Growth in leasing remains strong with personal leasing remaining a dominant force, according to latest BVRLA leasing broker statistics.
The figures from the BVRLA website show that the overall rate of growth in 2018 has maintained the 2017 level of +10%. Total number of contracts at the end of 2018 was 316,205, a net increase of 28,979. The volume of new contracts was 107,787, up 9.8% from 98,129 during the same period last year.
For cars, personal contract hire (PCH) continues to dominate the sector. 57% of contracts were PCH in 2018 compared to 52% of contracts in 2017. And 64% of new contracts in 2018 were PCH. Meanwhile business contract hire (BCH) was down from 42% to 38% of cars on fleet. The total number of BCH contracts stabilised in 2018 but new contracts declined by 5%.
Within the van sector, the total number of new contracts grew by 284 units in 2018, reversing the 1,571-unit downturn seen in 2017. However, the BVRLA said a small but ongoing decline in the van market for finance lease is becoming apparent. Business contract hire dominates with 62% of total fleet and 70% of new contracts but PCH now represents 4% of the sector and 5% of new contracts.
BVRLA chief executive Gerry Keaney said: “Vehicle leasing remains strong as drivers continue to move away from vehicle ownership to usership and look for cleaner, affordable vehicles. These latest figures reflect the fact that members are dealing more with personal customers than ever before. Although business customers continue to be vital, the growth appears to be in the business-to-consumer market and that affords some great opportunities for our members.”