The Best Car Finance Blog In The World

Electric and hybrid vehicles are taking longer to repair in body shops than petrol and diesel equivalents, according to Activate Group.

Date from the claims management firm shows that electric vehicles (EVs) and hybrids took 1.5 days longer, on average, to repair.

The cost of fixing an alternative fuel vehicles (AFV) was also found to be higher, with EVs 29% higher and hybrids 66% higher than ICE vehicles.

There are key factors driving this trend: Parts for new models are often expensive and green, or after-market alternatives are not available; many EV models are high-end vehicles where parts are more costly; AFV body work is often made of light plastics which are not as widely repaired as metal panels.

Jo Seys, head of engineering at Activate Group, said: “For most repairs, the battery must be powered down before work can begin and powered up at completion. This can take up to an hour in total. In some cases, the battery must be removed, and reinstalled at the end of the job. Times vary, but this process can add up to four hours of labour time.

“To work safely with high-voltage battery, recovery agents and repairers must have the correct training and equipment. The risks involved in working with electricity means AFVs can’t simply be treated in the same way as an ICE vehicle.

“The high voltage batteries cannot come into close contact with heat.  This means they often need longer in the paint oven on lower temperatures and fast curing methods, such as infra-red are not suitable from some AFV repairs. The batteries also present a significant health and safety risk and there are additional requirements within the repair process. Trained technicians refer to manufacturer, or Thatcham guidelines, each time they complete an AFV repair.”

The situation becomes significantly more complex and dangerous following a serious collision where the high voltage battery has been damaged. In this case, there is a strong risk of fire, and specialist training and equipment are needed to safely handle the situation.

Seys added: “In recent months, the industry has faced lengthy delays on EV and hybrid parts, particularly for Teslas, increasing the key-to-key times. Delivery times of new AFV vehicles have also been impacted by Covid-19, affecting global supply and a shortage of semi-conductors, a vital component of modern vehicles. In Spring 2022, Tesla had to close its Shanghai factory for three weeks due to the lockdowns in China, losing the production of around 42,000 vehicles.”  By Graham Hill thanks to Fleet News

The growing network of free charge points for electric vehicles (EVs) at Tesco stores has now expanded to 500 locations, while usage has surged 300% over the past year.

Free charging sessions on the network, which only uses renewable energy, increased from 500,000 in April 2021 to more than two million by the end of February.

The network was launched in 2019 by Tesco, Volkswagen and Pod Point, with the 500th charging location opened at the Tesco Extra store in Inverness.

Other areas to have benefitted from improved charging access include Southend-on-Sea, Bolton, Wirral, Walsall and Port Talbot, it says.

Jason Tarry, CEO at Tesco UK and ROI, said: “We’re thrilled to see the rollout of free EV charging at our retail stores gather pace.

“The network is helping customers visiting Tesco who need to save time and charge while they shop.

“This latest milestone highlights the commitment across the business to our goal of carbon neutrality in the UK by 2035.”

Designed to offer Tesco customers a secure, reliable and accessible way to top up their electric cars, the network of more than 1,000 chargers at 500 Tesco Supermarkets in the UK also now includes 100 rapid chargers.

The network’s 7kW chargers and 22kW chargers are free to use, and its 50kW rapid chargers are available at a competitive rate for customers requiring more than a top-up, says Tesco.

The Tesco Inverness store also benefits from a new public rapid charger.

The network’s growth has specifically targeted areas without rapid charging access, with Tesco stores in Leicester and Maldon also gaining rapid charging points.

Sarah Cox, head of marketing at Volkswagen UK, said: “At Volkswagen, we want to make carbon neutral mobility accessible to everyone. That’s why we’ve made sure these chargers aren’t just for Volkswagens and can be used by any electric car brand.

“It’s hugely encouraging that drivers from over 220 models from almost 40 different brands have already benefited from free, green top ups while shopping at Tesco.”

This latest milestone means the network is on track to meet its original target of launching charging points at 600 Tesco stores across the UK.

Erik Fairbairn, Pod Point founder and CEO, said: “The partnership is continuing to make a significant and very visible contribution to the UK’s charging infrastructure, giving drivers the confidence to transition to electric.

“Pod Point’s mission is to put an EV charge point everywhere you park and we’re delighted to see so many more shoppers up and down the country reap the benefits as we continue the rollout.”

The free charging network milestone comes after the Government announced the Electric Vehicle Infrastructure Strategy, which commits £1.6 billion to the creation of 300,000 public charge points by 2030, as well as placing new legal responsibilities on charging providers covering means of payment and other factors.  By Graham Hill thanks to Fleet News

Leasing a battery electric vehicle (BEV) is cheaper than funding a new vehicle on personal contract purchase (PCP), new research suggests.

Leasing.com analysed pricing data for its 15 most popular BEVs and found that leasing was the most cost-effective option on 13 vehicles. Just the Renault Zoe and Jaguar I-Pace were cheaper using PCP.

The highest cost difference was 31% for an Audi E-Tron, with the average difference in cost being 18%.

David Timmis, managing director of Leasing.com, says that one of the most important challenges the industry faces, with the greater shift towards EVs, is making them affordable.

“Without this, the market simply won’t shift quick enough,” he explained. “Thankfully, leasing provides consumers an alternative route to driving an EV that won’t break the bank and, in fact, will save them money compared to PCP – the current most popular new car finance product in the UK.”

The Finance and Leasing Association (FLA) reported that the value of new car personal leasing grew 27% in the 12-months to January 2021.

Toby Poston, director of corporate affairs at the British Vehicle Rental and Leasing Association (BVRLA), said: “Leasing is the perfect way to finance a new BEV.

“With so much economic uncertainty and technology changing so fast, it is not surprising that more and more people are using this fixed cost, affordable and hassle-free method to fund their leap to electric motoring.”

Leasing.com’s analysis shows that the Tesla Model 3 has a list price of £42,935, however, when leased over four years, the total cost comes in at £25,445.77.

Compare that against a PCP cost of £30,384, and leasing will save drivers 19% over the life of the contract, it says.

The largest saving overall was found when comparing costs for an Audi E-Tron. On PCP, the Audi has a total cost of £43,420.14 at the end of a 48-month contract.

On lease, the same make and model comes in at a total cost of £34,311.50. A total saving of £9,108.64, it says.

Leasing.com compares personal and business car leasing offers from brokers, dealers, motor manufacturers and independent funders.

Battery Electric Vehicle Cost Comparisons: Lease (PCH) vs Finance (PCP)

Identical term and mileage allowances

Model	Total Lease Cost	Total PCP Cost (excluding balloon)	£ Difference
Tesla Model 3	£25,445.72	£30,384	£4,938.28
Volkswagen ID.3	£25,445.72	£22,039.86	£5,090.58
Hyundai Ioniq Electric	£18,113.68	£22,880.30	£4,766.62
Hyundai Ioniq 5 Electric	£22,294.80	£28,689.29	£6,394.49
Hyundai Kona Electric	£17,312.16	£19,107.44	£1,795.28
Kia E-Niro	£18,483.28	£23,897.40	£5,414.12
Mini Hatchback EV	£15,534.40	£18,250.25	£2,715.85
Nissan Leaf	£10,976.16	£13,092.01	£2,115.85
Vauxhall Corsa-e	£13,519.84	£15,282.20	£1,762.36
Renault Zoe	£14,630.36	£14,060	-£570.36
MG Motor UK ZS EV	£17,768.43	£23,266.83	£5,498.40
Volkswagen ID.4	£18,838.28	£23,506.74	£4,668.46
Jaguar I-Pace	£41,037.04	£38,277	-£2,760.04
Lexus UX300e	£23,628.56	£24,039	£410.44
Audi E-Tron	£34,311.50	£43,420.14	£9,108.64

Source: Leasing.com

By Graham Hill thanks to Fleet News

The cost to repair Britain’s pothole-stricken roads has soared to more than £12bn and works could take more than nine years to complete, according to a new report.

The Annual Local Authority Road Maintenance (ALARM) survey, published by the Asphalt Industry Alliance (AIA), shows that the reported backlog of carriageway repairs has increased by almost a quarter since last year.

It has cost fleet operators and private motorists £1.7bn in vehicle repairs, over the last 12 months, according to Kwik Fit.

Rick Green, AIA Chair, said: “Local authority highway teams have a legal responsibility to keep our roads safe, but do not have the funds to do so in a cost effective, proactive way. As a result, while they report some slight improvements in surface conditions, the structure of our roads continues to decline.

“Although surface repairs have a part to play in extending the life of local roads, short-term fixes, including filling potholes, is indicative of a network that is ‘on the edge’ and less efficient and sustainable when it comes to materials usage and whole-life carbon emissions.”

The ALARM survey reveals that Local authorities would have needed an extra £1bn last year just to reach their own target road conditions, before even thinking about tackling the backlog of repairs.

Almost one in five local roads could need to be rebuilt in the next five years, accounting for nearly 37,000 miles of the network.

Green added: “The longer it takes for the funding to be put in place to tackle the backlog of repairs, the more it is going to cost to put it right in the future. Four years ago, the AIA calculated that an additional £1.5 billion per year was needed for 10 years to bring local roads up to scratch. In the meantime, the network has continued to decline and ALARM 2022 indicates that an additional investment of more than £2 billion a year over the next decade is now needed.”

Kwik Fit’s research found that 13.3 million motorists say their car has suffered damage in the last year as a result of a pothole impact, with the average individual repair bill coming to £132.

When it comes to the road surfaces in their local area, almost three times as many drivers think conditions have deteriorated in the last year as believe they have got better. 

Almost half (46%) of drivers say the road surfaces have got worse in the last twelve months, compared to 16% who say they have improved.  London is the only region of the country to buck this trend.  In the capital, 30% of drivers say the road surfaces are better than one year ago, compared to 25% who say they are worse.

The RAC’s head of roads policy, Nicholas Lyes, said: “This year’s AIA ALARM report provides a sobering picture of the dire condition of our local road network. Not only has there been a significant increase in the cost to fix the backlog of defects, but worryingly the report also shows that roads are only resurfaced once every 70 years on average, with maintenance mostly focusing on filling potholes which is often nothing more than a sticking plaster.

“The Government must now look at implementing a long-term funding strategy which ringfences a small proportion of existing fuel duty revenue to give local authorities the resources to properly plan maintenance and to ensure our local roads are once again made fit for purpose.”

Jack Cousens, head of roads policy at The AA, added: “Each year the debate around roads maintenance degenerates into a blame game between local authorities and Government as each claims it is the other’s responsibility to resolve.

Local and national government must get round the table and create a fully-funded plan that will help make our roads safer. There is now a need to focus available road funding on the most basic need: fixing the roads – for the benefit of drivers, cyclists and pedestrians.”  By Graham Hill thanks to Fleet News

Audi has revealed an electric estate concept with a 435-mile range that will closely mirror a production model that’s due in 2024.

Following the unveil of the electric A6 Sportback concept, last year, the German car maker has now outlined its plans to offer the executive model with an estate body.

The A6 Avant e-tron, along with its Sportback counterpart, is expected to go on sale in 2024 and will be sold alongside the existing A6 model.

It has similar dimensions to the current A6 and A7 series and has been developed with aerodynamics in mind.

Audi has not detailed the specifics of the car’s electric powertrain, but it says there will be single and twin motor variants. The twin-motor concept car delivers 469PS and 800Nm. Rear-wheel-drive models “developed for efficiency” will also be available when the car goes into production.

The A6 Avant e-tron will be based on Audi and Porsche’s new Premium Platform Electric (PPE) platform, which is designed exclusively for electric vehicles. It integrates a battery into the vehicle’s floor, allowing for a capacity of around 100kWh. Audi says the car can achieve a range of up to 435 miles.

Like the Audi e-tron GT, the A6 Avant e-tron uses an 800-volt charging system. It means 186 miles of range can be added in 10 minutes and a 5%-80% charge takes as little as 25 minutes, using a 270kW charger.

The car maker announced that it will phase out production of its last internal combustion engines (ICE) by 2033, with all new cars being all electric from 2026. By Graham Hill thanks to Fleet News

The cost of a breakdown for an electric vehicle (EV) is 2.7 times more than that of an internal combustion engine (ICE) car, new research suggests.

Analysis of more than 2,500 EVs over four-and-a-half years by Total Motion found that, on average, breakdown costs for a petrol or diesel car were £221 per incident (excluding accidents) compared with £596 for an EV.

The number of breakdowns, on average, was also higher for a plug-in vehicle – 3.1 incidents for an EV versus 1.9 for an ICE vehicle.

However, the research from the fleet management company shows that service, maintenance and repair (SMR) costs for EVs are, on average, approximately 27% lower than that of a petrol or diesel car.

The firm, which has been managing electric and alternative fuel vehicles since 2004, monitored reliability, downtime costs and breakdown frequency, comparing EVs with ICE cars in a number of key areas based on 36 months or 75,000 miles.

These included: SMR costs; number of breakdowns based on 36/75k; fleet insurance costs; downtime; parts availability; repair times; and dealer/repairer performance.

Between June 2017 and December 2021, the driving history of more than 2,500 EVs – Tesla, Porsche, Nissan, Renault, Audi and Mercedes – were scrutinised by the Total Motion team.

It found that the average costs involved in replacing a windscreen were six times that of an ICE vehicle. The average ICE replacement being £397 compared to an average of £2,382 for an EV.

Total Motion said the cost ratio was so different due to technology, such as ADAS, being used in the latest windscreens.

However, it could be argued that’s not down to the car in question being an EV as ICE vehicle windscreens are also employing similar technologies.

The average dealer satisfaction score for ICE vehicles, meanwhile, was 84% for ICE vehicles and 53% for EVs.

The Total motion team also compared miles per gallon (MPG) and range performance. Using the combined published MPG, the ICE vehicle achieved 83.6% while the EV achieved 74.1%.

In terms of insurance, Total Motion found insuring an EV is approximately 19% higher than that of an ICE equivalent, and in of in terms of vehicle off road (VOR) days including accidents, the average number of EV VOR days was 15.3 compared to 2.8 for an ICE vehicle.

Simon Hill, Total Motion director, said: “Whilst the clamour for EV vehicles is gathering momentum, particularly with generous company car tax breaks and the 2030 deadline for ceasing production of new petrol and diesel cars in the UK, we decided to carry out this research on behalf of our fleet customers.

“The findings of the study lead us to conclude that the transition to EV for many fleets is being done far too early, and that this will have significant cost and operational implications.”

Hill said: “Our long-term view is that ICE will continue to reduce in volume and EV and plug-in hybrid (PHEV) vehicles will continue to increase, with a view to hydrogen or hydrogen plug-in being challengers to EV within 15-20 years.”

However, Total Motion’s findings do not tally with the experience of some fleets. Over a four-year operating cycle, Siemens found a lot of EVs to be cheaper than diesel across most comparable models.

Wayne Warburton, Siemens head of UK Mobility Services, told Fleet News last year: “What’s making the difference is the maintenance and fuel. As leasing companies get a better understanding of how much cheaper they are to maintain, they are no longer loading the SMR from a risk point of view.

“The main driver, however, is the fuel savings on offer to the employee and the business and by moving to a TCO model this is very apparent in making an EV the sensible choice.”  By Graham Hill thanks to Fleet News

Tesla is allowing non-Tesla vehicles in the UK to use its Supercharger network, as part of a pilot scheme.

The electric car maker has opened 15 Supercharger stations, with 158 charge points, to drivers of non-Tesla vehicles across the UK.

The sites are located at Aberystwyth, Adderstone, Aviemore, Banbury, Birmingham St Andrews, Cardiff, Dundee, Flint, Folkestone Eurotunnel, Grays, Manchester Trafford Centre, Thetford, Trumpington, Uxbridge and Wokingham.

Drivers must use the Tesla smartphone app to access the chargers. Pricing is set at 60p per kWh, for non-Tesla owners, although a monthly subscription of £10.99 will provide cheaper rates.

A statement issued by Tesla said: “Access to an extensive, convenient and reliable fast-charging network is critical for large-scale EV adoption. That’s why, since opening our first Superchargers in 2012, we have been committed to rapid expansion of the network. Today, we have more than 30,000 Superchargers worldwide.

“Tesla drivers can continue to use these stations as they always have, and we will be closely monitoring each site for congestion and listening to customers about their experiences.

“More customers using the Supercharger network enables faster expansion. Our goal is to learn and iterate quickly, while continuing to aggressively expand the network, so we can eventually welcome both Tesla and non-Tesla drivers at every Supercharger worldwide.”

Tesla chargers are equipped with two connectors. One for Tesla vehicles and a CCS connector. Tesla has not confirmed the maximum charging speeds available to non-Tesla owners at the points.

Last year, Tesla launched a similar trial in the Netherlands. It also provides non-Tesla drivers with access to its Supercharger network in Austria, Belgium, France, Norway, Spain and Sweden.  By Graham Hill thanks to Fleet News

Electric vehicle (EV) drivers are facing delays to the installation of home chargers due to confusion over regulations, says the Association of Fleet Professionals (AFP).

The trade and training body says that the issue is down to the fitting of isolators, which allow power to be cut to the charging unit if required.

They are usually installed as part of the home charger circuit, but in June 2021, decision makers behind the official Meter Operation Code of Practice Agreement (MOCOPA) removed the ability for third parties such as charger installation companies to put isolators in place, stating that this needed to be arranged by energy providers themselves.

The AFP says this had such a detrimental effect on charging installation – introducing delays of typically 4-6 weeks – that the decision was reversed in September.

However, in January, the new Retail Energy Code (REC), which has superseded MOCOPA, said that the original June decision would be reinstated pending an independent review expected to take around six months.

Paul Hollick, chair at the AFP, said: “Home charging is essential to the adoption of electric cars and vans and, according to the accounts that we are hearing from our members, this issue is causing both confusion and substantial delays to fleet electrification.

“It means that almost every home charger installation will now require two engineers – one authorised by the energy provider to put an isolator in place and another to install the charging equipment.”

Hollick explained that this makes the process “slow and difficult” both for fleets wanting to support the installation of home charging equipment and the employees whose homes are being affected.

“At a time when EV adoption has already been hit by delivery delays that mean many key models are not available for a year or more, this is a further exasperating difficulty that is being introduced into the process of electric car and van adoption,” he continued.

“We, of course, very much support the principle that home charger installation should be as safe as possible but there was nothing, as far as we are aware, to suggest that the original process was not resulting in high quality installations.”

The issue has also played a part in the cost of isolator installation rising from around £75 to £200 since June, according to reports from some AFP members.

“On top of this price increase, we are also hearing that there are difficulties getting hold of charging units themselves because of the semiconductor crisis affecting production, which is compounding the issue to some extent,” said Hollick.

“So, we are asking REC, in the short term, to revert to the process of pre-June 2021 to enable rapid deployment of EVs by our members.

“In the medium and longer term, we would like to see qualified electricians given the ability to install the isolator and charger in one instance, essentially returning to the pre-June situation, which was working well.” By Graham Hill thanks to Fleet News

This is the response from a law firm answering this question for a car dealer.

The situation involves a vehicle being damaged while left with a garage, but the damage incurred was through no fault of the garage.

The questions arising from this type of situation are:

Who is responsible for keeping the property safe?

Who pays for the damage to be fixed?

The principle is that of Bailment. The owner of the property is the Bailor, and Bailment is the act of the Bailor delivering goods to another party, the Bailee, without a transfer of ownership. A vehicle being put into the garage for repairs is an obvious example, as is a hire vehicle being hired out.

So just to be clear, you are the Bailor, the owner of the car. The act of leaving your car with a garage for repairs, service, MOT etc. is Bailment and the garage that has your car on their premises is the Bailee.

Most people, and that includes me, assumes that as soon as you hand over the keys to your car that the garage is immediately responsible for any damage to the car irrespective as to how the damage was caused. It would seem that isn’t true. This is what they say:

Unless there is a contractual term that makes the Bailee responsible for insuring or replacing the vehicle, then they do not owe a duty if the goods are damaged as a result of something occurring that is not due to negligence from the Bailee.

In other words, if your vehicle is left with the garage for repairs and an arsonist decides to go on the rampage there, or a major storm decides to pay a visit and rips the roof off of your car or van, the garage does not owe a duty to repair or replace it.

So, unbeknown to me and I’m sure many reading this, if you are the Bailor, the owner, it is important to have the requisite insurance to cover you in the above or similar scenarios.

It is down to the Bailor to check the insurance position with the Bailee if they have any concerns, not the Bailee’s job to advise the Bailor of this situation.

If you are the Bailee, the garage owner, you may wish to make it clear in the terms and conditions that your insurance will not cover any damage sustained due to events out of your control. Obviously, you are responsible for any damage caused as a result of your negligence. It may save an argument and ill feeling if you don’t make this clear upfront. By Graham Hill

A small fleet of fully electric Volvo XC40 Recharge electric cars will be used as taxis and charged wirelessly at stations in Gothenburg, Sweden.

The wireless charging trial will be run for three years and is one of many projects outlined within the Gothenburg Green City Zone, under which designated areas within the city are used as live test beds for the development of sustainable technologies.

Mats Moberg, head of research and development at Volvo Cars, said: “Gothenburg Green City Zone lets us try exciting new technologies in a real environment and evaluate them over time for a potential future broader introduction.

“Testing new charging technologies together with selected partners is a good way to evaluate alternative charging options for our future cars.”

The charging stations, which will be used in the test by Cabonline, the largest taxi operator in the Nordic region, will be provided by Momentum Dynamics.

Charging starts automatically when a compatible vehicle parks over a charging pad embedded in the street, allowing drivers to conveniently charge without getting out of their car.

The charging station sends energy through the charging pad, which is picked up by a receiver unit in the car.

To align the car with the charging pad, Volvo Cars will use its 360-degree camera system.

For the fully electric XC40 Recharge cars, the wireless charging power will be more than 40kW, making the charging speeds around four times faster than a wired 11kW AC charger and almost as fast as a wired 50kW DC fast charger.

In total, the Volvo cars will be used for more than 12 hours a day and drive 100,000km per year, which also makes this the first durability test of fully electric Volvo cars in a commercial usage scenario.

Other partners involved in the wireless charging project include the company’s own Swedish retailers Volvo Bil and Volvo Car Sörred, Swedish energy company Vattenfall and its charging network InCharge, the city energy company Göteborg Energi, and Business Region Gothenburg, a municipal economic development agency owned by the City of Gothenburg.

Last year, Volvo took part in launching the Gothenburg Green City Zone initiative, which aims to achieve emission-free transport by 2030.

Using a real city as a testing ground, it says, enables the company to accelerate development of technologies and services in the areas of electrification, shared mobility, autonomous driving, connectivity and safety.  By Graham Hill thanks to Fleet News