A report has found that the rental and leasing industry contributes around £25bn per year to the UK economy and supports over 317,000 jobs.
Produced by respected research organisation Oxford Economics, the study found that through its direct operations, the UK-made vehicles and engines it purchases, its activity in dealerships and in the used car market, the industry contributed £24.9 billion to UK GDP in 2013.
Also contained within the robust data on the size, scope and importance of the vehicle rental and leasing industry was the amount of tax revenue generated by the sector - £5.2 billion per year, or £81 for every UK resident.
In terms of jobs, the study found that the industry employs 53,600 people directly and a further 263,400 people through wider supply chain and consumer spending effects. The total employment supported by the industry is equivalent to 1 in every 88 workers in the UK. For every 100 people employed in the sector, a further 270 are employed elsewhere in the economy.
The automotive sector is one of the UK’s few manufacturing success stories, and vehicle rental and leasing companies are among its largest customers, purchasing an estimated 308,000 UK-made vehicles in 2013. This is 20% of total output and means that rental and leasing companies purchased more than 80% of UK vehicles sold in the UK. This expenditure is estimated to have supported a £4.3 billion gross value added contribution to GDP, as well as nearly 90,000 jobs and £1.4 billion in tax receipts.
In the same year, the vehicle rental and leasing industry’s expenditure on foreign-made vehicles containing UK-made engines is estimated to have generated a £600 million contribution to GDP, supporting 13,000 jobs and raising £200 million in tax receipts.
The vast majority of this business is conducted through motor dealers. In 2013, the sector purchased £15.9 billion of foreign-made vehicles from UK dealerships. This activity supported a £124 million contribution to GDP, 2,500 jobs and £40 million in tax receipts.