John Lewis, chief executive of the BVRLA is battling against the negativity being put out by many economists regarding the year ahead. He and his organisation have preferred to focus on the possibilities that 2012 may hold for the industry by producing a ‘Fleet Optimists’ guide to 2012.

Mr Lewis said: “With economic growth slipping across the world and austerity measures biting hard in the UK, business is not going to get any easier in 2012, however, road transport is an essential, not a luxury, and vehicle rental and leasing will continue to gain market share as long as businesses and consumers continue to look for cost-effective, hassle-free motoring.”

Vehicle Registrations: The BVRLA see 2012 continuing in the same way as the previous year, which saw sixty per cent of new car sales being attributed to business registrations. They also see a continued rise in commercial vehicle registration thanks to growth in the courier and home delivery sector and increased demand from contract hire and rental customers.

Mr Lewis commented: “Business users recognise the advantages of buying newer, safer and more fuel efficient cars, but only as long as manufacturers resist the urge to push up prices. We are going to see some very interesting competition below the premium marques, with Korean brands in particular challenging existing fleet favourites including Vauxhall, Ford and the French carmakers with their much improved build quality, low emissions and aftercare offering,”

Funding: The BVRLA say the appointment of new funders last year to should see credit being delivered this year to the independent leasing and rental sectors.

Mr Lewis stated: “These funders are fully engaged with the motor finance market and should hopefully be immune to any further Eurozone-related banking crisis. They will also reduce the industry’s dependence on non-interested parties like Lloyds, who continue to cynically price themselves out of the market.”

Used Market: The BVRLA expect there to be no change in the reducing demand for used cars, however, they foresee residual values continuing to hold as less stock comes into the the remarketing system. Dealers and customers alike will turn to high-quality six-month to four-year-old ex-rental and leasing stock, keeping the new car retail market subdued.

Mr Lewis said: “You only have to look at the way prices held up in the final quarter of 2011, despite some of the pessimistic predictions from so-called remarketing ‘gurus’.”

Rental Market: The BVRLA expect the rental market to see an increase in choice for customers including newer and more fuel efficient models.

Mr Lewis expanded on this saying: “We expect to see even more urbanites turn their back on car ownership and take a pay-as-you-go approach to motoring. “At the same time, we hope that more organisations will take the brave step of tackling the cost-inefficiencies and safety threat posed by their grey fleet, which would also give a boost to the rental sector”

Electric Vehicles: The BVRLA expect 2012 to be the year that EV could really live up to the hype after the disappointing sales of 2011 in this new technology, with just over 1000 Plug-In-Car Grant eligible cars being sold. However, they warn this is only possible if manufacturers are more realistic regarding pricing and the government extends the incentive grant scheme to electric vans as well, making running costs more viable.

Mr Lewis explained: “The new range-extender Ampera and Volt are an attractive prospect for company car fleets, as are the next generation of diesel hybrids and plug in hybrids. Depending on manufacturer allocations, up to 80% of these vehicles could end up on fleets.”

Taxation and Regulation: The BRVLA see last year’s results from the government’s Red Tape Challenge and its announced changes to the DVLA could signal a steady and fairer approach to changes in company car tax CO2 thresholds that would see fleets being able to plan ahead by at least three or possibly four years.

Mr Lewis concluded by saying: “However, as with many government projects, the improvements on offer will take a long time to materialise.The government has just started to wake up to the fact that a successful emission-based tax regime means less revenue for the Exchequer, but we will be alert to any knee-jerk efforts to make up the shortfall.”

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The £32 billion HS2 fund, recently announced by the government has prompted ABD Chairman Brian Gregory to make an alternative suggestion for such a large purse in these times of austerity:

"Imagine what reducing fuel to around £1 per litre would do to kick-start the UK economy, bringing down prices of goods in the shops and taking thousands out of poverty. That is what £32 billion could achieve for more than eight years. £32 billion could have been used to scrap VAT on road fuel altogether for the next eight years plus. That rather puts this colossal sum into perspective. Instead the government are apparently set to completely ignore public opinion and build this white elephant which will only save a few businessmen a few minutes."

Do you agree with the ABD? Do you think this money will be squandered if used for the new high speed train line or do you believe the Government’s statement that it will generate £44 billion of benefits to the UK’s economy over a 60 year period? We want to hear your views, so don’t forget to use the comment box at the end of this article.

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Toyota and Lexus have signed up to epyx’s 1link e-commerce platform as part of its new Fleet Charter. It is hoped this move will prove beneficial to not only service levels but allowing customers greater pricing transparency.

Ewan Shepherd, General Manager of Fleet and Remarketing at Toyota and Lexus, explained: “Delivering a great sales experience to fleet customers is key to Toyota and Lexus and our Fleet Charter is designed to ensure that we are providing pricing and service levels that meet and exceed customer expectations.”

Gary Gibson, Head of Customer Service at epyx said: “We are very pleased to be working with Toyota on this project and look forward to achieving strong results.”

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And finally…

IAM chief examiner and Britain’s top advanced driver, Peter Rodger is this week offering his top tips on saving fuel and money, with green driving able to save you up to 15% on your bills.

Rodger said: “We’ve all got better things to spend our money on than petrol. This will help you save cash and reduce your carbon emissions.”

1. Keep your vehicle moving for as long as possible, even in traffic queues. This is far more fuel efficient than stopping and starting, so slow down earlier, to avoid braking as harshly and often;
2. Stick to the speed limit. This offers a good compromise between economy and getting somewhere. There’s a significant saving made by doing 70 instead of 80 – and you avoid any risk of speeding fines;
3. Reverse into parking bays. If you do all the manoeuvring with a hot engine you can drive straight off when you come back and warm the engine up more quickly;
4. Check your vehicle regularly to ensure it operates efficiently. In particular check the condition of your tyres, and measure tyre pressures when they’re cold;
5. Remove unnecessary weight, including roof racks, car clutter and heavy items in the boot. The more weight you carry in the car, the more fuel you’ll burn;
6. Keep the inside of the front and rear windscreens squeaky clean. Traffic fumes form a film on the glass which attracts moisture and makes them mist up easily – a clean screen will rarely mist up, so you won’t be using the heater and air-conditioning.

Other driving tips, traffic updates and weather forecasts can be found on the IAM website, drivingadvice.org.uk, make sure you check it out before you travel.

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We hope you have enjoyed this week’s selection and hope you’ll take a minute to share your comments on these stories using the comments box below. Make sure you drive safely everyone and we’ll bring you the best news the world of fleet has to offer next week. Until then…