The BVRLA leasing fleet has returned to levels last seen in 2018, despite growing concerns over electric vehicle values which continue to create a volatile used market. That is according to the BVRLA’s latest Leasing Outlook Report, which quantifies the sector’s transition to electric models.
An increase of 2% demonstrates that vehicle availability continues to improve, although van growth (2.4% up) is outperforming that of cars even though less of a recovery in vehicle lead times is being seen. Having reached its nadir during the pandemic in Q1 2021, the BVRLA leasing fleet size has grown year on year. The recent growth has seen it reach its highest volume in half a decade.
“The sector is again demonstrating its ability to adapt to changing market conditions to meet customer needs. Achieving growth in a turbulent market is no easy feat. The direction of travel towards electric vehicles is one way, with business users and company-provided vehicles leading the charge,” said BVRLA Director of Corporate Affairs, Toby Poston.
“We are seeing two lanes running at very different speeds. Business customers benefit from fair taxation and incentives that aren’t replicated in the private market. This creates vastly varying trajectories and is pushing more private customers towards used electric vehicles, where supply is vastly outpacing demand. The impact of the Prime Minister’s decision to push back the ICE phase-out date is yet to be seen, but it is crucial that customer confidence in EVs is improved if the used EV market is to succeed.”
Among other insights, the report outlines where BCH has delivered growth and the factors contributing to the fall in PCH demand.
Read or download the report in full: BVRLA Leasing Outlook.