Latest News Wednesday 21st March 2012
Today's budget summary from the BVRLA.... 
Monday 19th March 2012
New Advisory Fuel Rates announced
HM Revenue and Customs (HMRC)has published new advisory fuel rates (AFRs) today with a 1p per mile increase for diesel fuelled cars dependant on the size of the engine.
The rates, which businesses use to repay drivers for fuel used on business mileage, take effect from Thursday (March 1) and are reviewed on a quarterly basis.
Petrol and LPG rates remain unchanged from the last change in December. However, there is a 1p per mile rise for diesel cars with engines smaller than 1,600cc and for those larger than 2,000cc.
Petrol
1400cc or less 15p (15p)
1401cc to 2000cc 18p (18p)
Over 2000cc 26p (26p)
Diesel
1600cc or less 13p (12p)
1601cc to 2000cc 15p (15p)
Over 2000cc 19p (18p)
LPG
1400cc or less 10p (10p)
1401cc to 2000cc 12p (12p)
Over 2000cc 18p (18p)
National Windscreens appointed as primary supplier to Lex Autolease
Lex Autolease has awarded the majority of its windscreen repair and replacement business to National Windscreens.
The three year contract commenced on the 1st January 2012 for the repair and replacement of automotive glazing on all vehicle types, in a fleet that includes cars and vans.
Steve Chandler, SMR supplier network manager at Lex Autolease commented: “Having initially made contact with National Windscreens in 2010, we were pleased to work with them in early 2011 when they took over 33% of our glass supply needs.
Their passion for fantastic service delivery and real expertise in the automotive glazing industry has been demonstrated over and over again since we began working together and this was more than evident throughout a rigorous tender process. As a result it became clear to us that National Windscreens represented a natural choice for LA as principle supplier and we’re pleased to have them in place.”
“We are delighted to be supporting Lex Autolease in their development of partnerships with businesses and public sector organisations throughout the UK” said Graham Furneaux-Porter, national fleet sales manager at National Windscreens.
Graham continues: “National Windscreens have a proven commercial approach that supports vehicle fleet managers in achieving lower costs, introducing proactive safety initiatives and making sure vehicles are on the road for the maximum time possible. We are proud to add Lex Autolease to the list of prestigious UK fleet companies who have chosen National Windscreens as their principal supplier making us the leading supplier of automotive glazing services to the UK fleet sector.”
Article by FleetNews
Four out of 10 drivers to be hit by lower CO2 threshold
Lex Autolease expects more than four out of 10 company cars will result in increased fleet and driver costs when the qualifying low emissions car (QUALEC) threshold of 120g/km is abolished in April.
Data gathered by the UK’s largest leasing company reveals that 45% of new car orders will fall into the 100g/km to 120g/km tax band and be hit by the ‘QUALEC Effect’.
These vehicles, as well as any existing company cars emitting more than 99g/km of CO2, will soon be subject to a higher tax burden.
The future cost increase is attributed to HMRC’s decision to lower the 10% tax threshold from 120g/km to 99g/km in April 2012, as part of a revision to the benefit-in-kind (BIK) system for company cars.
Lex Autolease calculates that only 8% of cars ordered will qualify for the new 10% company car BIK tax band (76g/km to 99g/km).
So, despite recent efforts by manufacturers to launch sub-120g/km vehicles and fleets’ or drivers’ decisions to adopt these, many will face a company car tax increase with an adverse impact on employers’ National Insurance Contributions (NIC) as well.
Based on a fleet of 500 vehicles, comprising a mix of Volkswagen Golf 1.6TDI 105 Match and BMW 318d SE models emitting 119g/km, employers’ NIC costs will rise by more than £60,000 a year.
An employee driving the same BMW 318d will be hit with a yearly BIK rise of £216, if they are a 20% taxpayer, and £432 at the 40% rate.
Paul Lippitt, principal consultant at Lex Autolease, said: “No fleet is likely to escape the QUALEC Effect, unless they are operating an entirely sub-99g/km policy and there aren’t many of those about.
“We’ve raised the issue ever since the new tax thresholds were confirmed at the last Budget, but we suspect that a large number of firms have not yet taken pre-emptive steps to mitigate the impact and inform their employees.
“Senior management may be less concerned if they have recently taken delivery of a low-emitting BMW 5 Series or Volvo S80 and can stomach the additional BIK, but the cost increase will come as a shock to middle and junior managers.”
Artical by FleetNews
RBS signs deal with ALD as it closes Lombard Vehicle Management
The Royal Bank of Scotland (RBS) has offloaded its car and van leasing business Lombard Vehicle Management (LVM) to ALD Automotive in a five-year deal.
The business will still operate as LVM under a white label deal being managed by ALD Automotive, which is owned by Societe Generale.
An RBS spokesman said: “Having to cut jobs is the most difficult part of our work to rebuild RBS. The decision to close Lombard Vehicle Management was a difficult one but is a necessary step in our plan to de-risk and re-focus RBS, making the bank safer and stronger.
“We will do all we can to support our staff, offer redeployment opportunities wherever possible, and keep compulsory redundancies to an absolute minimum.”
The new arrangement will be officially launched in June/July this year.
Fleet News reported more than a year ago that RBS, which is 84%-owned by UK taxpayers, was willing to listen to offers for the company as part of a programme to sell non-core assets.
But, with GE Capital understood to be close to acquiring the business, Sky News reported that RBS had pulled the plug on talks after failing to agree on the price and structure of a deal.
Lombard Vehicle Management had a risk fleet of 70,621 vehicles and a number five ranking in last year’s FN50, while ALD Automotive had a number six ranking with 63,561 vehicles.
A joint operation would give a combined risk fleet of more than 130,000 vehicles and would effectively put it in the number two spot, behind Lex Autolease but above LeasePlan, based on 2011 figures.
Article from FleetNews.
Fleets to receive electric van Incentive
The government has guaranteed its £5,000 Plug-In Car Grant until 2015 and introduced a similar incentive, worth up to £8,000, for plug-in van buyers. It will shortly confirm which vans are eligible for the grant, which has similar qualification criteria to the car version.
Eligible vans must:
• produce less than 75g CO2 per kilometre.
• have a minimum range of 60 miles if run on pure electricity.
• have a minimum electric-powered range of 10 miles if a plug-in hybrid.
• have at least a three-year/60,000-mile warranty on the vehicle.
• have at least a five-year guarantee on the battery.
For more infomation please contact us on 01249 448661 or email: info@candocontracts.co.uk
Bad news on Saab warranties
UK Saab customers are likely to find that their parts and vehicle warranties are invalid as a result of the Swedish parent company being declared bankrupt before Christmas. Grant Thornton, the administrators for Saab GB, have confirmed that customers may be entitled to lodge a claim for the value of the unexpired element of the warranty, with all claims being adjudicated by the company liquidator, once appointed.
Major Mini recall
Mini is recalling 235,000 of its cars, nearly 30,000 of them in the UK, because of a fault in their electric water pumps. The recalls affect certain Cooper S and John Cooper Works models built between 2006 and 2011. Parent company BMW said there have been four cases of fires as a result of problems with the pumps.
Owners should receive a letter in the next few days inviting them to take their Mini to a local dealership for a pump replacement, which should take around an hour.
Diesel price 'to hit record high'
Fleets could be facing record diesel prices after the steepest and fastest ever rise in wholesale costs over the festive period, according to RMI Petrol.
From Monday December 19 to Thursday January 5 the cost of diesel increased by nearly 4.50ppl and unleaded petrol by as much as 5ppl with 20% VAT to be added.
RMI Petrol fear that average UK prices for diesel, currently close to 141ppl, will soon push past the May 9 peak of 143ppl and hit new record levels - perhaps even breaching 145ppl in the next few weeks.
These increases have been so rapid that fuel retailers have had scant time to react over the holidays and few have made any significant increase yet to their pump prices, says RMI Petrol.
However, from this weekend prices will have to move up wards quickly in order to protect the already wafer thin margins which have caused the independent retailers such financial stress through 2011.
Article by Fleet News
Blue is Britain’s favourite car colour
BLUE is the colour most drivers would choose for their car if they have a choice, closely followed by silver and black, according to AA/Populus research of 15,860 AA members reveals.
As new plated cars hit the forecourts in the last seven days, the AA expects to see an increase in blue cars. Brown was the least popular choice followed by gold and yellow. Red came fourth in the survey followed by grey, while and green in seventh spot.AA president Edmund King said: ‘Brighter coloured cars, which have been popular in the past when the economy was more buoyant, seem to have slipped way down the league.’
Colourless MOT certificate cuts costs
From 16 October, a new style of MOT certificate will be introduced. Pass and failure notices will no longer be issued on coloured forms, but on plain paper in black ink.
As part of the government's efforts to cut costs and environmental damage, the new certificates will also, wherever possible, combine the test result and advisory information on one page.
Coloured certificates issued before 16 October will remain valid until their expiry date.
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