Business lease fleet up 6.6% in Q4 2016
Fleet take-up of new cars and vans through British Vehicle Rental and Leasing Association (BVRLA) members rose in Q4 2016 although the main growth was seen in the personal contract hire sector.
The BVRLA’s latest quarterly survey of its members found that the business car and van leasing fleet grew by 6.6% year-on-year in the last quarter, comprising 3.6% growth in the number of cars and a 16.2% increase in the number of vans.
However the total car leasing fleet expanded much faster than the business car fleet, with a rise of 12% year-on-year – personal contract hire contributed 49% of this growth.
BVRLA chief executive Gerry Keaney said: “It’s great to see our members’ business lease fleet increasing, but the real growth is coming from personal contract hire. BVRLA members can tailor a personal contract hire arrangement to suit a driver’s monthly budget and include costs such as maintenance and replacement tyres, and it’s clear that more and more customers appreciate these benefits.”
Latest BVRLA leasing broker statistics also show growth for this channel. The number of vehicles on contract with BVRLA leasing broker members rose 26% between Q4 2015 and Q4 2016.
In addition, leasing brokers signed 27% more new contracts in 2016. Of the total contracts, 70.6% are car contracts and 29.4% are van contracts – this compares to 71.5% cars and 28.5% vans at the end of 2015. The data also revealed that 93% of leasing brokers’ car contracts are either leased through contract hire (46%) or personal contract hire (47%) – marking the first time that personal contract hire has overtaken contract hire.
Gerry Keaney added: “Our latest statistics show that leasing brokers are providing more and more consumers and businesses with access to affordable vehicle finance. As a lot of the growth is coming from a new audience – small businesses and consumers who are coming to leasing for the first time.”
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