LATEST figures from the BVRLA show that leasing brokers continue to grow their influence on the market.
While there has been a levelling out of the market during 2018, the overall rate of growth was 10% – up from 9% in 2017.
Total number of contracts at the end of 2018 was 316,205, a net increase of 28,979. The volume of new contracts was 107,787, up from 98,129 during the same period last year.
Personal contract hire remains the driver in the sector accounting for 57% of all car leasing contracts; business contract hire declined from 42% to 38% of cars on fleet.
Although new contracts for vans grew by 284 units in 2018, the continuing decline in finance lease interest continues.
BVRLA Chief Executive Gerry Keaney said:
“Vehicle leasing remains strong as drivers continue to move away from vehicle ownership to usership and look for cleaner, affordable vehicles.
“These latest figures reflect the fact that members are dealing more with personal customers than ever before. Although business customers continue to be vital, the growth appears to be in the business-to-consumer market and that affords some great opportunities for our members.”
Key Findings (Cars)
• PCH continues to dominate the sector. 57% of contracts are PCH compared to 52% of contracts in 2017.
• 64% of new contracts in 2018 were PCH.
• Business contract hire represents 38% of cars on fleet down from 42% in 2017.
• The total number of BCH contracts stabilised in 2017 but new contracts declined by 5%.
Key Findings (Vans)
• The total number of new contracts for vans grew by 284 units in 2018 reversing the reduction seen in 2017. (Down 1571 units)
• Business contract hire dominates with 62% of total fleet and 70% of new contracts.
• A small but ongoing decline in the van sector for finance lease is becoming apparent.
• PCH now represents 4% of the sector and 5% of new contracts.