Author Archives: Van Rental

Van Registrations Surge Higher In November As Sales Approach 2008 Levels

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The UK’s commercial vehicle (CV) market continued to grow in November. According to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), new registrations have topped 300,000 over the last twelve months, for the first time since 2008.

New CV registrations rose by 22.7% in November, compared to the same period last year, with van registrations rising by 19.4% to 22,647, and truck registration surging an impressive 39.3% to 5,410. So far this year, van registrations have risen by 11.7%, while truck registrations have climbed by a more modest 6.5%:

UK van and truck registrations: 2013 and % change on 2012

November % change Year-to-date % change Rolling year % change
Vans 22,647 19.4% 250,124 11.7% 265,929 9.8%
Trucks 5,410 39.3% 44,867 6.5% 48,446 3.7%
Total 28,057 22.7% 294,991 10.9% 314,375 8.8%

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

Mike Hawes, SMMT Chief Executive, says that the gains are due to a mixture of environmental, technological and economic factors:

“The November commercial vehicle market rose 22.7%, continuing the strong upward momentum we’ve seen over the past four months. With engine technology developments driving up the truck market, plus van owners and operators responding positively to this year’s economic recovery, the sector is on course for its best performance in five years.”

As the graph below shows, van and truck registrations have both trended firmly higher since the middle of this year:

New CV registrations, 12-2009 to 11-2013

With car registrations also hitting new highs in November, car and van dealers are going to be looking forward to bonus-fuelled Christmas celebrations. Let’s hope this year’s increases are sustained into 2014.

Citroën Berlingo Is ‘Small Van Of The Year’ For 3rd Time

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The 2014 Citroën Berlingo

Citroën Berlingo has been voted Fleet Van Small Van of the Year

The Citroën Berlingo was crowned Fleet Van ‘Small Van of the Year’ today, at an awards ceremony in London, making it the third time the popular van has laid claim to this prestigious award for the third time.

Recently updated for 2014, the Berlingo is Citroën’s best-selling LCV, and was the UK’s best-selling van in its sector during the first three quarters of this year, according to Scott Michael, Citroën’s Head of Commercial Vehicles & Business Centre Programme.

The Fleet Van awards judges commented that the Berlingo was in:

“A highly competitive shortlist, but new eco models, an electric vehicle derivative and Trafficmaster as standard swing it in the Berlingo’s favour. It also has low cost of ownership, good driver appeal, strong network support and a decent payload. It’s a very likeable van.”

The Berlingo range includes a wide range of models: two load lengths, a Crew Van, enhanced traction versions, choice of payloads and trims levels, as well as a platform cab for specialist conversions. All Berlingo panel vans have a Trafficmaster telematics platform (including Smartnav intelligent satellite navigation and Trackstar stolen vehicle tracking), which also provides access, at low cost, to Fleet Director real time fleet management.

Already one of the most economical and lowest emissions LCVs in its sector, the Berlingo has just gained further fuel economy improvements and CO2 emissions reductions and now boasts fuel consumption of up to 62.8mpg and CO 2 emissions of as little as 118g/km.

In addition, the latest Berlingo now benefits from the availability of a new ETG6 automated six-speed manual gearbox option.

Hinckley Van Hire: Welcome to hinckleyvanrental.co.uk

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I’m very pleased to welcome our newest advertiser, hinckleyvanrental.co.uk, to vanrental.co.uk.

hinckleyvanrental.co.uk is a family-run van hire business that’s based in Hinckley and is part of Malex Automotive, which operates logistics and hire businesses. hinckleyvanrental.co.uk offers a delivery and collection service to the surrounding area for van hire, including Nuneaton, Barwell and Burbage. The firm offers discounts for long-term hires, special weekend rates, and also tries to provide an option for a half-day hire where possible.

A wide range of vans are available to hire at hinckleyvanrental.co.uk:

  • Small van (e.g. Ford Transit Connect)
  • Short wheelbase panel van (e.g. Ford Transit SWB)
  • Long wheelbase and extra-long wheelbase panel vans (e.g. Mercedes-Benz Sprinter)
  • 3.5t luton vans (ideal for house moves)

hinckleyvanrental.co.uk is located on Barleyfield on the north side of Hinckley. The post code is LE10 1YE and the branch is located just off Normandy Way (A47), next to Richmond Park and close to Morrisons.

For an instant quote or to make a booking, contact hinckleyvanrental.co.uk directly:

If you’d like to promote your van hire business on vanrental.co.uk, please click here to visit our advertising page for full details and pricing.

Northgate plc Reports 5.8% Fleet Growth Since April

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Van hire specialist Northgate plc (LON:NTG) has increased the size of its hire fleet by 2,900 to 52,800 since April — a 5.8% increase. The company reported its half-year results today, and said that the number of vehicles on hire had increased by 2,800 since the end of April, while its pre-tax profits had risen by 12% to £27.4m, continuing a trend I highlighted earlier this year.

Perhaps more impressively, Darlington-based Northgate also reported an increase of 1,200 vehicles on hire in Spain, suggesting that Spain’s economy may be showing signs of life, or perhaps that competition from smaller companies has weakened due to the country’s prolonged recession.

Falling profit margins

However, although Northgate’s growth is encouraging, investors may want to pay attention to its profitability. The firm’s operating margin has fallen from 24.4% to 18.7% over the last year, while its return on capital employed fell to 12.5%, down from 14.8% in April 2013.

Northgate says that the fall in profitability was expected, due to reduced levels of used vehicle sales and investment in new UK sites, from which 1,10 new cars and vans are now on hire, including 900 acquired during the last six months.

However, Northgate’s fleet expansion has come at the cost of a 2% increase in net debt, which rose to £370.4m, although the firm’s growth means that the increased value of its fleet has outpaced the increase in its debt levels, and net gearing fell from 102% at the end of April to 100% at the end of October.

Although Northgate’s growth strategy makes sense, I wonder if it’s proceeding too fast — Northgate says it is planning to open at least 20 new sites over the next three years, but if I was a shareholder I would want to see Northgate’s rather high gearing come down a bit more over the next six months, in case financing costs and interest rates rise over the next few years.

New locations

Northgate has opened two new car and van hire locations over the last six months (Slough and Basildon), with a further site in Charlton due to open shortly and two further sites in the London area due to open before April 2014.

Ford Transit Custom Passes 10,000 Mark In First Year`

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Ford Transit Custom

The Ford Transit Custom has proved popular with fleets and SME buyers and sold 10,000 units within 12 months of its launch.

There are now 10,000 Ford Transit Customs circulating on the UK’s roads, despite the fact that one year ago, there were none.

Ford says it sold 10,000 Transit Customs during the first 12 months of launch, one month earlier than expected. Ford sells around 65,000 vans in the UK every year — more than in any other EU country — meaning that the Transit Custom now accounts for nearly 1-in-6 of Ford’s UK van sales.

Commenting on the figures, Andy Barratt, Ford of Britain sales director, said:

“I couldn’t be happier that we’ve reached our target to sell 10,000 Transit Customs a whole month earlier than planned. Ford is in a strong position, offering customers more choice by selling previous generation Transit alongside new Transit Custom, helping to maintain our firm grip on the UK’s medium van segment.

“As Ford continues its product onslaught, it is also investing to meet the precise needs of its business customers by introducing 100 specialist Transit Centres across the UK.”

The ‘product onslaught’ referred to by Andy Barratt is the company’s plan — now nearly complete — to completely replace its commercial vehicle range by 2014. According to Ford, all four new models – Transit Courier, Transit Connect, Transit Custom and next generation two-tonne Transit – will be launched by 2014.

The quality and modernity of the Transit Custom — whose people carrier variant recently became the first vehicle in its class to earn a five-star Euro NCAP crash test rating — means that it’s a natural premium alternative to the Volkswagen Transporter and Mercedes-Benz Vito, and although the van itself isn’t built in the UK, buyers can feel confident that they are supporting British manufacturing jobs, as the Transit Custom’s 2.2-litre diesel engine is built at Ford’s plant at Dagenham, whereas the German vans are entirely built abroad.

Government Scraps A14 Toll Plans

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Busy motorway at twilightThe government has abandoned the idea of introducing tolls on a proposed section of the A14, south of Huntingdon.

As I reported in September, the idea was that tolls would be used to help pay for the Huntingdon Southern Bypass, a new section of the A14 which is due to begin construction sometime in 2016. This idea has now been scrapped, and the new road will be fully-funded by the government.

Here’s an overview of the plans from my original post:

  • A new Huntingdon Southern Bypass, with junctions at Ellington, at Brampton (where the A14 would meet the A1), at Godmanchester, and on the existing A14 at Swavesey. (This is the section where tolls were being considered, this idea has now been abandoned.)
  • The A14 through Huntingdon would be de-trunked. The A14 viaduct over the mainline railway in Huntingdon would be demolished, enabling the existing A14 to be tied into local roads, greatly improving traffic flows in the town and accessing sites for possible new development.
  • The A14 will be widened from Swavesey to Milton (the section between Girton Interchange and Histon will be widened earlier as part of a separate improvement scheme. Work is due to start in early 2014).
  • A new single carriageway access road will be built alongside the improved A14 between Fen Drayton and Girton and is intended for local use.
  • Girton and Milton junctions will be upgraded to improve traffic flow and to add more capacity, with improvements to other junctions along the route.
  • Two new junctions will be constructed at Bar Hill and Swavesey to maintain existing access to the trunk road and to connect with the new local road network
  • The A1 will be widened between Brampton and Alconbury in order to provide the additional capacity needed to cope with traffic linking to the A1 from the new Huntingdon Southern Bypass.

Unsurprisingly, the Road Haulage Association was one of the biggest opponents of the toll, which it believed would have made it harder for East Anglian hauliers and the Port of Felixstowe to remain competitive. John Howells, RHA Southern and Eastern Regional Director, had this to say following today’s news:

“We have been against the suggestion since it was first raised nearly two years ago. It would have meant a tax on the economy of East Anglia and Suffolk as hauliers would have had to pass on the additional costs. In addition, it would have greatly undermined the competitiveness of the Port of Felixstowe and other ports in the region by adding to the cost base of haulage to and from the port.

Personally, I think that random and uncoordinated tolling isn’t the solution — where a toll system is put in place, it needs to be centrally planned so that it generates enough revenue to justify its existence, and the burden of paying the tolls is spread evenly across road users so that the competitive landscape remains unchanged.

Most European motorway tolls are operated on this basis, giving all hauliers have the choice of paying equal toll costs or travelling more slowly and cheaply on non-toll roads. Simply tolling random stretches of road to lower the cost of their construction isn’t a solution to 21st century traffic management problems.

WIN 20,000 Nectar Points When You Book With Hertz Van Rental!

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Hertz logoBook a van with Hertz Van Rental before the 15th December 2013, and you could win 20,000 Nectar points.

It really is that simple. Hertz is celebrating its 10th birthday as a Nectar partner by giving one lucky customer a whopping 20,000 Nectar points.

All you need to do is book using this code: PC 193362

THIS OFFER HAS NOW EXPIRED

Click here to visit the Hertz website and book now

Remember, you can always collect Nectar points when you book with Hertz.

Here are the details of this great offer:

  • Offer is valid between 18th November 2013 and 15th November 2013
  • Pick up must be by 31st December 2013
  • You must book using code PC 193362 (and use your Nectar card)

Volkswagen Adds Crafter Conversion To UK Dealer Stock

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Volkswagen Crafter Tipper

A Volkswagen Crafter tipper from the ‘Engineered to go’ range, which are available from stock at VW Commercial Vehicle dealers.

Volkswagen Commercial Vehicles has further invested in its Crafter Engineered to go scheme by ensuring available stock across its UK Van Centre network. This means a range of off-the-shelf Crafter dropsides and tippers is now available to drive away from Van Centres.

All Engineered to go bodies are manufactured specifically for Volkswagen by leading bodybuilder Ingimex and are recognised for their quality and durability, benefits that enhance the residual value of the vehicles and are listed within the CAP price guide.

That’s not all; all bodies are supplied with European whole vehicle type approval. All bodies come with three years manufacturer warranty offering customers complete piece of mind.

Each body is made using a galvanised steel sub-frame, resin-coated birch plywood decks and anodised aluminium side and tail panels. The Crafter range includes panel vans with load volumes of up to 17m3 and window vans with up to eight passenger seats.

As part of its on-going commitment to working with its partners, Volkswagen has launched a Bodybuilder Database to the UK conversion market. The database, which was launched in early November, provides Bodybuilders with a direct link to the factory enabling access to technical guidelines, information and CAD drawings helping them to design and develop their own products.

Andrew Waite, Head of Sales Operations for Volkswagen Commercial Vehicles, commented: ‘The Crafter chassis has always offered the ideal blend of big payloads and customisation options but – for some of our customers – an off-the-shelf model suits their business needs perfectly.

“Driving off the forecourt with one of our Engineered to go™ Crafters means customers can swiftly get the vehicles they need with the additional peace-of-mind that the accompanying body is hard-wearing, corrosion-resistant and recognised for its quality and durability.

“All of which not only enhances the day-to-day experience of using the vehicles, but also boosts their resale values, too.”

Full details of the Engineered to go™ scheme are available at www.volkswagen-vans.co.uk,or by calling 0800 717131.

Used Van Prices Expected To Rise Further In 2014

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BCA LCV auctionUsed van prices have soared to an all-time record this year, as the collapse in van sales seen in 2008/9 continues to cause a shortage supply in the used market.

According to vehicle auctioneer BCA, the average used van price has risen by 55% since 2003 and by 42.9% since 2008, despite a rise in average mileages:

All LCVs sold at BCA 2003 2008 2013
Average Sold price £3,119 £3,395 £4,854
Average Age (Months) 51.0 49.9 58.3
Average Mileage 72,787 70,876 79,847

Data courtesy of BCA (www.british-car-auctions.co.uk)

Duncan Ward, BCA’s General Manager – Commercial Vehicles, says that competition for good quality used stock has been strong this year:

“Demand has been right across the board, from older higher mileage vans through to younger ex-fleet and lease vehicles, while the few late-plate light commercials on offer can make exceptional values.  The end result has been record-breaking average values for fleet/lease and dealer P/X vehicles.  As always, good condition is the key and vans with a nice specification and in an attractive retail colour are very desirable.”

The graph below shows LCV (light commercial vehicle) registrations from 2000-2015 (forecast). It’s easy to see how the current shortfall of decent used vans could continue for a couple more years yet:

UK LCV registrations 2000 - 2015

UK new LCV registrations; 2000 – 2015 and supply gap (BCA 2013 Used Car Market Report/ACEA/Buckingham)

As I reported recently, demand is particularly strong for ex-fleet vans, such as those from large corporate, lease and rental fleets, where the vans’ quality and history is assured, and condition and mileage is usually better than average.

Vans are getting older

Predictably, the result of this supply shortage is that vans are getting older. According to Ward:

“Not only are vans getting older on average when they are sold, they are higher mileage.  In fact, the average van sold in 2013 at BCA has covered 9,000 more miles than five years ago.”

According to the 2013 BCA  Used Car Market Report, the average age of LCVs on the UK’s roads has now climbed to 7.4 years, compared to 6.87 in 2007.

With new van registrations rising strongly once more, this trend will eventually come to an end, but BCA’s prediction of more of the same next year might well be accurate, as I expect it to take another year or so for increased volumes of new vans to flow through to the secondary market.

Nissan and British Gas Launch UK’s Biggest Electric Van Trial

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Nissan e-NV200 British Gas trial van

One of 28 British Gas Nissan e-NV200 trial vans that will be in service from November 2013 – April 2014 to test the vans’ winter performance.

Nissan’s long-term trial programme for its e-NV200 electric van has been a considerable success, as I’ve reported before. The company has now returned to one of its early test partners to launch the biggest electric van trial yet seen in the UK.

British Gas will be operating 28 e-NV200 electric vans on a pilot scheme that will run nationwide from November 2013 until April 2014, to assess how the vans perform in winter conditions during typical British Gas home services daily usage patterns.

Battery performance in electric vehicles worsens at low temperatures, and the scheme should enable British Gas, Nissan, and the wider van operating sector to determine whether electric vans are truly viable for fleet use.

The vans will only form a small part of British Gas’ 13,000-strong home service fleet, but if the trial is successful, it could be a significant boost for Nissan and other electric van manufacturers.

Total cost model and driver training

One of the challenges facing electric vehicle operators and manufacturers is cost. Electric vehicles are more expensive to buy than conventional alternatives, but savings are available on fuel. The Nissan-British Gas trial is being run in collaboration with Hitachi Capital Commercial Vehicle Solutions and Gateshead College, and will also include work to generate an accurate total cost of ownership model, so that 100% electric technology can be compared with conventional internal combustion engine drivetrains.

Gateshead College is close to Nissan’s Sunderland plant, and is a leading training facility for LCV development. The college has provided training for all of the British Gas drivers to ensure that they are aware of how to drive, and live with, the e-NV200, and all drivers have been provided with a home charging point and access to public charging points.

The e-NV200 goes on sale in the UK next year, and a successful and high-profile trial with British Gas could give it a major head-start over lower-profile peers, which haven’t benefited from the same widespread fleet exposure and trial opportunities.

Is this a tipping point?

I’ve long thought that the biggest opportunity for electric vans is in the fleet market, and if successful, this trial could be the tipping point that prompts widespread adoption. The potential is considerable — imagine how many electric vans Royal Mail might buy for urban delivery use, for example — but what’s needed is a clear demonstration that both costs and usability can match those of conventional vans. This trial could provide that.