The figures behind the H1 success
- Market trend cars +11%
- 39% of new contracts are contract hire.
- Contract hire represents 50% of cars on fleet.
- PCH has continued to grow. 41% of new contracts in H1 2016 were PCH.
- PCH represents 43% of cars on fleet.
- PCH volumes exceed those of contract hire.
- Market Trends Vans +13%
- 8,052 new vans on fleet in H1 2016
- Share of finance lease has fallen slightly to 31% of new contracts from 33%
- Share of contract hire static at 60%
- Rapid market growth means contract hire and finance lease volumes are still growing
PERSONAL contract hire (PCH) remains the driver of leasing broker growth.
The leasing broker market expanded 11% in the first half of 2016, with 41% of the H1 growth attributed to PCH deals, according to latest BVRLA data.
That’s up from 39% at the end of last year.
In fact, PCH volumes exceeded business contract hire volumes which remained static.
Meanwhile the volume of commercial vehicle leases increased by 13% to 67,239 units, with contract hire growing in this sector at the expense of other forms of van finance.
In total, leasing brokers were responsible for 232,519 units at the end of H1 2016, from 208,006 at the end of last year.
If there was one minor blemish on these outstanding figures, then it was the level of growth in H1 versus the same period last year that was down slightly: 51,623 plays 54,241.
Leasing Broker Federation member Keith Hawes of PCH specialists Nationwide Vehicle Contracts said: “At Nationwide Vehicle Contracts we continue to experience year-on-year growth in both business contract hire and personal leasing.
“If you consider the benefits of these products it is not surprising that increasing awareness, through referrals and existing customers opting for new agreements, is helping to grow this channel to market.
“Many people see PCH as a means of acquiring a brand new vehicle quickly with little relative initial outlay and at a budget to suit their needs.
“They do not have the worry of disposal, they can capitalise their existing owned vehicle, the new car or van is invariably covered by manufacturer’s warranty and if they opt to take a full service package they have peace of mind for the duration of the contract.
“The younger generation especially are now conditioned to ‘rent’ so why not their car?
“Funders continue to positively support personal leasing products and whilst along the way we may see adjustments to residuals and rentals in our opinion the market for this method of acquiring and running vehicles will continue to grow.”