A SIGNIFICANT shift is underway in the UK’s corporate rental landscape, with rental companies reportedly reverting to traditional seasonal fleet replacement strategies for the first time since the disruptions of 2020. Industry trends observed by Liquid Fleet indicate a return to structured fleet expansion and de-fleeting, fuelled by improved vehicle supply and a resurgence in corporate demand.
This positive development signals a welcome boost for both the new and used vehicle markets. OEMs have demonstrably increased vehicle allocations to the rental sector over the past six months, with some manufacturers re-engaging with the channel after a hiatus since the pandemic. Liquid Fleet highlights this trend, noting an expansion of its fleet’s carmaker portfolio from just three to 10 within the last year, as manufacturers once again recognise the value of the rental market. The company has already facilitated the delivery of nearly 1,000 rental vehicles to brokers in the first quarter and early part of the second quarter.
Further analysis from Liquid Fleet reveals a growing preference among rental firms to acquire vehicles in the second quarter and retain them until September of the following year. This strategic move allows companies to capitalise on two peak rental seasons, encompassing key periods such as Easter, May bank holidays, the summer months, Christmas, New Year, and a subsequent Easter and summer. This approach enables rental companies to stabilise their costs and ensure fleet availability during periods of heightened demand.
Martin Potter, Operations Director at Liquid Fleet (main picture), commented on the evolving dynamics:
“Daily rental is once again becoming an integral part of an OEM’s channel supply strategy as they look to further grow their UK sales and market share.”
The resurgence of seasonal de-fleeting also promises a consistent influx of relatively young, ex-rental vehicles into the used car market during the third and fourth quarters. Potter added, “It also spells good news for the used market as a steady supply of ex-rental cars at less than 18 months of age are coming back into the second-hand market during Q3 and Q4 which are coveted by franchised dealers.”
In parallel, the corporate rental sector continues its exploration into electric vehicles (EVs), with many companies trialling models as they progress towards their emissions reduction targets and broader sustainability goals.
“It’s good to see corporates continue to onboard EVs, many for the first time as they start their electrification journey with drivers,” concluded Potter.
The return to seasonal fleet management, underpinned by improved vehicle supply, marks a positive turning point for the UK corporate rental industry, with benefits rippling through both the new and used vehicle sectors.
