Category: Vehicle Leasing Help

Some commonly asked questions and answers in a confusing market place.

Brexit Car Leasing News

As news arrives of any potential disruption, good news, bad news we will upload it here. Note we are trying to help customers not fuel a debate so everything here will be statements and news from suppliers, manufacturers, Government or trade bodies. If you see anything that we should include please email info@anthonyk.co.uk

4th Feb 2019: Volkswagen, Seat and Skoda Information

  • All cars customer tagged already will be honoured at the existing prices regardless of tariffs or levies that result from Brexit (in other words, the brands will cover this potential cost)
  • Any car that is tagged and is in the UK by 28th March 2019 will also have the prices honoured
  • Any new order that does not fall into any of the above categories will be subject to any changes in pricing, levies or tariffs which occur as a result of Brexit. Cancellations will be accepted if this happens and customers are unhappy with the new figures

Source: Johnsons Fleet Services, 4th February 2019.

Using A Leasing Broker

Why use a vehicle leasing broker? 

You probably have a mortgage broker, use an insurance broker or comparison service for your insurance, have a Financial Advisor find you the best savings, investments and pensions advice? Then having a recommended vehicle leasing broker to arrange a deal on your next car can be a logical step and has been for thousands of businesses and consumers for 3 decades.

What to look for in your leasing broker

I tend to measure the number of great brokers by the numbers of partners of a major leasing company. As an example, we have been a franchise of LeasePlan (formerly Network Vehicles) since 1995 and they tend to have around 100 quality companies that they deal with.  This provides healthy competition which is more and more based on service and feedback as well as the all-important price.

Along with other criteria, all partners must demonstrate to have the following:

  • Office Premises
  • Be members of the BVRLA – our trade body
  • Have a licence from the FCA – Financial Conduct Authority
  • For each member of staff to attend at least two industry training days each year facilitated by motor industry experts Professional Inspirations

Large or Small?

Not all brokers are the same, some are huge organisations with full telesales centres, sales teams, admin teams, buying teams and marketing departments others are literally a business owner and maybe an administrator and most (like us)  are somewhere in between.

However what is key is that you are comfortable with who you are dealing with and rest assured ‘most’ of us are actually pretty good at what we do.  Brokers have their own culture and it’s up to you who you ‘get on with’ and trust to get the right advice and deal for you or your business.

A medium sized broker will tend to get you access to great deals AND a personal service, a smaller one maybe great service but not as many deals and a larger one a very slick experience but occasionally lacking that personal touch many small businesses and consumers still value.

Ask who they represent

One thing to look out for is to get as much coverage from your broker as possible.  They ‘should’ have access to a number of major leasing companies, the ones that you can only access via a broker. These are the guys buying thousands of stock and specially priced cars each year that you’ll see advertised widely.  Most of us also access hundreds of dealers from across each manufacturer to get the best access to stock and special offers that your local dealer won’t get.

Top Tip: 

Don’t get too many brokers pitching for your business. It’s prudent to get a couple of quotes but the best brokers will put you to the bottom of their to-do list if they think you’re going to take every quote out to 10 other people.  The reason we are the broker is that we find you the best deals – if you trust them you’ll let them get on with the job.

Something to keep an eye on – admin fees

Some brokers charge admin or processing fees and this should be transparent at the point of quoting.  We currently don’t charge these but again there’s nothing ‘wrong’ with this unless it seems a little more important they get your cash rather than supply the deal!  Remember this is a heavily regulated market so the days of spurious fees and charges should be over.

The truth is good enough

This article was supposed to be informational rather than advertorial however  I can list example after example of our absolute honesty being valued by our clients.  The motor industry is far from perfect. Stock lists can be out of date, cars get sold before our eyes, some supplying dealers are awful and some are fantastic.  Some cars get delayed at the factory, some are even taken off order but out of 9 problems that happen a good broker isn’t at fault – however, it’s all about communication.  It’s my role as Director here to get you to trust us, not by sales speel but by our actions.    It’s a good brokers job to seek out not only good deals but fantastic dealers, it’s my role to find out why a funder is letting things slip and help them improve using our account managers to feedback.

If we have an issue the customer knows straight away. Throughout the sales process, we are being as transparent as possible in what can be a very hazy industry.  That’s a promise from me (remember our regulators will be reading this too!)

Do you want our help?

Finally, if you’d like to chat to us about using our vehicle leasing brokerage just drop me a line 01706 577040 or email robert@anthonyk.co.uk to see if we can provide what you are looking for.

 

 

 

WLTP on Contract Hire Vehicles – Will It Affect Me?

Confused by WLTP? Not sure what it is? Is your leasing provider not really sure what’s going on?……………….read below or save yourself some time and get in touch with our experts on 01706 577040

Below is an email sent by our Sales Director to one of our regular fleet customers regarding the new WLTP tests which come in to effect from September 1st 2018.  The tests are new ways of measuring emissions which of course Road Fund Licence is now calculated on. However in many cases the tax position of both the company and company car driver will be changed – and in most cases not in a positive way!

The Transition from NEDC to WLTP – Brief Expansion

The New European Driving Cycle (NEDC) is the current testing procedure for engine emissions and fuel consumption has been in place since 1990 and was last updated in 1997.

This is being replaced by the Worldwide Harmonised Light Vehicle Test Procedure (WLTP).

Relevant timelines at this point are as follows:

All vehicles manufactured after July 2018 must be certified to WLTP.

All vehicles registered in the UK after 01/09/2018 will need to be certified to WLTP but will also require NEDC equivalent emission figures which will be used to calculate first year Vehicle Excise Duty and Benefit in Kind. The NEDC equivalent figures are derived from the new WLTP test and may differ from current NEDC results due to them being more representative of Real World Driving.

Current HMRC plan is to use WLTP emission figures from April 2020 and at this point will be included in customer facing material.

Any vehicles manufactured that are not certified to WLTP must be registered by 31/08/2018.

As the majority of manufacturer order banks are already full for July production a lot have now been closed and will not re-open until vehicles have been tested to WLTP. The first to announce this was Jaguar Land Rover who closed their order bank early last week. A number are continuing to take customer orders, BUT, with the caveat that from order to delivery there is a likelihood that WLTP testing will have done and therefore it is likely that emissions will increase in turn affecting first year Vehicle Excise Duty and Benefit in Kind.

To this end many popular makes and models are closed for ordering. So at this point I am unable to offer valid figures but will monitor the position for you moving forward as I understand that as well as new emission figures there may also be a price increase.

What we Know So Far about WLTP

There seem to a lot of companies out there who are turning a bit of a blind eye to these changes, but we are trying to be as transparent and informative as possible.

I find it hard to believe that only Jaguar Land Rover have tried to communicate their changes and that NONE of the major funders have made any comment whatsoever.

Here are few actual working examples of the changes that WLTP has already highlighted

I have a Land Rover Discovery on order for a client which was initially ordered to coincide with his mid-September renewal date. This vehicle will be produced before the end of July, will not be certified to WLTP and therefore it MUST be registered 31/08/2018 at the latest. He isn’t ‘plate’ sensitive fortunately and happy to take it a couple of weeks early. It could have been a bit of a problem of course.

I have 2 x Lexus CT Hatchbacks that were ordered last month at which point the emissions under NEDC were 94g/km. They have since been WLTP tested and will come through with the new NED Equivalent 101g/km.

This has meant a slight increase to first year Vehicle Excise Duty which on this occasion Lexus have taken on the chin as timing was so unfortunate, BUT, the drivers will see a 2% increase in BIK.

Jaguar Land Rover have this morning announced that the Jaguar F Pace 2019 model year range has now re-opened for ordering, certified to WLTP with NEDC Equivalent emission figures. THESE ARE HORRIFIC. An example:

F Pace 2.0d 163ps RWD Manual

18 MY – 126 g/km

19 MY – 147 g/km (and 152 g/km with any alloy wheel upgrade)

The impact to driver’s clearly massive for this vehicle.

Relevant to Quotations Above

As time progresses, and hopefully almost daily, we will see the introduction of updated pricing and emission figures, but, at this point, save for the previously mentioned Lexus CT and Jaguar F Pace examples the good news is that the full BMW and Volvo rages are already certified to WLTP.

* This means that the BMW 5 Series figures are good to go, and we will not see any further change.

** The Mercedes E Class emission figures could change as they have yet to be tested. If they are like the BMW 5 Series, this will be around 5-7g/km, but we have no further indicative information, so this needs to be taken into consideration in your decision process.

I do hope that whilst this may be perhaps a touch mind numbing I have explained things in an understandable fashion but please do not hesitate to contact me if you/John would like to chat further.