Author Archives: Van Rental

UK CV manufacturing output flat in November: is the long decline over?

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The decline in UK commercial vehicle manufacturing has been long and vicious over the last year or so — output fell by 31% in September 2014 compared to September 2013, for example.

There were some signs of hope in October, when the fall in output was just 8.9%, but this month’s figures suggest the decline caused by plant closures and restructuring is finally over: CV manufacturing output fell by just 0.7% in November, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

What’s more, the strong growth in domestic demand for UK-built CVs continued: October saw a rise of 14.6%, which was followed in November by a rise of 12.4%. The figures suggest that only cratering demand in our export markets, mainly the EU, is preventing overall manufacturing output growth:

CV manufacturing Nov-13 Nov-14 % Change YTD-13 YTD-14 % Change
Total 7,121 7,073 -0.7% 82,947 65,054 -21.6%
Home 3,743 4,208 12.4% 39,089 33,054 -15.4%
Export 3,378 2,865 -15.2% 43,788 32,000 -26.9%
% export 47.4% 40.5% 52.8% 49.2%

Data courtesy of SMMT (www.smmt.co.uk)

Mike Hawes, the SMMT’s chief executive, is pleased with the turnaround and believes it will continue into 2015:

“The signs remain positive for UK commercial vehicle production after many months of decline, with output in November almost level. The strong UK market is driving the turnaround, while export markets continue to struggle. We anticipate 2015 to be a better year as new models ramp up and the effects of last year’s restructuring no longer apply.”

Despite this optimism, it’s worth noting two points: firstly, EU demand isn’t showing any sign of picking up. Secondly, look how far output has fallen:

UK CV manufacturing output 2008-2014 (Nov 2014)

UK CV manufacturing output changes (courtesy of SMMT)

Output has fallen by around 70% from its 2008/9 peak: most of that production is unlikely to return. However, I’ve dwelt on this issue enough times before and will try to avoid mentioning it again, if this month’s positive trends continue!

Nissan e-NV200 Combi scores early success with Cornish taxi firm

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C&C Taxis Nissan e-NV200 Combi

C&C Taxis Nissan e-NV200 Combi

More evidence — if more evidence is needed — that electric cars, vans and minibuses are already commercially viable for business use, where usage patterns are highly predictable.

A Cornish taxi firm, C&C Taxis of St Austell, has just added a Nissan e-NV200 Combi minibus/people carrier electric vehicle to its taxi fleet, which already includes six electric Nissan LEAF cars.

The five-seater Combi – Next Green Car’s LCV of the Year – has since clocked up more than 1,000 miles across the Duchy.

Already C&C’s fleet manager, Mark Richards, is sure the company’s onto another winner, calculating that, just like each LEAF on the fleet, the e-NV200 Combi will save £10,000 in fuel bills per year.

The additional versatility and practicality the e-NV200 Combi provides has convinced him to commit to a long-term strategy of phasing out the company’s remaining diesel vehicles and replacing them all with EVs.Mark said:

“We’ve had such great success with our LEAFs we decided we were going to buy an e-NV200 the minute we learnt it was going to be launched.

“Now we have one, we’re absolutely delighted with it. It does everything the LEAF does but is much bigger and offers more space.”

“We’ll definitely be ordering more.”

Priced from £17,855 (including the £5,000 Government Plug-in Car Grant), the e-NV200 Combi is capable of covering 106 miles on a single charge and can be charged from zero to 80% full in as little as 30 minutes and offers near purchase price parity with diesel models, as I’ve written before.

Although electric vehicles are unlikely to make it into mainstream daily van and minibus rental fleets anytime soon, due to their range and charging restrictions, I’m pretty sure that we’ll be seeing more businesses adopt electric vans and people carriers like the e-NV200 in 2015.

What Van? Awards roundup: Ford 4, Renault 3, but Merc still safest

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All-new Ford Transit Courier

The all-new Ford Transit Courier — What Van? Van of the Year 2015

We’ve grown used to seeing Ford’s all-new commercial vehicle range sweep the board at awards ceremonies, but the folks from Dagenham were given a run for their money by the good people from Renault at the What Van? Awards 2015, which was held in London on 16 December.

Ford nudged ahead in extra time to take the overall winner’s trophy with four awards, but Renault managed a very respectable three awards, thanks to the strong impact made on the judges by the new Renault Trafic. Here are some of the highlights:

  • Van of the Year: Ford Transit Courier.
    It’s two in a row for Ford — last year, the firm won the Van of the Year award with the new Transit Custom
  • Small Van: Ford Transit Courier
    Two in a row again — last year, it was the Ford Fiesta Van!
  • Light Van: Ford Transit Connect
  • Medium Van: Renault Trafic/Vauxhall Vivaro
    Renault’s big triumph this year, displacing last year’s winner, the Ford Transit Custom
  • Large Van: Iveco Daily
    The Italian stallion of heavy vans was runner-up last year, but pushed last year’s winner, the Teutonic Sprinter, into second place this year.
  • Pick-up: Ford Ranger
    Number four for Ford, and two years in a row for the very successful (and large) Ranger pick-up
  • 4×4 Van: Mitsubishi Outlander 4Work
    The Outlander 4Work is a 4×4 car that’s been turned into a van (it still has rear passenger doors), making its triumph over the Highly Commended Mercedes-Benz Sprinter 4×4 seem slightly irrelevant — they aren’t really comparable. However, it’s a cool niche, and the Outlander is a good piece of kit.
  • Green Van: Nissan e-NV200
    I shouldn’t think there was much contest in this category — I’ve raved about the e-NV200 this year and it has been a standout success among its peers, gaining widespread plaudits from trial customers and a substantial order from British Gas before it even went on sale. A class act that shows how electric vans will work for urban users — who desperately need a break from poisonous diesels.
  • Innovation: Renault Trafic blind spot visor
    Number two for Renault, thanks to its innovative Wide View Mirror that’s built into the passenger sun visor and helps van drivers see into their blind spot.
  • Renault Twizy on streets of Bruges

    A Renault Twizy I snapped recently in Bruges. The load compartment is at the back — neat urban delivery vehicle.

    Editor’s Choice: Renault Twizy Cargo
    The third and final award for Renault, the awesomely cool one-seater van that is the Twizy. It reminds me of the BMW C1, a roofed-over motorcycle with a car-style seat, but the Twizy is much more practical, as it has four wheels and a more substantial luggage compartment — plus it’s electric. I recently saw one of these on the road for the first time, in Bruges, and was very impressed.

  • Safety: Mercedes-Benz Sprinter
    Five years in a row for the Sprinter, which has won the What Van? Safety award every year since it was introduced in 2010. ESP (1995), driver airbag as standard (2000), crosswind assist (2013) and most recently Rescue Assist QR code stickers. What can you say? The Sprinter’s safety spec has frequently been streets ahead of most other vans, which have tended to lag cars in this department.

So there you have it — van buyers are spoilt for choice at the moment, as almost all of the major models have either been replaced or updated in the last eighteen months.

It’s an embarrassment of riches — who needs cars?

Brighton van hire: Strafford Self Drive

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Strafford Self DriveI’m very pleased to welcome our newest advertiser, Strafford Self Drive of Brighton, to vanrental.co.uk.

Founded 31 years ago, in 1983, Strafford is an independent car and van hire specialist serving business and leisure customers along the south coast, from its base on Preston Road (A23) in Brighton.

Strafford offers a comprehensive range of van, minibus and MPV vehicles for hire, including:

  • Small van (e.g. Volkswagen Caddy)
  • Medium van (e.g. Vauxhall Vivaro short wheelbase)
  • Large/long van (e.g. Vauxhall Movano LWB)
  • 8-seater splitter van / crew van (8 seats + table + loadspace in a long wheelbase van)
  • 7-seater automatic MPV (e.g. Renault Espace)
  • 12, 15 & 17-seater minibuses

All vehicles are well-maintained and come with full breakdown cover. European use is available, subject to additional costs and prior arrangement.

For more information, to receive a quote or to make a booking, contact Strafford Self Drive directly:

Jargon buster: van weights and payloads when moving house

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Let us show you how to move house with a hire van

If you’re thinking about hiring a van to move house, there’s lots to get your head around. Not only have you got to be aware of the maximum weight that your van can carry, but you’ve also got to understand the jargon that goes along with hiring a van.

We’ve put together a jargon buster to help you get on the road and answer the most commonly-asked questions.

Jargon buster

Large van / long wheelbase van: this is a typical large panel van that you might hire to move house, such as  long

Luton van: This is a van with a box body on the back. These are popular with small removal companies as they offer more space and a wider, flat floor with no wheel arches in the loadspace.

3,500kg or 3.5 tonne: These are the same thing, as 1 tonne = 1,000kg. Most big hire vans are described as 3,500kg vans. This means the maximum permitted weight of the van itself plus the load and any passengers is 3,500kg.

Payload: This is vital — the payload is the maximum load weight you can put in the van, including passengers.

  • For a 3,500kg panel van, the payload is typically around 1,200kg – 1,400kg
  • For a 3,500kg luton van, the payload will be a bit less, maybe 1,000kg – 1,200kg
  • These numbers vary between models. Any reputable hire company should be able to tell you the maximum payload for the van you are hiring

Overloaded: This is what happens if your 3,500kg weighs more than 3,500kg when you are stopped by the police — whether in the UK or Europe. Depending on how much over the weight limit your van is, you will be fined and/or forced to remove the surplus weight from the vehicle before being allowed to continue.

Ignorance is no excuse if you’re overloaded: you, the driver, are always liable, regardless of circumstances.

I don’t know how much any of my stuff weighs…

If you’re shifting boxes of wine or bags of cement (for example), it’s easy to know how much your load weighs. Each item is labelled with its weight, and they’re all the same.

Unfortunately it’s not so easy with household goods. You can’t realistically weigh your furniture, for example.

The solution, if you want to be sure, is to take your loaded van to your nearest public weighbridge before setting off. You can usually find details of these on your local council website (or try your nearest major recycling centre).

Renault unveils new Trafic and Master Passenger minibus models

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Renault Trafic Passenger

The new Renault Trafic Passenger

Minibus hire firms and anyone else needing 8-17 seater passenger vehicles have two new options from today — the Renault Trafic Passenger and Master Passenger ranges. Order books opened today for the new minibus ranges and first deliveries are expected early next year.

Both the new models are of course based on the same platforms as the firm’s latest van models, and in all. There’s plenty of choice: a total of 17 variants of the Trafic Passenger and nine versions of the Master Passenger are now on offer.

Trafic Passenger

The Trafic Passenger is available with short (3098 mm) or long (3498 mm) wheelbases, four 1.6-litre dCi turbodiesel engines – depending on version – and a choice of ‘Business’ or ‘Sport’ trim levels. All versions have three rows of three seats, although buyers have the option of deleting the third row to increase load capacity. Sport models are also available with two individual front seats as a no-cost option.

The Trafic is powered by the same 1.6 dCi used in the van, with a choice of four power levels, ranging from 90 – 140hp. The twin-turbo ENERGY engine choices (120 or 140hp) offers the best fuel consumption and lowest emissions, but do come at a slight premium to the standard dCi models, suggesting they will appeal most to higher-mileage owners.

Master Passenger

Renault Master Passenger

The new Renault Master Passenger

The Master Passenger is sold as a 6-seat Combi, 9-seat Combi, 17-seat Minibus and Trabus Glazed Panel Van. They are powered by four different versions of the 2.3-litre dCi turbodiesel engine, one of which offers the convenience of Renault’s Quickshift robotised semi-automatic gearbox.

Business trim is standard on all models, which gives DAB Radio, CD, USB and Bluetooth connectivity as well as ESC (Electronic Stability Control) with Grip Xtend, Hill Start Assist and Trailor Swing Assist.

The 6-seat Combi has a 3182 mm wheelbase, for the 9-seat Combi this is extended to 3682 mm, while for the 17-seat Minibus the wheelbase is even longer at 4332 mm. The Trabus Glazed Panel Van is offered in medium- and long-wheelbase formats.

All Master models are powered by Renault’s 2.3 dCi engine, against in a choice of power outputs from 110hp to 150hp, and including the option of one ENERGY twin-turbo model, which delivers 125hp and offers claimed fuel consumption of 44.1mpg, compared to 38mpg for the standard dCi 125.

Used van prices flatten out as de-fleet volumes rise

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BCA van auction Nov 2014

A BCA van auction in progress

You can prove pretty much anything you want with statistics, but in my view last month’s used van figures from Manheim and BCA suggest that the used van market is flattening out and that used volumes are rising to reflect the 18% rise in new van registrations seen so far this year.

Let me explain why.

BCA: According to BCA, the average used van price was £5,615 last month, the third-highest figure on record. Prices reached an all-time high in August (when I flagged up that the vehicle mix might be changing), since when they’ve averaged lower for each of the three consecutive months.

According to BCA’s monthly figures, average price, mileage, age and sale vs. CAP % have all remained fairly flat over the last three months, suggesting that rising new van registrations are having an impact on the market. Frustratingly, BCA never includes any information about volumes in its monthly used van reports, so it’s not possible to see how, if at all, this is changing.

Manheim: However, Manheim does comment on volume in its monthly reports, and this month’s report makes it clear that volumes are changing — presumably with similar read across to BCA’s auction halls.

According to Manheim, there was “a significant influx of de-fleet volume year-on-year” in November.

In plain English, this means that more vans were de-fleeted and sent to auction in November 2014 than in November 2013. Commenting on November’s figures, James Davis, the firm’s director of commercial vehicles, said:

“It is heartening to see the typical seasonal de-fleet pattern returning this year. Supply continues to track behind demand, so it promises a stable end to the year and a fantastic kick start to 2015, just as we predicted earlier in the year.

Traditionally, the plate changes act as a catalyst for new vehicle purchasing. This then leads to an increase of ex-fleet vehicles coming to market as they are replaced.”

Manheim’s figures were interesting for another reason — they showed a big increase in knackered old large vans coming to the market, to the extent that the average sale price of large panel vans fell by 13.7% in November. According to the firm, nearly half the large panel vans sold during the month had an average age of more than seven years. Similarly, more than half of all small panel vans sold had an average age of eight years.

These figures clearly imply that companies which have delayed fleet replacement cycles are now acting, disposing of well-used old vans and — probably — re-entering the new market, as part of the 18% surge in new van registrations seen so far this year.

I say: I’ve said it before, and I’ll say it again — I’m convinced the used van market has peaked and 2015 will see a fairly stagnant performance, with increased price weakness for any vans that are more than a few years old and are not in decent condition.

Mercedes-Benz magic helps Leekes stay in the black

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Leekes Mercedes-Benz SprintersYet another tale of Mercedes-Benz loyalty that runs even deeper than the undeniable quality and performance of their vans.

Independent retailer Leekes has put 26 new Mercedes Sprinters into operations at its department stores and building centres in South Wales and the West Midlands.

The firm has a long history of running Mercedes vans and trucks, but some of the new Sprinters replace vans of another brand, which failed to hold their value as well, according to company director Stuart Leeke, who said:

Our experience of disposing of these vehicles confirmed that the Sprinter continues to command high residual values compared to other types of van.

The new vans are liveried in black and are all Sprinter 313 CDI models in BlueEFFICIENCY specification, which includes the ECO-Start start-stop system, as well as other fuel saving measures such as low rolling resistance tyres and efficiency improvements to items like the power steering system, fuel pump and battery management.

A variety of body types are used by Leekes, including long-bodied panel vans fitted with frails for use by the firm’s double-glazing fitters, along with dropsides for conservatory teams and an extra-long wheelbase van used to deliver furniture. The additions take Leekes’ fleet to 70 vans, most of them Sprinters, and the firm also uses Merc’s Atego light truck for most of its haulage requirements.

Leekes’ relationship with Mercedes is now 16 years old, and unsurprisingly, Mr Leeke remains a fan of both the technical and reputational benefits that come with operating Sprinters:

“Mercedes-Benz is a premium brand with an image of quality that can only enhance our own reputation,” said Director and Company Secretary Stuart Leeke. “We bought our first Sprinters in 1998, since when they have always proved outstandingly reliable, cost-effective to operate and popular with our drivers. Safety is of paramount importance to our company, so the fact that Mercedes-Benz leads the field in this respect is also key to its appeal.”

It’s not a new story, but how many other marques have this effect on their customers?

Government must act to combat killer diesel pollution in cities

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Nissan e-NV200 electric van

Electric van like the Nissan e-NV200 make perfect sense for London — and are competitive on cost, too.

The mayor of Paris, Anne Hidalgo, hit the headlines over the weekend with a call for diesel cars to be banned from the streets of Paris by 2020, as part of a plan to reduce pollution.

In London, monitoring data show that the capital City has the higest levels of nitrogen dioxide (NO2) pollution in Europe, according to Bloomberg.

The government’s own figures show that 29,000 people die in the UK from air pollution every year.

NO2 is one of the most harmful emissions from diesel engines, and is linked to a range of respiratory diseases. However, when those clever people at the EU decided to focus on lowering CO2 emissions in 1998, they decided to ignore NO2, leaving the door open for a vast increase in the number of diesel vehicles on the road.

As we’re now discovering, despite their superior fuel consumption and lower CO2 emissions, diesel cars aren’t they healthy for urban residents — petrol would be a lot better. A new report from the government’s Environmental Audit Committee says that diesel is now “the most significant driver of air pollution in our cities”.

Of course, diesel remains the only viable option for most lorries and buses, but it isn’t necessarily the only option for cars and vans operating in urban environments. As I’ve written many times before, vans typically have predictable route and usage patterns and are often parked up off-road overnight, making them ideal candidates for conversion to electric power.

Of course, the EU is in full-scale denial mode: according to a Bloomberg story, EU spokesman Joe Hennon claims that the EU’s stance on cutting emissions “is and always has been technologically neutral”.

Er, yes, except for the decision to focus obssessively on CO2 emissions, while allowing diesel cars to pump out 3 times the level of NO2 that petrol engines are allowed to emit. As a result, around half of the cars on UK roads are now diesel, up from less than 10% a couple of decades ago.

Regulatory action is needed for this situation to change: van manufacturers have their hands tied by the current tax regime, which is solely linked to CO2 emissions. Similarly, van operators will continue to buy diesel models because petrol alternatives are thin on the ground — and often cost more to tax.

Vehicle rental and leasing generates £5.2bn in tax revenue each year

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vanrental.co.uk vanAccording to a new report from the British Vehicle Rental and Leasing Association (BVRLA), the impact of the vehicle rental and leasing sector  on the UK economy was around £25bn in 2013, including £5.2bn in tax revenue.

The report, which was commissioned by the BVRLA from research foundation Oxford economics, measures three types of economic impact:

  • Direct: the activity of the rental and leasing companies themselves;
  • Indirect: the activity of their UK-based suppliers;
  • Induced: economic activity generated by the payment of wages to staff employed by the rental and leasing industry.

The scale of the rental and leasing industry in the UK becomes clear when you consider that in 2013, BVRLA members had 3 million vehicles on lease and 400,000 vehicles available for rental.

The main areas of direct and indirect economic activity are the businesses involved in the industry itself, manufacturers of UK-made vehicles and engines, the used car and van market, and the activity of the UK automotive dealers which supply rental companies.

It’s a people business

The report estimates that the rental and leasing industry itself employs 53,600 people directly and 263,400 indirectly, through the wider supply chain and through consumer spending.

If accurate, this claim is quite impressive, as it means that the rental and leasing industry accounts for the employment of 1 in every 88 workers in the UK!

Vehicle supply

A sizeable part of the industry’s contribution to the economy comes via its purchase of British-built vehicles, along with foreign vehicles with British-built engines. Rental and leasing companies are amongst the biggest buyers of new vehicles each year, and purchased an estimated 308,000 UK-made vehicles in 2013, which is thought to have generated £4.3bn in GDP and £1.4bn in tax revenue, as well as 90,000 jobs.

Overall, the industry purchased 80% of the British-made vehicles that were sold in the UK last year, and 20% of all British-built vehicles, including vehicles made for export.

Who needs vehicle rental and leasing?

A great many people, it seems: one of the reasons the leasing and rental industry has such a big impact on the UK economiy is that so many other businesses are dependent on its services. As a result, the sector’s gross value added (the sector’s contribution to the UK’s GDP) of £13.3bn was comparable to that of the electricty generation and distribution indsutry in 2013, which had a gross value added of around £18bn.

This kind of illustrates my point — virtually 100% of UK businesses require electricity, so the electricty generation and distribution sector is going to have a big impact on GDP, rather like the leasing and rental sector.

Putting it in perspective

However, before we get too carried away, it’s worth rembering that even the BVRLA’s £25bn headline figure is just a drop in the ocean in the scheme of things, and accounted for just 1.6% of UK GDP in 2013, when UK GDP totalled £1,606bn!