced to both the car and our co-driver, Stef Vilaverde, a died-in-the-wool Abarth fan and YouTuber. The beginning is short, but gives time to appreciate the surroundings. In front of you stands the car, but tilt your head up (in the real world) and you can see the sky and clouds.

Turn around and you’re faced with headland cliffs, the camera angle and audio moving with your eyes and ears; it really looks and sounds like you’re stood on the Welsh coast. No time to dwell on the scenery, though, as the roar of the 595’s exhaust draws you back to the car in time to see it blast across the sands.

We’re in the passenger seat for most of the rest of the test drive, and as far as your eyes and ears are concerned, you’re in the car. Turn your head to the left and watch the crystal-clear lake waters of Llyn Ogwen pass by; face ahead and Snowdon looms into view ahead of the 595’s bonnet; look inside the cabin and you can make out details like the Scorpioneoro’s limited-edition plaque.

It’s an immersive experience, and when Stef activates the sports exhaust and gives the 595’s 163bhp 1.4-litre engine a blast, the audio is as engaging as the visuals. Another camera angle sees looking from outside the car at road level; facing forwards reveals rushing tarmac, turning behind shows the bonnet of the 595 bobbing away, inches from your eyes.

There are a couple of limitations. Even though the gear has to be returned to Abarth, the cost of VR headsets means it’s doubtful every manufacturer could offer every customer a VR drive (Abarth’s trial is operating only from Vospers dealership in Exeter – for now).

And while the wooden crate the gear arrived in is a cool nod to past Abarths (which had performance upgrades in a similar box) the crate itself is too large and heavy to be handled easily by all.

But with real-world test drives likely to be problematic for some time, VR could be an important tool for car makers, dealerships and, of course, buyers – not least because as well as leaving me yearning to drive a 595 Scorpioneoro, the virtual world brought excitement and variety after months being cooped up.

How does virtual reality work?

VR films are created using a camera with multiple lenses that film 360-degree footage with no blind spots; a 360-degree microphone with several channels is also used. Software stitches the recordings into a seamless ‘bubble’ of footage; camera mounts that might be in shot are also removed.

A VR headset displays the all-encompassing footage on two small screens directly in front of your eyes, motion sensors determining where you are looking; tilt your head up, for example, and the footage follows, mimicking what your eyes would see if they were the camera.  By Graham Hill thanks to Auto Express

Tesla expanded its UK dealer network to 25 sites during 2020 and plans further network growth in 2021.

It represents a U-turn on company founder Elon Musk’s 2019 declaration that Tesla would close all its showrooms in favour of an online-only sales model.

The latest strategy follows reports of Tesla’s value reaching a record £516 billion, making it worth more than Toyota, VW, Hyundai, GM and Ford combined.

Six new Tesla locations were opened across the UK in 2020, with new showrooms appearing in Newcastle, Winchester, Gatwick, Belfast, Birmingham and Chelmsford.

A new site in Glasgow is also poised to open this year.

The Californian car maker says it has boosted its aftersales operation significantly and now has 15 service locations across the country, with more than 300 service team members.

This has led to a 130% increase in available service appointments and a 60% reduction in waiting times for appointments, according to the brand.

Tesla says it can reduce the time vehicles need to be in a workshop using remote diagnosis and can perform a service four times faster than conventional garages, enabling it to operate with a smaller footprint.

The brand achieved almost 25,000 registrations during the year, outperforming established brands such as Fiat, Mazda, Porsche and Suzuki.

Its Model 3 topped UK monthly sales charts twice during the year – once in April and then in December.

The vast majority of sales are the Tesla Model 3 – Tesla insiders suggest the Model 3 accounts for approximately 90% of UK Tesla sales YTD. That makes the Model 3 the UK’s best-selling battery electric vehicle (BEV), and the UK’s second best-selling compact executive model behind the BMW 3 Series.

Tesla’s UK Supercharger network also grew during 2020 with the addition of 180 new chargers in 20 locations, bringing the total to more than 600 chargers in 70 locations. By Graham Hill thanks to Fleet News

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

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

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

The amount fleet operators and consumers with PCH are paying in end-of contract excess mileage charges for cars has risen significantly for the second consecutive year.

This year’s FN50 (top 50 leasing companies) research has found the average charge for defleeted company cars is £449, 19% higher than last year, which itself was 17% higher than in 2018. The 2018 figure was a record low of £324. The figures are similar if not slightly higher for consumers.

There remains a huge disparity in the size of the average charges reported by individual leasing companies and these range from as little as £20 to £900. The extremes highlighted in last year’s FN50 were £28 and £1,182.

Of the respondents to this part of the FN50 research, 38% of leasing companies had charges above the average amount, with 63% of those at £700 or above.

Of those with charges below the average, 15% were £100 or less.

The average proportion of cars subject to excess mileage charges has fallen one percentage point from last year to a record low 18%. Over the longer term, this proportion is significantly lower than the 2005 figure of 32%.

There is also a large disparity between leasing companies in the proportion of cars subject to excess mileage charges.

These ranged from as low as 0.5% to as high as 61%. There was a £350 difference in the size of the actual average charges these two companies billed: £440 and £790 respectively.

Just more than one-quarter (28%) said the proportion of cars returned which were subject to excess mileage charges was 10% or lower, while 24% said their average figure was about 25%.

Meanwhile, van operators fared much better with excess mileage charges. The average charge for vans fell £2 from 2019’s figure to £482, which points to a year of relative calm after the previous year’s 40% increase.

Those leasing companies with above-average charges for cars accounted for 67% of the companies with above average charges for vans.

As with cars, there is a huge disparity in the average charges reported by individual leasing companies, ranging from £55 to £900.

Of the leasing companies which supplied this information, 42% had charges above the average amount, with 16% at £750 or above. Of the companies below the average, 50% were £250 or less.

The average proportion of vans which were subject to excess mileage charge has remained steady over the past three years.

This year it was 19%, two percentage points below last year’s figure and one percentage point lower than 2018. Two-in-five (38%) respondents reported being at or above the average figure.

As with cars, there was a large disparity between the proportions reported by individual leasing companies. The lowest figure was 2% and the highest 85%.

Overall, 28% of respondents said their average proportion of vans which were subject to the charges was 10% or lower, while 12% were above 50%.

Like last year, there does not seem to be a common factor to determine why the excess mileage trends have either increased in the case of cars or slightly decreased for vans.

There is no consistent patterns in the duration of average replacement cycles operated by the leasing companies with the highest charges, or whether vehicles were being returned early, on time or late at the end of their terms.

Another unknown is the effect the Covid-19 pandemic had on this year’s figures. In July, a Fleet News survey of 150 fleet decision-makers found almost 61% expected to see average mileages of their company car fleet fall.

More than half (57%) of respondents said the majority of company cars they operate were not being driven for work, while 43% said less than one-third of the vehicles on their company car fleet were being driven for work.

This would suggest vehicles could either have been returned with lower than expected mileages as business travel reduced, although many fleets extended their vehicle contracts during the pandemic. Other vehicles could be likely to incur increased charges due to an increased workload.

LOCKDOWN HELP

During lockdown, leasing companies worked to mitigate the impact on mileage charges.

For example, Miguel Cabaça, managing director of Arval UK, says: “Arval will be as understanding as possible in these difficult times.

“We will be having individual discussions and be offering proactive solutions client-by-client.”

Leaseplan said customers’ individual mileage allowances would continue to roll on, on a pro rata basis, if leasing agreements were extended.

This year’s FN50 should provide a clearer picture of the impact of the pandemic on business mileage and how fleet decision-makers have managed their vehicles during the crisis, as more leases expire and vehicles are returned to their leasing providers.

Previous FN50 reports have suggested that when end-of-contract charges are falling, it is most likely through contract hire companies keeping track of mileage and discussing higher mileage than agreed with customers mid-term, and allowing flexibility to increase monthly rental rates to compensate so there would not be a large excess mileage bill at the end of the fleet lifecycle.

These are among the measures introduced by Free2Move as it has focused on reducing excess mileage charges for its customers.

“We have taken two very decisive moves in this area in recent years, taking account of prior dissatisfaction in the market at the level of these charges,” said Mark Pickles, managing director of Free2Move.

“Pence-per-mile rates for excess mileage have been reduced to take account of the ‘real’ impact on residual values, rather than to be used as a ‘penalty’ or profit opportunity – treating our customers fairly is a core principle.

“We also have a large number of our fleet fitted with onboard tele-matics, using our own Free2Move Connect Fleet system, to be able to monitor the mileage on a real-time basis.”

Where Free2Move sees mileage is starting to trend above the contract-agreed figure, it calls its customers to find out if they are aware of this, if it is a trend that is likely to continue or is a seasonal aberration, or if they would like to amend their contract to avoid any end-of-contract penalties.

Pickles added: “Most customers, faced with this up-to-date and reliable information, elect to increase their monthly lease payment slightly to cover the extra mileage and avoid a nasty surprise at the end.

“In the same way that we are used to our gas and electricity bills being adjusted to take account of higher usage rather than building up a deficit on our home energy account, Free2Move is able to neutralise this impact and give the customer a choice of how to deal with a change in usage.

“By utilising the telematics data, we can avoid false alarms, see patterns emerging and give fleet managers the choice of how they wish to manage the change.”

Pickles adds that pooled mileage arrange-ments give its larger customers more flexibility and reduce the need to swap cars or vans between users to manage mileage, resulting in fewer excess mileage charges and less intervention on the part of the customer.

The average proportion of trucks which attracted excess mileage charges also increased year-on-year, this time by three percentage points to 10% compared with 2019.

The average charge was £600 – 50% less than in last year’s FN50 report, while the disparity in the proportion of trucks subject to excess mileage charges reported by individual leasing companies was much smaller than with cars or vans, ranging from 9% to 12%.  By Graham Hill thanks to Fleet News

Residual values could fall by 10% over the next year as the economic effects of a recession and high unemployment bite.

The prediction is included in the BVRLA’s latest Leasing Outlook report, which warns the vehicle leasing industry is braced for yet more challenges as “the most turbulent year imaginable” comes to an end.

The report says the sector remains agile but is also seeking clarity around the impact of Brexit, the Covid-19 pandemic and the transition to zero-emission motoring.

BVRLA members expect battery electric vehicles to hit 6% of the total lease car fleet by the middle of next year, with plug-in hybrids hitting 9%.

Petrol’s market share will begin to plateau at around 38%, with diesel slipping under 50% for the first time at 46%.

Andrew Mee, head of forecast UK at Cap HPI, told the report: “On average, used car values are now around 7% higher than they were a year ago and we consider this unsustainable.

“As we move through Q4, we expect that the strength in the used market may start to slowly ebb away, as pent-up demand is satisfied and the typical pattern of falling values in the latter months of the year could be re-established.

“A fall of 10% over the next year looks reasonable.

“It is broadly similar to 2019 and is nowhere near as bad as we saw in 2008.”

The report says there will be an improvement beyond 2021, but it will not be as rapid as it was in 2009, due to Covid having a much broader and more complex set of impacts on the economy and automotive market.

The three other broad themes covered by the report are:

• Supply chains – leasing companies are looking forward to a rebound in demand for fleet vehicles as the economy recovers but are concerned about the potential for extended lead times and the reputational damage that could ensue.
• Brexit – The type of EU-Exit we get will have a huge impact on business confidence, lead times, the cost of new vehicles and the ease with which they can be moved around the UK and Europe.
• Liquidity – The financial and administrative burden of providing forbearance to those hit by the pandemic will last well into 2021 and there are signs that the supply of motor finance is also tightening.

By Graham Hill thanks to Fleet News

The first electric vehicles (EVs) were given green number plates from Tuesday, December 8, with the Government suggesting the move could unlock incentives for drivers and fleets.

Ministers gave the go-ahead for the new number plate design for pure electric vehicles (EVs) in June.

The new number plates can be retro-fitted to any existing vehicles, including cars, vans, buses, HGVs, taxis and motorcycles as long as they emit no CO2 emissions at the tailpipe.

They will consist of a green flash on the left-hand side of the plate and can be combined with the Union flag and national identifiers already permitted by the regulations.

Transport Minister Rachel Maclean says that the green number plates build on last month’s announcement to end the sale of new petrol and diesel cars and vans in the UK by 2030.

She also believes that EV operators could benefit from local initiatives such as cheaper parking and cost-free entry into zero-emission zones.

She said: “Not only will green number plates raise awareness of the increasing number of cleaner vehicles on our roads, they could also unlock a number of incentives for drivers.

“It’s clear there has never been a better time to make the switch to a zero-emission vehicle.”

Ashley Barnett, head of consultancy at Lex Autolease, told Fleet News says that today’s introduction of green number plates to identify zero-emission vehicles on the UK’s roads will boost driver advocacy even further and will go a long way to keep up the momentum behind the Government’s Road to Zero strategy.

“The deadline to achieve net-zero emissions by 2050 looms ever closer, so anything that simply and clearly communicates the benefits of electric vehicle adoption – from better parking spaces to accessing emissions-restricted zones – to a wider audience is a welcome shot in the arm,” he said.

A survey by Nissan suggests that a third of motorists in the UK would be more likely to buy an EV, because of the new green number plates

.

Andrew Humberstone, managing director of Nissan Motor GB, said: “The age of the electric vehicle is now approaching rapidly and these new green registration plates will soon be a common sight on our roads.”

The Nissan survey, carried out by respected pollsters YouGov, found that with the introduction of green number plates, and the prospect of further incentives linked to EV ownership, 32% of people would be more likely to buy an electric car.  By Graham Hill thanks to Fleet News

For the second consecutive year, the FN50 top 10 has, aside from some minor positional shuffling, remained the same: the same companies largely in the same places.

The two exceptions are Arval and LeasePlan switching places and an identical swap by Free2Move and Zenith.

Also occurring for the second consecutive year is a decline in total car and van volumes funded by the UK’s 50 biggest leasing companies. The 2.5% reversal, or 43,186 vehicles, is slightly higher than the previous year’s 2%/35,371, resulting in an FN50 funded fleet of 1,662,320 vehicles.

However, where last year the drop in vehicles was largely prompted by the exit of Mercedes-Benz Financial Services (now retail only) and Sandicliffe Motor Contracts (no longer funding), the year it is due to an industry-wide reduction in company cars.

This is a result of people opting for cash (the number of employees paying benefit-in-kind (BIK)  tax on a car continues to fall – 90,000 have left a car scheme over the past five years) and, more recently, by the impact of Covid-19 on jobs, although the full shock of this impending economic crisis is still to be felt.

And, while opt-outs are often converted into personal leases, this hasn’t plugged the gap.

Consequently, the number of company cars in the FN50 has fallen year-on-year by 3.3%, or 41,080 units, while vans saw a negligible 0.5% dip of 2,106 vehicles.

It continues a three-year trend of vans taking a gradually increasing share of the total number of vehicles funded by the FN50: in 2017 they accounted for 24%; this year it’s 27%.

The FN50 data presents a slightly less sombre picture than the recent industry-wide figures released by the British Vehicle Rental and Leasing Association which showed a lease fleet decline of 3.6% year-on-year, at a little more than 2.53 million vehicles.

However, its survey revealed growth in the van fleet by 2.1%, which partially offset a heavier deficit in cars of 5.2%.

Swing towards PCH

Healthier performance by personal leasing Business contract hire bore the brunt of the losses, down 9.7%, while personal contract hire (PCH) enjoyed a healthier performance, up 5.7%. This is echoed by the FN50 members, where the larger organisations have been extending their penetration into the personal leasing sector in recent years.

The past couple of years have seen a definite swing towards PCH among the UK’s biggest leasing companies. In 2018, fleet leasing accounted for 87% of their car business; this year that has fallen to 80%. Almost a quarter of a million cars (244,194) are now PCH.

Often, manufacturer-owned leasing providers have a greater proportion of retail business due to the agreements sold via their franchised dealers, such as FCA’s Leasys at 69% and Renault’s RCI at 67%, while ALD, which powers white label finance for the likes of Kia and Ford, is also weighted towards private leasing. Santander Consumer Finance (the clue being in the name) is 82.5% private and Affinity Leasing, which specialises in corporate affinity schemes for employees, is 96% private.

With the likes of Zenith (ZenAuto) and Arval (Arval for Employees) stepping up their retail aspirations, and growth in salary sacrifice schemes (although not all leasing companies view these as private leasing because of the central agreement with the employer), plus bank-owned organisations such as Lex Autolease improving internal synergies, personal lines could tighten their grip on the FN50 numbers in the coming years.

“The market has been diversifying for many years now and personal leasing in its various forms has penetrated both the retail market and corporate sectors,” says Craig McNaughton, corporate director at the UK’s biggest fleet lender Lex Autolease.

However, a compelling counter-argument centres on the growing attractiveness of electric and plug-in hybrid cars due to the very low BIK tax rates over the next four years.

Some leasing companies are already reporting electric cars accounting for 30-40% of their order books.

McNaughton again: “The advent of 0% BIK for EVs and low BIK for ULEVs has seen movement back into company cars and salary sacrifice.”

He believes that traditional fleet funding methods will remain dominant, despite suggestions among some industry commentators that a growing need for flexibility will persuade companies to negotiate shorter terms and consider alternative funding arrangements.

“We have been part of subscription trials with partners and they do have potential in very specific circumstances, but the economic model for such services remains a challenge, as can be seen by the poor financial results that continue to be delivered by traditional vehicle rental companies,” he says.

“As such, changes to shorter leases and more flexible products are likely to remain small scale due to their relative expense with the market continuing to mainly fulfil demand for providing long-term leasing/funding solutions.”

Nevertheless, flexibility is a recurring theme during 2020 due to the uncertainties caused by Covid-19 and a surge in people working from home, reducing their dependence on the car.

Alphabet doesn’t see subscription services as a replacement for traditional funding, but it does recognise the need for increasing flexibility, according to chief commercial office Simon Carr.

“We expect to see a rise in demand for shorter term, adaptable leasing arrangements to bridge the gap between rental and longer-term leases as drivers’ roles and requirements change,” Carr says.

“Funding choices will become even more data-led and wholelife costs will play an even bigger part in fleet managers’ decisions as the total cost of mobility will be key to running a successful fleet in a time when travel has naturally reduced.”

Flexibility doesn’t just mean shorter terms, however. Salary sacrifice expert Tusker has responded to customers’ needs to “provide shorter and longer agreement options for employees to increase inclusion for lower earners and those on shorter employment contracts”, says CEO Paul Gilsham.

EVs stimulating growth

Meanwhile, Claire Evans, fleet consultancy director at Zenith, believes EVs are stimulating growth in all sectors of the market, from company cars to salary sacrifice to personal contracts.

“We are already seeing a trend into leased vehicles and away from ownership with the growth in electric vehicles and movement to subscription-based services based on monthly affordability,” Evans says.

“It has resulted in increases in salary sacrifice and personal contract hire cars, where EVs account for one-in-two and one-in-four orders placed this year, respectively. We expect to see this trend continue.”

As part of the FN50 survey, leasing companies provide data on the vehicles they manage on behalf of a fleet customer but don’t fund.

For cars, the numbers have risen, showing that the need by UK business for fleet management support is growing, as outsourcing of a function sometimes seen as non-core continues.

This year, the number of cars under fleet management has risen by 27,046 to 259,518; meanwhile, the number of vans has fallen slightly, from 62,808 to 62,129.

As a business essential tool, vans are much more likely to be an in-house responsibility, particularly if the company also runs trucks with their elevated legal and compliance requirements.

The rise in fleet management has helped many leasing companies to offset the reversals in fleet funding.

With three new entrants in 2020, 26 of the 47 returning FN50 companies saw their funded fleet fall compared with 2019, up from 19 companies last year.

By far, the biggest impact was felt by those left outside the top 20 (see table), where double-digit falls were commonplace.

Half of the top 10 are funding more vehicles than a year ago, with notable growth in cars and vans by Arval, lifting it by 6% to leapfrog LeasePlan into third place, and seventh-placed Hitachi Capital Vehicle Solutions, up 7% thanks to wins in both cars and vans.

Free2Move bumped Zenith from eighth after a 5% boost to its funded business, almost entirely cars with a 7,000-unit rise, while Zenith experienced a marginal 1% drop in funded business – although its van division was up year-on-year.

Zenith has also extended its penetration into the truck business with the acquisition in September of Cartwright Fleet Services, Cartwright Rentals and Cartwright Finance Sales from the administrators.

The move created one of the UK’s largest HGV and specialist fleets with more than 50,000 vehicles and one of the UK’s largest trailer rental fleets.

It also underlines how some of the UK’s top lenders are now multi-asset funders with a breadth of interests, from salary sacrifice, job need and perk cars to vans, trucks and trailers.

And some are starting to gow even further, with e-scooters/ e-bikes, car share and other forms of mobility services.  By Graham Hill thanks to Fleet News