As we continue looking into the change in tide of the outlook of UK drivers into the way they fund their vehicles, here is part two of the evidence Volvo have presented the market with recently, in effect mirroring Renault’s long-term market expectations for UK drivers.

Commercial costs, the economic uncertainty we cannot shake, rising van insurance policies and now, domestic drivers looking to vehicle hire as a sensible way of keeping their outgoings down mean large shifts in the vehicle lease-hire market-place.

Long-term vehicle efficiency included

Vehicle hire companies want to retain your business, once they have it, even if you are a month-on-month customer. It is regular cash for them, and they don’t have to wait 90 days, as with some of the longer-term business transactions they enter into, making them more solvent.

Part of the philosophy behind keeping you as a customer is to always offer you the best product, i.e., the latest and most fuel-efficient models on the market.

Therefore, whatever outgoings you may see as slightly expensive in the long-term may not be as detrimental to your business, if improved efficiency and cost effectiveness is filtered into the equation.

Renault and Volvo on the same page

What Volvo’s figures tell them will only echo what Renault have been saying with the launch of the Kangoo ZE electric van.

The French company have categorically stated a belief that 10% of all cars on UK roads will be electric-powered within five years. To tailor that market-drive, their sales package comes, not only with a cheap price to buy the van outright from new, but also they have initiated distribution outlets for those businesses or individuals looking to hire vans in the sight of the economic downturn – a change in business strategy that many would have thought uneconomical in years gone buy.

Although van hire will not suit all businesses, for those with an eye on the bottom line, it may be a life-saving option

What we will say is be very careful when you hire your commercial vehicle that the van insurance they provide as standard suits your business.

Their are moves afoot to standardise what is and isn’t a basic component across the van insurance industry, leaving up to the van insurance broker what they offer as an ancillary product.

If vehicle hire is right for your business, do not let it become a constraint by not covering all of your bases.

We’re sure, with the likes of Renault and Volvo, that will not be the case, but do not take it for granted and do check out the cover provided before you take to the roads.

Don’t do a favour for friends and family this Christmas by transporting their large presents or browning conifers once the festivities are over. The likelihood is, you van insurance policy, or your works fleet van insurance, will not cover you for such errands. No matter how many pints you’re bribed with, you could lose more than a clean license.

Transporting personal effects may not be covered

If your van belongs to a fair-sized operation, then it’s likely they have taken out a fleet van insurance policy. As such, they’ll be looking to shave as much of the bill, in these cash-strapped times, as possible. If it’s in the basic policy or a legal requirement, then they’ll be covered, anything else, well…

…if they’ve cut back on some of the ancillary products, deemed not necessary to carry out the company’s day-to-day activity, they most probably have not included them in the fleet van policy.

Using your van to ferry your personal belongings, whether it be to the car boot, taking the rubbish to the skip (such as that used Christmas tree) or nipping large presents for strangers in a pub or fetching your sister-in-law’s inebriated husband from the office do, all of the above fall into that category.

Whether you’re feeling in a giving mood or not, especially with the increased police presence on the road at this time of year, you run a real risk of flouting your employer’s van insurance policy.

Don’t drink and drive

Of course, no Christmas post would be complete without the traditional warning, almost as traditional as penguins on Christmas cards – no, I swear, thousands of Christmas cards have penguins on; go on, count yours and see how many do. WTF have penguins go to do with Christ? Where there some in the desert when he was born in the manger in Bethlehem? Sheep, pigs or calves, yes – but penguins – and some with polar bears! The world’s gone mad…

Anyway – the message is simple – it’s Christmas, booze builds up in your system and takes its time to filter out. If you must drive your van between the bank holidays this Christmas, make sure you’ve got a clear head and even cleaner blood stream before you hit the road.

If you’re working for yourself, being caught will not only wallop up your van insurance when you get your license back, but more importantly could jeopardise your liveihood in the interim.

It’s not worth the risk.

Just a couple of very short posts in the spirit of Christmas, today, as the wife keeps telling me to “…turn that bloody computer off!” – well, that’s the toned down version, anyway.

But this reminder couldn’t wait – if it saves just one person from a few points or a fine, or an increase in their van insurance policy when it comes around to renewing it, then that’s job done, for me.

Beware this Christmas of doing favours for family and friends in your work’s van.

Depending upon the type of van fleet insurance your employer has opted for, you may well not be covered for a multitude of extra-curricular activity.

The not-so softly, softly approach

You know what it’s like when you’ve broke up for Christmas early and you’re in the local having a few beers after (hopefully) pulling your van onto the drive and putting the keys in the fruit bowl until the new year.

You’re stood there minding your own, just eyeing up that froth as your Guinness and Tia Maria settles (c’mon, it’s Christmas), and you get a tug on your elbow.

It’s either the scruffy fella from the local estate or some well-to-do business chap with a shiny red nose – neither of whom give you the time of day at any other time of year – and you know the question before the first slurred syllable leaves their whiskey-glazed lips: “Yow’ve gorra van, air ya, chap?”

Or, translated from Black Country into Queen’s English: “I say, young man; am I correct in thinking you’re in the van-driving profession, old bean?”

Your gut reaction is to tell them where to shove their request, but the festive spirit has taken hold and you’d feel horrid if you refused.  If nothing else, this little post gives you an irrefutable excuse to say no.

It is your holiday, too. You can look them in the eye, quite convincingly, and tell them that you’re just not allowed to do so, as you’re not covered by your work’s van insurance policy. Whether you are or not, you can get on with you stout and liqueur in peace and enjoy the Christmas break.

Alternatively, you can just say you’re going to have a few bevvies – that may be more plausible, but you know what people are like; because you’ve not sacrificed your day for them, you’re so selfish – they may not even speak to you again ’til next year! If you are going to have a bevvy or two, make sure the keys stay in the house, to avoid the temptation, no matter how cold the forecast reckons it’s going to be.

Explanations as to why you may not be covered in the follow-up article.

Tracker, vehicle recovery specialists who work closely with the metropolitan police, report that 84% of stolen vehicles are taken using keys left in the ignition; never is the temptation greater to do so than at this time of year. With vehicles being left on the drive to warm through or de-ice the windows, opportunist thieves are on the lookout for just this practise. They are aware of popular makes and models and may already have a buyer in the wings before you have chance to raise the alarm.

Stuart Chapman, their Police relations manager, is quick to point out that many van insurance firms will not pay out if you are proved to be negligent, demonstrating this little duty of care. Not only could that aspect have a damning effect, but also you are liable for prosecution for leaving a car unattended with the engine running.

If this is a practise you cannot get out of the habit of doing, then Chapman recommends fitting a vehicle tracker. It may not grant you indemnity from prosecution but you stand a much greater prospect of retrieving your van once it has been stolen, at least avoiding you the cost of a replacement.  With its hidden transmitter, the thief may not even know you ahave a lock on him.

In a recent statement, he reminded us, “Fitting a Tracker unit could significantly increase the chance of a stolen car being recovered, however…
“…it may take a few minutes more, but a few simple security precautions can save a lot of heartache and expense if your car is stolen.”

In the likely event that your tools are missing, sadly, it is doubtful that your van insurance policy will cover you for those being replaced if your car is frost jacked, due to your lack of duty of care.

The other tool, and perhaps more likely to deter the opportunist thief, is an immobiliser which can only be disabled by optical recognition. The advanced version of this tool, quite new to the market but which seriously helps you attain cheap van insurance by fitting it due to the increased protection against theft, means you can leave the cab but, unless the system verifies that it is you driving by your ocular fingerprint, will remain engaged until your return.

So, remember, frost jacking is prevalent when attempts to stave off Jack Frost’s overnight legacy lead to vehicle theft. Either don’t do it or protect you, your livelihood and your no claims bonus by preparing for it.

Going back almost one year and the vehicle rental sector looked even bleaker than it does now. Many names disappeared from the market, either through mergers, being under the administration of loss adjusters or being wrapped up altogether.

The big fear for the industry now is that, as uncertainty about the economy continues, many large car and light vehicle rental companies are trying to buy their share of the market by leasing on a daily basis at ‘crazy prices’. Good news for the end user but sending shivers through the competition who, after suffering four years of trying every trick in the book to keep their heads above water, are having to consider profit first; this period will have probably included foregoing profit for market share at some point, in one form or another, by all of the big players but creditors will only invest for so long before wanting to see return for their dollars.

The British Vehicle Rental and Leasing Association’s chief exec John Lewis called 2010 tumultuous as it drew to a close, which was bore out by the lengths some vehicle rental organisations went through this year just to stay in business, going into 2012.

It is interesting to see how diverse the companies at the forefront of the industry have been with their strategies to survive the economic downturn of recent years.

Northgate, for example, has lost 8,000 of its 60,000 UK fleet; of the remaining 52,000 they have managed to keep 90% of those on the road, showing excellent utilisation of their rolling stock. Bob Mackenzie, Northgate chairman, confirmed they would continue with the same approach rather than try to compete at the crazy prizes on the cards for next year, citing ” hire rate improvement, efficient fleet management, further cost reductions and cash generation,” was their mid-term goal.

Hertz are wary of a price war, too, but in the same breath anticipate if they set their rate too high, other rental firms who have greater depth in the UK will take advantage. Their annual report acknowledged that, with a decreased market, their competition may well bring prices down to secure volume. Hertz, however, have worked hard on their brand recognition – priceless in such lean times.

Conversely, Enterprise Rent-a-car has increased its fleet size in the last 18 months by 25%. The privately owned company now haves a fleet of 50k+ vehicles, of which 16% are vans and has seen its recent investment justified by a 50% growth in its UK airport business over the past 12 months. Their business rental director, Rob Ingram, stands by their mission to be the best value provider, offering “the best possible service at the most competitive price.”

Perhaps taking in an overview of these strategies will help allay Leasedrive‘s Roddy Graham’s fears for 2012 that not all battles will be fought on price alone. We will wait and see.

There is some good news for industry; the BVRLA announce red tape reductions will help unnecessary hassle when it comes to commercial vehicle insurance and the need for drivers to provide proof when hiring a van; details of this move and more paperwork reduction to follow.