MOVES towards shorter rental rather than long-term leasing contracts, personal funding rather than the traditional company car model could see a fleet sector which changes shape significantly.
Philip Nothard, Customer Insight and Strategy Director for Cox Automotive, said that ongoing environmental pressures on fleets to renew, coupled with positive pricing in the wholesale markets, may also lead to a flood of de-fleeted vehicles in the new financial year.
He added: “We shall have to see how supply and demand rebalances if that happens, and whether the move is enough to prevent further declines in new car registrations.
“Most industry commentators recognise that the ambitious environmental targets in front of us will only be met with a package of incentives, carrot and stick.
“In the meantime, it’s important that we continue to recognise the impact petrol and diesel derivative vehicles can have on ‘greening’ fleets.”
The fleet wholesale markets, Nothard said, continue to perform well into 2020, with the encouraging signs which started the year continuing heading into Spring.
The latest Society of Motor Manufacturer and Trader (SMMT) figures put new car registration fleet volumes up 0.1% year on year with wholesale markets on an upward trend.