BVRLA Leasing Outlook report reveals healthy growth
The April BVRLA Leasing Outlook report has revealed that the UK leasing market surpassed two million units for the first time.
The quarterly report found that the combined car and van leasing fleet grew by 12.9% year-on-year to reach 2,079,575 vehicles.
Growth has been driven by the car market, with the car fleet up 15% while vans increased by 6.8%. Business contract hire was up 10%, while salary sacrifice rose by 125%, but personal contract hire fell by 4.3%.
Meanwhile, the report also revealed that electric vehicles now make up 48% of the business contract hire car fleet.
Significant milestone
Toby Poston, BVRLA chief executive said: “Crossing the two million vehicle milestone is a significant achievement for the leasing sector and underlines the strength of demand for its flexible, low-risk model. However, this growth is being delivered against a backdrop of real financial strain.
“Persistent pressure on electric vehicle residual values, combined with wider economic uncertainty and global unrest, means margins are being squeezed like never before. Sustained progress will depend on greater market stability and clear, consistent policy signals from government.”
