The BVRLA’s leasing fleet has passed its pre-pandemic volumes, despite vehicle supply issues continuing to impact availability.
The association’s latest Leasing Outlook Survey, which covers 2022, reveals a 0.3% growth in the total lease fleet to reach 1,882,261 vehicles at the end of the year – higher than the 1,858,650 units at the end of 2019.
The uplift was driven by the continued resurgence of Business Contract Hire, up 4.0% year on year – mainly due to the long-term clarity provided on electric company car tax rates in the Autumn Statement. As a result, electric vehicles are now the dominant force on the fleet; 53% of new BCH car additions were battery electric vehicles.
As a result, the BVRLA leasing fleet is the cleanest and greenest yet. Average car emissions have improved 16% in the last five years and are down to 95.6g/km.
BVRLA chief executive Gerry Keaney said: “On the backdrop of an incredibly turbulent year, we are again reporting growth. As we face inflationary cost pressures, high interest rates and global uncertainty, it is vehicle supply that is pulling up the handbrake. A favourable tax regime coupled with the agility of our sector is creating demand for vehicles unlike anything we’ve seen. Supply simply must catch up.”
For the van market, diesel remains the preferred fuel type, although the BVRLA and members continue their work to support the transition to zero emission vehicles.
Vans have led the growth of used vehicle leasing, as leasing companies find new ways to overcome vehicle supply issues and flatten any RV risks associated with new technologies. Used van leasing contracts rose 123% Q3 to Q4 2022, showing high demand and future opportunities. Longer initial lease periods are also becoming more popular due to the reliability of electric vehicles, allowing those with tighter budgets to transition.
“New business models and changing usage patterns are demonstrating the adaptability of the sector. The data paints a picture of innovation, resilience, and an unwavering commitment to keep people mobile. To surpass pre-pandemic levels is a crucial milestone and enables us to look forward with optimism,” added Keaney.
The latest BVRLA Leasing Outlook report is online here.
The BVRLA will also be at the Great British Fleet Event on 25 April in Milton Keynes to talk about its latest work and the outlook for the fleet sector. Event details are here.
