Personal contract hire growth continues as fleet leasing declines
Personal contract hire (PCH) continued to gain momentum in the first quarter of 2018, growing by 14%, according to the British Vehicle Rental and Leasing Association’s (BVRLA) latest quarterly survey.
However, the growth rate for the PCH as a whole has slowed year-on-year; the growth rate for the same period last year was 42%.
The survey also revealed that the overall car leasing market shrank for the first time since the BVRLA started its surveys in 2014, with the total fleet leasing sector for cars and vans standing at 1.329m – a fall of 16,000 on the same period in 2017.
Total car leasing (all leasing types) fell by -1% year-on-year compared with a growth of 2% in Q4 2017 and a growth of 11% in the same period of 2017.
The leasing sector remains substantially cleaner than national averages when it comes to emissions, with average CO2 emissions for BVRLA fleet vehicles standing at 112.6g/km – a year-on-year fall of 0.5g/km across the car fleet and around 10g/km less than the national average (122.5g/km).
That said, average emissions have remained static for three quarters in a row. This is largely down to the uncertainty fleet buyers are facing when it comes to fuel choice, as people transition away from diesel.
More and more people are choosing petrol-powered cars, which on average produce higher average CO2 values than diesel vehicles.
The proportion of diesel cars on fleet continues to decline. Under three quarters of the BVRLA total fleet are now diesel (71.7%) which represents a year-on-year decline of 3.9%. For new car registrations 54.9% are diesel, a year-on-year fall of 12.1%.
New deliveries of plug-in and hybrid vehicles rose substantially compared to the same period last year, from 5.6% of new deliveries to 9%. However, pure electric deliveries continue to account for just 0.3% of the BVRLA’s total car fleet.