BVRLA foresees further growth for the leasing sector in 2017
Last year was a record year for the British Vehicle Rental and Leasing Association, with its membership passing the 900-mark and a combined fleet of 4.7 million vehicles – an increase of 5.2% year-on-year.
While the BVRLA has seen growth in all of its main membership categories in 2016, perhaps the biggest increase has been in the personal leasing market.
The association welcomed nearly 100 new leasing brokers into membership last year, and saw the personal leasing portion of its member fleet grow by to 1.6 million – an increase of 13%. The corporate leasing fleet also saw growth, albeit a more subdued 1.7%.
Commenting on the figures, BVRLA chief executive Gerry Keaney said: “Last year was a record year for new car, van and truck registrations and BVRLA members are the key drivers of this automotive success story.”
Looking ahead to 2017, the BVRLA foresee a variety of changes to the leasing sector which will help it grow further in the long term. These include:
- A low percentage increase in the traditional fleet leasing market driven by the SME and consumer markets, with some BVRLA members reporting double-digit growth in personal contract hire volumes.
- The blurring of boundaries between traditional rental and leasing services. This will see a continued demand in the commercial vehicle sector for flexible rental which enables customers to hire, return or exchange vans and trucks without any penalty in return for a fixed monthly or weekly fee. We may see similar car-based products emerge in 2017.
- The lease fleet will continue to become even greener and outpace the reductions seen in the wider new car market, however the rate will slow as the impact of increases to road tax and Company Car Tax take hold.
- Diesel’s share of the new lease car market will fall towards 65% as more turn to petrol and electric. Diesel will come under particular pressure in urban areas as more cities announce clean air strategies and the government is forced to re-draft its national plan.
As the BVRLA celebrates its 50th anniversary, the association’s chief executive Gerry Keaney has predicted that 2017 “will be the busiest year in our history.”
For a comprehensive look at their predictions for 2017, the BVRLA has produced a video featuring contributions from experts across the industry: