A dramatic uplift in demand for electric vehicles has contributed to the BVRLA’s leasing fleet surpassing its pre-pandemic volumes, defying a gloomy economic landscape. The association’s latest Leasing Outlook Survey presents data to the end of 2022, reporting a 0.3% growth (5,835 vehicles) in the total fleet despite vehicle supply issues continuing to impact availability.
Growth was driven by the continued resurgence of Business Contract Hire, up 4.0% year on year thanks largely to the long-term clarity provided on electric company car tax rates. That clarity – which saw future rates protected last November following the association’s #SeeTheBenefit campaign – has contributed to electric vehicles becoming the dominant force on the fleet. 53% of new BCH car additions were Battery Electric Vehicles.
This continued shift has again resulted in the cleanest, greenest BVRLA leasing fleet ever. Average car emissions have improved 16% in the last five years and are down to 95.6g/km.
For the van market, diesel remains the preferred fuel type, although work is continuing by the BVRLA and its members to support the transition to zero emission vehicles. Vans have led the growth of used vehicle leasing, as leasing companies find innovative ways to overcome vehicle supply issues and flatten any RV risks associated with new technologies. From a low base, used van leasing has grown 123%, demonstrating the high demand and potential opportunity. Longer initial lease periods are also becoming more popular due to the reliability of electric vehicles, allowing those with tighter budgets to transition.
Download the BVRLA Leasing Outlook Report – April 2023
That state of the market will be discussed as part of the BVRLA Leasing Broker Conference on Wednesday 21 June 2023. The one-day conference is taking place at the Birmingham Repertory Theatre, broker and leasing members can reserve their free place now. 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.
