by Richard Irvine-Brown, Peter Johnstone and Grant Collinson
Casting an eye over the week’s fleet stories, including: A rundown of the months statistics, resale news from BCA and Manheim, and Sofico celebrating its 25 anniversary.
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UK monthly fleet results
While total and consumer new car finance in the UK continues to rise, new cars bought on finance by businesses are faltering, according to figures from the Finance & Leasing Association for April. The number of new cars bought on finance in the month rose 4% year-on-year to 42,293 but dipped by 3% in the three months to April to 99,872 registrations. Across the 12 months to April, the market remained stable, rising 1% to 396,380 registrations. Used cars purchased on finance by businesses, however, rose 25% year-on-year in April to 4,577, rose 72% in the three months to April to 20,995, and rose 55% in the 12 months to April to 72,286.
In the new car market, fleet and business registrations both rose but both dropped market share, year-on-year, for May, with fleet also losing market share in the year-to-May, the Society of Motor Manufacturers and Traders has reported. Fleet registrations rose 3.19% year-on-year in May to 89,898, although market share dropped 3.77ppts to 49.91%; business registrations rose 9.41% to 6,011 while market share dropped 0.05ppts to 3.34%. Across the first five months of 2013, fleet registrations were up by 2.80% on the same period of 2012 to 447,677 but dropped market share by 2.97ppts to 47.2%, business registrations rose 11.36% to 40,418, adding 0.08ppts to a market share of 4.26%.
At auction, ex-fleet cars averaged a price of £8,804, the second-highest value yet recorded by British Car Auctions (BCA). The price was up by 2.47% month-on-month and 10.97% year-on-year. Sale against the CAP rate fell by 0.75ppts to 94.98%, while sale against the manufacturer’s retail price rose by 2.35ppts to 41.95%, compared to May 2012. Although ‘virtually static’ month-on-month, according to BCA, average age at auction dropped 3.03% year-on-year to 39.71 months and average mileage fell 7.82% to 45,520 on the clock.
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By GlobalDataIn the used LCV market, the average selling price for a vehicle dipped 1.77% compared to April to £4,338. Year-on-year, the price was up by 5.24%, according to remarketing group Manheim. The month-on-month drop came despite a one-month fall in the average age of vehicles at auction to 62 months. By segment, the biggest rise was in refrigerated vans; selling for an average £4,050 in May, a gain of 47.86% month-on-month, while large-panel vans, messing units and buses also saw rises in average price.
BCA and LeasePlan offer Ready to Retail, Manheim to offer EV resale
BCA will run a special sale of over 100 ex-LeasePlan cars at BCA Nottingham on 14 June.
The sale, also open to BCA Live Online buyers, will include models graded between one and three with less than four years and 80,000 warranted miles, all supplied with a V5, service history and a BCA Assured report.
Simon Henstock, operations director for BCA, said the event "offers a unique opportunity to buy from a specially selected catalogue of cars in ready-to-retail condition."
He added: "With new car retail demand recovering thanks to some spectacular initiatives from the manufacturers, dealers also need a good choice of stock to tempt used buyers who are looking for both quality and value."
Meanwhile wholesale remarketing company Manheim announced its acquisition of electronic truck and trailer remarketing business EVS Online Auctions from European Vehicle Sales, for an undisclosed sum.
The EVS team, reporting to Manheim’s Commercial Vehicles director James Davis, will provide Manheim with a platform for 24/7 electronic auctions on a timed basis, as well as supporting its provision of products to the truck and trailer sector.
Davis said: "What many people don’t realise is that Manheim already sells more than 60% of its trucks online via Simulcast, our online bidding service that connects remote buyers into our live physical auctions. Our fundamental role is as ‘market-makers’ and we will now enhance our truck and trailer remarketing operation into a world-class business, delivering unrivalled product offerings, service and results."
Sofico plans new developments after 25 years
Belgian leasing software developer Sofico has marked its 25th anniversary by announcing an overhaul of its keystone Miles software.
Gemar Hompes, Sofico’s managing director, said the company would soon be launching a modernised user interface for Miles, to follow last year’s release of the Miles Mobile application.
He said the company would also be looking to move beyond its traditional automotive leasing, finance and fleet markets into areas such as mobility management and equipment leasing.
The company was founded in 1988 and now has 125 employees working in four countries. Last year its software was used to manage over one million vehicles, and it recorded turnover of 16.9m.
Hompes said: "There is still plenty more to come. Sofico is an innovative company with the ambition to be a technological forerunner within its industry. For this reason, we make an annual strategic investment of 2,000 to 2,500 man days into product innovation."
Lex signs £1m deal with west country building firm
Lex Autolease has signed a £1m deal to provide 100 vans and 10 cars to building firm DR Jones.
Lex Autolease says the fleet of Citroen vehicles, including Nemo, Berlingo, Dispatch, and Relay models, branded in the company’s colours, will reduce the company’s fleet CO2 emissions by 17% and provide a 20% fuel saving.
Mark Porter, operations director for The Jones Group, said: "We made the decision to upgrade our fleet because the older vehicles we operate had become too expensive to run and maintain."
"We choose Lex Autolease because they provide us with an end to end solution which covered all our needs. This included analysing the different types of jobs that we undertake in order to recommend the best choice of van, to providing liveried vehicles backed up by a comprehensive maintenance package."
VW provides 10 Crafters to NCH
Volkswagen Commercial Vehicles has signed a deal to provide a 10-vehicle fleet of its Crafter vans to NCH, a UK manufacturer of industrial maintenance equipment.
The vehicles, which have been fitted with Luton bodies, were chosen by NCH for their "great residual values, reliability and fuel economy".
Matt Rivers, operations manager at NCH (UK), said: "We wanted to acquire a fleet with an outstanding all-around performance, great residual values, but above all excellent fuel economy.
"It’s absolutely vital that we have a fleet of vehicles which can meet the high standards of reliability to enable us to provide our services. The Volkswagen Commercial Vehicles range meets those needs and stands out as an excellent investment."
The Crafter is available with various body conversions on contract hire and finance lease starting from £299 a month (plus VAT and initial rental), including a £1,000 deposit contribution. Alternatively, lease purchase or hire purchase are each available with a £2,000 deposit contribution.
Hitachi’s prototype fridge unit for Ginsters
Hitachi Capital Commercial Vehicles Solutions (HCCVS) has worked with a commercial vehicle bodybuilder Solomons to develop a refrigerated box van for baked goods manufacturer Ginsters.
The body, fitted to a Mercedes Sprinter 3.5 tonne GVW, is designed to reduce fuel consumption by up to 5%.
The prototype will be run alongside a regular box van on an identical route to monitor comparative fuel consumption.
The rear step and door of the prototype have also been modified to improve driver safety when unloading the van.
Andrew Gibbons, Ginsters’ fleet continuous improvements manager said the company will analyse the results of the trial before deciding whether or not to roll out the modification across its fleet.
Hitachi Capital provides a fleet of more than 50 vehicles to Ginsters on a four-year contract hire deal and manages fleet maintenance through the Mercedes network.
Meanwhile Hitachi Capital Commercial Vehicles cut the turf on its new £7m (8.2m) regional head office at the White Horse Business Park in Wiltshire. The 6.5-acre site, due to be completed by July 2014, is the first freehold purchase of office space anywhere in the world for Hitachi Capital, the finance arm of the industrial conglomerate, and Jon Lawes, managing director of HCCVS said the move "demonstrates a positive investment and a dedication to the future of our presence and operations in Trowbridge."
Hitachi Capital has grown from managing 717 vehicles in 2001 to managing a fleet of over 30,000 vehicles in 2013.
