BROKER contribution to the leasing market continues as personal contract hire leases continue to accelerate.
According to the latest BVRLA Quarterly Leasing Survey for Q2, PCH was the driver with a 23% growth – thanks to the growing role of leasing brokers in the leasing markets.
Nevertheless the overall trend for leasing was 2% down as business fleet leasing contracted, continuing its downward trend by -9%.
Nevertheless, this trend could be halted with clarification of benefit-in-kind rates, particularly electric vehicles. Pure EVs will face 0% taxation in 2020/21, rising to 1% in 2021/22 and 2% the following year, making them particularly attractive to company car drivers.
A greater number of RDE2 compliant diesels will also potentially help reverse the downward trend.
Still, at the time of the survey, the BVRLA says that widening gap between petrol and diesel deliveries continued with Q1 2019 petrol up to 51.7% petrol and diesel at 40.1%.
The BVRLA commented:
“Falling diesel registrations and the introduction of the more accurate WLTP emission testing protocol continued to put upward pressure on CO2 figures. Average CO2 for new lease cars rose to 118.5g/km in Q2 2019, up 6% year-on-year. The average CO2 for all new cars sold also rose, to 129.7g/km, up 5% year-on-year, and 9% higher than the BVRLA fleet.”
Overall, the BVRLA said the combined fleet leasing sector for both cars and vans continued to shrink, standing at 1.23m at end Q2 2019. The van fleet was up 3.3% on the same period in 2018, but the BVRLA said this was the lowest growth rate since the BVRLA started collecting data in 2013.
Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.