Government must act to combat killer diesel pollution in cities

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 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

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!

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Van registrations up 17.1% in November, truck sales slump in Type Approval aftermath

New van registrations rose by 17.1% during November 2014, compared to the same period last year, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

Truck registrations plummeted, falling by 49.6% in the wake of the introduction of the new Type Approval regulations — a topic I discussed last month, when it created an artificial boost in pre-Type Approval sales (in short, operators were registering new trucks in October so they could be fitted with bodies post-registration, thus avoiding the need to comply with the new Type Approval rules which now govern conversions of unregistered vehicles).

Over the year to date, van registrations are up by 18% in 2014, while truck registrations (commercial vehicles over 3.5t) are down by 14%.

SMMT van and truck registrations November 2014

Van and truck registrations, rolling year changes from Jan 2010 – November 2014 (courtesy of SMMT)

Commenting on the figures, Mike Hawes, SMMT chief executive, said that “buoyant consumer confidence and a rise in home deliveries” were behind the “surging demand for vans”.

The figures suggest he’s correct, with registrations of vans between 2.5t and 3.5t — the size commonly used for home delivery and courier work — rising by 17.1%, or 2,378 units, to 16,084 in November. This increase maintained the 18.8% growth seen in this category for the year to date.

The second biggest category, in volume terms, is vans from 2.0-2.5t. New registrations in this category rose by 31.6% in November, but as total sales registrations were only 4,708, this remains less significant, in terms of numbers, than the larger category.

As I’ve commented before, the UK van market appears to be in rude health, which I take to indicate improved confidence and recovery for businesses of all sizes, as well as being a natural consequence of the financial crisis, during which many companies postponed new vehicle purchases or bought used.

Northgate flags rising demand for van hire

Northgate Vehicle Hire logoDemand for UK van hire is rising, according to business hire giant Northgate, which operates a fleet of 57,000 vans and minibuses in the UK, along with 40,000 in Spain.

In its half-yearly results, Northgate reported that utilisation of its UK fleet had risen from 88% to 89%, despite the number of vehicles on hire rising by 1,800 since 30 April 2014.

Growth story?

The company has opened five new sites since the end of April, and plans a further three before the end of April 2015. These new sites accounted for 1,100 of the 1,800 new vehicles on hire, suggesting that Northgate’s growth is largely being driven by expansion, rather than organic growth.

This conclusion is backed up by the firm’s admission today that all of its growth so far this year has been driven by its regional sites — i.e. those away from the London area. Growth at existing branches was a relatively modest 1.3%, and although the company believes this can be increased, I reckon this low number highlights the intense competition between van hire suppliers, especially in large urban areas around major cities.

Bumper profits

Northgate reported a 33% rise in operating profit for the first half of the year, despite revenue only rising by 5.6%.

How do they do that, you might ask? Well, one area where the firm has made big improvements is in reducing the holding cost, or depreciation, of each vehicle — the difference between its purchase price and its eventual resale price. Northgate says that it has managed to improve residual values over the last five years, with an emphasis on several key areas:

  • Van Monster retail network expanded from 7 to 11 branches — ex-rental vans sell for more at retail than through auctions or trade sales;
  • Using “customer profiling and pricing” to target rental customers who won’t trash their vans;
  • Increased marketing, especially online;
  • Using expert in-house sales professionals to select the most appropriate disposal channel for defleeted vans, rather than obeying a fixed formula.

As a result of these changes, 29% of Northgate’s ex-rental vans are now sold through the Van Monster network, up from 18% in the year ending April 2009.

Of course, this rate of profit growth is unlikely to last forever — as a general rule, profits can only grow faster than sales for a limited time, before the two come back into line. It’s also worth noting that if used van prices weaken, Northgate could be affected.

However, despite these risks, Northgate’s near-term outlook does appear to be pretty healthy.

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Hertz Van Rental from £13 per daySeasonal demand for van hire from couriers and delivery firms is rocketing following the Black Friday weekend.

If you need to hire a van before Christmas you really need to book soon to avoid the risk of disappointment (or extra costs)!

We know it’s a busy time of year, so to help you find the cheapest van hire possible without hunting over the web, we’ve got together with the good folks at Hertz UK to offer you an exclusive 10% discount code for Hertz Van Rental.

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The code is valid for pick-ups from today until 28 December, so we’ve got the whole Christmas period covered. Here are the details:

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Sprinter pampervan brings luxury spa to your doorstep

Zen Ten Spa Sprinter

Caroline Jones’ Sprinter conversion, the Zen Ten Spa

Working vans can often be a little rough around the edges — it’s the nature of the job. However, I’m pretty certain that therapist Caroline Jones’ new Sprinter conversion will retain its pristine new finish for rather longer than usual.

Caroline has recently taken her spa therapy business on the road, with a custom Sprinter conversion built around a luton body.

The Warwick-based former BBC producer recently purchased a Mercedes-Benz Sprinter 313 CDI medium chassis cab with a purpose-built and climate-controlled box body, built for her by M6 Motor Bodies, of Birmingham.

“It’s been more than a year since I began evolving the concept of the Zen Ten Spa and having put so much work into the project I’m really excited finally to be up and running,” she said.

“My business is not a beauty parlour; it’s a spa, and aimed at a high-end, lifestyle-focused customer base. So given its premium brand values and the unrivalled quality of its products, Mercedes-Benz was the only manufacturer I wanted to work with.”

Fitted with a folding massage couch, a fruit bowl-style basin in pure mother-of-pearl, gossamer curtains and an abundance of gold-plated fixtures, the room has been painstakingly designed down to the finest detail, to be a relaxing and rejuvenating tranquil oasis.

Inside the Zen Ten Spa

Inside the Zen Ten Spa, which is climate controlled, plush luxury fittings make it hard to tell that you are in a van.

 

Caroline, who spent 22 years making network TV programmes for the BBC in Birmingham, has been a practicing aromatherapist since the early 1990s, and is also qualified to administer a range of other treatments. She offers a portfolio of ten holistic therapies including Swedish Massage, Reflexology, Reiki, Indian Head Massage, Hot Stone Therapy and Foot Rescue, as well as other, lighter alternatives.

DVLA to abolish paper element of driving licence in January 2015 — before substitute is ready

Update 22/12/2014: The deadline for the removal of the paper counterpart has now been extended until 8 June 2015. See here for more details.

The current UK driving licence consists of a photocard, together with a paper counterpart — but this is set to change in January 2015, when the paper counterpart will be abolished.

Although this has been known about for some time, I haven’t seen a lot of publicity about it. For car and van rental customers, however, it is relevant.

Here’s why.

You will no longer need to provide the paper counterpart of your driving licence when you pick up a hired van or car. That’s the good news, and  in the long run, this seems like a sensible move.

However, as you might expect, the replacment solution involves a new DVLA online service. As you might also expect, from a government-funded IT project, it may not be ready in time.

If the new service, known as Share My Driving Record (SMDR), isn’t ready in time, the hire company may need to use the DVLA’s existing driver data service to check for details of points on your licence, recent convictions, and entitlement categories. This is quite expensive — current costs are 51p/minute by telephone or £1.50 per enquiry via a dedicated electronic connection.

Given that there are 10 million rentals a year in the UK, according to the British Vehicle Rental and Leasing Asssociation, this could add up to a sizeable cost for hire companies, until the DVLA gets it IT act together.

What do I need to do?

Let’s hope I’m wrong, and SMDR is ready in time. However, as it probably won’t be, then if you are planning to hire a van (or any other vehicle) early in 2015, I’d suggest three things:

  1. Take your paper counterpart along regardless of whether it has been abolished, just in case it’s still useful.
  2. Be prepared for some delay and confusion while the hire company checks your driver data.
  3. Be prepared to pay any of the resulting licence verification costs.

Although abolishing the paper counterpart seems like a good idea in principle, this looks set to be yet another poorly-planned piece of government red tape cutting that could actually cause more hassle for customers and small businesses, rather than less. Let’s just hope I’m wrong.

Van hire availability already falling as Christmas approaches

vanrental.co.uk vanIf you need to hire a van between now and Christmas, we’d strongly suggest booking as soon as possible to avoid missing out — or having to pay a higher rate than usual.

What’s the problem?

In the run-up to Christmas, parcel delivery firms, couriers and much of the transport and retail industry needs more vans than usual, to meet the massive surge in demand associated with Christmas shopping patterns and home delivery.

Many of these extra vans come from daily van hire companies such as Europcar, Hertz and Thrifty, meaning that if you need to rent a van at short notice, you may find you cannot get what you need locally.

Here at vanrental.co.uk, we supply live prices from National, Europcar, Thrifty, Hertz, Sixt and Argus Car Rentals — and we’ve noticed a serious drop in quote availability over the last couple of weeks, along with a rise in certain rental rates.

Don’t leave it too late!

Van hire bookings are almost always made at the last minute: a large proportion of the bookings made through vanrental.co.uk are for hires that take place the same week, often the next day.

Normally this is fine, but as Christmas approaches leaving your booking to the last minute is a big gamble: our advice is to book as soon as possible to avoid disappointment.

Remember, our unique van hire search engine allows you to see live quotes from most of the UK’s biggest van hire companies: we don’t add anything to these prices, and your booking is made directly with the company concerned.

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Hertz Van Rental from £13 per dayAs I wrote recently, van hire availability is falling as demand surges from couriers in the run-up to Christmas.

High demand often means rising prices — but we’ve got good news:

If you need to hire a van to pick-up between 24 November 2014 and 21 December 2014, you can SAVE 10% with our exclusive Hertz 10% discount code.

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