Vehicle finance to attract new funders in 2011, says BVRLA
The association also says that it sees smaller leasing companies working together, using their combined strength and expertise to present a convincing funding case to potential lenders.
According to BVRLA chief executive John Lewis, this improved funding outlook for the vehicle rental and leasing industry could not come at a better time.
'The recovery we expect to continue this year will be a largely credit-less one, with smaller businesses in particular struggling to meet their borrowing requirements.
'However, I am confident our members will provide the vehicle finance to ensure this economic growth can continue.'
Fleets will also increasingly turn to leasing brokers over the next years, helped by the growing professionalism of those remaining in the industry. Mr Lewis said: 'This will be the year when leasing brokers finally come in from the cold. A combination of rising standards and more stringent underwriting criteria from funders will see a smaller but more professional core of brokers emerging. With a growing market of SME customers and a more receptive group of manufacturers willing to work with them, 2011 looks like being a good year for this route to market.'
The BVRLA also believes that a growing number of firms will outsource their fleet this year to gain external expertise.
Mr Lewis said: 'Fleet management, either as part of a vehicle funding agreement or on its own, will grow this year. More and more organisations are going to decide that they haven't got the expertise or inclination to manage their fleets in-house. We are already seeing this trend within public sector organisations hit by the spending cuts.'
One final prediction from the BVRLA for the coming year is the growing take-up of salary sacrifice schemes. Mr Lewis said: 'Indications so far are that it is attracting people who used to take the cash instead of a car rather than being a substitute for the traditional company car market.'