Fair wear and tear: How the credit crunch worsens wear and tear
by Adam Tyler, chief executive, National Association of Commercial Finance Brokers (NACFB)
During a recent conversation, a member broker presented me with an interesting twist on the impact of the credit crunch – the tightening of the interpretation of fair wear and tear.
The British Vehicle Rental and Leasing Association (BVRLA) publishes an excellent fair wear and tear policy and many of the larger leasing and finance companies publish their own.
However, the reading of these rules will be partly down to a subjective interpretation by the assessor and some of these guidelines are leaving some fleets liable for large payments.
One example is of a Range Rover Sport which, at the end of the lease period, was deemed by the assessor to have seven stone chips on the bonnet.
This was over the allocated allowance.
The customer was charged £1,600 for repairing the damage and is still in dispute over these charges.
Another fleet manager now photographs every wheel and every panel of each vehicle before it’s returned to protect the company in the event of any dispute.
Van lessees need to take special note, as their working vehicles take more punishment than a company car.
Although these rules have always been here, there does seem to be a trend towards a much more stringent approach in the current climate.
As with risk assessment at the beginning of the deal, lessors seem to be tightening procedures at the end of it too.
The association has no problem with a deliberate policy shift – the “it’s not my car, so it doesn’t matter” mentality needed a kick.
But, in a fast moving industry in difficult times, the uncertainty caused by the differences in interpretations has left such a bitter taste with some clients that they now specify certain lessors they refuse to do business with.
Driver safety: Regular health checks wouls cut accidents
by Robert Kingdom, Head of marketing, Masterlease
The government has proposed the introduction of health checks for all drivers, including a series of minimum physical and mental requirements, such as eyesight performance and reaction time tests in order to retain their licences.
These checks will be repeated every 10 years to cut the number of unfit drivers on our roads.
This announcement is long overdue and doesn’t go far enough in ensuring the safety of all drivers.
Statistics have shown that the over-70s are three times more likely to be seriously injured or killed while driving than those aged 40 to 65.
In 2006, the Driver and Vehicle Licensing Agency (DVLA) dealt with 600,000 motorists whose physical ability to drive had to be re-certified, a 20% rise on the previous year.
But how many motorists are failing to notify the DVLA if their health changes or if they develop new medical conditions?
The fleet industry has led the way in assessing employees’ fitness to drive, with many companies insisting on regular eye tests as a minimum stipulation for drivers and setting out clear guidelines so drivers know which conditions may affect their ability to drive.
The DVLA needs to strike a balance – mobility is an important personal freedom, but as drivers we all have responsibilities to society and the safety of other road users.
If the government is really serious about driving down the number of road accidents in the UK then it should take its cue from the fleet industry which has an established track record in risk management.
Motor industry: Still a strong industry, but we need more support
by Paul Everitt, Chief executive, Society of Motor Manufacturers and Traders (SMMT)
The UK motor industry is strong and resilient.
We are facing an exceptional set of circumstances and will need to work hard in the coming
weeks and months to sustain our businesses.
New vehicle registrations and production volumes will be significantly lower in 2009 and the first quarter will see companies implementing measures to readjust to the new levels of demand.
This will not be an easy process, but it is essential for the long-term health of the sector.
Protecting the long-term industrial capability of the UK automotive sector is vital, not just for the future success of the industry but for the strength of the country’s economy.
The timing and extent of the assistance announced by government is critical for the industry.
The recognition of the strategic importance of the motor industry is positive but we must now ensure that companies of all sizes are able to access the various government support schemes available.
We also need to address the issue of consumer credit and look to kick-start demand for cars and commercial vehicles.
The UK already produces a range of highly-desirable products and the industry does have a strong future.
It’s at the heart of the low-carbon agenda investing in research and development that will deliver ever-cleaner, safer and more fuel-efficient cars that comprise the fleets of tomorrow.
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