RESEARCH & INSIGHT
Personal leasing helps offset market decline The BVRLA has published findings from both its half-year Leasing Broker Survey and Quarterly Leasing Survey, showing an overall market decline despite increasing demand for personal contracts. The overall BVRLA lease fleet shrank by 3.6% year-on-year according to the latest Q2-2020 Quarterly Leasing Survey, as a 2.1% growth in the LCV fleet size partially offset the 5.2% drop in the total car fleet. At the end of Q2-2020 the total BVRLA lease car and van fleet stood at 2,532,972, with 83% being cars and 17% vans. This excludes all rental and PCP vehicles. Business contract hire saw its largest ever fall since the survey began, with cars down by -9.7% year-on-year to 793,171. In contrast, the personal contract hire car fleet increased by 5.7% to 271,264, representing respectable growth, albeit the lowest growth rate yet recorded for this fast-growing segment. The latest Leasing Broker Survey shows that brokers continue to represent a growing sector of the market with the BVRLA leasing broker channel fleet growing by 7% year-on-year, with 362,461 cars and vans on fleet. 12
Despite seeing an increase in the number of consumer contracts for cars, the Covid pandemic has adversely affected brokers, with new contracts for both cars and vans dropping sharply in the first half of 2020, compared to H1-2019, down 13% and 12% respectively. Battery electric vehicles up, average emissions down The study shows a growth in the number of battery electric vehicles on the BVRLA fleet, up 1.8% year-on-year and new BEV registrations were up 5.5% compared to the same period last year. The surge in uptake of battery electric vehicles is coinciding with a reduction in CO2 emissions with average CO2 emissions for BVRLA members’ new car registrations and the total car fleet down. Members can login to the BVRLA website to access the full Q2-2020 Quarterly Leasing Report. u
Tax and the EV transition report The BVRLA worked with expert research group, Cambridge Econometrics, to assess the impact of different fiscal policies on future electric vehicle volumes across the passenger car fleet. The report provides detailed insights into what measures are required if the Government is to deliver its ICE phase out targets, including: 1. Without additional policies measures, a 2040 phase out of ICE sales can be achieved, but a 2035 phase out cannot. 2. A significant increase in policy measures is required to deliver 95% of new registrations as EVs in 2035, a level which would make an outright ban on the sale of ICEs feasible. The analysis shows that this range of measures should include: • a strong differential in Company Car Tax rates between EVs and other vehicle types. • a continued Plug-in Car Grant for EVs. • a reduction in purchase taxes through extension of Enhanced Capital. Allowances to lease vehicles and a VAT exemption for EVs. 3. Deployment of new EVs into the fleet market is expected to be more rapid than the private market, due to rapid turnover rates and a stronger set of tax incentives. 4. There are environmental benefits from a more rapid transition. The shift away from ICEs will reduce tailpipe emissions of CO2, NOx and particulates on UK roads, by 10.4%, 9.3% and 2.7% respectively over the period 2020-50. 5. Over the period 2020-50 Cambridge Econometrics estimate that the Government will need to invest nearly £100 billion in policies to make its phase out target possible. The BVRLA Tax and the EV transition report can be read in full on the BVRLA website. u Autumn 2020 |
