Chief executive expects rising contract hire demand to
bolster commercial vehicles.
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Fleet leasing can continue to gain market share in 2012 despite
economic uncertainty, says the British Vehicle Rental Leasing
Association (BVRLA).
In a bid to dispel some of the
economic gloom that has continued into the new year, BVRLA chief
executive John Lewis has made some positive predictions for the UK
industry with a Fleet Optimist’s Guide to 2012.
“With economic growth slipping
across the world and austerity measures biting hard in the UK,
business is not going to get any easier in 2012,” said Lewis.
“However, road transport is an
essential, not a luxury, and vehicle rental and leasing will
continue to gain market share as long as businesses and consumers
continue to look for cost-effective, hassle-free motoring.”
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By GlobalDataLewis said he expected vehicle
registrations for businesses, which dominated new cars sales in
2011, to continue to lead the market.
He also said he expects rising
demand for contract hire and rental customers to continue to
bolster commercial vehicle registrations, particularly in the van
market, which, said Lewis, will be boosted by even more growth in
the courier and home delivery sector.
The addition of several new funders
to the fleet sector in 2011 will begin to deliver credit lines to
independent leasing and rental businesses, suggested Lewis.
“These funders are fully engaged
with the motor finance market and should hopefully be immune to any
further eurozone-related banking crisis,” he said.
“They will also reduce the
industry’s dependence on non-interested parties like Lloyds, who
continue to cynically price themselves out of the market.”
Lewis also predicted strong
residual values in 2012 due to the reduced amount of stock entering
the remarketing system.
The BVRLA chief suggested 2011 was
the year the electric vehicle hype bubble burst, with just over
1,000 plug-in, grant-eligible cars sold.
“2012 could be the year this
exciting new technology recovers some of its credibility. This year
will see a much wider range of electric cars and vans made
available,” he said.
“It could be the year when EV sales
really take off, but only if manufacturers are more realistic on
pricing and the government extends the incentive grant scheme to
electric vans as well, where the running cost equations are much
more attractive.”
Lewis said results from the
government’s Red Tape Challenge and plans for a major modernisation
of the Driver and Vehicle Licensing Agency would lead to “less
bureaucracy and administrative costs for the fleet sector”.
He also said there where signs of
steady change in company car tax CO2 thresholds which
would enable fleets to plan at least three or four years ahead.
“The government has just started to wake up to the fact that a
successful emission-based tax regime means less revenue for the
Exchequer, but we will be alert to any knee-jerk efforts to make up
the shortfall,” said Lewis.
