The BVRLA leasing fleet has grown 2.9% in the last year, despite continued and fresh uncertainties in the market.
The association’s latest quarterly Leasing Outlook report, which contains data up to the end of Q2 2022, shows modest 1.4% growth for the car fleet, while business contract hire continued to rebound and is up 3.8% after a sustained period of decline. Personal contract hire was up 4.7%.
A key driver of the growth in lease car registrations has been the popularity of salary sacrifice programmes, with more employers offering this as a benefit to combat the cost-of-living crisis. There are now over 35,000 salary sacrifice cars on the BVRLA leasing fleet, up 33% year on year.
Vans were yet again the fastest-growing part of the association’s leasing fleet and are up 7.4% in the 12 months to Q2 2022.
And more than one in three (35%) deliveries to the BVRLA leasing fleet for battery electric vehicles. The move is taking its toll hybrid take-up as more companies opt to switch directly from ICE models to pure EV alternatives.
The association added that lead times of new vehicles appear to have plateaued but the industry faces new threats in the form of the cost-of-living crisis and concerns over the nation’s economy.
It added that there are early signs that the market is slowing down, resulting in a small decline in the overall size of the leasing fleet from Q1 to Q2 2022.
BVRLA chief executive Gerry Keaney said: “In a year punctuated by political changes, a deepening cost of living crisis, and immense supply chain challenges, BVRLA members have again held firm. To have grown the leasing fleet in such turbulent market conditions shows the strength of our sector.
“Tougher times lie ahead, with a recession imminent. The Government must continue to support the transition to zero-emission road transport by maintaining tax incentives on electric vehicles.”
