An influx of extra funding to the fleet world will be the
contract hire sector’s biggest issue in the year ahead, says the
British Vehicle Rental and Leasing Association (BVRLA) in its
predictions for 2011. More banks, it asserts, are on the verge of
committing funds to the vehicle rental and leasing market.
It also foresees smaller leasing companies
working together, using combined strengths to present convincing
funding cases to potential lenders.
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Meanwhile, Leasedrive Velo Group is also
peering into the future, predicting further industry consolidation
– quite apt given its own merging with Masterlease UK in
December.
Leasedrive also emphasises the significance of
Leaseway Vehicle Rental becoming the first major contract hire
company to call in the administrators at the end of last yeear. In
2010, it argues, a number of contract hire companies either closed
to new business, downsized or divested their fleets, and struggled
for funding. Further consolidation in 2011, it concludes, seems
inevitable.
Both the BVRLA and Leasedrive also predict a
significant increase in outsourcing. The BVRLA suggests fleet
management, either as part of a vehicle funding agreement or on its
own, will grow, with more organisations deciding they haven’t the
expertise or the inclination to manage their fleets in-house. This
trend is already noticeable in public sector organisations hit by
spending cuts, the association points out.
Leasedrive also anticipates a steady rise in
fleet management specialists, as more medium and large-sized
organisations turn to fleet outsourcing.
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By GlobalDataThe crystal ball gazers at both organisations
also agree on the increasing popularity of salary sacrifice, with
the BVRLA asserting that this appears attractive to people who used
to take cash instead of a car, rather than being a substitute for
the traditional company car market.
Leasedrive links the issue with lower-emission
vehicles. With a buying trend towards more fuel-efficient and
lower-polluting cars, the most popular vehicles are proving to be
among the 600 models available with CO2 emissions of 120g/km or
less, with employees taking advantage of the reduced benefit in
kind tax brackets, the fleet provider says.
