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1 NAMA NEWS DECEMBER 2017 Dear Colleagues, This month s newsletter has a number of interesting articles, particularly around the current vehicle market and the general economy, including our own NAMA report, a summary of the Chancellors Autumn Budget, and the latest summary of business conditions from the Bank of England. Following four very successful GDPR workshops, we will be holding two additional workshops looking at the more specific issue of contract remediation. Contract remediation is a crucial element of GDPR compliance and the workshops will show members how to review their third-party contracts. The workshops run again by the NFDA/NAMA retained solicitors TLT, will take place on Thursday 1 February and Friday 9 March at the Warwick Hilton. If you would like to attend please louise.woods@rmif.co.uk You should soon be receiving your invites to the NAMA AGM which will be held on the weekend of the 27 & 28 April 2018 at the Sheraton Hotel, Lisbon, Portugal. As the venue is very heavily subscribed, we would urge you to confirm your attendance as soon as possible, so we can ensure we have accommodation for all. If you have any comments or views about the newsletter or NAMA, please contact me. Finally, on behalf of everyone here at NAMA, I would like to wish you all a very Merry Christmas and a Happy New Year! We look forward to working with you all in 2018! Louise Louise Wallis Head of NAMA Tel: louise.wallis@rmif.co.uk

2 AUCTION ACTIVITY SLOWS IN OCTOBER NAMA has published its monthly car auction data report for October The report shows that overall in October: First time conversion rates decreased by -2.2% to 83.2% from September- however the rate was up 3.1% on the same period last year Average selling value decreased -2.3% from 5,893 to 5,759 from the previous month, however positively was up 7.7% from last Octobers figure of 5,347 Average mileage went up by 1.2% to 64,054 falling by 1,793 miles compared to the same period last year The first time premium was - 70 a -137% decline on last month Auction activity declined in October which is fairly normal this time of year, however the month did start off on a high note following the strong market in September. Demand from buyers eased through the month and as a consequence hammer prices fell. We anticipate that auction activity will remain stable going into the final quarter. The full NAMA Car Auction report is available from NAMA on request. AUTUMN BUDGET 2017: THE KEY POINTS Last month, the Chancellor Philip Hammond delivered his Autumn 2017 Budget. Below is a summary analysis of the main changes likely to affect members. Preparing for Brexit A further 3 billion were set aside to ensure that the government can continue to prepare effectively for EU exit. Additionally, 1.5 billion of additional funding will be made available in each of and Departmental allocations for preparing for EU exit in will be agreed in early 2018, while departmental allocations for will be agreed later in , when there is more certainty on the UK s relationship with the EU. VAT & Brexit Businesses currently benefit from postponed accounting for VAT when importing goods from the EU. The government said that will take this into account when considering potential changes following EU exit and will look at options to mitigate any cash flow impacts. Vehicles Ultra-low emission vehicles 200 million will be invested by government and will be matched by private investment into a new 400 million Charging Investment Infrastructure Fund. The Government is committed to electrifying 25% of cars in central government department fleets by Also, 100 million will guarantee the continuation of the Plug-In Car Grant to Connected and Autonomous Vehicles (CAVs) The Budget confirmed that the government will reform road laws to allow self-driving cars on UK roads by Regulations will be detailing how driverless cars can be tested without a human

3 safety operator. In addition, the National Infrastructure Commission (NIC) will also launch a new innovation prize to determine how future roadbuilding should adapt to support self-driving cars. Air quality In support of the National Air Quality Plan published in July, the government will provide 220 million for a new Clean Air Fund. This will allow local authorities in England with the most challenging pollution problems to help individuals and businesses adapt as measures to improve air quality are implemented. The government is launching a consultation alongside Budget on options that could be supported by this fund. This will be paid for by: a Vehicle Excise Duty (VED) supplement that will apply to new diesel cars first registered from 1 April 2018, so that their First-Year Rate will be calculated as if they were in the VED band above. This will not apply to next-generation clean diesels those which are certified as meeting emissions limits in real driving conditions, known as Real Driving Emissions Step 2 (RDE2) standards a rise in the existing Company Car Tax diesel supplement from 3% to 4%, with effect from 6 April 2018, which will also apply only to diesel cars that do not meet the Real Driving Emissions Step 2 (RDE2) standards, In relation to the VED, government will: increase in line with RPI from 1 April 2018 VED rates for cars, vans and motorcycles registered before April 2017 and the First-Year Rates for cars registered after April 2017 freeze the Heavy Goods Vehicle (HGV) VED and Road User Levy rates from 1 April A call for evidence on updating the existing HGV Road User Levy will be launched this autumn. The government will work with the industry to update the Levy so that it rewards hauliers that plan their routes efficiently, to encourage the efficient use of roads and improve air quality from April 2019, exempt zero-emission capable taxis from the VED supplement that applies to expensive cars, consulting in advance on how to define such taxis Tax Corporation tax: The corporation tax remained unchanged at 19%, which is the lowest in the G20 Fuel Duty: The rise in fuel duty scheduled for April 2018 was cancelled. Fuel duty was frozen for the eight-consecutive year. Personal Allowance: The tax-free personal allowance will rise by 350 to 11,850, while the threshold for paying the 40 per cent rate will increase from 45,000 to 46,350. Benefits in kind electric vehicles: From April 2018, there will be no benefit in kind charge on electricity that employers provide to charge employees electric vehicles. Transport Tax Company cars The Fuel Benefit Charge and the Van Benefit Charge will both increase by RPI from 6 April Fuel duty Fuel duty will be frozen for the eighth consecutive year in Alternative fuels

4 The government will review whether the existing fuel duty rates for alternatives to petrol and diesel are appropriate, ahead of decisions at Budget In the meantime, the government will end the fuel duty escalator for Liquefied Petroleum Gas (LPG). The LPG rate will be frozen in , alongside the main rate of fuel duty. Property Tax Business rates: The Government will be increasing the frequency with which the Valuation Office Agency (VOA) revalues non-domestic properties by moving to revaluations every three years following the next revaluation, currently due in Productivity The Budget and the Industrial Strategy set out the government s plan to build an economy fit for the future. Some of the key changes include: new regulatory frameworks for AI and driverless cars further 2.3 billion in Research & Development (R&D) in from the Northern Powerhouse Investment Fund increases the R&D expenditure credit to 12% National Retraining Scheme, which will initially focus on the strategic priorities of housebuilding and technology Competition and Markets Authority (CMA) to be provided with additional 2.8 million a year funding to stamp out anti-competitive practices 1.7 billion Transforming Cities Fund to improve local transport connections Pothole fund: The government is investing an additional 45 million in to tackle around 900,000 potholes across England. However, this was mentioned in the last budget and no additional funding has been allocated. Apprenticeship levy The government has confirmed that they will continue to work with employers on how the apprenticeship levy can be spent so that the levy works effectively and flexibly for industry, and supports productivity across the country. National Minimum Wage The government will increase the National Living Wage by 4.4% from 7.50 to 7.83 from April 2018 increasing the rate for 21 to 24 year olds by 4.7% from 7.05 to 7.38 per hour increasing the rate for 18 to 20 year olds by 5.4% from 5.60 to 5.90 per hour increasing the rate for 16 to 17 year olds by 3.7% from 4.05 to 4.20 per hour increasing the rate for apprentices by 5.7% from 3.50 to 3.70 per hour MEET THE CHALLENGE OF GDPR COMPLIANCE NEW WORKSHOPS ANNOUNCED! The new General Data Protection Regulations (GDPR) which come into force in May 2018 apply to all organisations that control and process personal data. Failure to comply with GDPR can result in fines of up to 20 million or 4% of annual turnover for the most serious contraventions. Following on from our very successful GDPR workshops held this year, the NFDA/NAMA are holding two additional workshops looking at the more specific issue of contract remediation for GDPR compliance.

5 Contract remediation is a major element of GDPR compliance and one that is essential for all members. The workshop will look at how members should review their third-party contracts, such as those with manufacturers, finance houses and dealer management systems, to check and rate their GDPR compliance and risk. It will also advise on how you should amend these contracts to make them compliant. Additionally, we will also ask attendees to bring with them one of their data sharing arrangements to use as an example to be worked through during the workshop. Dates: Venue: Time: Thursday 1 February and Friday 9 March Hilton Hotel, Stratford Road, Warwick CV34 6RE 9.30 am refreshments, am workshop commences, 3.30 pm close (A buffet lunch will be provided) Places will be allocated on a first come first served basis as space is limited. Due the considerable resources required to hold these events, there will be a nominal charge of 99 including VAT per person to attend. If you would like to attend please contact NAMA on or louise.woods@rmif.co.uk UK CAR MARKET DECLINES IN NOVEMBER AS CONFUSION OVER DIESEL CONTINUES TO IMPACT THE MARKET The UK new car market declined for an eighth consecutive month in November, according to figures released by the SMMT. 163,541 vehicles were registered, down -11.2% year-on-year, driven by a significant fall in diesel demand. Business, fleet and private registrations all fell in the month, down -33.6%, -14.4% and -5.1% respectively. Registrations fell across all body types except specialist sports, which grew 6.7%. The biggest declines were seen in the executive and mini segments, which decreased -22.2% and -19.8% respectively, while demand in the supermini segment contracted by -15.4%. The Alternatively Fuelled Vehicles (AFV) sector, however, continued to make significant gains, growing 33.1%. Petrol cars also saw a gain, though of a more modest 5.0%. These increases could not, however, offset the heavy -30.6% drop in diesel registrations. The decline follows months of confusion and speculation about the government s air quality plans and its policies towards diesel cars. Overall, registrations have declined -5.0% in the eleven months in 2017, with 2,388,144 cars hitting British roads so far this year.

The UK s used car market declined for a second consecutive quarter in Q3, according to figures released by the SMMT.

6 Image source: SMMT UK USED CAR SALES FALL IN Q3 BUT 2017 MARKET HOLDING STEADY, SAYS SMMT Used car sales fall in Q3, down -2.1% to 2.1 million. More buyers opt for electric and diesel cars, with demand up 66.4% and 4.2% respectively. Overall year-to-date sales steady, up 0.1% to more than 6.3 million units. The UK s used car market declined for a second consecutive quarter in Q3, according to figures released by the SMMT. 2,102,078 second hand cars changed hands from July to September, representing a fall of -2.1%. Year-to-date, the UK used car market remains at record levels after a bumper first quarter, with more than 6.3 million buyers opting for a used car in the first nine months of 2017 a 0.1% increase. In Q3, superminis extended their reign as the most popular vehicle segment, taking a third of the market (33.6%). However, SUVs and minis were the only segments to show growth up 11.2% and 1.3% respectively, reflecting new car market trends. Silver continued to be Britain s number one used car colour, closely followed by black, which following new car buying patterns grew its appeal by 0.8%. Blue, grey and white made up the rest of the top five used car colours. In Q3 more motorists also took advantage of the wide range of alternatively fuelled hybrid and electric cars now entering the second hand market, with registrations rising 17.0% to 25,196 units.

7 Pure electric vehicles, in particular, proved increasingly popular, with sales up 66.4%. And while petrol sales fell 6.5%, demand for diesels remained healthy, rising 4.2%. In the year to date, more than 2.5 million used diesel cars have changed hands. Source: SMMT ACEA EU PASSENGER CAR REGISTRATIONS: +5.9% IN OCTOBER, +3.9% YEAR TO DATE In October 2017, demand for passenger cars in the EU returned to growth after September s decline. Registrations of new cars totalled 1,169,672 units in October, 5.9% more than the same period last year, official figures from European Automobile Manufacturers Association (ACEA) showed. In October 2017, EU demand for passenger cars returned to growth after September s decline. Registrations of new cars totalled 1,169,672 units, or 5.9% higher than in October last year. Nearly all major EU markets performed well, especially Spain (+13.7%), France (+13.7%) and Italy (+7.1%). The UK, however, saw new car registrations fall by 12.2% in October. Demand for passenger cars in the new EU member states grew by 20.1% last month, making a significant contribution to the solid performance of the EU market. From January to October 2017, passenger car registrations across the European Union increased by 3.9%, totalling more than 12.8 million new vehicles registered. Among the five big markets, Italy (+8.9%) and Spain (+7.3%) posted the highest percentage gains, followed by France (+4.8%) and Germany (+2.3%). On the other hand, UK demand for cars decreased by 4.6% so far in BANK OF ENGLAND AGENTS SUMMARY OF BUSINESS CONDITIONS This publication generally covers intelligence gathered from business contacts between late August 2017 and mid October It generally makes comparisons with activity and prices over the past three months on a year earlier. Growth in activity had remained broadly stable. Manufacturing output growth had risen again, with export supply chains supported by the past fall in sterling and some signs of increased domestic sourcing. But construction output growth had eased. Services turnover growth remained moderate. A survey of investment intentions pointed to continued modest growth in spending over the coming year, at a similar rate to that seen over the past twelve months. Expectations of investment growth in the following two years were weaker. Recruitment difficulties had intensified and were above normal in a range of activities, alongside continued modest employment growth. As a result, pay growth had edged up and was expected to be somewhat higher in 2018 than this year. But non labour input cost inflation had eased and both output and consumer price inflation were unchanged. Full report available here: Agents summary of business conditions November 2017 update VEHICLE SAFETY RECALLS: OCTOBER 2017 These are the vehicles, parts or accessories recalled by manufacturers for a safety reason during October 2017.

8 DVSA number reference Make and model Issue R/2017/238 Ford: Kuga, Focus, C-Max B-pillar trim insulation too close to the seat belt pretensioner, which may cause a fire in the event of a crash R/2017/241 Ford: Kuga, Focus, C-Max Side and/or knee airbag may fail to deploy in a collision R/2017/242 Mercedes-Benz Trucks: Actros, Antos, Arocs, Econic Gearshift bolt may loosen R/2017/249 Mercedes-Benz Trucks: Arocs Rear axles may crack / fracture R/2017/252 Mercedes-Benz Car: Smart ForTwo, Smart ForFour Steering knuckle incorrectly manufactured and may fail R/2017/255 Dacia: Duster Incorrect wiring in horn system can cause one or more safety faults, possibly affecting airbag deployment R/2017/256 Jeep: Compass, Patriot The occupant restraint controller (ORC) may not operate as intended, affecting seat belt and airbag function R/2017/259 Mercedes-Benz Trucks: Antos, Arocs Rear axles may crack / fracture R/2017/260 Mercedes-Benz Trucks: Atego 967, Atego II Rear axles may crack / fracture R/2017/261 Mercedes-Benz Trucks: Arocs 964, Atego 967, Atego II Rear axles may crack / fracture R/2017/263 Mercedes-Benz Trucks: Mercedes- Benz Trucks: Actros 963, Antos 963 Rear axles may crack / fracture

$R/2017/264 Mercedes-Benz Trucks: Actros 963, Antos 963, Actros II III, Arocs 964, Axor II Rear axles may crack / fracture R/2017/267 Mercedes-Benz Car: GLE, GLE Coupe Engine Control Unit has not been$

9 R/2017/264 Mercedes-Benz Trucks: Actros 963, Antos 963, Actros II III, Arocs 964, Axor II Rear axles may crack / fracture R/2017/267 Mercedes-Benz Car: GLE, GLE Coupe Engine Control Unit has not been correctly programmed and may cause the engine to shut down incorrectly when braking R/2017/271 Citroen: C4 Cactus Bonnet striker may be insecure R/2017/272 Dennis Eagle: Elite 2, Access Steering arm may fracture R/2017/273 Ford: Ranger Rear driveshaft may become damaged resulting in loss of drive RCOMP/2017/010 Ford: Transit RWD Brake disc bolt holes have incorrect thread RM/2017/029 Piaggio: Medley 125 Frame may crack RM/2017/032 Suzuki Motorcycles: UK110 Poor soldering to ignition switch RTW/2017/001 Continental: 245/45 R18 100Y XL PremiumContact 6 Tyres may develop an uneven shape in the tread area LEGAL UPDATE Are you ready for the General Data Protection Regulations? ICO Updates and Fines The GDPR has effectively rewritten the Data Protection Directive, the mainstay of current data protection regime. From May 2018, the GDPR will have a significant effect on your responsibilities when storing data and the uses you can put data to. All businesses are affected, particularly where they use customer details for marketing purposes or exchange them with other businesses in any way. Failure to get this right can result in fines, or worse.

10 In this the Sixth of our series covering this significant change to the law, we look in more detail at some recent guidance and fines offered by the ICO as businesses start to take steps in preparation for the 25 May Registering as a Data Controller Under the current Data Protection Act (DPA), organisations that process personal information are required to notify with the ICO as data controllers unless an exemption applies. The ICO have provided a simple to use assessment process to ascertain whether you need to be registered which can be found here If you are a motor trader and not registered with the ICO we recommend that you complete the assessment as a priority and registered as appropriate. Whilst the notification requirements under the GDPR will change, current proposals continue to make is a legal requirement for data controllers to pay the ICO a data protection fee. Whilst the proposals are yet to be fixed, the new funding system will come into play from 01 April Further details can be found here. Updating account details and updating databases In July the ICO issued a timely reminder that anyone looking to prepare for the GDPR must remember that the current law will still have to be considered. An investigation by the ICO found that WM Morrison Supermarkets PLC ( Morrisons ) sent s to people in order to invite customer to update their account details. The s, were titled Your Account Details and appear designed to invite customers to change their marketing preferences. As the offered money off coupons and extra More Points they were deemed to be marketing s. Whilst it appears that Morrisons could establish consent to contact their customers generally they did not check whether the consents had been qualified or withdrawn. Unfortunately, 130,671 of those s were sent to people who had explicitly opted out of receiving marketing s in breach of the Data Protection Act 1998 and The Privacy and Electronic Communications (EC Directive) Regulations It is vital that any members looking to update their customer databases take all reasonable steps to ensure they remain updated. We would also recommend that any s sent to update databases and consents are only sent to those customers where there are any concerns they any should not contain any marketing numeration in order to reduce the risk of breaching the current legislation. GDPR and Consent Guidance provided by the Information Commissioner on their regular blog continues to clarify some myths surrounding the GDPR. The Commissioner confirmed that whilst the GDPR rightly focuses on consent and raises the standards required consent is only one reason for processing personal data and is far from the only reason. Whilst the ICO are yet to finalise their formal guidance on consent under the GDPR they have produced a draft guidance which can be found here. Conclusion

11 The above is a very broad overview of one aspect of the GDPR. The legislation and guidance is still developing in the weeks and months in the run up to their implementation. This advice is general in nature and we will endeavour to keep you informed through regular articles and case studies. Motor Industry Legal Services (MILS) DATES FOR YOUR DIARY NAMA Executive Meetings, London Offices Tuesday 16 January 2018 Tuesday 20 March 2018 Tuesday 10 July 2018 Tuesday 2 October 2018 NAMA AGM /28 April 2018, Lisbon, Portugal

Briefing: Autumn Budget 2017

Briefing: Autumn Budget 2017 Overview The Autumn Budget contained mixed news for fleets and business car drivers. Diesel vehicles were not hit as hard as some commentators feared, although the brunt of