Strong demand for business contract hire and salary sacrifice have contributed to slight growth for the overall vehicle leasing fleet, according to the BVRLA.
The rental and leasing industry body has published its latest Leasing Outlook report, containing data to the end of Q4 2024, which reveals year-on-year growth for its members’ overall leasing fleet of 0.65%.
Contributing to this were a 6% increase in business contract hire cars, and a 61% increase in salary sacrifice. EVs were key to both of these markets, accounting for 54% of new business contract hire cars, and 87% of new salary sacrifice cars.
The business market contrasted with personal contract hire, which fell by 13.4%, which the BVRLA attributed to customers feeling the effects of economic fluctuations.
Overall, the number of leased cars was up by 4.9% – in contrast to vans, which were down by 10.96%.
BVRLA chief executive Toby Poston said: “Again we are seeing the adaptability and resilience of the sector. Local and global economic uncertainty is causing many customers to hold fire but there remain pockets of optimism. To see the leasing fleet grow in such challenging conditions is positive, but the gaps between segments are widening.
“It is no surprise to see the segments performing well are where they have suitable support in place. Business customers have a greater ability to absorb short-term fluctuations, while also benefitting from targeted government incentives to drive the uptake of electric cars.
“Financial incentives are the biggest lever to alter action and the recent changes to the ZEV mandate will influence their necessity. Personal customers and van operators desperately need increased attention and we remain committed to making their voices heard where it can make a difference.”
