Leasing sector grows in Q1 2021
The size of the BVRLA leasing fleet grew by +1.5% in the first quarter of 2021 following 10 consecutive quarters of decline, indicating a strong start to the year for the leasing sector.
This leasing sector growth is according to the latest BVRLA Leasing Outlook Report, which provides insights from a range of data compiled from members during the first quarter of this year.
“The leasing sector continues to remain resilient in the wake of the global pandemic, with a pattern of growth feeding a sense of optimism amongst members. They are making great strides in electrifying their fleets to give customers access to affordable and sustainable vehicles,” says BVRLA Chief Executive, Gerry Keaney.
The car fleet grew by 0.4% in Q1-2021 to 1,371,128, with growth in the consumer fleet partially offsetting a decline in the business fleet. Despite this, the car fleet is still 3.3% smaller than the same period in 2020.
In contrast, the van fleet reached record levels in Q1 with 440,502 LCVs now on fleet. This represents a +5% increase on the previous quarter, and a 4.3% rise year-on-year.
The green credentials for leasing remain strong with average CO2 emissions across all new registrations hitting an all-time low of 91.7g/km. Demand for cleaner vehicles is also evident with new registrations of battery electric cars overtaking diesel cars for the first time.
Keaney continues: “With over 130,000 plug-in vehicles on the combined BVRLA fleet, new challenges are coming to the fore, particularly around the risks associated with unknown residual values on a rapidly expanding EV fleet. Problems in the supply chain are also hindering vehicle delivery. Despite this, the leasing sector remains strong and has a lot to be proud of.”