BVRLA News
www.bvrla.co.uk December 2011/January 2012
The newsletter of the British Vehicle Rental and Leasing Association
Reasons to be cheerful despite economic woes by John Lewis
Despite most economists producing a dire prognosis for the year ahead, the BVRLA believes there is reason for the vehicle rental and leasing industry to be optimistic about 2012. With economic growth slipping across the world and austerity measures biting hard in the UK, business is not going to get any easier in 2012. However, road transport is an essential, not a luxury, and vehicle rental and leasing will continue to gain market share as long as businesses and consumers continue to look for costeffective, hassle-free motoring.
due to the reduced amount of stock coming into the remarketing system. The new car retail market will remain subdued, with dealers and their customers turning to high-quality six-month to four-year-old ex-rental and leasing stock. You only have to look at the way prices held up in the final quarter of 2011, despite some of the pessimistic predictions from so-called remarketing ‘gurus’. With growing numbers of manufacturers either returning or increasing their allocation to the rental market, this year will see a greater choice of newer, more fuel-efficient vehicles for car hire customers.
2012 will see a wider range of electric cars and vans on the road. It could be the year EV sales really take off.
Vauxhall Ampera
The BVRLA expects the half-dozen new funders recruited last year to really start delivering credit to the independent leasing and rental sectors during 2012. These funders are fully engaged with the motor finance market and should hopefully be immune to any further Eurozone-related banking crisis. They will also reduce the industry’s dependence on uninterested parties like Black Horse, who continue to cynically price themselves out of the market. Despite a continued drop in demand for used cars, the association expects residual values to hold up well this year
2012 will also see a much wider range of electric cars and vans on the road. It could be the year EV sales really take off, but only if manufacturers are more realistic on pricing and the government extends the incentive grant scheme to electric vans, where running costs are more attractive. The new range-extender Ampera and Volt are an attractive prospect for company car fleets, as are the next generation of diesel hybrids and plug-in hybrids. Depending on manufacturer allocations, up to 80% of these vehicles could end up on fleets. n
In this issue Swift BVRLA response hinders car hire scam A media campaign warning of bogus car rental companies has saved many customers from being defrauded page 2 First fruits of the Red Tape Challenge The government’s Red Tape Challenge has produced its first results for the vehicle leasing and rental sector page 3 Research confirms rental cars’ efficiency UK rental cars are safer, less polluting and used more efficiently than the average private car, according to transport research specialist TRL page 3 Tougher London LEZ could boost rental New standards for the London Low Emission Zone could bring an upsurge in commercial vehicle rental page 4 Conference catch-up The industry gathered in December for the BVRLA’s annual conference. Take a look at our photographic summary of the event page 5
— Promoting responsible road transport since 1967 —