COMING TO A MAIL BOX NEAR YOU... 10th May 2010
As spring has sprung, so too has the latest edition of our in-house newsletter - THE KEY. Issued quarterly this season's full-colour publication - which is also available via e-mail - is currently being mailed to clients and partners across the UK, paying particular attention to our recently-launched salary sacrifice scheme called SWITCH.
"Through THE KEY, we aim to inform and update readers on our latest activities and product news," explained MD, Shaun Barritt. "This time we have focussed on SWITCH as we believe that these types of schemes are going to become evermore important to our clients and their employees, so we wanted to explain how they work, the associated benefits and potential economic and environmental savings that can be made to the grey fleet."
"We also talk to one blue-chip organisation as it rolls out the scheme, and we introduce a new client as they take delivery of a smart new Audi fleet. We think it's an interesting read and we are always very pleased with the positive feedback we receive about THE KEY."
To see the latest edition of THE KEY click here, or for a printed version please e-mail your postal details to thekey@contracts.co.uk
SPRING TEST DRIVE SPECIAL - 24th March 2010
As avid readers of The Key will remember, a while ago we asked fellow professionals to test drive three environmentally-friendly cars, including the popular BMW 1 Series 118d SE. However, now BMW has launched the 320d Efficient Dynamics - its most efficient and 'greenest' 3 Series to date. Grosvenor's Commercial Director, Andy Reed, put the car through its paces....
"This is the latest model to be offered by the marque and sets a new benchmark in the premium segment by recording impressive CO2 emissions of 109g/km and a combined fuel consumption figure of 68.9 mpg.
"As the first sub-110g/km car in this sector, the BMW 320d ED Saloon will cost just £35 per year to tax, courtesy of a Vehicle Excise Duty band B rank. A 13% benefit-in-kind rating also ensures it makes maximum economical sense.
"It's powered by a 1,995cc engine with class-leading performance figures. The single turbo-charged diesel features an all-aluminium crankcase and third generation common-rail injection technology to achieve its impressive consumption and emissions figures without diluting driver enjoyment - 0 to 62 mph in 8.2 seconds and a top speed of 137mph.
"The car carries the distinctive BMW styling but has specially-designed, low-drag ratio, aerodynamic alloy wheels with Michelin EnergySaver tyres. It comes fitted with the existing suite of BMW ED technologies, including Auto Start-Stop, Brake Energy re-generation and Electric Power Steering for optimum performance.
"When driving the BMW 320d ED you can see and feel the attention to every detail. Its green credentials will make it a favourite for the Fleet Manager whilst also delivering a satisfying experience for the driver. The car is available now, but current lead times are already 12-16 weeks. In my opinion, this model, and the saving on BIK tax, will be well worth the wait."
CLEAN BILL OF HEALTH - 24th March 2010
Grosvenor has just delivered 12 new vehicles to one of the largest suppliers of medical products to the NHS and private sector. The field sales area business managers and regional managers of UK Medical Ltd, based in Sheffield, are now driving new Audi A4s and BMW 320s.
"We are delighted that UK Medical has chosen Grosvenor to meet its fleet needs," said Mary Dopson, Senior Account Manager. "In this challenging market, the competition is tough and and we know that clients are looking for cost-effective solutions coupled with attentive contract management. Both these elements have been crucial in securing this agreement."
UK Medical has been impressed with Grosvenor's levels of personal service. Finance Director Simon Walkden said: "After a rigorous appraisal of both the financing options for our fleet and also the companies providing this service, I have been extremely impressed by the professionalism, quick responses for information, flexibility and general customer service I have received from all members of the Grosvenor team during the process. We look forward to a long working relationship between our two companies."
WHAT'S HAPPENING TO SCRAPPAGE? - 18th January 2010
The extension to the scrappage scheme was welcomed by many in the sector, as the offer of £2,000 for an old 'banger' encouraged drivers to head to showrooms and trade-in their 10-year old vehicles.
Now, as the scheme nears conclusion, Nick Hughes, Director and General Manager at York, Ward and Rowlatt (a Vauxhall and Masterfit dealership in Wellingborough and part of the Grosvenor Group) shares his thoughts...
"Scrappage will conclude at the end of February when the Government-allocated £400m runs dry, after what was considered a successful promotion for boosting new car registrations during a difficult time for the motor industry.
"In fact, December scrappage registrations accounted for just short of 21% of the total market, which year on year was 38.9% up on the same month in 2008. And at a local level, we have received well over 100 orders for Vauxhall and Peugeot cars."
Nick went on to say that it has been the retail customer who has taken advantage of the deal, as less than 3,000 vans nationally have been registered since the scheme began. Buyers tended to purchase cheaper petrol-engine cars in the mini and supermini segments, where volumes have increased by 19.5% and 21% respectively.
"Manufacturers are now vying for the last remaining orders by enhancing the £2,000 grant with 'additional scrappage support' of up to £1,000 and it will be interesting to see what special deals will be offered to the customer to continue to stimulate the market post-scrappage scheme."
NEW YEAR TEST DRIVE SPECIAL - 11th January 2010
If 2010 means a new car and you are still undecided as to what make and model to choose, Grosvenor offers advice on what would suit you best and also calculates the best financial package. As part of this service, Grosvenor's own "Stig" - aka Commercial Director, Andy Reed - takes to the road to test drive the new Mercedes-Benz E Class Coupe 350 CGI Auto..
Style counts for a lot in the coupe class, and as the replacement for the CLK - an established favourite in this market - the new 2-door E Class needs to impress. And it makes a good start, as its design is more impressive than the 4-door version.
While it lacks the muscular purpose of the competing Audi and BMW models, its strking front grille, pillar-free design and fully retractable side windows are perfectly in keeping with coupe models from the marque's past. And if you thought Mercedes was making bold claims about the shape of its saloon, it designers reckon the E Class coupe is the most aerodynamically-efficient production car in the world!
As with the 4-door, there's a lot of safety kit. A small coffee cup symbol on the digital instrument panel lets you know the firm's new "Attention Assist" feature is working - checking for signs of drowsiness in the driver and sounding an alarm if it detects a drop in attention.
The interior is loaded with equipment too - in the SE trim, there's heated leather seats and cruise control, but the panoramic glass sunroof fitted to our car is a £1,287 extra, which is a shame because it gives the cabin an airy feel.
From behing the wheel there is ample scope to adjust the driving position and the seatbelt is delivered to your shoulder by a neat electronic arm and with no B-post to worry about, over-the-shoulder visibility is excellent.
The V6 engine, a direct-injection unit offered exclusively in the CLS350 CGI until now, is also terrifically responsive and extremely smooth across a wide range of revs with Mercedes-Benz claiming 0-62 mph in 6.5sec. The steering is responsive and is backed-up by excellent body control and a front-end that, even on standard wheels, resists understeer well when pushed.
But it's on the motorway where this car excels. Stability is superb and the lowest drag co-efficient of any current production car helps to take overall refinement well into the upper luxury league.
TAKE CARE WHILST DRIVING IN WINTRY CONDITIONS - 4th January 2010
As the frost bites and the snow falls, Customer Services Director, Nicola Johnson offers some advice on safer driving and asks how prepared are we for fog, rain, ice and snow?
"It is essential that, as drivers, we do what we can to amke the roads safer for us, our passengers and other motorists - that means ensuring our vehicles are maintained and suitably equipped for adverse conditions. "Tyres play a crucial role in keeping us on the road and in one survey it was found that over half of drivers were driving on at least one increectly inflated tyre. This puts people at greater risk of accident, as tyres do not perform efficiently - and they also face increased running costs, as wrong tyre pressures directly increase fuel usage and do not last as long. As whilst mentioning tyres, if EU legislation is passed, all tyres will be fitted with car tyre pressure monitoring systems (TPMS) - previously only found on high-end marques - to alert drivers (in the cabin) if pressure falls below the recommended level. Of course, tyre tread is crucial to staying safe - the legal minimum is 1.6mm."
"And you'd be disappointed if I don't point out that poorly inflated tryes are not very 'green' - it is estimated that under-inflated tyres lead to an additional 12 mega-tonnes of CO2 emissions per year!"
"Like the scouts, we should all 'be prepared' and carry relevant equipment in the boot and in the car itself. A comprehensice list of what you need is given by the Royal Society for the Preventio of Accidents at http://www.rospa.com/drivertraining/winter/index.htm. The site also offers more tips and advice. For a hands-on tutorial, there is a range of driver training sessions that offer direction on how to control vehicles in ice or snow. We have the details if you would like more info.
"But probably the most crucial element of driving in winter is to be aware of the weather. If you're about to go on a long journey - check the forecast and check your car. It sounds obvious, but you'd be amazed how many drivers set off without fog lights, with low levels of screen wash or faulty windscreen wipers.
"PLEASE TAKE CARE ON THE ROADS AND DRIVE SAFELY"
WHAT A YEAR! - 31st December 2009
At the start of this New Year, Grosvenor MD, Shaun Barritt, looks back over 2009..
It was a tumultous 12 months for all of us, as the economic upheaval caused - and continues - unsettled times that challenged and tested business models across all sectors.
In terms of the car market, we experienced the unexpectedly sharp rise in residual values and the introduction of the scrappage scheme - both made an impact. To some extent, high resale values helped to keep the sector buoyant, but in turn, created concern for some used-car dealerships, as stock was difficult to source.
I think it is fair to say that, over the last 12/18 months, new business was harder to come by, but here at Grosvenor, we are firm believers that this economic climate also brings opportunities. With some providers closing the door on new accounts and other merging to become fleet "super-tankers", clients have been turning to fleet providers who offer cost-effective solutions and a personal approach to service delivery. We have always given this level of customer care and along with price-sensitive costings, we continue to offer some great deals on many marques and models.
So, as we head into 2010, I'm sorry to say that I cannot see a significant overall upturn in the immediate future. However, I think we'll see a steady strengthening in the retail market sentiment and an increased confidence in the sector as a whole. But what I am sure about is that as a group, Grosvenor is well placed to face the New Year and to continue to take good care of our clients.
HAPPY CHRISTMAS AND A PROSPEROUS NEW YEAR - 24th December 2009
It has become usual that instead of sending cards, Grosvenor make a charitable donation. This year the company has given £1,000 to Cransley Hospice in Kettering. It is a place very close to the hearts of many local people and provides a peaceful haven for those needing hospice and palliative care.
Thank you to all clients and colleagues for their support and understanding.
http://www.cransleyhospice.org.uk
THE WAITING GAME - LEAD TIMES ON THE INCREASE - 25th June 2009
Lead times are on the increase - even for the most popular fleet cars - warns the UK's largest independent contract hire company.
Grosvenor Contracts Leasing is advising clients that they should be factoring this extended wait into their vehicle replacement cycles, as delivery can now be up to 12 weeks.
"These protracted lead times are as a direct result of the cuts to vehicle production and the need for manufacturers to raise cash within their operations by reducing new car inventort - no longer are the manufacturers holding stocks.
Additionally a number of producers are working to restricted hours so output is obviously affected - hence the wait. "It used to be the case that it was only the niche vehicles that had an 8 to 12 week waiting time, but we are now seeing similar timescales from mainstream manufacturers - the same one that used to deliver in 7 to 10 days."
Shaun went on to comment that whilst there are still some cars in stock, they are taken very quickly and that if clients have specific need they should be ready to act immediately.
"In this current climate, certain vehicles are availabe for only a very short length of time - once located they can go in a matter of hours. This can cause difficulties if clients want particular colours or specifications. "We are urging our clients to look ahead and consider these leas times when business planning - there is a likelihood that this is a situation that will continue for sometime."
WELLINGBOROUGH TO BOAST NEW COMMERCIAL VEHICLE OUTLET - 30th March 2009
One of the longest established and best-known car dealerships in the county is opening a new centre to offer both new and used commercial vehicles.
York, Ward and Rowlatt based in the town centre, will be welcoming customers to its Broad Green showrooms from 6th April 2009, to view and test drive a wide range of vehicles; new models from the main manufacturers, featuring the Vauxhall and Peugeot ranges along with used versions of all makes - including Mercedes and Ford.
Ken Harrington, Commercial Sales Manager, is looking forward to the new venture. "We have always offered light commercial vehicles but not through a dedicated outlet," he said. "In these challenging times, small and medium sized businesses are being squeezed byt the economic downturn and are looking to secure a good deal. We believe that's exactly what we can offer, as we are now also stocking quality ex-contract hire vehicles from our parent company, Grosvenor Contracts Leasing, based in Kettering."
The range of used vans will change regularly and Ken believes that the competitive pricing will bring business buyers and tradespeople from across the region; "This new outlet will offer great value for money - not often matched in this area," he added.
The York, Ward and Rowlatt Commercial Vehicle Centre is located adjacent to 'Masterfit', and will be open 7 days a week.
For more information drop into the showrooms, call free on 0800 66 5543 or visit www.yorkwardandrowlatt.co.uk or e-mail, vans@yorkward.co.uk
HYBRIDS - HYPE OR REALITY? - 27th February 2009
Having attained ISO 14001, Grosvenor Contracts Leasing is fully aware of the green implications of hybrid vehicles and offers clients a range of environmental options and services.
Despite this, the media coverage and governmental support for hybrid technology, the company has not seen any increase in requests for quotes on these types of vehicles over the last two years.
Grosvenor's Data Analyst, James Russell explained: "Overall, the average CO2 emissions of vehicles that we quote has come down consistently, from 163.5 g/km (Jan '07) to 150.6 (Jan '09), the mix of vehicles hasn't changed - it's still Passat, Audi A4, Mondeo, VW Golf and BMW 3 Series that are most popular. In my opinion, the reduction on CO2 levels seem to be driven by Manufacturers and their response to legislation, rather than in response to demands from the end user.
“I would say that with user-chooser fleets, drivers are still more likely to try to pick the best car within their allowance - rather than the most environmentally-friendly - which is always more likely to mean that hybrids suffer, simply because of a lack of driver appeal. For the moment, the new efficient petrol and diesel engines seem to be keeping hybrids out.”
James also explained that the much-talked about Toyota Prius didn't suffer during the CAP revaluation of 2008 - dropping only approximately 2.6% - but noted that the rentals are significantly more expensive than other more desirable hatchbacks (Ford Focus, VW Golf and even Audi A3) and that benefit-in-kind is only £7 per month lower for a Prius than for a Ford Focus Econetic or an Audi A3 1.9 TDIe - so suggests that this might be another factor affecting drivers' decisions.
GROSVENOR LAUNCHES AWARENESS CAMPAIGN - 13th February 2009
To remind clients of the cost savings that will be available when the new Capital Allowances are introduced in April 2009, Grosvenor has launched a media campaign to highlight the issues.
With a page advert in a specialist supplement distributed with the Daily Telegraph supported by an extensive e-mail drop, the company is hoping to encourage fleet managers and directors to look at the changes and consider designing their vehicle fleets based on the allowances.
"We realise that many companies and company car drivers are looking very carefully at costings - especially as we approach year-end," said Grosvenor MD Shaun Barritt. "We believe that significant savings can be made by carefully selecting makes and models that minimise tax payable. But we should also remember that the benefits of choosing a lower CO2-emitting vehicle will not only help the pocket, but also lessens carbon footprint - so good for the environment too."
For more information on the new Capital Allowances, please see the item below "Understanding Capital Allowances", or call 01536 536536, or e-mail us using the Contact Page.
GROSVENOR SEEKS BROKERS - 2nd December 2008
The UK’s leading independent vehicle contract hire company is launching a new broker product.
For the first time in its 27-year history, Grosvenor Contracts Leasing Limited, based in Kettering, has implemented a reseller division to complement existing sales channel and is currently recruiting broker partners to resell contract hire products.
The new service is called ‘Fleet Connections’ and carries its own brand and identity. “This is a positive move in what some have called a ‘stagnating marketplace’ but by introducing new products we believe we are encouraging movement and stimulating growth,” explained Grosvenor’s Sales Director, Stuart Menzies “Fleet Connections has been almost 12 months in the planning and heralds a move into a different sector of the market for us. So, we are keen to hear from established, reputable brokers who want to deliver a quality service.”
Fleet Connections gives broker partners direct access to Grosvenor’s on-line quoting and reporting system – so allowing the flexibility to devise packages that exactly meet the requirements of their customers, for both cars and light commercial vehicles. “Our reputation has been built on delivering bespoke customer service and that is very import to us,” added Stuart.
“It is critical that our brokers share this ethos, along with a forward-thinking attitude, reliability and integrity. In return, our partners can be assured of that same service promise. It is our intention to build a network that offers managers of smaller fleets the same purchasing opportunities as those offered to colleagues in other, larger organisations.” http//:www.fleetconnections.co.uk
UNDERSTANDING CAPITAL ALLOWANCES - 2nd December 2008
If you don’t react now to the new tax changes that impact company cars, then you are likely to find that your fleet costs will increase.
In short, writing down allowances will be calculated on CO2 emissions rather than the purchase price of the car. For companies that own their own fleets, they will find that the new rules penalise cars with CO2s greater than 160g/km because of the negative cash flow consequences arising from accelerated tax payments. Leasing disallowance rules have also changed favouring leases with cars of 160 or less.
However, the disallowance will be capped at 15% and therefore outright purchase becomes a less financially favourable option making it imperative for companies to revisit their method of funding. Businesses that purchase a car can normally only claim an annual writing down allowance on the cost.
From April 2008, the rate of the allowance was reduced from 25 per cent to 20 per cent, to a maximum of £3,000. Cars that cost more than £12,000 are not pooled with other assets, so a balancing allowance can normally be claimed when they are sold. If a car qualifies as a low emissions car, a very attractive 100 per cent first year allowance can be claimed.
The CO2 emissions limit for this purpose used to be 120g/km, but for cars purchased after 31 March 2008 it has been reduced to 110g/km. Qualifying cars include the Mini Cooper 1.6D, the Volkswagen Polo 1.4TDi and the Peugeot 1.0 Urban. From April 2009 the writing down allowance will also become emission-based. For cars purchased after that date the current 20 per cent rate will continue to apply where the CO2 emissions rating is not more than 160g/km.
The £3,000 annual limit will be abolished, so tax relief will be accelerated for more expensive cars. For cars with emissions of over 160g/km, the writing down allowance rate will be only 10 per cent. Worse still, a side effect of the change is that in most cases a balancing allowance will no longer be available on disposal of cars that cost more than £12,000, resulting in a deferral of tax relief.
For businesses that Lease their company cars cars, the news is better. It is proposed that for all Lease contracts commencing from 1st April 2009 onwards, the current tax relief restriction for cars with a list price of over £12,000 will not apply where the CO2 emissions rating does not exceed 160g/km. Tax relief will be restricted by 15 per cent for cars with an emissions rating of over 160g/km.
This would have the rather surprising result that for all cars with an emissions rating of over 160g/km and a list price of more than about £17,000 the tax relief for Lease Rentals would be higher than under the current rules. Businesses therefore need to pay close attention to CO2 emission ratings when purchasing or Leasing cars, as the difference in the amount of tax relief that can be obtained in respect of two almost identical cars can be quite dramatic.
SUMMARY OF CAPITAL ALLOWANCE CHANGES
KEY DATE 1st APRIL 2009
KEY CO2s
161 and above - 10% pool, no balancing allowances, 15% leasing disallowance
111-to 160 - 20% pool, no balancing allowances, 0% leasing disallowance
110 and below - 100% first year allowance, 0% leasing disallowance
SIGN UP TO SAFE DRIVING IN NATIONAL ROAD SAFETY WEEK - 10th November 2008
Grosvenor is encouraging staff and customers to take part in National Road Safety Week (10th - 16th November 2008) by making a pledge to drive safely.
Every day on UK roads, nine people are killed and nearly ten times that amount are seriously injured, according to statistics from Safety Week organisers, the charity, Brake. "We are asking drivers to sign up to this pledge to raise awareness of the hazards whilst driving," said Grosvenor MD, Shaun Barritt. "Some simple and common sense actions that ensure you are fit to drive can make the difference between life and death." The pledge is a simple 12-point plan of essential information and practical tips and can be signed online by clicking here.
NEW CONTRACT WIN - 8th October 2008
A Nottingham Housing Association has called upon the UK's leading independent vehicle contract hire company to renew its 312-string van fleet.
Grosvenor has supplied Nottingham City Homes with Citroen Dispatch and Relay vans as part of a £142m repairs contract - providing more reliable vehicles that are fitted with the latest technology, tools and equipment whilst giving significant cost savings on the previous fleet. "We are delighted to have secured this contract," sadi Grosvenor Sales Director, Stuart Menzies. "This award is the cumulation of 2 years of discussions with Nottingham City Homes to ensure we delivered a bespoke package that suited their exact requirements. We are looking forward to developing an effective, co-operative relationship to ensure a smooth-running fleet from day one."
The old fleet is now being replaced at a rate of six vans per day and it is envisaged that all the new vehicles will be fully operational by the end of October. The contract is valued at £6m over a 5-year period. Mark Johnson, Director of Property Services at Nottingham City Homes, said "It is great to see the new vans starting to head out onto our streets and into our estates. The replacement fo these vehicles has been a huge project for our procurement team. They have secured a fleet of vans with all the latest technology and tools at a cheaper rate."
NEW DRIVING OFFENCES AFFECT COMPANY VEHICLE DRIVERS - 8th September 2008
Legislation brought into force in August will directly affect drivers of company cars and commercial vehicles - creating serious concerns for fleet managers.
This warning comes from the UK's largest independent vehicle contract hire company, Grosvenor Contracts Leasing. Grosvenor welcomes the new rulings that makes two types of driving offence - causing death by carelss driving and causing death while uninsured/without a licence/drving while disqualified, both offences now carry possible prison sentences - the previous limit was a £5,000 fine and penalty points.
"Today, there are many distractions for the driver and the Government is right to implement measures that will punish drivers who cause death through their own carelessness," said Grosvenor MD, Shaun Barritt. " But it is not only the driver that needs to be made aware of the implications of 'avoidable distractions' like eating, drinking, texting or calling on a mobile or applying make-up - fleet managers must make their employees aware of the laws and do what they can to encourage responsible driving habits." Shaun also emphasised the the importance for fleet managers to check and validate driving licences and insurances - especially those who use their own car for work purposes.
GREENER CARS TEST DRIVE - 18th July 2008
Grosvenor recently invited senior management professionals to put leading car manufacturers 'in the frame', by test driving three of the new generation 'greener' vehicles - challenging their beliefs on what makes a more environmentally-friendly car.
The full report can be read in this weeks's edition of Accountancy Age magazine or by following this link:
http://www.accountancyage.com/accountancyage/features/2221847/fleet-special-test-drives
GREEN TRANSPORT WEEK - 16th June 2008
Grosvenor is supporting Green Transport Week (14-22 June 2008) by encouraging clients to 'green-up' their fleets , by taking a careful look at fleet policies and adopting strategies that will reduce CO2 emissions, cut fuel costs and ease the pressure on the planet.
"We believe that in these days of environmental change it is essential that we do all we can to raise awareness f the impact of car usage on our surroundings," said Grosvenor MD, Shaun Barritt. "As an organisation in a highly polluting business sector, we realise that the spotlight is on us to adapt and introduce sound measures to develop a clearer understanding of the issues surrounding the motor vehicle and its usage in the commercial world."
"It is not realistic to nor practicable to abolish corporate fleets but it possible to minimise usage - and 'green' driving means more than just bio-fuels and hybrid-electric cars," adds Shaun. "For instance, we have swtiched the cars of our sales teams to models with lower CO2 emissions; we fit higher quality tyres that last longer and we encourage car sharing wherever possible."
"It is not reasonable to expect that people completely abandon their cars and it is not possible to to run a business without motor vehicles, but action is necessary to cut carbon emissions and we are urging all fleet managers and owners to do their bit by implementing a few simple action points." Grosvenor recommends that all those driving as part of their working day examine their driving style - excessive acceleration and braking cause greater wear and tear on the vehicle.
Drivers should also keep an eye on tyre pressures - poorly inflated tyres are not safe and wear out far more quickly than those pressurised to the manufacturer's recommended levels. A key requirement in running a greener fleet is to regularly maintain and service all vehicles - this ensures optimum performance and fuel effiency.
For more information, call us on 01536 536536 or e-mail info@contracts.co.uk