A report from the BCA found that average used car values benefitted from increased demand, Christmas closures and less stock reaching the wholesale market. This left the average value at £6,451, rising by £250 (4%) on November’s figure.

After accounting for more than half of new registrations last year, the fleet/lease sector saw values increase by £270 (3.6%) to £7,658, the second consecutive month of increases for fleet and the second highest average value in 2011. Nearly-new values also jumped by more than £1,000 to £19,963.

Tony Gannon, Communications Director for BCA, said: “December provided another relatively strong performance in the used car market, as professional buyers competed strongly for stock in the run-up to Christmas – a trend we have seen over a number of years now.

“However, it is worth factoring in the much reduced trading period and reduced volume – down by some 37% – which meant model mix had a bigger role to play in average values during December than at any other time of the year.

“Otherwise, the overall picture remains very similar to recent months, with a good balance between supply and demand.”

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The Association of British Drivers are happy to remind David Cameron that during his 2010 election campaign he hinted at a ‘fair price stabiliser’ and the recent 100,000 signature petition calling for lower priced petrol and diesel has forced the subject to be raised in the House of Commons this week.

"British drivers are paying the highest rates of tax on both petrol and diesel in the EU. The fuel tax escalator must be scrapped and replaced with a mechanism to stabilise fuel prices. We need a fair fuel tax for ALL and we need it now!" comments ABD Chairman Brian Gregory.

Staying with the ABD and the news that it has come to light, after information was requested by an ABD member, that Thames Valley Police are receiving in excess of £1m per annum from AA Drivetech’s ‘Speed Awareness Courses’ that the ABD say constitutes a “perversion of the course of justice” as payments are made directly to the police from a third party in place of a prosecution.

The ABD say that since the government funding for Speed Camera Partnerships ended and local authorities became responsible for their funding, that alleged speed offenders are being offered these ‘Speed Awareness Courses’ for a fee, the revenue of which has been diverted by police forces such as Thames Valley directly back into the operation of these speed cameras.

The ABD are questioning the legality of this and are urging any drivers offered such a course in any area where such operations exist, such as Thames Valley, to complain to their MP as they fear that such schemes will serve only to promote speed cameras as a tool to produce revenue rather than safe roads.

Do you agree with the ABD? Would you contact your MP to complain if you had been accused of speeding and had been given the option of a Speed Awareness Course as opposed to points on your licence? Let us know your views on this subject.

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After the British Medical Association last week called on smoking to be banned in vehicles as recent research revealed the levels of noxious air is 23 per cent higher in the confined space of a car when compared to a bar, which is currently privy to the public smoking ban.

However, Tim Naylor, PR Manager at British Car Auctions is pointing out the benefits to this possible ban that many drivers may not have even thought of: “Lighting up inside a car seriously devalues the vehicle for resale. Our research shows that presentation is one of the top factors influencing the price of used cars. So if a car is more like an ashtray on wheels, chances are buyers will move on to find one that looks and smells fresh as a daisy.”

He points out whilst professional valeting my remove some of the evidence of a smoked filled interior that some items, such as nicotine stained trim and headlining, things that may put a potential buyer off, even one that smokes, may need replacing altogether at the sellers expense.

“This is an incredibly important health issue and we don’t want to undermine that by any means. But if drivers aren’t motivated by the health of their passengers, perhaps they will be by the diminishing health of their finances,” Naylor concluded.

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The IAM are urging drivers to take action now to reduce their fuel bills and not wait for the Chancellor to bring the cost of fuel down.

IAM chief examiner Peter Rodger said: “For millions of motorists driving is a necessity, not a luxury. The way you drive has a big impact on the amount of fuel you use. If you slow down and leave more of a gap between you and other vehicles, you won’t need to accelerate and brake so much. That’s two easy ways to improve your miles per gallon by up to 15 per cent.”

Rodger advises:

1. Keep moving rather than stopping and starting. Look further ahead and slow down earlier to avoid stopping. Driving at a constant speed is far more fuel efficient than heavy accelerating and braking;
2. Check your tyres. Under-inflated tyres have a big impact on fuel economy;
3. Put your car on a diet. Remove unnecessary weight, including roof racks, car clutter and heavy items in the boot;
4. Try to avoid using air conditioning and climate control at low speeds as they increase fuel consumption. Open a window instead. At high speeds, close your windows to maintain the aerodynamics of the car. Use air-con to get the car to a comfortable temperature, and then turn it off to save fuel
5. Clean screens rarely mist up, so you’ll use the heater and air-conditioning less;
6. Try changing up your gears earlier; petrol engines at 2,500 rpm (revs per minute), and diesel engines 2,000 rpm;
7. Reverse into parking bays: manoeuvring with a cold engine uses more fuel, so make the most of having a hot engine;
8. It will take most cars at least a couple of miles to warm up and run efficiently. Could you walk or cycle?
9. Drive at an even pace over speed humps. Slowing down and speeding up drinks more fuel;
10. Stick to the speed limit. The faster you go, the more fuel you use.

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Lex Autolease are convinced that the way forward with regards to reduced motoring costs is the use of the use of electric and hybrid vehicles and it seems a recent survey they conducted of financial directors and company drivers shows that they too believe the benefit of reduced fuel spend is a main motivator in adopting low or zero rated emission vehicles (LEVs) to existing fleets.

However, Chris Chandler, principle consultant at Lex Autolease said factors other than running costs are still important to many: “Some of the so called ‘soft measures’ – such as reputation, refinement and kerb appeal – can be underestimated, but companies and their employees will not select vehicles on cost alone. Running costs will remain the primary motivating factor, of course, but LEVs will need to compete with petrol and diesel alternatives in all areas to ensure their slice of the market grows.”

The surveys were conducted with 230 company car drivers and 70 finance directors of UK companies.

Survey – FDs

In which areas do you think your company can gain most from introducing plug-in hybrid or fully electric vehicles? (please tick all that apply).

• Fuel 73%
• Corporate Responsibility / Environmental objectives 65%
• Maintenance 23%
• Marketing/marketability 22%
• Corporate Tax 15%
• VAT 7%
• National Insurance 5%
• Employee retention and recruitment 5%

Survey – Drivers

In which areas do you think could gain most from leasing a plug-in hybrid or fully electric vehicle? (please tick all that apply).

• Reduced fuel costs 67%
• Lower benefit in kind (BIK) payments 67%
• Cheaper motoring (parking & congestion zone privileges) 41%
• Feel good factor (green pioneer) 26%
• Greater refinement (quieter more comfortable vehicle) 12%
• Enhanced professional status (kerb appeal) 3%

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The DVLA this week announced good news for insulin dependent diabetics, who have until now been disallowed to drive buses or lorries, with a change in the law to allow insulin treated diabetics the chance to apply for a licence covering all categories of vehicles, providing certain criteria are satisfied.

This amendment follows recent changes for drivers who suffer from recurrent severe hypoglycaemia, and comes after consultation to meet European minimum medical standards for drivers, which have also included reviews on standards on eyesight and epilepsy.

Road Safety Minister, Mike Penning, said: “Britain has some of the safest roads in the world and licensing rules have an important role in maintaining this position. We must make sure that only those who are safe to drive are allowed on our roads, while at the same time avoiding placing unnecessary restrictions on people’s independence.

“We have listened to expert advice and it is clear that treatment and diagnosis has improved since the existing medical standards were put in place, so a blanket ban is no longer needed. These changes strike the right balance in allowing as many people as possible to drive, without compromising road safety.”

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And finally…

Five members of fleet services provider RunYourCars, including managing director Steve Whitmarsh have pledged to abandon their razors for the month of November and grow moustaches to help raise money and awareness for prostate and testicular cancer.
‘Movember’, as it has been renamed will see the employees grow a ‘mo’ in an aim to raise awareness of men’s health issues. It is a worrying trend that men are seen to be more indifferent towards their health when compared to the efforts of women, who proactively and publicly address their health issues.

Mr Whitmarsh said: “We are looking for individual sponsorship and every organisation that joins Run Your Cars during November we will donate the first month’s membership fee from those companies to the fund.”

Run Your Cars is asking customers and supporters to click on the ‘mo’ link on the company’s website to send your donation. The website is accessible at www.runyourcars.com and as a thank-you to those who support this worthy cause, they will be sent a Run Your Cars stick on moustache to enable them to join in the fun.

The idea is for ‘Movember’ comes from the Movember Foundation, which is supported by the Institute of Cancer Research and The Prostate Cancer Charity.

Mr Whitmarsh’s colleagues who are also growing a ‘mo’ in November are Jamie Normansell (sales director), Simon Shiner (finance director), Craig Pullen (systems development manager) and Luke Savage (sales executive).

We wish them well and hope they’ll be forwarding us a photo of those handlebar ‘tashes, eh chaps?…

So that’s it for another News Round-up, we hope you found our offering of the last seven days of news succinct, informative, and a little entertaining. If there is anything you would like to comment on then we would love to hear from you using our comments box below. So until next week please remember to drive thriftily but more importantly safely, always with your moustache wax to hand of course.

From the LCVs assessed by British Car Auctions, the average cost of damage to a four and half year old van has jumped from £683 to £808 with more extreme cases breaching the £2,000 mark.

Duncan Ward, General Manager of Commercial Vehicles at BCA, said the worsening situation can’t be pinned solely on contract extensions.

“It is time to ditch the attitude of ‘it’s only a van’,” explains Duncan. “Far too many vehicles are entering the remarketing chain with increasingly high levels of damage which reduces their desirability and value to used buyers – even when supply is restricted.

“We are seeing a widening two-tier market, where the scarce good condition vans are becoming even more sought after, while damaged, poorly presented vehicles run the risk of being overlooked completely.”

Downward spiral

In most cases, vans brought to BCA have been carrying the damage for some time, allowing rust the opportunity to set in, and leading to a much more costly repair down the line.

Duncan believes this triggers a downward spiral for the van as future drivers are less likely to take care of it.

“This requires a cultural change in the way vans are managed – repairing or even stopping the first dent might mean that a second, third or fourth dent does not occur,” he adds.

“If a driver gets in a van and it barely has a straight panel on it, it is inevitable that less care will be taken of that vehicle.”

In addition to this culture shift, Mr Ward called for drivers to assume more responsibility, reporting damage as it happens, and for fleet bosses to treat vans the same as company cars.

“Accidents will happen, but there is no excuse for negligence,” he continues. “Drivers should be encouraged to keep the cab space in good order, because replacing interior trim, seats and headlining fabric is prohibitively expensive.”

Dubbing LCVs “the Cinderella of the company fleet” Duncan concluded saying that a proactive attitude to commercial vehicles and proper driver training would bring its own rewards.

The auction group’s Derby branch will see the sale of the first Evoque to go to auction next Monday [14 November].

With the current waiting list stretching to March 2012 at the earliest, this ‘Baby Range Rover’ – which has just 51 miles on the clock – will be viewed as a cheeky way to jump the queue.

BCA spokesman Tim Naylor said the excitement was rife around this particular sale.

“This Range Rover Evoque is already attracting a lot of attention from buyers because it is the first chance to buy a used example due to the five month waiting list for the model,” he commented.

The Evoque gained its ‘Baby’ status by emerging as the smallest and lightest Land Rover available. With CO2 emissions of 130g/km, it is also the most fuel efficient Land Rover around too.

The black 4WD model heading to auction bears some impressive spec with Pimento Red/Ebony leather interior, a panoramic glass roof and 20" Sparkle Silver alloy wheels. 

Tim added: “We are expecting a lot of interest when the Evoque is sold in next Monday’s sale, both in the UK and from further afield.”

Research from British Car Auctions (BCA) found that nearly a third of motorists (32%) would change their car for a less-thirsty model once the price per litre reached £1.50p.

One in four of respondents to the BCA’s survey of 4,000 motorists would cut fuel duty if they had the power while a similar portion (43%) admitted the price of fuel would eventually force them to buy a more frugal car.

Tim Naylor of BCA believes that over a quarter of future car buyers will demand better fuel economy from their next vehicle as a result of pricey petrol.

“Our research shows that fuel consumption remains the top priority for motorists,” he commented.

“With fuel prices expected to keep on climbing, we anticipate the current motoring trends to continue. For instance, the number of two-car households has fallen by 5% in the last 12 months, as people look at ways to save.”

Demand outstrips supply

Mr Naylor predicted that used car buyers will be attracted to smaller, more fuel-efficient models like Skoda’s 83.1mpg Fabia Greenline [pictured]

“We are already seeing demand for these cars outstrip supply, which means rising prices for low mileage, good quality stock,” he added.

“With rising costs hitting households from every side and many wages frozen, it’s no wonder that two out of five motorists would like to see a cut in fuel duty.

“But rather than waiting for that unlikely change, car owners are changing how often they drive, as well as what they drive, in a bid to combat costs.”

The specifics of the deal haven’t been revealed but Roddy Graham, Leasedrive’s Commercial Director, seemed rather chuffed with the company’s new acquisition.

“We are delighted to have won the BCA rental business and look forward to developing a mutually beneficial partnership as we see more of our ex-lease vehicles sold through BCA auction centres,” he commented.

Marie Jarrold, Car Fleet Controller at BCA, revealed that she was won over by Leasedrive’s scope and straightforward, no-hidden-charges pricing.

“The Leasedrive Group offers a simple transparent pricing policy and nationwide coverage encompassing our 21 auction centres,” she said.

“The interactive online reservation Rental:Manager system delivers comprehensive online reporting and electronic invoicing which helps with our management controls.”

Double whammy

Leasedrive’s latest win comes just as the Rental:Manager online booking system was named Best Daily Rental System at BusinessCar’s Fleet Technology awards [full story here]

Commenting on the award, Roddy Graham (pictured below) said: “We are delighted that Rental:Manager has secured a triple crown in the BusinessCar Techies 2011 Awards as Best Daily Rental System, an amazing achievement.

“Our rental bookings this year have gone through the roof and the ease of booking through Rental:Manager is a major contributory factor along with other advanced features.

“This award is one for our IT people to savour.  Rental:Manager was developed entirely in-house by our web development and database experts in response to a growing requirement from clients for a faster vehicle booking process and for effective online management reporting.”

Values dropped from £5,790 to £5,662 during June with fleet values decreasing by £278 (3.7%) to £7,071. This latest dip continues fleet’s slow decline since its £7,739 peak at the start of the year.

However, sold volumes were healthier yet again, bulging by nearly 2% in comparison to May and providing evidence that demand is still rife.

Sold volumes in the fleet & lease LCV sector improved by 8.8% despite average values sliding by £58 (1.25%).

Simon Henstock, Operations Director for BCA, reckons the market will stay steady before the lead up to September’s plate change.

He commented: “As June progressed, there was a little more pragmatism from sellers when it came to valuing stock and conversion rates improved as a result – a trend that has continued into July. 

“While dealers tell us that retail activity remained slow, the wholesale price adjustments and concerns that stock could be in short supply stimulated the market and sold volumes rose by around 2%.”

Simon added that activity tends to calm during the summer with price changes put in place to compensate.

Duncan Ward, BCA’s General Manager – Commercial Vehicles, concluded saying that demand had been steady through June with a high level of activity from online buyers.

“The market is exhibiting some very typical patterns for the onset of the summer period and – if anything – June 2011 has been more robust than the same month in the previous two years,” he said.

As fewer vans are being sold on following the typical three year lease period, stock levels have dropped within the used van market. Its plight isn’t helped by contract extensions which, aside from the obvious delay in returning to the market, means they are likely to carry higher mileages and be in a worse condition.

Duncan Ward, General Manager for CV Sales at British Car Auctions, said: “We are now reaching the three year anniversary of the onset of decline in new LCV sales, when the rolling annual figure fell from nearly 350,000 units in June 2008 to a low point of around 180,000 by the end of 2009 – a drop of over 40%.”

Mr Ward said the number of three to five year old LCVs on the market will be sparse over the next two years with prices expected to spike as a result.

“We are effectively at the beginning of an extended supply squeeze in the used LCV market and Ground Zero in volume terms is still some 18 months away,” added Mr Ward.

Shifts in buyer behaviour have been illustrated through new data from the BCA with buyers, perhaps unsurprisingly, heading online.

Over a fifth of BCA’s sales were made through their Live Online channel, a four-fold increase since 2009.

“We have some buyers who buy almost exclusively online, particularly when they are searching for more specialist commercial vehicles,” revealed Duncan.

“If current levels of online activity are maintained, the number of LCVs sold online at BCA could well represent a third of the total volume this year. The message is clear – Live Online generates valuable additional buying power for commercial vehicle sellers.”

Double cab pick-ups were the most commonly sold vehicle online, taking up 37% of the online pie.

British Car Auctions, which published the data, blamed the slight drop of £64 to £7,349 – less than 1% – on the market peaking early in January which has resulted in a slow decline ever since.

Tony Gannon, BCA’s Communications Director, explained: “The fleet sector has a particular issue as there are still volumes of older, higher mileage and often poorly presented vehicles clogging the arteries. 

“Many of these have been entered for sale a number of times – usually with over optimistic expectations – and are continuing to depreciate the longer they remain unsold.

“We echo the warning issued by National Asset Management Agency last month that cars that are re-offered for sale a number of times rarely attract higher bids in subsequent sales.”

On a more positive note, sold volumes increased by over 9% from £5,626 in April to £5,790 last month, signalling the highest monthly average value recorded since February.

Mr Gannon added that buyer confidence had made a notable reappearance since the shaky trading conditions seen at the back end of April.

He said: “May had the feel of a typical late spring/early summer marketplace, with some price pressure but lots of interest for the most desirable vehicles. Conversions have improved and supply and demand is reasonably well balanced.

“What we are seeing is normal seasonal patterns for this time of year and we are not expecting any real growth in supply this side of the next registration plate change in September.”

Publishing their latest monthly values report, the BCA’s figures showed that average values dipped by £211 (just over 5%) last month in comparison to March.

For the first time in 17 months, average values slipped below the £4,000 mark, clocking in at £3,969.

Last month’s average value is also down by nearly 15% on April 2010’s figure at £664 (14.3%), although it’s worth considering that April 2010 remains the highest average value on record.

Rough ride

Duncan Ward BCA’s General Manager – Commercial Vehicles, said it was inevitable that values would slip: “We have been saying that buyer confidence has been quite fragile for some weeks now and in April we saw the first real concrete evidence of a softening in demand.

“The coming weeks will be a real test for a marketplace which has performed pretty consistently since the turn of 2010.

“An optimistic view is that at whatever level business confidence may be, there is likely to still be an underlying shortage of stock resulting from the new registration slump – which is only now starting to turnaround.

“Demand maybe less, but with less to choose from, we just might see prices rally again before the traditional slowdown in the summer months.”

Average values within the fleet & lease LCV sector dropped by £68 on March’s performance and sit £552 below April 2010’s figure.

Ward concluded saying that until SMEs and independent traders, the bulk of used van buyers, regain their confidence in the economy, the used LCV market should expect a rough ride.

According to BCA’s Pulse report, values across the board fell to £5,752, down by £233 (3.8%) compared to February’s figure of £5,985 with the nearly-new sector average value falling most noticeably.

Fleet values dropped by just £8 to £7,545 in March, with CAP performance dropping by over a point to 96.4%. This is despite sold volumes rising by some 8.7% over the month and a very similar spread of product sold. Year-on-year values are behind by £48, equivalent to a 0.6% drop.

Tony Gannon, the BCA’s Communications Director, said: “While there was little in the way of price fluctuation to report in March, the concealed factor of sale conversion is making life more difficult than it would otherwise appear for volume sellers.  Conversion rates have fallen by between 15 and 20 points between mid January and the end of March.”

“With greater volumes coming into the market and demand staying relatively flat, we are seeing more re-entries and greater numbers of un-sold vehicles.  In addition, there has been no real improvement in the consumer sector and retail activity is relatively slow. 

“All these factors combined mean that professional buyer confidence is relatively fragile and with the summer months ahead – typically quieter if previous years are to be believed – we anticipate more pressure on conversions and values in the weeks ahead.”

Although they climbed just £11 on average, values are their highest since December 2009. Adding to this less than remarkable progress, February 2011 is ahead of the same period last year by just £26 – less than half of 1%.

In contrast, fleet and lease values came under pressure falling by £186 to £7,553 (-2.4%) while the part-exchange sector fell by £39 (-1.3%), ending its run of monthly improvements since December.  Despite this slip-up, February’s average value was the second highest on record, underlining the relatively high levels of demand in the budget car sector.

In the nearly-new sector, values improved notably over January, rising by £2,208 (12.5%). Overall, year-on-year values are ahead by £189, equivalent to a 2.5% rise.

BCA’s Communications Director Tony Gannon commented: “Following a very strong start to the year in January, used car demand has eased off a little in February thanks to a combination of increasing volumes and a reported softening of retail interest in the past two or three weeks.

“Although it is early days, we would expect to see defleet volumes ramp up in late March and this will possibly result in some more price pressure in the fleet/lease used car sector.

“Dealer part-exchange volumes will increase, but with continuing demand in the budget sector it is likely prices will remain relatively firm.”