BVRLA Business Impact Survey Feb 2021

2021Business Impact Survey Results Wave 1

25th February 2021

bvrla.co.uk

Financial Impact Sales Transactions 2019 v 2020

Down more than 50%

• 73% of companies report the number of sales

11%

transactions down year on year

Down up to 50%

No Change

62%

Up more than 50%

transactions down year on year.

• 26% of rental companies report the number of sales

3%

Up, up to 50%

• 77% of rental companies report the number of sales transactions down more than 50% year on year compared with the industry average of 11%.

22%

4%

bvrla.co.uk

Falling Staffing Levels The Industry

(77 Companies responding)

Comparing February 2020 with February 2021

44% have lower staffing levels 38% have the same staffing levels 18% have greater staffing levels

Rental Operators

(27 Companies responding)

Comparing February 2020 with February 2021

70% have lower staffing levels 22% have the same staffing levels 7% have greater staffing levels

14% of the industry suggest that their staffing levels have fallen by more than 25%.

37% of rental operators suggest that their staffing levels have fallen by more than 25%.

Of the 11 respondents suggesting staffing levels had fallen by more than 25%, 10 were rental operators.

bvrla.co.uk

Government Support Government Support Measures Being Used

Whole Industry

Coronavirus Job Retention Scheme (Furlough)

45%

VAT deferment

59%

42%

Business rates relief

39%

Bounce Back Loan

38%

None being used

48% 67% 52% 11%

23%

CBILS (Coronovirus Business Interruption Loan Scheme)

30%

18%

Local Restrictions Support Grant (for open businesses)

15%

9%

Additional Restrictions Grant (ARG)

4%

Local Restrictions Support Grant (for closed businesses)

4%

The Kickstart Scheme

3%

Temporary reduced rate of VAT for hospitality, holiday…

Rental Sector

3%

4% 7% 0% 7%

Coronavirus Statutory Sick Pay Rebate Scheme

3%

0%

Closed Businesses Lockdown Payment (CBLP)

1%

0%

CLBILS (Coronovirus Large Business Interruption Loan Scheme)

0%

0%

bvrla.co.uk

Government Support Government Support Measures Of Most Use If Extended (select up to 3) Coronavirus Job Retention Scheme (Furlough) Business rates relief VAT deferment None being used Bounce Back Loan Local Restrictions Support Grant (for open businesses Small Business Grant Fund (SBGF) Additional Restrictions Grant (ARG) Retail, Hospitality and Leisure Grant Fund (RHLG) CBILS (Coronovirus Business Interruption Loan Scheme) The Kickstart Scheme Temporary reduced rate of VAT for hospitality etc.

Local Restrictions Support Grant (for closed businesses) Coronavirus Statutory Sick Pay Rebate Scheme Closed Businesses Lockdown Payment (CBLP) CLBILS (Coronovirus Large Business Interruption Loan Scheme)

Whole Industry

Rental Sector

47% 39% 34% 22% 21% 17% 13% 9% 6% 6% 4% 4% 4% 3% 0% 0%

56% 67% 44% 15% 22% 22% 11% 11% 15% 4% 0% 7% 4% 0% 0% 0%

bvrla.co.uk

Barriers Preventing Businesses Returning To Normal Barrier – Supply of vehicles

The current supply of vehicles to your organisation is….

No Barrier, 9% Somewhat, 27% Moderate, 26% Extreme, 38%

Moderate, 37% Extreme, 11%

17% 18%

0ct 20

Feb 21

Getting better

No Barrier, 24%

Barrier – Access to finance

No Barrier, 40% Somewhat, 15% Moderate, 24% Extreme, 21% Oct 20

Oct-20

Somewhat, 28%

Moderate, 26% Extreme, 12% Feb 21

34%

The same

Oct-20 53%

65%

48%

•

Around half suggest that the supply of vehicles is getting worse.

•

Access to finance is seen as a barrier by 54% of respondents with 1 in eight suggesting it is an extreme barrier for them.

•

Three in ten think getting access to finance is getting worse.

Getting worse

Feb-21 62%

14% 9% Getting better

Vehicle supply is seen as a barrier for businesses recovering from the impacts of covid-19 by 76% of respondents. This is lower and less extreme than when measured in October.

Feb-21

The current access to finance for your organisation is….

No Barrier, 46% Somewhat, 16%

18%

•

The same

33% 29%

Getting worse

bvrla.co.uk

EU Exit Impact of EU Exit on Aspects of Members Businesses Increases in the cost of vehicles

25%

Challenges with parts supply

13%

Issues with customs procedures for moving vehicles into Northern Ireland

12%

Issues with customers driving into the EU

12%

Increases in the cost of parts

49% 45%

42%

38%

50%

34%

9%

New rules around product liability and placing vehicles on the market 3%

26%

54% 55%

13%

Issues with data flows between the EU and UK 3%

84%

21%

76%

New Northern Ireland VAT rules 3% UK leaving EU VAT regime 2% New rules for employing staff from the EU 0% Challenges selling used vehicles into the EU 0%

36%

35% 27% 29% 27%

62% 71% 71% 72%

Base: Challenge where applicable

Major Impact

Minor Impact

No Impact

bvrla.co.uk

The next six months……

Business for UK Lease Sector

The Economy

Improve

47%

Stay the same

16%

Deteriorate

37%

Size of your fleet..

39%

Stay the same

38%

Deteriorate

Rental sector, against total sample:

23%

Business for UK Short Term Rental Sector

Increase

54%

Stay the same Reduce

Improve

32% 15%

Improve

54%

Stay the same Deteriorate

30%

•

Less likely to see deterioration in the economy but also less likely to see improvement.

•

Less confident about an upturn in business.

•

Slightly more likely to see increase in fleet size.

16%

bvrla.co.uk