LCV numbers among BVRLA members reached a record high in the last quarter of 2023.
Its latest Leasing Outlook report reveals the van lease fleet reached a new peak of 518,522 vehicles last year, supported by three successive quarters of growth that include a 3.9% YoY rise in Q4. LCVs also accounted for a rising share of the BVRLA lease fleet, gaining a five-point increase in just four years.
The rental and leasing industry body said it would be overly simplistic to attribute the rise in van lease numbers to last-mile delivery operators, but added that there was no questioning the dramatic increase in LCV volumes since the economy started to reopen in 2021 after the pandemic.
It also spotlighted the Chancellor’s Spring Budget announcement that full expensing for commercial vehicles will roll out to the leasing sector, when “fiscal conditions allow” – which will level the accounting playing field between lease and purchase. This should unlock further business investment in leasing LCVs.
Not all the LCV findings were positive though; while emissions for the BVRLA’s car fleet reached their lowest-ever level, emissions from new additions to the BVRLA van fleet actually rose in Q4 2023 and exceeded the average for the fleet as a whole. The BVRLA said the rise was most likely due to a change in vehicle mix weighted towards larger diesel vans – but also warned of continued barriers to adoption of electric vans.
While some household name fleets are pioneering fleet electrification, eLCVs remain a challenge for many van operators, due to price, range, payload, charging downtime and recharging costs. The Zero Emission Van Plan coalition – which includes the BVRLA – continue to highlight to the Government where the UK can drive meaningful electric van change.
The BVRLA report also warned that leasing companies will have to navigate manufacturer strategies to ensure 10% of their LCV sales this year comply with the ZEV mandate (last year only 5.9% of sales were electric). There are already reports of discounts for eLCVs and pressure to include them in every diesel van order.
The BVRLA’s full Leasing Outlook report is here.
