Author Archives: Van Rental

BCA van auction October 2016

Used van prices hit new record in October as age and mileage fall further

Used van prices hit high of £6,368 in October, according to BCA. The auctioneer said that the figure was the highest since its began reporting monthly sales in 2005.

BCA van auction October 2016

BCA said that sales around its UK-wide network of sites were “exceptionally strong”, with average values rising 3.8% (£238) over the month. The average LCV value in October was 12.8% higher than at the same point last year.

As I always point out in these articles, it’s important to look at rising prices in the context of falling average age and mileage, as well as varying model mix. Here’s how age and mileage have changed over the last year:

All vans Avg Age (mnths) Avg Mileage Avg Value
Oct 2015 56.18 77,059 £5,654
Oct 2016 53.83 70,966 £6,378

Source: BCA

The average LCV sold by BCA in October was three months newer and had 6,000 fewer miles than one year ago.  So you’d expect buyers to be paying more. These figures tend to confirm what we’ve been seeing for a while, which is that fleet refresh cycles are continuing to trend lower — or perhaps normalising — as the financial crisis becomes more of a distant memory.

Figures for the fleet and lease sector show that average age has fallen by nearly three months over the last year, while average mileage has fallen by 9,000 miles. This big drop in mileage may be why these desirable vans are fetching a higher proportion of their original book price:

Fleet/Lease Avg Age (mnths) Avg Mileage Avg Value Sale vs MRP
Oct 2015 42.78 71,629 £6,427 33.43%
Oct 2016 40.47 62,657 £7,190 36.63%

Source: BCA

BCA’s Head of Commercial Vehicles, Duncan Ward, commented:

“With recent surveys suggesting improved confidence in small business sectors, an expanding economy according to the ONS and a relative shortage of good quality stock, there is plenty of demand in the used van market.  Both professional buyers and end users are bidding confidently across a range of makes, models and configurations with lots of competition for LCVs that are in ready-to-retail condition.  Values for the best examples will outstrip price guide expectations by a considerable margin.”

“As the Christmas season approaches, online retailers will place increasing demands on the parcel delivery and courier sector, and we expect to see continued interest for larger panel vans over the next few weeks.  The budget van sector is also buoyant, with average values for part-exchange stock rising to the second highest point on record in October.”

Mr Ward’s point about part-exchange stock rising in value suggests small couriers may be buying cheap vans to provide extra capacity for the festive delivery season. One imagines the vans will then be sold off again in the New Year.

One-way van hire to Spain: Vans Europe One Way

Vans Europe One Way logoOne of the most popular specialist services on vanrental.co.uk is One Way Van Hire to Spain.

So I’m very pleased to introduce our newest advertiser, Vans Europe One Way (VEO).

VEO has depots in Sawston, Cambridgeshire and in Barcelona. It’s the sister company of well-established Cambridgeshire van hire operator, Cambridge Van Rentals.

Vans Europe One Way offers a choice of short wheelbase vans, long wheelbase vans, and luton vans for one-way hire to Europe. Pick-up and drop-off services are available by arrangement, and the company can also provide professional drivers.

Pets are welcome to travel with customers and VEO offers a full European removal service for customers who don’t want to take on the whole job themselves.

For more information, contact Vans Europe One Way directly:

  • Web: www.vans-europe-oneway.com
  • Telephone: +44 (0) 1223 83 99 24 (UK) or +34 622 092 310 (Spain)
  • Email: info@vans-europe-oneway.com

 

If you’d like to see your van rental business listed on vanrental.co.uk, check out our range of advertising options here, or contact us directly.

McQueens Dairies VW Transporter LWB dropside

McQueens milkmen shop in Germany for perfect VW conversion

Milk delivery firm McQueens Dairies has decided to go direct to source for its latest 80-van order. The company has orders 80 Volkswagen Transporter dropside vans for its UK delivery drivers to use.

McQueens Dairies VW Transporter LWB dropside

Some of McQueens Dairies’ current long wheelbase VW Transporter dropside vans.

It’s a relatively unusual base vehicle for a dropside in the UK — the Transit is the most common choice. McQueens’ vans are even more unusual because the firm has specified the long wheelbase variant. It’s for this reason that the vans will be converted to McQueens’ specification in Germany before being delivered to the UK.

Discussing the order, Calum McQueen, Commercial Director at McQueens Dairies, said:

“We couldn’t be happier about bringing in 80 Volkswagen Transporter dropside vans. They have proved time and time again to be the best commercial vehicle for our business.

“Having them specifically converted for us in Germany demonstrates how committed we are in our long-term partnership with Volkswagen Commercial Vehicles. We know we will always get the best vehicle possible for the job.”

McQueens Dairies previously had a mixed fleet of 100 vehicles before replacing the majority with the 80 Volkswagen LWB dropside vans, and plans to expand its fleet before the end of the year.

 

LCV best sellers - October 2016

UK van registrations dip in October, but Ford maintains market stranglehold

Demand for new vans fell by 4.5% to 26,950 units in October, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). But total registrations for the year-to-date remain up by 2.0%, according to the trade organisation.

October’s figures suggest that total registrations were dragged down by a significant fall in sub-2.0t and 2.5-3.5t models:

New van registrations October 2016

New van registrations October 2016 (source: SMMT)

The SMMT figures for 2016 so far show that both sub-2.0t and 2.0-2.5t vans have seen a fall in registrations this year. Only 2.5-3.5t models have seen overall gains:

New van registrations YTD Oct 2016

New van registrations year-to-date Oct 2016 (source: SMMT)

Commenting on the figures, Mike Hawes, SMMT Chief Executive, said:

“Following the sector’s very strong performance in 2015, a levelling off in demand was expected, so this month’s decline comes as no surprise. Overall, the market remains robust, with the number of van registrations in the first 10 months of 2016 outperforming any other year on record. Maintaining business confidence for LCV operators will be critical to this sector’s future performance.”

I agree that some flattening off of the market was likely after last year’s bumper performance. It will be interesting to see how much further sales trends have to fall before reaching stable levels.

October’s best sellers

It should come as no surprise to anyone that Ford retained its position as the UK’s best-selling LCV brand in October. Running a distant second was Volkswagen. Here’s a rundown of the full top ten for October and for 2016 to date:

LCV best sellers - October 2016

LCV best sellers – October 2016 (source: SMMT)

Van sales may be falling, but with more than 30% of the market, Ford’s position appears unassailable.

Vauxhall Movano police van

Vauxhall locks up police market with new cop car factory

Vauxhall apparently has a 70% share of the UK police fleet market. The Luton-based firm used to prepare the police-spec vehicles at a facility in Millbrook, Bedfordshire but has now opened a purpose-built cop car conversion factory in Luton.

Vauxhall Movano police van

All Vauxhall police vehicles are converted at the firm’s dedicated new factory in Luton.

Vauxhall’s Combo, Vivaro (which is built just round the corner) and Movano vans are a popular choice with UK police fleets, as are its cars. The new factory will convert 2,500 vehicles per year for police, fire and ambulance services around the UK.

The good news is that the new factory has created 50 new jobs in the Luton area and will source 90% of the materials used in the conversions from local UK firms. Vauxhall is the only manufacturer to offer a one-stop shop for blue-light vehicles. Testing, converting and even decommissioning and remarketing are all done in house.

Vauxhall police Vivaros

Vauxhall Vivaro vans converted for UK police forces

Police vehicle specifications have changed rapidly in recent years, mainly in terms of the data and connectivity police expect to have available at their fingertips wherever they are. New police vehicles are fitted with technology such as 4G Wi-Fi and rugged Toughbook tablets. All of the preparation needed for this is taken care of by Vauxhall.

“Through our flexible production facility, Vauxhall is able to offer a one-stop shop purchasing experience to UK emergency services,” said Dick Ellam, Vauxhall’s Manager, Special Vehicles.

“We can deliver a wide choice of car and van models, specifically designed and rigorously-tested to meet the stringent demands of our emergency services. We can also supply turn-key vehicle solutions that enable rapid turnaround of replacement vehicles, plus we can now offer a unique in-house de-commissioning and re-marketing service.”

That’s what I call an insider job.

Vauxhall Made in Britain badge

EU demand boosts UK commercial vehicle output in September

Vauxhall Made in Britain badge

The Vauxhall Vivaro is one of the main volume-produced commercial vehicles builtin in the UK.

UK commercial vehicle manufacturers received a boost in September after export orders rose by 16.5% compared September 2015.

However, today’s figures from the Society of Motor Manufacturers and Traders (SMMT) also show that the rise in export demand was offset by an 18% drop in demand from UK buyers.

The end result was that UK CV production fell by 0.7% to 9,742 units in September.

SMMT CV production figures Sept 2016

Source: SMMT

Why did demand change last month? The weak pound is probably making UK vehicles priced in euros slightly cheaper to buy, hence rising export demand. The switch to Euro 6 emissions may have dampened demand in the UK, as some buyers will have aimed to buy cheaper Euro 5 models while they were still available.

Commenting on the figures, Mike Hawes, SMMT Chief Executive, said:

“The drop in production last month comes as no surprise following the regulatory changes last year which significantly altered fleet renewal patterns. Despite the decline, the sector is broadly stable, with output remaining at a high level. Maintaining the competitive trading conditions currently delivered through membership of the single market and which underpin the strength of the sector will be critical to future performance.”

News today that Nissan will produce the next version of its popular Qashqai car at its Sunderland plant suggests that at least one manufacturer is confident about the future of automotive manufacturing in the UK.

Today’s news about the Qashqai comes just a week after Nissan boss Carlos Ghosn met with Prime Minister Theresa May. I suspect the close timing of these two events isn’t a coincidence… I wonder what was said — and if other manufacturers will follow suit/receive the same assurances?

Volkswagen Transporter T6

New Volkswagen Transporter BlueMotion now available to order

The sixth-generation Volkswagen Transporter has been on sale for a while now, but the new range has been missing a BlueMotion variant. That omission has now been addressed. Van buyers can now order a Transporter BlueMotion at VW Van Centres.

Volkswagen Transporter T6

A standard Volkswagen Transporter T6. Not the BlueMotion version.

BlueMotion badging signifies the most efficient version of a Volkswagen car or van. VW says that the T6 Transporter BlueMotion offers combined cycle fuel consumption of 51.4mpg versus 47.9mpg for the equivalent standard model. CO2 emissions fall from 153g/km to 145g/km.

They’re not huge savings, but are potentially worthwhile. However, buyers wanting a Transporter BlueMotion have a very limited choice in terms of specification. The BlueMotion model is available in just one variant, with the following core specification:

  • Short wheelbase panel van
  • 2.0-litre TDI 102 PS Euro 6 engine
  • 2.7 tonne gross vehicle weight

The van’s efficiency gains over the base Startline model are the result of a number of changes, including:

  • Aerodynamically improved wheel spoilers (not sure what these are — plastic wheel trims?)
  • Lowered suspension
  • Modified gear ratios
  • Low friction tyres
  • Cruise control
  • Speed limiter @ 62mph

Confusingly, these changes are added to what VW describes as “the standard BlueMotion Technology modifications which come as standard on all T6 models”. These include Stop/Start and battery regeneration systems.

Tantalisingly, Volkswage says that the Transporter BlueMotion has a payload of 839kg, which is “up to 121kg more” than the short wheelbase T26 2.0-litre TDI 102 PS five-speed manual. Reading the list of changes above, it’s hard to see where a 121kg saving might have come from.

If I had to guess, I’d say that the majority of this weight saving might come from the removal of a spare wheel and related tyre change kit. I’ve not confirmed this with VW. But I would if I was buying. I’d imagine it could be a make-or-break factor for some buyers.

Volkswagen factory, Wrzesnia, Poland

What does it take to build a new van factory?

Volkswagen’s newest factory will build 17 vehicles per hour, 380 vehicles per day and around 100,000 vehicles each year.

Volkswagen factory, Wrzesnia, Poland

The new Volkswagen Crafter factory in Wrzesnia, Poland

Located in Września, Poland, the new factory is dedicated to the production of the Volkswagen Crafter and its badge-engineered peer, the MAN TGE van. The factory was completed in just 23 months, from breaking ground in November 2014 until the start of production in October.

It’s an impressive lesson in how rapidly the big automotive manufacturers can deploy new production capacity. But what was involved in the creation of this plant? Here are a few numbers:

  • The plant occupies an area of 220 hectares, or around 300 football fields
  • During excavation, approx. 1,000,000 m³ of soil was moved with 50,000 trips by dump trucks.
  • 22,000 metric tonnes of structural steel and 8,000 tonnes of reinforcing steel were used.
  • 50,000 m³ of concrete was poured by 6,000 cement trucks.
  • 4,000 foundation pilings were rammed 16 metres into the ground.
  • 15,000 metres of utility pipe was laid in the plant.
  • 19,000 training sessions were performed in the framework of occupational safety.
  • In the ramp-up phase, approx. 3,500 (construction) workers were employed at the plant construction site in Września.
  • 45 suppliers from Poland supply the plant
  • Now that the plant is complete, around 3,000 employees will work a three-shift system

The new Crafter also promises to be impressive and supremely flexible. The Września factory will build a total of 69 Crafter derivatives. The Crafter will be available with a maximum gross weight of up to 5.5 tonnes and in panel format up to 7.4m long.

Given that the population of the town of Września is only 30,000, one images that this new factory will have a big impact on the local economy as well as the landscape.

What we don’t yet know is if the new Crafter — the first model to be an in-house design, rather than a rebadged Sprinter — have a similar impact on the van market.

RAC Patrol of the Year Charlie Harding

MPG Marathon shows vans can deliver on manufacturer mpg figures

As any commercial driver will point out, fuel consumption is directly related to load weight. There’s also a looser relationship with aerodynamics, road conditions and of course driving technique.

Bashing manufacturers’ official mpg figure is a popular hobby among motorist, all the more so since we’ve learned that many manufacturers have been rigging their emissions testing.

But this year’s Fleet World MPG Marathon suggests that in the van sector at least, manufacturers’ official figures do provide a realistic idea of what’s possible in moderately favourable conditions.

Fiat Fiorino winning MPG Marathon 2016

The MPG Marathon 2016-winning Fiat Fiorino with drivers Doug Powell and Tony Waddington.

Only five light commercial vehicles entered this year’s contest. Here’s how they fared:

Model MPG Marathon mpg Manufacturers’ combined cycle mpg Difference
 Citroen Dispatch BlueHDI 95 S (SWB)  54.76mpg 51.40mpg +6.5%
 Isuzu D-Max Blade Auto Pickup 35.24mpg 33.60mpg +14.9%
 Fiat Fiorino 1.3 MultiJet SX 80hp  72.08mpg 64.20mpg +12.3%
 Ford Transit Custom 330 SWB 125ps (RAC patrol, fully loaded)  39.84mpg 40.90mpg  -2.6%
 Vauxhall Vivaro (current model, no details provided)  46.29mpg 46.30mpg -0.02%

Source: thempgmarathon.co.uk

What’s remarkable about the figures above is how close they are to the manufacturer’s official combined cycle figures. In all but one case, there’s virtually no difference.

I’ve highlighted two vans on this list for their outstanding performance. The first is the Fiat Fiorino driven former fleet manager Doug Powell and co-driver Tony Waddington. The Fiorino managed more than 72mpg — that’s a 12.3% improvement on Fiat’s official combined cycle figures.

As the smallest van present, you’d expect the Fiorino to deliver the lowest fuel consumption. What’s impressive is that while all of the other vans broadly matched their manufacturers’ figures, the Fiorino beat its official figure by a big margin.

Of course, Powell and Waddington’s Fiorino wasn’t loaded. None of the vans were — except one. RAC Patrol of the Year Charlie Harding was driving his Ford Transit Custom work van, fully loaded with the payload of more than 500 tools and spare parts carried by all RAC Patrols.

RAC Patrol of the Year Charlie Harding

RAC Patrol of the Year Charlie Harding took part in the 2016 MPG Marathon in his fully-loaded patrol van.

Despite this significant weight handicap, Harding and his co-driver Peter Thompson managed to come within 1mpg of Ford’s official combined cycle figure of 40.9mpg.

As was the case last year, by entering a patrol with a fully-loaded van, the RAC has demonstrated that work vans can deliver decent fuel consumption when driven well.

Impressive stuff.