Arval UK has announced that its medium-term rental fleet offering, Arval Flex, has seen its size expand by over 50% in the past year due to rising demand. 

The offering had about 2,500 cars and vans a year ago and has now rose to 3,800.

Arval UK added that it anticipates ‘significant’ growth to continue for at least the next two years.

The fleet’s electrification is also progressing quickly, the lessor, whose parent company is the French bank BNP Paribas, said.

Currently, more than 14% of vehicles on the road currently are electric but by the middle of the decade, this number could reach over 90%, meeting the 2030 target.

Arval UK product manager Glynn Hopkins said: “Our experience is that fleet decision-makers have become more and more aware of medium-term rental in recent years as a means of car and van provision, but that market conditions have meant that the product has perhaps reached a point where it is achieving genuine mass market acceptance for the first time.”

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“There are a number of factors behind this, with the pandemic perhaps being the most important. Especially, difficulties surrounding the supply of new vehicles have created a need for a form of car and van rental that is measured in periods of months, and which can be started and ended quickly and easily with no long-term commitment.”

Hopkins added that the bulk of Arval UK’s medium-term rentals could be delivered and cancelled within 48 hours and lasted an average of six-seven months.

“As well as meeting a need when vehicles are on order, we also see extensive usage in situations such as where new starters begin a job, a limited term contract is in place and for use as pool vehicles. We even have some customers who use the product as their main source of car and van provision, thanks to the flexibility that it provides.”

Arval UK had more than doubled the number of electric vehicles (EVs) in its UK fleet in the 12 months to the end of June.