East European gangs target rental firms

Organised crime groups with Lithuanian and other eastern European connections are targeting UK rental companies. Up to 30 vehicles belonging to BVRLA members have been stolen by criminals using false or stolen IDs in recent weeks.

The gangs appear to be made up of smartly dressed men in their late 30s with Lithuanian, Czech, Hungarian, Slovak and Romanian passports and driving licences. They usually provide UK addresses. They initially tended to rent as walk-ups from airports, especially Stansted and Gatwick, then targeted the cities of London and Birmingham, but now appear to be operating much farther afield, as far north as Leeds. They give contact telephone numbers for mobile phones, but these cease to be answered after initial assurances to the rental company that the rental vehicles will be returned. Most of the names and addresses used by these individuals have been added to the BVRLA's RISC Online database.

For more information on how to protect your business through the RISC Online database, contact BVRLA head of member services Nora Leggett.

To join the BVRLA click here...

source: BVRLA

Accident-fakers target London fleets

Operation Catcher, a Metropolitan Police initiative, has been launched to identify criminals who deliberately induce vehicle collisions in order to defraud insurers.

According to the Metropolitan Police, there is a high incidence of such crimes in its area. In particular, it warns that "organised criminal groups" are targeting companies operating vehicle fleets within the M25.

To visit the BVRLA advice and guidance pages click here...

source: BVRLA

BVRLA Vehicle Recall Guidance

The BVRLA has developed a guidance paper for members and their customers on vehicle recalls.

If you have any questions on this paper please contact a member of the legal services team on 01494 434747.

Rental companies wishing to become a member of the BVRLA click here...

To view the BVRLA Vehicle Recall Guidance.pdf click here...

source: BVRLA

VAT place of supply rules change

The place of supply rules for VAT changed on 1 January 2010 – now VAT is payable in the country in which the customer is established, rather than the supplier. Supplies to private individuals will follow this approach from 1 January 2013.

As a result of the BVRLA's lobbying efforts, all rental agreements lasting 30 days or less will remain unaffected. In practical terms, this means that rental staff will not be required to check the VAT status of each customer in order to decide whether to issue a zero-rated VAT invoice.

In conjunction with HM Revenue and Customs, the BVRLA has produced a fact sheet on the new rules, particularly how they affect agreements lasting longer than 30 days.

VAT Place of Supply Rules (Fact Sheet 579) can be downloaded by BVRLA members here...

source: BVRLA

Third EU Driving Directive

The Department for Transport (DfT) has published a consultation document outlining its proposals for implementing the third EU directive on driving licences. In general, the directive harmonises definitions of vehicle sub-categories and rules on the duration of the validity of a driving licence across the European Union and the European Economic Area.

The BVRLA will await with interest the outcome of the consultation as the manner in which the directive is implemented will have the potential to impact members' customers. For example, the directive requires that drivers of large and medium-sized buses and lorries renew their licences and demonstrate continuing medical fitness every five years, rather than the present UK requirement for five-yearly renewal only after age 45.

There are currently no plans to introduce a smart card driving licence but it is proposed that old-style UK licences be recalled (although there will be a separate consultation on this).

The consultation will run until 5 February 2010.

For full details from the DfT website click here...

source: BVRLA

BVRLA endorses 'Grey Fleet' campaign

The BVRLA's Leasing and Fleet Management Committee last week discussed the Office of Government Commerce's campaign to improve public sector use of 'grey fleet' vehicles – employee-owned vehicles used for work purposes.

As part of the campaign, the OGC has released several case studies showing how public sector fleets have made cash and CO2 savings by using rental and leased vehicles. The committee asked the BVRLA to make use of this information on its website to help members build a persuasive case for their services when next tendering for local authority contracts.

The committee also agreed that the administrative burden associated with the new offence of being the registered keeper of an uninsured vehicle, which comes into force next year, will make rental and leasing a more attractive option for businesses.

Details of the OGC's grey fleet campaign can be found here...

source: BVRLA

Scrappage scheme embraces vans

The extension to the government's car and van scrappage scheme came into effect on 22 October.

It now applies to all cars registered in the UK no later than 29 February 2000 and vans registered no later than 28 February 2002.

For the BVRLA website clike here...

source: BVRLA

Calls for block exemption extension

Members of the European Parliament have criticised the European Commission's proposals for ending the automotive sector's block exemption from aspects of competition law.

The Commission wants the current rules, which are due to expire on 1 May 2010, to be renewed for the servicing and repair of motor vehicles, but for those governing vehicle sales and distribution to be removed by 2013. In their response to the plans, discussed last week, several committees of MEPs charged with scrutinising the proposals argued that the Commission had failed to provide a robust case for change.

There was also a consensus that it was vital for independent operators in the vehicle-servicing aftermarket to have access to manufacturers' technical information. The MEPs have written to the Commission requesting more time to review its proposed changes and asking for the current regulations to be extended until 2011.

For the full details of the BVRLA's work on this issue click here...

source: BVRLA

BVRLA backs OLEV incentives

The BVRLA has responded to the newly formed Office for Low-Emission Vehicles (OLEV) on its suggestions for distributing £250m allocated to help stimulate demand for ultra-low-carbon cars.

Following detailed discussions with members, the BVRLA has welcomed OLEV's recognition that rental and leasing businesses can play a key role in the take-up of this new technology.

For the full BVRLA response click here...

source: BVRLA

BVRLA's Block Exemption Views

The BVRLA has submitted its response to the European Commission's consultation on the future of the motor vehicle sector's block exemption from aspects of competition law. As with its previous statements on the subject, the association has called for:

• Preservation of car rental and leasing firms' end-user status with regard to leased and rented vehicles
• Affordable access to manufacturers' data to facilitate repair, service and maintenance of vehicles.

For the BVRLA's position on European Block Exemption Regulations click here...

source: BVRLA

Delivery/Collection of Minibuses

The BVRLA's legal services team has received a number of queries from its members regarding the driving licence entitlement for drivers engaged in the collection and delivery of minibuses.

The D1 entitlement appears automatically on driving licences issued before 1997, but drivers with licences issued subsequently must pass a specific test. Failure to comply exposes its members to the risk of the vehicle being impounded immediately. In addition, the driver faces up to six penalty points and a fine of up to £5,000.

To visit the BVRLA website click here...

To visit the 'Driving a minibus' page of the Directgov website click here...

For RIVAL's additional rules on Minibuses & Large MPV's click here...

source: BVRLA

In-Car Emergency Systems

Reported in this weeks BVRLA update, the European Commission has made a final call to EU countries to voluntarily implement its "eCall" strategy for in-car technology to alert emergency services to road accidents.

It warns that if there is no significant progress in rolling out the system by the end of 2009 it could propose regulations to compel manufacturers to install it.

In its recently published strategy document the Commission says eCall could save lives by halving emergency response times and calls for it to be installed in all new vehicles sold in Europe by 2014.

A copy of the strategy can be found by clicking here...

or visit the BVRLA website here...

source: BVRLA

Vehicle Registrations at 212,000

According to the BVRLA website, the latest government statistics on vehicle licensing and registration covering the period from January 2001 to June 2009, show a significant recovery on recent months.

Figures for June indicate total vehicle registrations of more than 212,000 – up from about 166,000 in May. Light goods vehicles made up 17,500 of these (up from 13,200 in May) and more than 173,000 cars were also registered in the June period (up from 132,900 in May).

To download the full DFT statistics click here...

Free Job Adverts for Members

Did you know that the BVRLA still offers free advertising for members’ job vacancies on it's website.

Visit the BVRLA website...

Age Rules Exemption Sought

The BVRLA has responded to the European Commission's proposals for an Eu-widw ban on unjustifiable age discriminination for the provision of goods and services.

Given that the UK is also looking at a similar law , the BVRLA believes it is imperative that the EU law does not prevent the UK from exempting the vehicle rental sector.

An exemption would protect rental firms from being forced to rent to young drivers, and allow them to apply risk-based, age-adjusted pricing - reflecting the variations in incidence and severity of road accidents for different age groups.

BVRLA Theft and Fraud Survey

According to the annual BVRLA Theft and Fraud Survey, the short-term rental sector was hit by a recession-induced crime wave last year reporting a 12% rise in vehicle thefts. Members faced a range of threats, including opportunistic thieves, fraudsters and gangs of organised criminals.

For their full report click here...