Quarterly leasing survey results released by the British Vehicle Rental and Leasing Association (BVRLA) have shown a decline in the fleet leasing sector for the first time since it began compiling the survey in 2014.
Data shows the total car and van fleet leasing sector in the UK now stands at 1.3m vehicles, a year-on-year decline of 16,000. The passenger car fleet leasing market also continued to shrink and, was now at 948,000 vehicles. This followed a growth of 2% in Q4 2017 and a growth of 11% in the same period of 2017.
The decline in leased vehicles follows a collapse in diesel market share over the last 12 months. The BVRLA survey recorded that almost three quarters (71%) of BVRLA total fleet are now diesel, a year-on-year decline of 3.9%. Light commercial vehicle fleet is 99 diesel, with 98.5% of new registrations also using diesel fuel.
BVRLA members’ average CO2 emissions of new registrations fell to 112g/km CO2, which was 9% below the national average for all new cars, which rose to 122.5g/km.
UK registrations for diesel vehicles were down 23.6% year-on-year for May 2018, according to figures from the Society of Motor Manufacturers and Traders, and have been kept declining since the announcement of an increase in vehicle excise duty (VED) in April 2017.
Toby Poston, director of external relations at the BVRLA, said:
“[of decline in diesel] There isn’t as huge a mileage as previously, people are using their fleet cars in cities a lot more. You’re seeing a corresponding growth in petrol cars and also growth in electric and hybrid as well.”
As for overall decline there are two main factors, one is that there is some shift from leasing into people taking cash allowance instead, as well as coming off two or three years of significant car registrations we’ve now seen a similar drop-off in those.”
A survey by Paragon Motor Finance recently showed that concern over diesel vehicles was the number one issue affecting car buyer confidence in the UK, overtaking concern about Brexit.