Guide book EurotaxGlass has shook up the LCV market. It has claimed the sector needs to take a more realistic approach to determining values for hard-used vans.
Instead of continuing to benchmark against unrealistically low mileages EurotaxGlass claims most van manufacturers are primarily car-makers, and they typically calculate residual values for commercial vehicles against a three-year, 60,000-mile standard mark.
However, this is a glaring inconsistency, given that the majority of panel vans are doing upwards of 30,000 miles a year, explains George Alexander, Chief Commercial Vehicle Editor at
EurotaxGlass’s.
Alexander said: “The industry yardstick for average mileage falsely favours those less robust products that will survive intact to a modest mileage, but would fare far worse as the 100,000-mile mark approaches. The need is to determine values for hard used vans at the end of a contract and not for the cleanest most popular models, with modest warranted mileage. In the current marketplace, stock which has covered 60,000 miles or less is in great demand and will command strong prices. The danger is that, if an assessment of future residual worth for competing products starts from such a point, there is little chance that stock returning with 90,000 miles or more will have a chance of meeting vendors expectations.”
Simon McBride

Western Power Distribution has renewed its contract with Ford to supply all its light commercial vehicles and small business cars. The new agreement is for two years, with an option to extend.
The electricity distribution company for South-West England and South and West Wales, based in Bristol, runs 600 diesel-powered Ford Transit T300s and T350s, Transit Connects and Rangers, as well as Ford Focus hatchbacks.
WPD delivers electricity to 2.5 million customers over a 10,000 square mile area. Its technicians use Ford vehicles, for construction and maintenance of its large network.
“We’re very pleased with the vehicles,” said WPD’s Fleet Manager John Brooks. “They’re reliable, and delivery and service from the main dealer is very good. The drivers are happy too – it’s an all-round good-quality product.”
www.ford.co.uk

Faye Sunderland

The rise of ‘White Vin’ Man (and ‘White Vin’ Woman) Swinton identifies new generation of upmarket van drivers.

The stereotypical ‘white van man’ has a new, more upmarket rival according to leading high street insurance retailer Swinton. It has identified a new generation of self-employed professionals, both male and female, who are investing in top of the range commercial vehicles with which to ply their trade. Swinton has dubbed them the ‘white vin man’ and ‘white vin woman’.

Swinton reports that ‘white vin man’ has contributed to a sharp increase in insurance policies being taken out on sophisticated and expensive vans such as the Mercedes Vito and VW Transporter Sportline over the last two years.
These are preferred by ‘white vin man’ as they can double up as the owners personal transport and further not look out of place in the golf club car park next to BMWs, 4×4s and people carriers. 

Policy data also reveals that the type of work undertaken by ‘white vin’ men and women is a very different from that of plasterer, plumber and builder. Typically their jobs are linked to the creative industries - with occupations such as landscape gardener, interior designer, organic grocer and gourmet caterer being submitted on insurance applications. Of these applications, 35% come from female van owners seeking insurance.

In addition to needing cover for high specification commercial vehicles, Swinton has also seen the specialist nature of these occupations affect the nature of contents and equipment requiring insurance.  Rather than power drills and stepladders, Swinton is being asked to quote for top-end laptops, DAB car radios and very high value ‘tools of the trade’.

Swinton calculates the average value of vehicle and contents for a ‘white vin’ driver is £25,000. This is in sharp contrast to £6,000 average value for a second hand panel van, including contents, which is more commonly associated with the traditional ‘white van man’.
A spokesperson from Swinton’s Commercial Vehicle division said of the
trend:

“A new generation of entrepreneurs are shunning nine to five jobs and going into business for themselves. It also appears that TV shows such as Master Chef and House Doctor are giving some of these people the confidence to go it alone in the more creative and artistic sectors.

“Combine that with the huge amount of money people continue to invest in improving their homes, gardens and their quality of life in general and you can see how the type of skills and services white vin men and women offer would be in demand.

 “The high value of contents being insured also reflects the specialised nature of their occupations. For example, a recent application we received for a professional ‘home stager’ listed £3,000 worth of props including antique vases, modern artworks and Persian rugs amongst the items that required cover.

“But just like Swinton’s thousands of traditional van driving customers, these self-employed professionals also need practical and reliable transportation. However it seems that their slightly more upmarket tastes extend to the type of commercial vehicle they are purchasing.”
http://www.swinton.co.uk/

Faye Sunderland

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Nissan’s commercial vehicle boss, Mark Lovett has left to join leasing giant Lex. It is understood that he will be running Lex’s van operations.
Lovett has established a good reputation and is recognised as with vastly improving Nissan’s commercial vehicle sales.

 Faye Sunderland

http://www.lex.co.uk/

Vauxhall has confirmed that it will wow the crowds and unveil three concept vans at the CV show in the NEC, Birmingham on April15. The ‘Black Edition’ models show according to the maker, what can be done by applying a little extra style – in the case of the Corsavan and Astravan by using extra specification already available through Vauxhall retailers.
The Corsavan Black Edition Concept will garner a lot of interest as it is based on the Sportive 1.3CDTi (90PS) model and adds extra specification in the form of 17-inch Sports Star alloy wheels. The van is also equipped with front, side and rear spoilers and a unique chequered livery on the bonnet, roof and tailgate while on the inside it has Recaro part-leather sports seats.
The Astravan Black Edition Concept is based on the Sportive SE 1.9 CDTi (150PS). It comes with 18-inch Sports Star alloy wheels, a twin pipe rear exhaust, sports steering wheel, leather Recaro seats and a similar chequered livery.
Finally the Vivaro Double Cab Black Edition Concept has a unique front bumper plus side and rear spoilers, 17-inch alloys, twin split-pipe rear exhausts, stainless steel front fog light surrounds and a full leather interior, along with the distinctive chequered livery of its siblings.
For contract leasing offers on the latest Vauxhall vans always check www.contracthireandleasing.com for the most competitive deals.
Simon McBride

Mercedes Benz are just about to launch a large online campaign on the industries leading retail van website www.TheVanWebsite.co.uk. Mercedes are targeting the Sole Trader, large and small fleet decision makers in an effort to drive up sales of their Vito Van range.

4X4 Specialist, Land Rover has given in to customer demand and will introduce a a commercial version of the Freelander 2 to its product line-up.
The Freelander 2 Commercial goes on sale in the UK this month and will be priced from £20,775 on the road. As a commercial vehicle, it will benefit from being VAT and Company Car Tax exempt, adding to the appeal for business customers.
For contract hire and leasing deals on commercials always check the offers on www.thevanwebsite.co.uk
It’s due to be showcased for the first time at the Commercial Vehicle Show at the NEC, Birmingham from April 15-17.
The Freelander 2 Commercial will be available in ‘S’ and ‘XS’ versions.  The specification will be as a standard Freelander 2 at the respective trim levels, without rear seats and side airbags but with the addition of a full-height solid bulkhead with mesh panel, floor support frame, floor panel with lashing points, fixed rear side glass, rubber load-space mat, tail door and side window guards and rear cargo lighting.
The ‘XS’ derivative benefits from Land Rover’s acclaimed Terrain Response system, 17″ alloys, power-fold mirrors, a full size spare wheel, front park distance control, part leather trim, automatic climate control and branded ICE.
John Edwards, managing director for Land Rover UK said: “Since the launch of the Freelander 2 in November 2006, there has been high demand for a commercial derivative from our customers and dealers. . “The Commercial offers supreme load-space capability together with levels of ride, handling, comfort and equipment which will further re-define the compact 4×4 commercial segment.”
Simon McBride

According to EurotaxGlass’s, the 98 per cent increase in Vehicle Excise Duty (VED), recently announced by the Chancellor for a selected group of used cars, is certain to have an impact on their residual values – but only when potential buyers make sense of the complex new rules, and identify those vehicles worst affected.
The cars that will experience the biggest jump in VED are those emitting over 226g CO2 per km, registered after 1st March 2001 but before 23rd March 2006.  These cars, which move from the current band F to the new bands L or M, will see their VED jump from £210 to a minimum of £415 from next year – a significant amount relative to their likely value.
“As prices for older cars reduce over time, the tax burden comes into greater focus for prospective buyers, affecting demand and values,” comments Adrian Rushmore, Managing Editor at EurotaxGlass’s.  “Such a sharp rise in VED could well have implications for the used car market in the coming months and years, but much will depend on customers’ understanding of the changes.”
Rushmore suggests that widespread uncertainty about the detail of the VED changes is likely to reduce the likelihood of any dramatic falls in values for the affected cars in the short term.  However, he also reports that these same vehicles are already becoming characterised by above-average rates of depreciation.
“We have seen a widening differential in used values between high and low polluters in the last two years, in particular because of increases in fuel costs – high polluters are usually also high consumers of fuel.  The latest rises in VED will increasingly be viewed as an integral part of overall rises in motoring costs for high polluting cars, putting their values under further pressure.”
http://www.eurotaxglass.co.uk/

Fleets should not use the delay on fuel duty included in the Budget as an excuse to postpone action on petrol and diesel costs, warns cfc solutions.
The April 1 fuel duty rise previously announced by Chancellor Alistair Darling has been put back to October 1 in recognition of recent spiralling fuel costs – since the last 2007 Budget, petrol has risen in cost by around 17 pence per litre and diesel by 20 pence.
However, the fleet software market leader says that upward pressure on oil prices will see pump prices continue to rise during 2008, and that a structured approach to fuel management should be adopted by fleets who have not done so as soon as possible.
Alison Southcombe, marketing leader, said: “The delay in the two pence per litre duty rise gives fleets a little breathing space but the fact is that price rises seen in the last year dwarf the duty that has been delayed.
“While there is no evidence to suggest that we will see a further 20 pence per litre price rise repeated in 2008, two pence might not make that much difference. Instead, a structured fuel plan is needed.”
cfc has a standard five point plan to fuel management that it uses to introduce its fleet customers to the basics of fuel management.
Southcombe added: “There is a perception among many fleets that you just have to grin and bear rising fuel costs but, in fact, there is much that can be done to manage down the amount of fuel your vehicles use and the pump prices that you pay.”
1. Measure your fuel use

A large number of fleets simply don’t know how much fuel they use overall or per driver or per vehicle. You need to put a monitoring system in place. The easiest way to do this is to buy all petrol and diesel through specialist fuel cards. You can then access the information collected as paper or software generated reports that will give you an overall picture and highlight individual problems.

2. Formulate a fuel policy

Having a policy on fuel use is a signal to your organisation that you are taking the issue seriously. There are a number of areas to consider but even simple steps can produce good long term results - for example, don’t add cars to your fleet that do not meet a pre-agreed Government combined average fuel consumption figure.

3. Manage the issue

With the information provided by your fuel cards, you will be able to manage your fuel use proactively. Software is useful here. For example, you can set up what you believe to be acceptable bands of fuel consumption for different types of vehicle and ask the system to notify you when drivers or vehicles fall outside of these. You can also use your fuel card to closely manage fuel spend - for example, by specifying that drivers only use outlets that you consider to be price competitive, such as supermarkets.

4. Consider the green angle

One of the good things about taking a proactive stance on managing fuel use is that you will also be able to manage your carbon footprint more effectively. This can make the whole issue easier to deal with internally because you can stress the importance of corporate responsibility - for example, it may be easier to encourage drivers to share cars or take more care planning routes on environmental than cost grounds.

5. Cancel out fraud

Most fleet managers will tell you that rising fuel prices also tend to lead to higher levels of fraud among drivers. If you operate a fuel card system and link each card to a vehicle, then fraud is almost impossible. However, if you simply allow drivers to reclaim fuel from receipts submitted, it is all too easy for them to fill up their spouse’s car using company money once a month. The administrative burden of a pay-and-reclaim system means that it is unlikely they will ever be caught.
Southcombe added:”These are all relatively simple steps but they will help you to control fuel expenditure and also cut your carbon footprint. Like many areas of fleet management, it is all about taking a methodical approach and implementing measures thoroughly.”
www.cfcsolutions.co.uk