A rebound in demand for business contract hire and strong EV take-up helped the BVRLA’s leasing broker fleet grow in 2022, despite continued vehicle supply challenges and the cost-of-living crisis.
The association, which is taking part in this month’s Great British Fleet Event, revealed the trends in its latest biannual leasing broker survey, which spotlights that “leasing brokers are a vital link in the supply chain”.
The figures, which cover the year to December 2022, show the leasing broker fleet rose 0.3% in 2022 to 402,794 vehicles. This was helped by a 7% rise in business contract hire (BCH) for cars, as customers gradually shift away from personal contract hire (PCH). However, PCH remains the dominant product for cars in the sector, accounting for 61% of the broker channel fleet.
The shift in customer preference stands out when looking at the new fleet additions. BCH accounts for 43% of new contracts (vs 36% of total car fleet), with almost three-quarters of them being for plug-in vehicles (59% are fully electric; 14% are plug-in hybrids).
Demand for plug-in vehicles has also grown among PCH contracts; they now account for 14% of the total PCH fleet. One in four cars added to the PCH fleet in 2022 were fully electric – lower than for BCH due to the stronger tax incentives for electric company cars.
Chief executive Gerry Keaney said: “To see the broker fleet hold steady amidst the most challenging supply conditions we have ever seen is 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 helps drivers switch with confidence.”
He added: “This latest report highlights the vital role that brokers will continue to play across the motor finance sector.”
Expectations are that vehicle supply will return through 2023, reaching pre-pandemic levels next year.
But the BVRLA report shows that the LCV fleet has been harder hit by severe supply challenges, declining 3% in 2022. BCH remains predominant (66% overall) but was down 5% year on year and the balance has shifted slightly to the finance lease fleet, which grew 1.6% and accounted for 27%. Other sectors declined or remained flat.
The BVRLA report also delineates the slower demand for plug-in vehicles in the LCV sector.
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%, showing that plug-in vehicle take-up is rising but not at a fast pace.
