The returning popularity of Business Contract Hire (BCH) helped the BVRLA’s leasing broker fleet record slight growth in 2022 (0.3%), in the face of continued vehicle supply challenges and the cost of living crisis. The association’s latest bi-annual report on the leasing broker sector also shows a growing appetite for plug-in vehicles.
With BCH for cars up 7% year on year, the BVRLA’s bi-annual leasing broker survey (to December 2022) shows a gradual shift away from Personal Contract Hire (PCH). PCH remains the dominant product for cars in the sector, accounting for 61% of the broker channel fleet. The shift in customer preference is more prevalent when looking at the new fleet additions. BCH accounts for 43% of new contracts (vs 36% of the total car fleet), with almost three-quarters of them being for plug-in vehicles.
There is also growth in the number of PCH contracts for plug-in vehicles, which now account for 14% of the total PCH fleet. One-in-four cars added to the PCH fleet in 2022 were BEVs. The slower uptake compared to BCH is largely due to the stronger tax incentives for electric company cars.
BVRLA chief executive, Gerry Keaney, said: “Leasing brokers are a vital link in the supply chain. To see the broker fleet hold steady amidst the most challenging supply conditions we have ever seen is a testament to the hard work of those working across the sector. The shift towards BCH contracts is helping more drivers make the transition to cleaner, greener vehicles. While tax incentives are playing a key role, the knowledge and support provided by leasing brokers help drivers switch with confidence.
“Expectations are that vehicle supply will return through 2023, reaching pre-pandemic levels next year. This latest report highlights the vital role that brokers will continue to play across the motor finance sector.” The picture for the LCV fleet remains more challenging, with the total fleet declining by 3% in 2022 on the back of severe supply challenges. The fleet remains weighted towards BCH (66% overall), although the balance has shifted slightly with the finance lease fleet growing 1.6% while others declined or remained flat. Diesel remains the dominant fuel type for vans on the broker fleet, accounting for over 97% of vehicles. For new vehicle additions, the figure is over 94%.