A major new report into the fleet market has predicted a year of growth for car and van fleets in 2015 – but warns increased sales could bring consequences.
The UK Fleet Market Report, published this week, reveals that the total number of company car drivers is set to rise in 2015 for the first time in more than a decade.
It also reveals that the van fleet market is showing the strongest signs of fleet growth for 2015.
Fleet News reported in July this year that the latest figures from HM Revenue & Customers show that the brake has been applied to the decline in the number of company cars on Britain’s roads.
In 1999/2000, 1.61 million people paid benefit-in-kind tax on their vehicles, according to HMRC, but this figure has shown steady decline to a current low of 940,000.
The Sewells report reveals that this decline will be reversed for the first time in 2015, driven by improving economic conditions and an increase in the total size of the UK workforce.
The rise is only likely to be modest, but it reflects the more positive mood in the fleet market as business spending on company vehicles has increased in the past couple of years.
However, the report also warns that the rapidly rising sales figures for cars in both the business and consumer markets could have a detrimental impact on residual values in years to come.
This will be caused by potential oversupply and the negative impact of aggressive discounting by suppliers in an increasingly competitive market, as manufacturers fight to increase sales volumes.
A range of industry experts have contributed to the report, including David Smith, business editor of the Sunday Times, who provides an exclusive review of how the economy will perform in 2015, and Stephen Briers, editor of Fleet News.
The report identifies potential threats to future growth, which will include UK-based factors, such as uncertainty around the general election in May, pressure to raise interest rates in 2015 and rising consumer debt. Additional international concerns include the performance of the European economy and fears of another global downturn.
The UK Fleet Market Report also provides detailed analysis of other issues, including the size of the fleet market and the key trends which will affect it in 2015, covering four key areas; the economy, the company, the vehicle and the driver.
Additional analysis covers an exclusive review of the UK’s largest fleets, an in-depth assessment of the future of leasing and a unique guide to fleet and driver decision-making in the fleet sector.
The UK Fleet Market Report can be used for briefing senior fleet executives or as a training guide for employees involved in fleet sales.
It is published by Sewells Research & Insight, a leading business intelligence firm which specialises in the company car and van sector.
To request a free sample of the report, which includes an exclusive economic briefing for 2015, contact Sewells by emailing firstname.lastname@example.org or calling 01733 468254.