The BVRLA leasing fleet has continued to grow, despite expanding market uncertainty as new crises emerge. While lead times of new vehicles appear to have plateaued, the industry faces new threats in the form of the cost of living crisis and concerns over the nation’s economy. On this backdrop, the fleet has grown 2.9% year on year as BVRLA members demonstrate their resilience and adaptability.
Vans have again been the fastest-growing part of the association’s leasing fleet and are up 7.4% in the 12 months to Q2 2022. The car fleet achieved modest growth (1.4%), while the resurgence of Business Contract Hire continued and is up 3.8% after a sustained period of decline.
While the annual data paints a positive picture, 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.”
A key driver of the growth in lease car registrations has been the popularity of salary sacrifice programmes, with more employers offering team members a tangible financial incentive 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.
The move towards electric has continued, with battery electric vehicles growing against all other fuel types. This includes against hybrid as more companies opt to switch directly from ICE models to pure EV alternatives.
-ENDS-
Notes to editors:
The BVRLA Leasing Outlook report is produced quarterly. The October 2022 report contains data up to the end of Q2 2022.
Headline statistics, July 2022 (increases are year on year)
- BVRLA leasing fleet grew 2.9% yoy
- Car fleet up 1.4%
- Van fleet up 7.4%
- BCH back in growth at 3.8%, PCH up 4.7%
- Salary sacrifice seeing the fastest growth in PCH, 33% increase among members to 35,751 vehicles
- More than one in three deliveries to BVRLA leasing fleet for BEVs (35%)
