last updated 06/04/2020
These are general guidelines at a difficult time.
We hope you are well and that you and your family have managed to avoid COVID-19.
As a valued client of CBVC and Leasing Gorilla given the turmoil and uncertainty in the country, we thought we should update you on the present situation with regard to your vehicle and service provision, this is a general post so some of the service provisions mentioned may not be applicable to your vehicle.
We continue to work remotely and appear to still be managing to deliver a high level of service so please contact us should you have any issues.
We are advised that should a breakdown occur the RAC, AA etc are still working as normal but with additional health precautions. Should the incident not be cured at the roadside the vehicle would usually be taken to a dealer for repair, however many dealerships are now closed and unable to accept vehicles so the current assumption is they will either be relayed to your home address or to a storage compound.
Servicing, Maintenance & Repairs
As stated above many garages are closed or only carrying out essential repairs for frontline staff, and are therefore unable to carry out any work on other vehicles. This creates potential issues with regard to safety and missing services and potentially impacts on ongoing manufacturers’ warranty provisions. If this potentially affects you, please contact your service provider in the first instance and follow their guidance, alternatively contact us and we will try and find a location for you. We must stress that any driver reporting concerns over safety issues such as brakes and worn tyres should be advised not to drive the vehicle. To try and ensure onward mobility, please see the Rental section below. With regard to tyres the likes of Kwik Fit seem to be still operating, your service provider will assist in trying to find an open location.
MOT 6 Month Exemption
Vehicle owners will be granted a 6-month exemption from MOT testing, enabling them to continue to travel to work where this absolutely cannot be done from home, or shop for necessities. All cars, vans and motorcycles which usually would require an MOT test will be exempted from needing a test from 30 March 2020. This temporary legislation will be in place for 12 months. Vehicles must be kept in a roadworthy condition, and garages will remain open for essential repair work. Drivers can be prosecuted if driving unsafe vehicles and should follow the governments advice on this link https://www.gov.uk/check-vehicle-safe
If you cannot get an MOT that’s due because you’re in self-isolation, the Department for Transport is working with insurers and the police to ensure people are not unfairly penalised for things out of their control.
For those on Contract Hire this will continue to be carried out by the lessor. Vehicles on operating leases will need to be taxed by you. Where CBVC are responsible for taxing we will continue to do this provided we have a valid MOT.
Driving Licence Checking
Subject to systems still being operational we will continue to carry out checks as they fall due.
Transport for London have suspended Congestion Charging for Inner London. Sadiq Khan explained that this to aid frontline workers which we know a few of you have and will negate the need to register rental vehicles.
The rental sector has been deemed to be of importance and some of our partners have indicated that it is business as usual, therefore in the event of breakdowns etc… please contact us and we will do our best to keep you mobile. Collection of off-hired vehicles is proving logistically difficult, you will not be charged for the rental in normal cases, provided you supply:
- The location of the vehicle (which must be safe and secure).
- A contact number for the key holder, who is available during normal business hours to arrange a handover.
- Unless told to the contrary you must ensure the vehicle is still covered on insurance whilst in your possession and we would advise taking a date stamped photograph of the vehicle’s mileage (odometer) to prove it has not been used passed the off-hire date.
Please refer to https://www.cbvcvehiclemanagement.co.uk/post/covid-19-vehicle-rental/ for further guidance.
For vehicles on order that have come into stock, and had a delivery date most of our supplying dealers have suspended deliveries of new cars therefore these will remain at the dealership. The options therefore are essentially; postponement which we think most will do or; cancellation. In the event of cancellation there may be charges payable where a vehicle is built or in stock. For those vehicles that are not registered by the 6th of April there is the potential that they could fall into the new WLTP emissions regime should the government not postpone the implementation.
A number of dealers are working on contactless handovers which involve a full wipe down of the car before it leaves the dealership and the driver wipes it down further on delivery. The car is videoed by the driver and the keys put through your door so you have no actual physical contact with the driver. More to follow.
Drivers on collection journeys have already been turned around by police, collections have therefore been suspended. Please advise us of the date you wish to terminate your contract and we will notify the lessor of the off-hire, charging of the rental will cease shortly afterwards, however you must make sure the vehicle is insured. Due to the protracted nature of collections some of our funders are now providing insurance once the vehicle has been offhired (Lex & Hitachi, Alphabet), however please make sure you have written confirmation unless you are advised the lessor will cover this is. If your contract is ending and you no longer want to use your vehicle it must be parked safely and legally (e.g. parking permit), and keys must be kept in a secure place. Funders will also require a date stamped photograph of the vehicle’s mileage (odometer) to prove it has been parked up and not used. Alternatively you can continue to use your vehicle; if the contract expiry date is reached we can extend it for you.
Q: The leasing company have advised they are coming to collect/deliver my vehicle, how will this be done safely?
A: The leasing company should be in touch prior to the collection or delivery to advise you of the process, this may include:
- What you should do with the keys or documentation (ideally these should be placed in an envelope)
- Alternatives to signing anything, this may include recording your verbal consent to the vehicle being removed and or acknowledging any damage
- Advice on sanitising surfaces in the vehicle
Most manufacturers have shut down production so these orders will not move prior to return to full production.
Many of our lessors, anticipating having huge numbers of vehicles to collect as soon as the travel ban is lifted are offering preferential terms on 6 and 12 month contract extensions. Please ask and we will obtain a quotation.
Company Car Benefit in Kind Tax during the COVID-19 outbreak
HMRC has provided the following update on the issue of whether company car tax should be paid while vehicles are unavailable or unused by workers:
“You have asked if the car is ‘unavailable’ to the employee for a period of time could HMRC confirm that the car benefit charge would no longer apply. Unfortunately, it is not as simple as not using cars for a particular period of time, whether that be for 30 days (the period of minimum ‘unavailability’ stated in legislation), or any shorter period that the government might consider.
The benefit charge applies where a car is made available for private use, whether or not it is so used. For example, a car kept on an employee’s driveway during a period of furlough would still be considered to be made available. Neither would HMRC accept a SORN declaration as proof of unavailability. Guidance explains when HMRC would not accept that a car is unavailable and includes when there is no road tax, MOT or insurance.
In most cases, HMRC would expect that the car is handed back to the employer so that it cannot be used. However, we recognise that under the current circumstances it may not be possible to hand the car itself back, so exceptionally, we would accept that where all the keys (or tabs) are in possession of the employer, and the employee does not have the authority to request the keys are returned to them, the car would be ‘unavailable.’”
No change to introduction of WLTP-based motoring taxes
HMRC have confirmed, given the timescales involved, the fact that Parliament is now in recess and the allocation of Treasury staff to other COVID-19 related priorities, there is no way of delaying the advent of WLTP-based CO2 tax in April.
WLTP CO2 values will be used as planned for first-year VED from 1 April and company car Benefit-in-Kind tax from 6 April.
Should you need to speak directly to your Finance Provider, please see link below, we consider this a comprehensive list however please contact us if your provider is not listed on firstname.lastname@example.org
We, and all our funding partners, understand that the crisis will mean some have difficulties making their payments. Although we will help as much as possible, we are not empowered to make any arrangements directly so for a speedier service would ask you to contact the Customer Services department of the relevant finance company.
We will be operating a skeleton staff on an ongoing basis so please call or email if you have any questions or need assistance. Hopefully this will be over in a matter of weeks.
Best wishes to you, your staff and families from All at CBVC.