Vans and business contract hire have helped push the BVRLA leasing fleet to a six-year high, recording 2.2% year-on-year growth to approach levels last seen in Q4 2017.

The association’s latest Leasing Outlook Report shows more than 41,000 new vehicles were added to the fleet in the year to the end of Q3 2023.

The growth of the BVRLA leasing fleet has been driven in part by light commercial vehicles (LCVs). A 3.3% increase in vans on fleet means that they now account for 27% of the leasing fleet.

Cars present a mixed picture, with Personal Contract Hire (PCH) being hit by high interest rates and high vehicle costs. The larger portion of the fleet – Business Contract Hire (BCH) – remains on the up with 4.8% year-on-year growth to reach 817,000 cars.

Driven by BCH and salary sacrifice (up 68% year on year), electric vehicles accounted for 42% of new additions to the leasing fleet in Q3 2023. The high demand for BEVs continues the sector’s march to a zero-emission future, with average emissions per vehicle on fleet reaching a new low of just 83.2 g/km.

The overall fleet growth and continued transition to BEVs have been facilitated by the return of vehicle supply and easing of delivery lead times. Those improvements have been replaced by a perfect storm of parts delays and a technician shortage, combining to increase downtime for service, maintenance, and repair (SMR) work.

Toby Poston (pictured), BVRLA Director of Corporate Affairs, said: “Stability and certainty breed growth, and the leasing sector is reaping these benefits when it comes to vehicle supply and Benefit in Kind Tax.

“As ever, a more detailed analysis shows that some motor finance products are doing better than others, while new supply chain challenges continue to appear. The BVRLA will continue to work with policymakers and colleagues from across the automotive industry to try and deliver positive market momentum across all segments.”