Author Archives: Van Rental

Volkswagen motors away with super yacht deal

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Sunseeker Volkswagen TransportersVolkswagen Commercial Vehicles has signed a deal with Poole-based super yacht manufacturer, Sunseeker International, to supply eight new vans. The contract includes a mixture of Volkswagen Transporter and Crafter models.

The new vehicles will be used to transport yacht parts and personnel, and will replace Sunseeker’s existing commercial vehicle fleet. The first vehicles were delivered in July.

All eight vehicles have been supplied on a five-year service and maintenance contract hire agreement with Volkswagen Group Leasing, with support from Sunseeker’s local Volkswagen Van Centre, Breeze, located in Poole.

Mark Garside, transport manager at Sunseeker, commented:

“Volkswagen Commercial Vehicles is renowned for its efficiency and reliability so the decision on which vehicles to choose was easy. However, selecting a partner to supply and maintain the vehicles while sticking to a budget was harder.  From the start I was aware of the benefits of going with a local Van Centre but the fact they provided a very competitive finance package with aftersales care sealed the deal.”

Van rental in Ashford, Surrey: PM Vehicle Hire

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PM Vehicle HireI’m very pleased to welcome our newest advertiser, PM Vehicle Hire of Ashford in Surrey, to vanrental.co.uk.

PM Vehicle Hire is a local company offering a full range of nearly-new vans, including:

  • Small vans (e.g. Citroen Berlingo)
  • Short wheelbase panel vans (e.g. Peugeot Boxer L1)
  • Medium wheelbase panel vans (e.g. Peugeot Boxer L2)
  • Long wheelbase panel vans (e.g. Peugeot Boxer L3H2)
  • 3.5t Luton vans with tail lifts

All vans include unlimited mileage and the firm is happy to arrange short or long-term hire deals, tailored to your requirements.

To find out more or arrange a hire, contact PM Vehicle Hire directly today:

If you’d like to advertise your hire company on vanrental.co.uk, check out the options on our Advertising page or contact us directly for more details.

Used van values hesitate in July

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Have used van values started to fall? The data are slightly ambiguous, but they are certainly not soaring ahead.

According to auctioneers BCA, the average used van sold for £5,498 in July. Although this was an increase of 1.8% on June, the rise was due to a change in the model mix, says BCA, not to an increase in like-for-like prices.

Indeed, BCA says that average fleet, lease and dealer part-exchange van values all fell during July, albeit by a small percentage, with only high-quality corporate stock supporting the overall average price.

BCA used van prices July 2014

BCA used van prices June 2012 – July 2014 (courtesy of BCA)

BCA’s General Manager – Commercial Vehicles, Duncan Ward, commented:

“As we said last month, we expect to see some pressure on average values over the summer months and July bore that out. The change in the model mix in favour of more expensive corporate stock actually resulted in the headline value rising, but that should not mask the fact that the used van market is notably quieter at this time of year.”

We’ll need to see August and September price data before deciding whether the market really has reached a turning point, but further big gains are beginning to seem less likely, in my view.

Enterprise buys Burnt Tree Vehicle Rental

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Enterprise Rent-A-Car today announced the acquisition of Burnt Tree, one of the UK’s largest providers of commercial rental vehicles to companies and public sector organisations. The purchase increases the breadth of vehicles and services that Enterprise can provide to its customers under its flexible commercial vehicle hire division, Flex-E-Rent.

The agreement includes Burnt Tree’s diverse commercial fleet of 17,000 vehicles, including commercial vans, HGVs, refrigerated trucks and accessible minibuses, its proprietary fleet management technologies, as well as its network of 20 branches and a team of 400 employees.

In the immediate short-term, the Enterprise Flex-E-Rent and Burnt Tree businesses will continue to operate as two separate brands, with a view to creating a combined entity that will be headquartered in Shrewsbury. The acquisition, for an undisclosed sum, significantly increases Enterprise’s value proposition in the flexible commercial vehicle rental sector and will take its fleet of commercial vans and trucks to more than 25,000.

Enterprise UK and Ireland managing director, Mike Nigro, said:

“We are committed to the growth of our flexible commercial vehicle business, which has grown organically in recent years.

“We could immediately see the potential of Burnt Tree to give our customers access to skills and services that are particularly suited to the needs of commercial vehicle customers. Burnt Tree also has the same culture of delivering outstanding customer service as Enterprise and shares a rich heritage of conducting business in the UK.

“Burnt Tree has some unique expertise that it can bring to Enterprise and it will also benefit from becoming part of a truly global organisation. The combined business post-acquisition will be far stronger with greater economies of scale and better technology, while the transfer of knowledge will allow us to better serve our customers.”

The new business will be led by Danny Glynn, Director, Enterprise Flex-E-Rent. Burnt Tree chief executive, Richard Metcalfe, will remain in an advisory capacity to help steer the direction of the combined business.

Richard Metcalfe said:

“Last year we stated our ambition to become the leading and largest business in our industry. In time, this agreement will allow Burnt Tree to achieve its full potential to become the market leader. It will become part of the world’s largest vehicle rental company, which, like Burnt Tree, is privately owned.

“I know that there is both the vision and resources to grow the business over the long-term, which means there will be opportunities for people here. I would like to thank everyone sincerely at Burnt Tree for all their hard work and for making the business such a success. This agreement marks the next phase of growth for the business.”

Shrewsbury-headquartered Burnt Tree has been operating for more than 30 years, while Enterprise is celebrating its 20th anniversary in the UK this year. As well as its Flex-E-Rent division, Enterprise also operates a fleet of more than 60,000 vehicles from the UK’s largest network of car hire branches.

Europcar scores official car and van rental role with Arsenal FC

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Europcar is official Arsenal car and van hire partnerEuropcar, has today announced a new brand partnership with Arsenal Football Club, which will see the hire company become Arsenal’s official car and van rental partner.

Europcar will promote its partnership with Arsenal in a large number of territories around the world including South Africa, USA, selected countries in Asia and Latin America, and throughout Europe.

The company’s marketing rights include significant branding presence at Emirates Stadium, and throughout Arsenal FC’s online and social media channels.

As the world-renowned football club embarks on a new season as reigning FA Cup champions and Community Shield winners, the three year deal will see Europcar branding at all Barclays Premier League and domestic cup matches played at Emirates Stadium.  In particular, both organisations aim to capitalise on the synergies between their brand values, focusing on innovation, quality and social conscience.

The significant international reach the Club can provide for the global rental provider is also a key factor in the partnership.  As well as the 3 million people that attend matches and events at Emirates Stadium each year, Arsenal has 27.4 million fans on Facebook and 4.2 million followers on twitter.

“This is a tremendously exciting partnership for Europcar”, explained Ken McCall, Managing Director, Europcar UK Group.  “It gives us fantastic branding opportunities in the UK, and also reaching millions of football fans who follow the Premier League throughout the world.  As well as promoting the Europcar global brand message, ‘Moving your way’, the partnership also gives us access to the Arsenal players and imagery for our own promotional activity.

“As the official car and van rental partner of Arsenal FC, we can help fans travelling to away games with convenient and cost-effective mobility solutions, as well as bring the benefits of our comprehensive range of services tailored to the needs of business and leisure users. We are confident that this relationship will enable us to significantly increase reservations as well as raise the bar on our engagement with both consumer and business customers.”

Speaking about the partnership ahead of the new season Arsenal Sales and Marketing Director, Vinai Venkatesham said:

“We are delighted to be partnering with Europcar for the next three years.  We are already working closely together to develop engaging marketing campaigns targeted at football fans in many territories all around the world.”

Ford expands AA role with 343 new Transit Customs

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AA Ford Transit CustomFord is supplying 343 Ford Transit Custom vans to the AA to join its fleet of patrol vehicles. They will raise Ford’s share of the 2,100-vehicle AA patrol fleet to more than 50 per cent.

Ford secured the order from the AA following an exhaustive analysis of whole-life costs. Sarah Dopson, AA head of fleet, said:

“We looked at all the usual factors – acquisition price, depreciation, servicing and maintenance costs, running costs including fuel economy – and the Transit Custom came out top.

Deliveries of the new vehicles will be complete by November, in time for our busiest period for call-outs.”

Prior to delivery, the Transit Custom vans – a mix of 310 and 330 L1 models – undergo conversion at a vehicle preparation specialist, which includes fitment of the AA’s new contract recovery trailer to allow the partial lift and recovery of broken-down vehicles, a dual battery system, specialist racking systems and of course the organisation’s distinctive yellow livery.

Ian Watson, Ford’s direct sales manager, said:

“Ford is already supplying around 3,000 cars a year to the AA Driving School, and we are very pleased that the organisation has recognised the Ford Transit Custom’s many attributes, including the important financial ones. They look eye-catching in AA livery and will prove a reassuring roadside sight for AA members.”

The purchase is another high-profile endorsement of Ford’s incredibly successful Transit Custom van, which is part of its all-new van range.

Of course, Volkswagen Transporter drivers benefiting from Volkswagen Commercial Vehicles’ roadside assistance service — standard with new VW vans — will still be rescued by an AA Volkswagen Transporter: avoiding the bad publicity VW would incur by allowing its new vans to be rescued by Ford Transits is worth whatever premium VW might be paying for its dedicated, liveried roadside assistance service…

Vauxhall updates van service offering with 90% UK coverage

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Vauxhall Vivaro

The new Vauxhall Vivaro

Vauxhall’s refreshed Premier Van Centre is set to shake-up the fleet aftersales sector with over 90 per cent of all UK businesses covered within a 30-minute drive time of one of the company’s 100 Premier sites.

Vauxhall van fleet customers can expect diagnostics without appointment, lead times no longer than three days and a dedicated Premier Van Helpline.

Vauxhall will also collect and deliver vehicles within a ten-mile radius (five miles within the M25) and offer a courtesy vehicle free of charge.

All Premier Van Centre sites will carry out Class 7 MOTs and have a 5-tonne lift on-site.

Vauxhall’s Premier Service Centres have to meet a strict selection criteria. Only sites that can provide sales and service support and meet strict service level requirements can qualify for Premier Van Centre status. Premier Van Centres are also listed on Epyx 1link for ease of identification and online service booking requests.

Repairs are carried out at fixed labour rates with job sheets completed on the day the work is completed and invoiced within five working days, so no hidden or unexpected surprises. Customers can also take advantage of a while-you-wait option when a repair is expected to be completed on the same day.

Once work is complete a 25-point safety check is carried out including all safety enhancements and software updates. Vauxhall even throws in a wash and vac with every annual service and free fitting of wiper blades.

Motorbodies Luton was the first Vauxhall retailer to be granted Premier Van Centre status.

“This is a fantastic opportunity to demonstrate our commitment to looking after the needs of van customers,” said Rachel Parker, Operations Director.

“We always strive to deliver the very best in customer service and aftersales support.”

The announcement of Premier Van Centres follows the launch of the all-new British-built Vivaro, which further enhances Vauxhall’s award-winning van range.

“We are delighted to announce full details of our refreshed Premier Van Centres,” said Richard Collier, Vauxhall’s National Commercial Vehicle and B2B Sales Manager.

“The enhanced programme brings industry-leading customer experience to Vauxhall Commercial Vehicle fleet customers with over 90 per cent UK coverage. Our nationwide network of van experts will deliver the highest standards of skills and expertise whilst also helping fleets save time and money.”

Vauxhall isn’t the only company attempting to up its game in the van fleet service sector — Ford launched Transit24, a similar service, shortly after the launch of its Vivaro-sized Transit Custom van, last year.

New van registrations up 34.5% in July

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Van registrations rose by 34.5% in July, compared to the same period last year, according to the latest figures from the SMMT.

July’s strong performance leaves new van registrations up by 18.9% so far this year, compared to the first eight months of 2013, although it’s worth noting that July’s total of 24,764 new registrations was considerably lower than the 30,712 logged in June.

Despite this, year-to-date sales are now broadly in-line with 2008  levels, possibly marking the end of the long-running depressed market for new vans.

Second-half sales may be helped by a raft of new van models arriving on the market this summer, including the new big Transit, new Vauxhall Vivaro and Renault Trafic, updated Renault Master and new Ford Transits Connect and Courier, as well as the ongoing strong performance from the Ford Transit Custom, which was the UK’s best-selling commercial vehicle in July.

Commenting on the figures, SMMT chief executive Mike Hawes said:

“The commercial vehicle market has delivered another strong month overall, driven by an impressive number of van registrations. This reflects growing business confidence in the economy and the variety of highly capable and efficient vans on the market.”

The graph below shows how van registrations have recovered (the dark blue line) over the last year:

SMMT van registrations July 2014

Van registrations Jan 2010 – July 2014 (courtesy of SMMT)

Bigger is better

Although new registrations rose in all sectors of the van market in July, the biggest increases were at the top end of the weight range.

Sales of vans from 2.0t – 2.5t rose by a massive 78% to 5,365 units, compared to July 2013, while sales of 2.5t – 3.5t rose by 32.7% to 13,428 — these heavier vans drive the highest volumes in the van sector.

In contrast, sales of vans under 2.0t — a disappearing breed — rose by just 4.8% to 3,005, and are actually down by 6.6% on a year-to-date basis.

Last old-school Vauxhall Vivaro rolls off production line

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Vauxhall Vivaro last oneVauxhall reached an important milestone on Friday as the last current generation Vivaro rolled off the production line at its Luton plant.

Jubilant workers cheered off the Vivaro van, the 957,107th built there, before they start building the all-new model later this month.  This milestone vehicle will take pride of place at Vauxhall’s Heritage Centre at its Griffin House headquarters in Luton.

The all-new Vivaro secures 1,200 jobs, a 10-year contract and a £185 million investment at the Luton facility. Vauxhall announced last month that it will add a second shift at its Luton plant in January 2015, creating around 250 new jobs.

Rival Ford shut its Transit factory in Southampton last year making Vauxhall’s Luton facility the sole flag bearer for UK van manufacturing – on a site where over eight million vehicles have been built since 1905.

The plant is a significant contributor to the local and national economies building nearly a million Vivaro vans since 2001, including 44,000 vans built in 2013 — a full half of the UK’s commercial vehicle production last year.

Vauxhall also remains a major exporter with 52 per cent of production destined for European markets.

 “The current Vivaro has been a huge success and our workforce at Luton is very much looking forward to building the all-new model,” said Tim Tozer, Vauxhall’s Chairman and Managing Director.

“The Vivaro van is of critical importance to Vauxhall and its manufacturing facility in Luton. I’m very proud of the men and women who build this vehicle to world class levels of quality and productivity.”

New van financing difficulties boost case for business van hire

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Mercedes-Benz SprinterAccording to research carried out by Mercedes-Benz Vans, 58% of small businesses (SMEs) loan applications are rejected by high street banks.

The Bank of England has said that lending to small and medium sized businesses under the government’s Funding for Lending scheme has fallen in 2014, with net lending decreasing by £2.7bn in the first quarter, and specific SME lending falling by £723m.

This is a sharp contrast to before the financial crisis — in 2007, records show that 90% of business loan applications were approved.

While it’s probably fair to say that too many loans were being approved in 2007, it’s probably equally fair to say that today — with the economy recovering and unemployment falling — banks could do more to support small businesses than they are doing.

When it comes to buying new vans, the fall in high street lending hasn’t prevented a big surge in new van registrations, which look set to hit pre-recession levels in 2014. One reason for this is that alternative methods of funding new vans are becoming increasingly popular.

One example is vendor financing — Mercedes-Benz Financial Services says that it approves 85% of finance request for new vans, and has recently created a new SME-focused National Business Development team.

Elsewhere, contract hire, leasing and even peer-to-peer lending are also all becoming more popular, as is long-term and daily van rental.

Indeed, van hire is one area that did not suffer overly during the recession. Although some over-leveraged firms went bust, having expanded too rapidly during the boom years, many established rental firms have delivered solid growth over the last five years, as customers have chosen to hire, rather than own, their vans.

There are a number of advantages to this: operationally, it means that the operator does not have to pay for vans when they don’t need them, but can rapidly scale up their fleet to meet short-term demand — a new contract, for example.

Financially, it means that small businesses don’t have to take new debt onto their books, or enter into costly long-term leasing agreements.

Furthermore, by using hire vans, running costs are predictable and minimal, with the rental firm covering most costs and ensuring that vans are maintained as required.

Increasingly, owning vans yourself has few advantages, unless they need to be customised. Even liveried vans are an option in a long-term rental agreement — the quality and affordability of modern vinyl wraps means that custom paint jobs are unnecessary, and a wrapped van can be restored to pristine white in a few hours, once its comes off hire.

It all adds up to a new way of looking at business van ownership.

What do you think? Does your business still finance and own its vans conventionally, or have you been forced to find alternative ways to facilitate van renewal and fleet expansion?