May 2011
I would like to welcome you to our Spring 2011 Newsletter and hope that you find it informative.
The way companies run their business cars is changing. Or rather, it surely must change following the corporation tax changes implemented in April. Fundamentals need to be re-examined in the light of the new tax rules – whether you should purchase or lease cars, even the nature of the cars themselves. The changes are truly far-reaching, but the implications are not yet fully understood. One thing is clear however, the Government's subtle but firm insistence that we choose low-carbon company cars, or take the punitive tax consequences. Meanwhile, the range of low-emission cars is becoming ever wider and more desirable. However, it's not all easy. What about the ultra-low emission cars with their 'eco' labels, what are they really about? And are they worth it?
Legislation has also had an impact on manufacturers building minibuses. The decision to bring forward to January this year, the ruling that Euro 5 engines must be fitted, has caught most of the manufacturers out and is now causing there to be a shortage of available vehicles. Also, please read the notice regarding new Motor Insurance Law, it could be important to you.
Natural disasters have had a severe effect on vehicle supplies as well. The disasters in Japan have far reaching effects on model supplies so forward planning is more sensible than ever. Of course, OVL will always be able to find a vehicle for you when urgency dictates.
Before I sign off, I just want to re-state OVL is open for your business and we want to be your number one choice. If you're not convinced, give me a call and I will convince you of our commitment to:
"Helping you find the best way to finance your next vehicle ......."
Martin Wedge
Managing Director |
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General Update - Japan Earthquake and Tsunami
Following the recent earthquake in Japan a number of manufacturers are reporting delays in vehicle production. Although the biggest effect is upon the Japanese manufacturers, the impact is also being felt by non-Japanese marques as most vehicle manufacturers use Japanese parts suppliers. Some manufacturers are looking for alternative suppliers for their parts. However the re-engineering required plus the complexity of patents with some suppliers means that this is costly and may take some time.
General Motors has overcome its shortage of parts, which forced it to stop production at German and Spanish assembly plants in March. The impacted parts are now being sourced by a supplier in North America. So far the leading German car manufacturers have not encountered any major production problems due to supply chain interruptions or shortages. The only impacted model is the T5 transporter which does use some Japanese supplied parts.
In summary, this will severely impact delivery times for many makes and models so it is imperative that orders are placed very early to ensure that you are in a position to replace those vehicles that will be due to be replaced in the Autumn and Winter months. |
For further information on vehicle supply delays, please click here to see the recent news item on our website. |
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Important information for Minibus Users
All new light commercial vehicles, including minibuses are currently fitted with Euro 4 or Euro 5 emissions-rated engines, however, as with cars, manufacturers are moving to the cleaner, more environmentally-friendly Euro 5 engines. Inclusion of the Euro 5 engine for van registrations will not be mandatory until 1st January 2012, however, legislation has changed meaning that minibuses are now required to be fitted with Euro 5 engines as from 1st January 2011.
Presently not all LCV manufacturers offer their models with Euro 5 engines meaning that there could be severe delays in deliveries of new minibuses. These manufacturers are working to resolve the problem but it is likely to be several months before vehicles are available.
To ensure that you are able to obtain a new vehicle without any unnecessary delay, talk to your account manager urgently, or call us on:
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askMID
IMPORTANT INFORMATION |
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New Motor Insurance Law
From early 2011 a new law gives DVLA more power to combat keepers of vehicles that are not insured. |
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DVLA will compare its records with details of vehicles on the MID (Motor Insurance Database) – the UK's central record of vehicle insurance.
If a vehicle does not have insurance and a Statutory Off Road Notification (SORN) has not been made, the registered keeper could face:
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A fixed penalty of £100 |
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Their vehicle being clamped, seized and disposed of |
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A court prosecution with a maximum fine of £1000. |
These new measures are in addition to the powers the police already have to seize an uninsured vehicle and fine the driver.
If you want to check your vehicle is recorded as "insured" on the MID record, visit the free service at www.askMID.com.
Do not contact the DVLA as only your insurance provider can update your insurance details on the MID. If your vehicle registration number is not on the MID, contact your insurance provider immediately to get the MID updated.
What this means for you
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If you are keeping your vehicle for use on the road and it is not insured, insure it now. |
If you are keeping your vehicle off the road and it is not insured, you must make a Statutory Off Road Notification (SORN). If it is taxed you need to return the disc (including nil discs) on a V14 form to DVLA.
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Kick your bad driving habits
The cost of fuel continues to fluctuate and it can account for
more than a quarter of the cost of running a car. By making
simple changes to the way you drive, you can get the best MPG
performance from your vehicle and save some money.
The benefits of smarter driving
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reduce your annual fuel bill. |
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cut your carbon emissions. |
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reduce wear and tear on the vehicle. |
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enjoy safer, less stressful journeys. |
Smarter driving tips: |
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Plan your journeys – work out the most efficient route. A cold
engine uses almost twice as much fuel. |
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Drive away when starting from cold – idling wastes fuel and
causes rapid engine wear. |
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Anticipate road conditions – drive smoothly and avoid sharp
acceleration and heavy braking. This saves fuel and reduces
accident rates. |
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If you're stuck in a jam, switch off – this will save on fuel and
emissions. |
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Check your revs – change up before 2,500rpm (petrol) and
2,000rpm (diesel). |
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Use air conditioning sparingly - it significantly increases fuel
consumption. |
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Stick to the speed limit - make your fuel go further by driving
at the most efficient speed of around 55 – 65mph. Driving
faster will increase your fuel consumption. |
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Check your tyre pressures regularly – under-inflated tyres
are dangerous and can increase fuel consumption by up to
three percent. |
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Why use OVL?
- Established for over 21 years
- Exemplary after sales service
- Benefits from group buying power
- All makes and models supplied |
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Finance Options
- Contract Hire
- Contract Purchase
- Finance Lease
- Hire/Lease Purchase |
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And more
- Fleet Management
- Accident Management
- Vehicle Sourcing
- Commercial Vehicles |
| Always competitive rates on business and personal contract hire..... |
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