Fleet News

Leasing business reaches record levels

THE growth of contract hire has boosted the amount of vehicles run by major UK leasing companies to record levels.

Members of the British Vehicle Rental and Leasing Association (BVRLA) have reported that their fleet size in 2005 increased by 5% – to a new record total of 2.6 million units.

Contract hire now forms more than 57% of the total fleet and increased by 166,000 units to a new high of 1.507 million units.

John Lewis, director general of the BVRLA, said: ‘It just shows the ever-increasing attraction of contract hire as a funding method.

‘Our members now have more vehicles out on contract hire than ever before. Contract hire is risk-free for customers in an age where risk is difficult to manage.’

Figures produced by the organisation show other funding methods have grown, including ECO schemes.

Lewis said: ‘It’s not only contract hire that gained. Personal contracts, including ECO schemes, moved ahead by 16,000 units. In overall terms, with an annual increase of more than 5%, it shows the industry is increasingly providing the services that fleet operators require.’

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