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13/09/2010 – Vans

Online sales boost helps stabilise van values in August

The average wholesale van value has fallen by just 1% (£40) to £3,999 compared with July, according to Manheim Remarketing's latest monthly analysis.

This is reflective of an underlying strength in the market, despite the usual lighter seasonal demand, say Manheim.

Values were also boosted by a growth in online sales, with average online sales prices rising by 9.4% (£407) over the past month. Vehicles sold online in August were on average three months younger and with 1,075 less miles in comparison with July.

Four of the key vehicle segments to reflect this market strength with a rise in values were: large panel vans less than three tonnes up 3.6% (£155) to £4,475; large panel vans over three tonnes up by 1% (£48) to £3,779; 4x4s up 2% (£144) to £6,923; and small panel vans up by 0.4% (£17) at £4,258. Sectors that have fallen are car van, down by 5.8% (£142) to £2,278, and car derived vans, down by a marginal 1.1% (£31) to £2,662. James Davis, general manager, Commercial Vehicles, Manheim Remarketing, said: "The lead up to the bank holiday weekend in August is normally quiet. However, it is encouraging to see that the market stayed buoyant throughout."

(www.fleetnews.co.uk)

11/09/2010- Salary Sacrifice

Could you explain how salary sacrifice works in relation to leasing a car?

Government targets following Global warming have translated to tax breaks on more environmentally friendly cars. This in turn has changed the economics towards company cars and away from paying employees cash allowances (subject to low co2 emitting car). Replacing older cars for economic new cars with low CO2 emissions is undoubtedly Eco Friendly.

Taking this theme further a company can also provide staff a great benefit scheme by offering a car to them by reducing their salary saving up to 40% on monthly payments.

'A salary sacrifice happens when an employee gives up the right to receive part of the cash pay due under his or her contract of employment. Usually the sacrifice is made in return for the employer's agreement to provide the employee with some form of non-cash benefit. The 'sacrifice' is achieved by varying the employee's terms and conditions of employment relating to pay' HM Revenue and Customs.

Savings are derived from National Insurance, PAYE and VAT tax savings as well as better buying power. This is achieved keeping costs to company neutral or even positive. Employee does have to pay BIK tax which is minimised by choice of eco friendly car – major benefit remains.

Employee therefore benefits hugely on cost and is given a new hassle free fully maintained insured and taxed car. What could be better !.

Often such a program reduces the 'grey fleet' (employee cars used for business) element of the overall fleet which helps reduce road risk by being in control of vehicle maintenance and insurance. Obviously there are programs like FleetSafe Control that can help here as well (fleetsafecontrol.co.uk).

Obviously there are some pit falls but with careful planning and consideration these can be avoided.

AutoEase can help advise on vehicle and fleet requirements steering you through product choice, funding methods and taxation as well as helping to manage the fleet safely and cost effectively.

10/09/2010 – Electric Vehicles

Peugeot's first new generation 100% electric vehicle

With environmental awareness becoming a key focus of the UK government, local authorities and the general public, combined with the development of new battery technology, electric vehicles are the perfect fit for urban mobility for today and tomorrow.

Peugeot, in the shape of the iOn, are planning to create an electric vehicle that will appeal to the expected demand for clean, green cars that still have all the attributes of a regular car.

Peugeot UK will market the new iOn based on an "all-inclusive" mobility offer consisting of a four year contract. On a four year, 40,000 mile contract the monthly payment will be £415 excluding VAT, which includes:

• The lease of the vehicle (battery pack considered part of the vehicle)
• Full warranty cover for the vehicle, battery and electric power train for the period of the lease
• Full servicing and full maintenance for four years and 40,000 miles**
• Peugeot Connect Services (available April 2011)

Peugeot will also make available exactly the same benefits to the second user on a second four year contract at a reduced monthly amount.

Old technology electric vehicles have previously been limited due to their potential range, however, now with the new battery technologies available, this range has increased considerably.

Peugeot already has a long history in the production of electric vehicles as it launched it first vehicle in 1941, the three wheeled VLV. In 1995 it launched what is still the best selling electric vehicle, the Peugeot 106 electric. Now with the introduction of the Peugeot iOn, Peugeot will further strengthen its position as the leading producer of electric vehicles.

The first delivery of the Peugeot iOn will take place in the UK at the end of 2010.

(www.fleetdirectory.co.uk)

09/09/2010 - Fuel Costs

Rising fuel prices 'are wiping out efficiency savings'

Rising pump prices have virtually eliminated fuel cost savings from more efficient company cars, say The Miles Consultancy (TMC).

Its figures reveal that, although today's average new fleet car uses 13% less fuel than its 2004 counterpart, higher pump prices mean that it costs just as much to keep it fuelled.

TMC calculated the cost of fuelling a car over 10,000 miles, based on inflation-adjusted fuel prices and the average CO2 rating of new cars acquired by fleets each year, from 2004 to the present. The 2010 fuel bill is marginally higher, even though the CO2 from new cars (and therefore their fuel consumption) has fallen from 167g/km to around 145g/km.

"The message is clear," said Paul Jackson, managing director of TMC. "Businesses that intend to cut their fleet costs cannot afford to rely solely on more efficient company cars.

"While the most fuel-efficient cars – those in the sub-120g/km CO2 bracket – are holding their own in the race against higher fuel prices, the average new car is being left behind."

(www.fleetnews.co.uk)

07/09/2010 – Vans

Van values stabilise in August thanks to online sales boost

Manheim Remarketing's latest monthly Market Analysis for vans reveals that at £3,999, average wholesale van values have fallen by just 1% (£40) compared with July. This is reflective of an underlying strength in the market, despite the usual lighter seasonal demand. Values were also boosted by a growth in online sales, with average online sales prices rising by 9.4% (£407) over the past month. Vehicles sold online in August were on average three months younger and with 1,075 less miles in comparison with July.

Four of the key vehicle segments to reflect this market strength with a rise in values were:

1. Large Panel Vans less than 3 tonnes up 3.6% (£155) to £4,475;
2. Large Panel Vans over 3 tonnes up by 1% (£48) to £3,779;
3. 4x4s up 2% (£144) to £6,923;
4. Small Panel Vans up by 0.4% (£17) at £4,258

Sectors that have fallen are Car Van, down by 5.8% (£142) to £2,278 and Car Derived Vans down by a marginal 1.1% (£31) to £2,662.

"The lead up to the bank holiday weekend in August is normally quiet. However, it is encouraging to see that the market stayed buoyant throughout. There is a general positivity amongst trade buyers at the moment with more deals being done than they have seen for some time now. As we start to see stock volumes increase and better attendances in the auction halls, the future is certainly looking brighter for used commercial vehicles," commented James Davis, General Manager, Commercial Vehicles, Manheim Remarketing.

(www.fleetdirectory.co.uk)

02/09/2010 – Fuel Patrol

RAC launches specialist misfuelling patrols

A specialist patrol team has been tasked with helping more than 400 motorists every day that accidentally put the wrong fuel in their car and make the expensive mistake of misfuelling.

RAC Fuel Patrol is a service available to both RAC members and non-members that aims to get drivers back on the road faster after misfuelling.

The patrol vans are fitted with specialist equipment to extract the contaminated fuel and flush the fuel system on the spot with motorists driving away, on average, 40 minutes after the patrol arrives at the scene.

However, if motorists do run the engine the damage could be a lot more costly to put right and the vehicle would need to be towed to a garage to assess the extent of the damage.

A recent study by the British Insurance Brokers Association (BIBA) reported an estimated 150,000 misfuelling cases per year.

A number of RAC Fuel Patrols are currently operating in London, Derbyshire, Nottinghamshire, Buckinghamshire, the south west, Liverpool, the south coast and part of the West Midlands. The service will continue to expand over the next few months to cover additional misfuelling hot spots.

David Bizley, RAC's technical director, said: "Misfuelling is a common and costly issue –every three-and-a-half minutes a motorist makes this simple but expensive error. RAC Fuel Patrols are now able to drain and flush misfuelled vehicles at the roadside to get motorists back on their way more quickly.

"However, if the engine has been started the damage can be devastating, with repair costs of anything up to £6,000, depending on the vehicle model, but RAC Fuel Patrols are also able to recover vehicles to a garage using their rapid deployment trailer. In addition to resolving misfuelling call-outs, RAC Fuel Patrols can attend other breakdowns – a service unique to RAC."

Motorists can contact RAC Fuel Patrol by calling 0800 051 7845. The service is not included as part of a breakdown policy, but is available as a pay-on-use service to both RAC members and non-members for £175 and £190 respectively.

Furthermore, motorists can eradicate the risk of misfuelling with FuelSure, a device specifically designed to prevent this costly blunder. FuelSure prevents the insertion of the smaller diameter petrol pump nozzle, with the adaptor replacing the existing fuel cap.

(www.fleetnews.co.uk)

01/09/2010 – AutoEase News

New staff member joins AutoEase

After a successful career in motor retail and refurbishment at Vauxhall and AutoQuake, Stewart Brown joined AutoEase within the commercial vehicle team.

19/08/2010 – Fuel Costs

Fuel prices set to reach record high

Fleets are being warned to expect a significant rise in the cost of fuel in the coming weeks.

It is predicted that petrol will reach an average of £1.20 a litre in the coming days, and will hit a record £1.26 a litre by the end of the year. The previous high was £121.6 in May.

The warning comes from the Retail Motor Industry Independent Petrol Retailers Association (RMI Petrol), which said prices could increase by 3% be the end of this month and 8% by the start of 2011.

The end-of-year predictions are backed by Portland Fuel Price Protection. "Taking the rises in duty and VAT, fuel prices will already rise by 4% by the end of the year if nothing else happens," the company's trading manager Steve Irwin said. "So it is well within the bounds of probability that we will see an 8% rise by the year's end. £1.25.9 for unleaded is not unreasonable to expect."

The Government is driving much of the price increases with a 1p rise in fuel duty coming into force on October 1. There will also be a further duty rise of 0.76p on January 1, 2011.

In January, pump prices will also be impacted by the rise in VAT to 20%, and although fleets will be able to claim this back, it will still impact on cash flow.

Added to these Government-forced price increases are the predicted rises as a result of currency movements and world oil price increases.

Prices have fallen over the last couple of months, largely as a result of an improvement in exchange rate between sterling and the US dollar.

But crude oil prices have now started a sharp upward curve reaching a new three-month high of close to US$82 per barrel while sterling is showing weakness against the dollar for the first time in weeks.

"This crude oil increase will feed through the supply chain and could result in prices going up by as much as 4ppl in the next three weeks," said RMI Petrol chairman Brian Madderson.

"The outlook remains extremely difficult for motorists and retailers alike. As I forecast earlier this summer, we could be seeing new record pump prices within six months. This will impact really seriously on businesses." The average cost of petrol is already £1.16, with many rural areas already close to £1.20.

Diesel – the fuel of choice for most fleets – is already an average of £1.19.5 a litre. It is predicted that this will rise to £1.23 within days and then possibly over £1.32 by the end of the year.

"A price of £1.32 is certainly possible," warns Irwin. "The question is whether this will be a short-term high or an average price over an extended period. This is very difficult to say – prices are balanced on a knife edge. But if the economy continues to improve prices will go up."

Many areas are already being hit with the first wave of increases with several areas of the country now paying over £1.20 a litre for diesel. While the islands around the UK have the highest prices - £1.30 on the Isle of Mull - regional variances can be dramatic. For example, the average price in Cambridgeshire is now £121.8p per litre, while in neighbouring Leicestershire it is 2.5p per litre cheaper.

There is a 16p per litre differential between the country's highest-priced diesel outlet and the cheapest.

Both the RMI (Petrol) and the Fuelcard Company are calling on the Government not to introduce the fuel duty increases. Currently 75% of the cost of a litre of fuel goes on taxes and duty.

(www.fleetnews.co.uk)

15/08/2010 – Car Leasing & Tax efficiency

Car Leasing: Tax efficiency for the company

My company run a small fleet of cars, is leasing the most cost effective option?

Leasing vehicles has had its advantages over owning vehicles for a number of years. These have been mostly:

1. Vehicle & loan not on company balance sheet
2. VAT is fully or partly reclaimable
3. Lease rentals can be off set against revenue
4. Vehicle is fully budgeted
5. No disposal risk or hassle

The leasing advantage has increased following several government budgets due to:

1. changes in the way expensive car disallowances are calculated
2. Writing down allowances being reduced from 20% to 18%
3. VAT is rising from 17.5% - 20%

The advantages of leasing still however remain dependant on vehicle choice. Instead of cost the most important aspect (although not solely) is the CO2 emissions of the vehicle. These are key for example because if the vehicle emissions are below 160gpkm all lease rentals are off set against profit making the car very tax efficient. CO2 emissions will also effect the NI cost to firm as it effects the benefit in kind for which NI is payable on.

If a leased car has CO2 emissions of over 160g/km then 15% of the lease rental is not off settable against profit.

Because writing down allowances are reducing from 20% to 18%, this reduces the allowances that could be claimed if the vehicle was owned by the company and therefore favors leasing because rentals are off settable (for cars of CO2 below 160gpkm).

The effect of vat increase will effect all acquisition methods, however because leasing allows for vat to be reclaimed (or part of it) then the effect is lower. Vat will increase leasing cost by increasing p11d value which effects NI. Clearly this fact will again highlight the need to select more efficient lower emitting vehicles.

As specialists AutoEase are able to help companies establish cost saving vehicle strategies, vehicle policies, fleet compliance, as well as providing exceptional deals on cars and vans.

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12/07/2010 – Fuel Tax

The Fuelcard Company launch national petition to lower fuel tax

The Fuelcard Company has launched a national petition among commercial vehicle drivers calling for ministers to lower fuel tax and support the transport industry.

The campaign entitled 'Don't Fleece Our Fleet' is being taken across the UK in a nation-wide tour of the country's biggest truck-stops to raise awareness and generate support for the fleet industry which has seen fuel duty increases totalling 15 percent during the recession, with further tax hikes on the way totalling around 5 percent.

UK diesel duty is by far the highest in the EU, at 57.19 pence a litre, and more than double what some of our EU competitors pay. To raise awareness of the petition The Fuelcard Company has embarked on a 6 week tour of the country with an enormous 14ft American BBQ serving burgers to the nation's beleaguered truck drivers.

The petition is calling on the Government to lower fuel tax, or freeze it at its current level, before the UK fleet industry suffers irreparable damage.

Jakes de Kock, marketing director of The Fuelcard Company said: "The fleet industry is the backbone of the UK economy, providing a vital logistical service to businesses and organisations across the country and yet is left perpetually struggling to stay afloat thanks to these apparently never-ending hikes in fuel duty.

"We are calling on the Government to support the UK fleet industry which has suffered in the past few years with repeated fuel tax hikes leaving many companies fighting for survival. The latest measures announced in the emergency budget, including the increase in VAT and the change to capital allowances, will only serve to weaken the industry further."

The Fuelcard Company's new petition is being supported by the Road Haulage Association (RHA) which has consistently challenged fuel tax hikes in the UK. RHA chief executive Geoff Dunning commented: "We have worked closely with our members to support the causes that affect their every day business, with the issue of fuel duty a key issue.

"The UK's record high level of diesel duty doesn't just hit British hauliers. It also hits UK competitiveness and raises the price of everything we buy in the shops.

"The RHA fully supports The Fuelcard Company in its bid to raise awareness of such a vitally important issue to our members."

Recent figures revealed by the Scottish National Party threw a sharp spotlight on just how heavily taxed fuel is in the UK - before tax, UK diesel is the second cheapest in Europe; after tax it is the most expensive.

De Kock continued: "Motorists suffer as well, of course. The cost of diesel at filling stations currently averages 120.9p/litre – and 75 percent of that is taxes. That will increase further still when VAT rises from 17.5 percent to 20 percent in January. When will the Government begin to recognise that fuel is not a luxury for many people in this country but a daily necessity?"

"But the burden falls mainly on our hauliers, who provide a vital service, transporting essential goods across the country and often working unsocial hours which take them away from their families. In addition to raising awareness of the campaign, the BBQ tour is about recognising and thanking our hauliers for their contribution to the UK economy."

(www.fleetnews.co.uk)

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03/06/2010 - Sale & Leaseback

We currently own our entire fleet of eight cars and four vans, could you explain how Sale & Leaseback will benefit my company?

Increasing numbers of businesses that have traditionally outright purchased their company vehicles are discovering the benefits of Sale & Leaseback. The popularity of outright purchasing as a funding option is decreasing (Datamonitor) and companies are finding Sale & Leaseback the perfect means of transition to the more flexible and cost effective funding method of contract hire or leasing. Businesses are benefiting from the capital released from the 'sale' which can be re-invested in core business activities. The process is straightforward – We will calculate the value of each vehicle in a company's fleet and then buys them from the company at their market price. We can then leases the vehicles back to the company on contract hire, or replace them with new vehicles if preferred.

The three main areas to consider if you outright purchase currently are cost, risk and service.

Cost: Outright purchasing generally requires a significant level of initial investment, diverting funds from core business activities. Leasing, as a funding option, offers the following cost advantages.

• Frees up working capital: Contract hire allows companies to use the capital that was tied up in their fleet to invest in core business activities.
• Provides fixed cost fleet budgeting: Opting for contract hire inclusive of maintenance means costs are fixed for the duration of the contract term allowing you to budget more easily.
• Increased revenue efficiencies: Rental allowances connected with contract hire provide accelerated tax benefits.

Risk: financial and employee

• Eliminating risk of depreciation and resale: Forecasting future residual values and maintenance requirements is a highly complex area. Leasing removes the risk around depreciation and resale worries.
• Flexibility for changing market conditions: Leasing vehicles provides the flexibility to react swiftly to new opportunities and challenges.
• Service delivery: The benefits of outsourcing fleet management and administration are proven and have been embraced by most companies with vehicle fleets.
• Keeping drivers happy: We can manage everything from vehicle orders and replacing tax discs to repairing damaged vehicles.
• The full service: Daily rental, accident management and fuel cards can all be included within the contract hire agreement.

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02/05/2010 – Fleet Management

FleetSafe Control is accepted by a major NHS partner

FleetSafe Control is a culmination of knowledge from within the business as well as through our partners to provide an encompassing solution to businesses who need to manage vehicle, drivers and journeys in line with HSE requirements.

FleetSafe Control is on growing; it has recently been accepted by a major NHS partner and is looking to expand its horizons further in upcoming months. Visit www.fleetsafecontrol.co.uk for more information.

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01/05/2010 – Duty Of Care

Could you explain how I can meet my 'Duty of Care' obligations with regards to our company vehicles?

The new Corporate Manslaughter and Corporate Homicide Act came into effect in April 2008. From now on, any company in the UK which is found to have caused death through health and safety failures can be prosecuted with unlimited fines. Crucially, the new legislation applies to every part of your operation, including everyday driving and vehicle fleet management.

' …courts will look at management systems and practices across the organisation, providing a more effective means for prosecuting the worst corporate failures to manage health and safety properly.' Ministry of Justice. www.justice.gov.uk

You can protect your company by implementing Health & Safety Guidance 65 – the UK standard process for managing all occupational risks. This sets out the principles of defining a health and safety policy, administering it, assessing and reducing risks to your workforce, and how to review and measure the effectiveness of your policy.

Are you at risk?

• Do you undertake an annual occupational road risk assessment to identify risks within your organisation?
• If an incident occurred, with either a company-owned or private vehicle, would you be able to tell the police the condition of the vehicle, its service history, the condition of the driver and the insurance status of the vehicle?
• Have you published (and do you maintain) a complete and up-to-date set of policies and procedures and a driver's handbook?
• Do you monitor drivers' working and driving hours to ensure compliance with the Working Time Directive?
• Do you have a process for communicating the latest changes in law to your drivers, such as the 29 recent legislative changes to the Highway Code, the ban on smoking, and the latest mobile phone 'hands-free' prosecutions?

Improving safety and reducing costs:

We are ideally placed to guide you through the complex issues that surround Duty of Care as it relates to your fleet. As well as helping you meet your legal obligations, we can help you find ways to reduce the number of working days lost due to accidents, reduce vehicle repair and vehicle replacement costs, reduce the cost of insurance, legal fees and uninsured losses and finally reduce the risk of damaging your corporate reputation

AutoEase can help advise on vehicle and fleet requirements steering you through product choice, funding methods and taxation as well as helping to manage the fleet safely and cost effectively.

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07/04/2010- Commercial Vehicles

We are a electrical contractor with a fleet of eight vans which were purchased outright five years ago, we're looking to replace them this year, could you explain how you can help?

We provide a full fleet solution to small and medium sized businesses, so I'm sure we can help with your situation. We can handle everything from sourcing your new vans, arranging the finance and disposing of your old vehicles, and as we are completely independent we can offer you impartial advice on all makes and models of vans and all the major funding packages. Whilst you may have had your reasons to use cash to purchase your vans five years ago, we would strongly recommend you look at different finance packages, as with the average van costing £12500, the £100,000 reduction in cash flow can have serious effects on your operations. We have access to all the major vehicle manufacturers and can source new and nearly new vehicles with saving of up to 40% on list prices, so coupled with our panel of funders we are confident in coming up with a package to suit your requirements.

I took out a Finance Lease product on my vehicle 3 years ago, the lease is now coming to an end, what are my options?

You cannot take direct ownership at the end of a Finance Lease as you have taken advantage of the tax benefits of a usership product, at the end of your lease agreement a balloon payment (if applicable to your contract) will be payable to the finance company. Once the balloon payment is settled with the funder to avoid a secondary rental period (typically 1-2 monthly payments annually) you will need to dispose of the vehicle.

There are 3 options to achieve this, as follows:

1. Part exchange the vehicle to cover part or all of the balloon payment and use any equity in the vehicle as a deposit for you next vehicle lease.
2. Sell the vehicle to a non related third party e.g. private advertisement
3. Sale & Buy Back, allowing you to purchase the vehicle

In all of the above cases a percentage of the sale proceeds is will be payable to the funder.

AutoEase can help advice on vehicle and fleet requirements steering you through product choice, funding methods and taxation as well as helping to manage the fleet safely and cost effectively.

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01/03/2010 – AutoEase News

New staff member joins AutoEase

Adam Carter, who specialises in sales and customer service, has recently joined AutoEase.

He had previously been working as branch manager at Enterprise and has brought great enthusiasm and skills to the AutoEase team.

Adam was awarded an Exceptional achievement award for the biggest branch profit and growth in South West 2008-09 and the highest customer service score in the South West for 3 of the last 12 months…

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08/01/2010 - Fleet & Transportation

Fleet & Transportation

As we start 2010 all the major car manufactures have now launched their economical models in to the marketplace and these once alternative vehicles are now in the mainstream. These low C02 emitting cars are not only cheaper to run but are also a perfect way for employees to reduce their company car tax bill. For example take one of our clients who recently replaced his Volkswagen Golf when it came to the end of its contract, by changing from the standard diesel engine into a new BlueMotion model he has cut his company car tax bill by 36%. Aesthetically the vehicle is exactly the same, he has retained all the creature comforts and hasn't had to downgrade the power output by anything noticeable. If the Golf doesn't suit your requirements there are many other vehicles to consider including Ford's ECOnetic range, Mercedes BlueEFFICIENCY range and SEAT's Ecomotive range to name a few. With the vast majority of the population looking at ways to save money, you can not ignore the rise of economical models when reviewing your company car policy.

These cars are designed to benefit from the tax advantages introduced by the government over the last few years, however if you want to go a step further there are of course additional vehicles for you to consider, there are the hybrid's like the Toyota Prius, Electric vehicles like the MINI E on trial at the moment, or you could look at the micro cars like the Smart car and Toyota iQ. AutoEase has recently introduced three Toyota iQ's into our company fleet at our Bristol offices after a review of our own fleet policy. These not only qualify for free road tax and benefit from up to 65 miles to a gallon, they also reduce our employee's car tax bill to the lowest bracket. Our company board also decided that as we are a fleet and vehicle management company we should set the example with the ethos of the environment in our fleet policy. While we provide car and van leasing options for all makes and models of vehicles the early signs for 2010 is that the economical car will lead the way.

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01/08/2009 – AutoEase News

AutoEase expand their business by merging with Great Bristol Vehicle Leasing and moving into new premises

AutoEase has recently merged with Great Bristol Vehicle Leasing and has now become one of the South West's leading providers of car and van leasing and contract hire. The two prospering companies have joined forces to give customers even more choice and support than ever before.

Great Bristol Vehicle Leasing is a subsidiary of BL Autosource Llp, which was set up in April 2002, and is based in Westbury-on-Trym, Bristol.

By working with a panel of leasing and manufacturer suppliers, the company can bring great benefits to clients in both cost savings and flexibility. This together with fleet management options place the company in a

Now that the two established companies have merged, clients can benefit from a business with even stronger buying power and industry knowledge. Together they are Bristol's leading Vehicle Solutions Company serving the whole of Great Britain.

AutoEase premises are now located at: 289 Coronation Road, Southville, Bristol, BS3 1RT.

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04/07/2009 – Contract Hire

My Company has always brought our company cars with cash, could you explain why I should consider leasing our next one?

The majority of businesses in the UK lease their company vehicles, there are a number of varieties to leasing, but contract hire is the dominant type.

The main business benefits of contract hire :

1. Fixed monthly costs: Contract hire is a fixed-cost form of motoring, for a set monthly payment, you get the use of a vehicle for an agreed duration and mileage that suits your business. For an extra monthly fee, we can take care of the vehicle's maintenance and servicing.
2. No risk: Most vehicles will lose value from the moment they leave the showroom. When you contract hire a vehicle the leasing company is responsible for any residual value risk, so at the end of the contact you simply hand the vehicle back.
3. Free up capital: Leasing a vehicle instead of purchasing it mean you are not tying up capital in a rapidly depreciating asset. You can invest the money that you are not paying upfront in growing your business or reducing debts.
4. Claiming VAT: If you allow employees to use company vehicles for private use you can still reclaim 50% on the VAT charged on the monthly payments, whereas if you purchased the vehicle outright you can reclaim zero VAT. Vehicle rentals are also reduced by the leasing company being able to reclaim all the VAT on the vehicle purchase.
5. Tax: With careful vehicle choices a business can claim back 100% of the vehicle rentals against tax. Employees can also benefit with the right choice of low C02 emitting vehicles, employee benefit in kind tax is minimised.
6. Off balance sheet funding: Vehicle leases do not have to be shown on a balance sheet, which will improve a company's liquidity ratio, gearing and return on assets.
7. Purchasing power: leasing companies are used to buying thousands each year. They can negotiate great deals with the manufacturers and pass the saving on to you in the form of a very competitive leasing rental.

AutoEase can help advise on vehicle and fleet requirements steering you through product choice, funding methods and taxation as well as helping to manage the fleet safely and cost effectively.

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04/06/2009 – Green Issues

Vehicle CO2 Emmissions Considerations

Vehicle choice needs to be considered in line with vehicle CO2 emmissions.

All roads to do with vehicle choice are impacted by the vehicles CO2 emmissions from driver BIK, vehicle allowances, Road Tax.

For purchase, cars emitting 110 g/km CO2 or less will continue to receive a 100% first year allowance. Cars emitting between 110 and 160 g/km CO2 will receive a 20% writing down allowance on a reducing balance basis. Cars emitting 161g/km CO2 or more will receive a 10% writing down allowance on a reducing balance basis.

For leasing, any car emitting less than 160 g/km CO2 companies will be able to off set 100% of the rental. Vehicles over 160 g/km CO2 will be subject to a flat 10% rental dissallowance. This applies to the finance only element.

On fuel, there is a strong correlation that the lower the CO2 emmission of a car the better the fuel economy.

Road Tax, there is a matrix applied which follows that a car emmitting less than 100 g/km CO2 will be nil ranging to cars over 255 g/km CO2 will be £435 per anum. See www.direct.gov.uk/en/Motoring/OwningAVehicle/HowToTaxYourVehicle/DG_10012524

In conclusion the government continue to push the green issue for fleets through fiscal controls.

Fleetsafe Advise is that regardless of the number of cars you run, now is the time to review your business car strategy to ensure you take advantage of the new tax regime.

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16/01/2009 – Health and Safety

The Health and Safety Offences Act 2008

The Health and Safety Offences Act 2008 comes into force on Friday, 16 January 2009. This new Act will increase penalties and provide courts with greater sentencing powers for those who break health and safety law, and is being welcomed by the Chair of the Health and Safety Executive (HSE).

Judith Hackitt said:

" This Act gives lower courts the power to impose higher fines for some health and safety offences. It is right that there should be a real deterrent to those businesses and individuals that do not take their health and safety responsibilities seriously. Everyone has the right to work in an environment where risks to their health and safety are properly managed, and employers have a duty in law to deliver this.

"Our message to the many employers who do manage health and safety well is that they have nothing to fear from this change in law. There are no new duties on employers or businesses, and HSE is not changing its approach to how it enforces health and safety law. We will retain the important safeguards that ensure that our inspectors use their powers sensibly and proportionately. We will continue to target those who knowingly cut corners, put lives at risk and who gain commercial advantage over competitors by failing to comply with the law".

Following its successful Third Reading in the House of Lords on 10 October, the Health and Safety (Offences) Act 2008 received Royal Assent on 16 October and comes into force on 16 January 2009. The Act fulfils a longstanding Government and HSE commitment to provide the courts with greater sentencing powers for health and safety crimes. The effect of the Act is to:

raise the maximum fine which may be imposed in the lower courts to 20,000 for most health and safety offences; make imprisonment an option for more health and safety offences in both the lower and higher courts; make certain offences, which are currently triable only in the lower courts, triable in either the lower or higher courts. The full text of the Act can be found at: http://www.opsi.gov.uk/acts/acts2008/ukpga_20080020_en_1[1]

Notes to editors

The Health and Safety Offences Act 2008 was introduced as a Private Members Bill and piloted through the House of Commons by the Rt Hon Keith Hill MP and by the Rt Hon Lord Bruce Grocott in the House of Lords. The HSE Board has overall responsibility for occupational health and safety regulations in Great Britain, and HSE and Local Authorities are the enforcing authorities that work in support of the Board. For more information on health and safety at work visit www.hse.gov.uk[2] Information on worker involvement can be found at http://www.hse.gov.uk/involvement/[3] HSE's enforcement policy can be viewed at: http://www.hse.gov.uk/enforce/index.htm[4] The new penalties in the Act are not retrospective and will not apply to offences committed before it comes into force i.e. offences before 16 January 2009.

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10/10/2008 – Grey Fleet

Still a dark cloud over grey fleet

How many of you out there check constantly for bald tyres on your vehicles? Or, ensure that your road tax is valid or needs renewing? If honest hands were to be raised, few hands would make the short journey and the rest would be parked on our laps. We are a driving nation; a country with over 30 million vehicles occupying our roads, with a large number of these unsafe to do so. With the spotlight now on companies who 'encourage' their employees to use their private vehicles for work, the grey fleet is about to have a head on collision with the authorities if procedures are ignored.

A recent independent survey, discovered that almost two out of three private vehicles driven on company business were not safe to be on the road – it is estimated that between one and three million privately-owned cars are used for work. More alarmingly, 60% of the private vehicles were not properly maintained, around a third were not insured. This is despite the fact a host of insurance companies will graciously extend cover for free for their customers who use their own cars for work.

"Most organisations will, on occasions, find it highly convenient to allow staff to use their private car for business travel," says the author. "If they have no immediate pressure form their employer and insurer, why would they care or think about the implications? In terms of administration and cost, paying a fixed mileage allowance for the use of a private car is the simplest solution rather than providing pool cars or arranging a daily rental vehicle."

The survey aroused more concerns when researchers discovered that 52% of companies do not have a policy to check insurance details of their grey fleet vehicles. "Equally more worrying is the complete lack of company procedures to check that grey fleet vehicles are safe," they continue. "In 2007, we found a quarter of fleet managers said that roadworthiness of their grey fleet vehicles was a major concern. It is abundantly clear that there is a very thin line between awareness and action – if companies aren't denying these discrepancies, then it's as though they're condoning them."

The Corporate Manslaughter Act, which came into affect in April this year, is one robust legislation that may appear ambiguous, but is very clear with its intentions. Under the new act, it is the organisation that will be targeted and prosecuted for a "gross failure in the management of health and safety that causes death". Rather interestingly, the statute will rectify a key defect in the present law (organisations could only be convicted of manslaughter if a single individual at the very top of a company was personally guilty) and now ensures proper accountability for "serious management failures".

This may be a whole new meaning to 'laying down the law', but a new, thick application is what's required to force organisations to monitor their fleets.

"It is also clear that the safety issues raised by private cars are being completely neglected by businesses, so a legislation of this status is welcome, however, even when companies are introducing duty-of-care policies, they are failing to enforce them. I wouldn't say it's an incentive, but this addition to the existing law will certainly be a constant reminder to fleet managers." A reminder that will be staunchly reinforced by unlimited fines and publicity orders; making companies now sit up and take note.

Although the grey fleet may be under immense scrutiny, their drivers are in fact travelling fewer miles. This is good news in the sense that unqualified fleet vehicles remain off our roads, but, this is not happening due to the new legislation or pressure from vigilant companies; this is due to rising fuel costs. This and the failure of the government to increase the Approved Mileage Allowance Payments (AMAP) rates have been cited as the main factors behind the decrease in grey fleet business miles.

"Rising fuel prices have underlined the fact that HM Revenue and Customs (HMRC) AMAP rates – the cash allowances employers pay to their staff for using their own car for work – are failing to keep pace with drivers' cost," fleet analysts say. "Anecdotal evidence suggests that employees are becoming increasingly resistant to using their own vehicles, as they feel they are not being fairly compensated to do so."

Drivers are faced with the fear of subsidising the costs of their travel themselves and employers are threatened by hefty fines and possible prison sentences. Never before has the grey fleet been so 'grey', but the dark cloud will soon dissipate if a few simple, but unavoidable procedures are followed.

(www.fleetdirectory.co.uk)

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