Growth reported for brokers in spite of supply chain challenges

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Industry growth despite the obstacles

Car brokersThe leasing broker fleet was able to record minor growth during 2022 (0.3%). It happened in the face of persisting vehicle supply obstacles, as well as the cost of living crisis. All this information comes from the British Vehicle Rental and Leasing Association (BVRLA). Their most recent bi-annual report on the leasing broker industry details what aided the market. A rise in the popularity of business contract hire (BCH) was a major factor. There was a growing appetite for plug-in vehicles here as well.

With BCH cars being up 7% year on year, the BVLRA’s bi-annual leasing broker survey saw a gradual change away from personal contract hire. PCH was still the dominant product for motors in the industry though. It makes up 61% of the broker channel fleet.

The change in customer preference becomes clearer when examining the new fleet additions. BCH makes up 43% of new contracts, compared to 36% of the total car fleet. Nearly three quarters of them are for plug-in vehicles.

PCH contracts

Another fact is that there is growth in the quantity of PCH contracts for plug-in motors. These now account for 14% of the entire fleet. One-in-four cars brought to the PCH fleet during 2022 were BEVs. The slower uptake in comparison to BCH is primarily because of the superior tax incentives for electric company vehicles. If you are interested in discovering more about the world of car brokers, talk to us.

Gerry Keaney, the BVLRA chief executive, had comments to make as well. He said that leasing brokers are a critical link within the supply chain. To witness the broker fleet holding steady among the hardest supply conditions we have ever encountered is a testament. This is to the efforts of the individuals working across the industry.

The change towards BCA contracts is aiding more drivers in making the shift to greener, cleaner motors. Tax incentives are a key component here. However, the support and knowledge of leasing brokers helps drivers to confidently switch.

The expectation is that new vehicle supply will come back through 2023, with it reaching pre-pandemic levels in 2024. This most recent report spotlights the essential role that brokers will carry on playing over the motor finance industry.

The LCV fleet

As for the LCV fleet scene, things remain more challenging. The total fleet declined 3% during 2022 on the back of major supply obstacles. It is still weighted towards BCH, with the figure being 66% overall. But, the balance has changed slightly. The finance lease fleet expanded 1.6%, whereas others stayed flat or declined.

Diesel has remains the predominant fuel variant for vans on the broker fleet. It counts for more than 97% of motors. With new vehicle additions, the figure exceeds 94%. Despite the outlook here, the growth in the leasing broker fleet even with the obstacles paints a positive picture.

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