NATIONAL MOTORCYCLE DEALERS ASSOCIATION NEWS JULY Dear Colleague,

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1 NATIONAL MOTORCYCLE DEALERS ASSOCIATION NEWS JULY 2016 Dear Colleague, This month s NMDA news contains all the latest motorcycle information, plus other issues facing the sector. It is positive to see that in spite of widespread concern over the referendum result, June registrations for new motorcycles were up 6.9% over the same period last year. Last month we wrote to Andrew Jones MP, Parliamentary under Secretary of State for Transport raising our concerns that the plug-in motorcycle grant had still not been put in place for consumers and thus, dealers and the industry. The Office for Low Emission Vehicles (OLEV) has now responded to our letter stating that they are continuing to work with stakeholders on the details of the scheme and will make further announcements in due course. Steve Latham Head of NMDA

2 IN THIS ISSUE: MOTORCYCLE DEMAND FOR MOTORCYCLES CONTINUES TO GROW IN JUNE DFT RESPONDS TO NMDA CONCERNS OVER DELAYED PLUG IN MOTORCYCLE GRANT SCHEME DVLA ONLINE SERVICES TO CANCEL VEHICLE TAX VEHICLE SAFETY RECALLS: MAY 2016 NEW EURO 3 AND EURO 4 LEGISLATION INSURANCE COVER FOR LOAN & COURTESY MOTORCYCLES DEMAND FOR MOTORCYCLES CONTINUES TO GROW IN JUNE In spite of widespread concern over the referendum result, June registrations for new motorcycles were up 6.9% over the same period last year. Overall demand for motorcycles was up 7.4% year-to-date marking six continuous months of growth so far in With the summer months among us, June is typically a high volume month for bikes, with this June registering a strong figure of 14,137 machines - equating to 21.4% of all the machines sold so far in the first six months of The sectors that showed the most significant growth were both naked bikes and scooters which were up 14.3% and 17.3% respectfully. Most power ranges showed signs of growth, even the sub 50cc sector which has been declining for several months now. The cc powered motorcycles were the only sector which showed a minor decline of just -0.8%. As with previous months, Honda led the manufacturer brands with 2061 sales, followed closely by Yamaha who registered 1852 sales, and Triumph in third place with 1374 registrations. Yamaha took lead position in both the naked and cc power sector with sales of 266 Yamaha MT-10 motorcycles. Unsurprisingly, Triumph led the field on the over 1000cc sector with its new Euro cc Bonneville T120 which sold 173 machines to customers wanting the latest technology with traditional retro looks. There is a general feeling of confidence among dealers that the coming months will continue with the upward trend we ve been seeing over months, plus the pressure to sell as many Euro 3 motorcycles prior to the January deadline seems to exude optimism for the remainder of the year. DFT RESPONDS TO NMDA CONCERNS OVER DELAYED PLUG IN MOTORCYCLE GRANT SCHEME The Department for Transport (DfT) has responded to the NMDA s letter which outlined concerns that the promised plug-in motorcycle grant scheme had still not been delivered. In March 2015 under the Conservative and Liberal Democrat coalition government, The Rt Hon Matthew Hancock MP announced that motorcycles and scooters would join cars, vans, trucks and buses in the government s drive for greener vehicles. It was stated that up to 7.5 million would be set aside to boost the uptake for electric 2 wheelers and

3 help bikers bridge the cost gap between a zero emission electric motorcycle and conventional petrol versions. The grant would offer up to 1500 off the purchase price and allow motorcyclists to reduce both their running costs and environmental impact. Last month we wrote to Andrew Jones MP, Parliamentary under Secretary of State for Transport raising our concerns that the grant has still not been put in place for consumers and thus, dealers and the industry. We were not aware if the promised grant had been revoked under the new government and to-date there has been no further mention in action towards implementing it. The Office for Low Emission Vehicles (OLEV) has now responded to our letter stating that they are continuing to work with stakeholders on the details of the scheme and will make further announcements in due course. The NMDA will continue to monitor this closely. DVLA ONLINE SERVICES TO CANCEL VEHICLE TAX Your customers will automatically get a refund for any full months remaining on their motorcycle tax. The refund is calculated from the date DVLA receives notification that their motorcycle has been: sold or transferred or part-exchanged taken off the road this is called a Statutory Off Road Notification (SORN) You can use online services to tell DVLA and your customers will be refunded for any full months of remaining tax, as well as being removed as the registered keeper, hence to removing the possibility of un-substantiated parking or traffic fixed penalties. More information and details can be found on: VEHICLE SAFETY RECALLS: MAY 2016 These are the Motorcycles recalled by manufacturers for a safety reason during May DVSA reference number RM/2016/019 Make and model Suzuki Motorcycles: UK110 Issue 1. Possible loss of drive 2. throttle may stick RM/2016/020 KTM: 1290 Super Adventure 2015 and risk of fire RSPV/2016/004 Polaris: RZR 900 & RZR 1000 RSPV/2016/005 Polaris: RZR 900 & RZR 1000 Shock absorber may fail.

4 RSPV/2016/006 RSPV/2016/007 RSPV/2016/008 Polaris: RZR XP 900, RZR 900 & RZR XP 1000 Polaris: RZR 900, RZR 1000 & RZR XP 1000 Polaris: RZR XP 1000, RZR XP4 1000, RZR 900, RZR S 900, RZR XC 900 & RZR NEW EURO 3 AND EURO 4 LEGISLATION This new EU/UK legislation will affect your motorcycle sales from January 2017, so it is vital that you ask your manufacturer/supplier what models are Euro3, how many do you and they have in stock and do they have End of Series derogations to sell and register them after the 31 December If not, you will have to self-register these motorcycles in December 2016 at your own expense and discount the price them to sell these motorcycles as second-hand throughout 2017, bearing major financial implications for dealers and businesses. EU Rules on Euro 3 & Euro 4 explained New Emissions ( Euro 4 ) and Safety standards take effect from 1 January 2017 for some categories of motorcycle, tricycle and quadricycle: L3e, L4e, L5e and L7e. Dealers should discuss with the motorcycles manufacturer to ensure that they will be supplying bikes in line with the new Euro 4 emissions and safety standards. End of Series derogations This is a scheme that allows motorcycles which are built in compliance with the old Euro 3 standard to continue being sold after a new standard has taken effect. Any motorcycle manufactured before 1 January 2017, physically within the EU on 31 December 2016 and intended for sale or use in the UK, is potentially eligible for a derogation, which will allow that bike to be sold and enter into service until the Derogation expires, on 31 December Under EU Regulation 168/2013, a quota applies. This is either 10% of the total number of motorcycles by type sold in the UK in the last two years by the importer or manufacturer applying for exemption; or 100 motorcycles per importer/manufacturer if that is higher.. The motorcycle manufacturer or importer needs to apply to the VCA, a Government agency, as soon as possible before December 2016 to get their derogation numbers agreed. INSURANCE COVER FOR LOAN & COURTESY MOTORCYCLES Insurance cover for loan motorcycles can prove difficult at times, it pushes your policy costs up and it can easily remove you no-claims discount from next year s policy. Some dealers ask customers to cover the loan bike on their own insurance - this is a time consuming task for the customer and in the event of a serious loss not all insurance companies will pay out for the dealerships loan motorcycle.

5 The DVCL policy has been used by some of our NMDA members* as it is additional and separate cover for the loan of the dealer s motorcycle to a specific customer for a specific time and is not in any way linked to your main dealership insurance policy. There are no charges whatsoever to dealers participating in the DVCL scheme which operates via a quick, efficient and simple user-friendly internet based system. As a dealer you offer cover by the day to your customer at a rate of 9.58 (including Insurance premium Tax) per day. This can be funded by the customer at cost or being re-charged at a higher rate as a courtesy bike fee. There are restrictions on the cover: The customers own motorcycle must be in the custody of the dealership for repair/service etc; The customer must be correctly licenced with no more than 6 penalty points, certain very serious past licence convictions exclude cover The customer must be aged between years old The loan motorcycle must be below 650cc and have a retail list price below Maximum first loss cover is 5000 per motorcycle Policy excess for accident damage is 250 (plus 300 extra for riders 21 24) Other restrictions may apply, seek clarification from below This separate fully comprehensive insurance is underwritten by LV (Liverpool & Victoria) and supplied by the Dealer Vehicle Cover Line (DVCL)**. For more information please contact Norman Connell direct at DVCL on: or norman.connell@dvcl.co.uk *The NMDA is not sponsoring or promoting this insurance product, but bringing to your notice the advantages of using it. **DVCL is a Trading Name of Lime Street Insurance Brokers Limited which is authorised and regulated by the Financial Conduct Authority under FRN533852