The returning popularity of Business Contract Hire (BCH) helped the BVRLA’s leasing broker fleet record slight growth in 2022 (0.3%), in the face of continued vehicle supply challenges and the cost of living crisis. The association’s latest bi-annual report on the leasing broker sector also shows a growing appetite for plug-in vehicles.
With BCH for cars up 7% year on year, the BVRLA’s bi-annual leasing broker survey (to December 2022) shows a gradual shift away from Personal Contract Hire (PCH). PCH remains the dominant product for cars in the sector, accounting for 61% of the broker channel fleet. The shift in customer preference is more prevalent when looking at the new fleet additions. BCH accounts for 43% of new contracts (vs 36% of total car fleet), with almost three quarters of them being for plug-in vehicles.
There is also growth in the number of PCH contracts for plug-in vehicles, which now account for 14% of the total PCH fleet. One-in-four cars added to the PCH fleet in 2022 were BEVs. The slower uptake compared to BCH is largely due to the stronger tax incentives for electric company cars.
The picture for the LCV fleet remains more challenging, with the total fleet declining 3% in 2022 on the back of severe supply challenges. The fleet remains weighted towards BCH (66% overall), although the balance has shifted slightly with the finance lease fleet growing 1.6% while others declined or remained flat. Diesel remains the dominant fuel type for vans on the broker fleet, accounting for over 97% of vehicles. For new vehicle additions, the figure is over 94%.
Download the report from the BVRLA website.
Broker members are encouraged to sign up for the BVRLA’s free Leasing Broker Conference on Wednesday 21 June 2023. The one-day conference is taking place at the Birmingham Repertory Theatre. The key topics to be discussed will include economic outlook, compliance, Consumer Duty, emerging business models, technology, and an overview of new vehicle trends. There will also be a keynote from a motivational speaker to end the conference.
Book your ticket on the BVRLA website
