Leasing strategy - Page 6

Connected cars and the data they produce are set to transform the leasing landscape over the next few years.

Car brands are expected to put more focus on customer service from 2018 now that the UK’s new car market evidently passed its peak in 2016. This year the total market is in decline and fleet registrations had dropped by almost 23,000 units (2.1%) by the end of September.

Fleet operators are paying less in excess mileage charges on their leased company cars in 2017, although the amount charged for vans has risen.

The total number of charges incurred by vehicles on contract hire in 2017 has reached a record level, with the amount paid reaching almost £20 million.

Damage recharges for defleeted contract hire vehicles reached record levels in 2017, with a higher percentage of cars incurring charges compared with last year.

BVRLA membership has continued to grow throughout 2017 on the back of a successful 2016, which saw the association’s combined fleet rise by 5% year-on-year.

The status quo has governed the fleet industry for a number of years with little innovation from suppliers and, as a result, in many cases, fleets have ‘done what they have always done’.

Freight Transport Association (FTA) head of vans and light commercial vehicles, Mark Cartwright, sets out some of the challenges and new developments facing van operators in the upcoming year.

Diesel continues to be the dominant fuel choice for cars across the FN50 with a 71.4% share but there has been a greater uptake of petrol, hybrid and electric cars this year.

Average van CO2 emissions across the FN50 have dropped to a new low of 162.9g/km after falling slightly faster than they did this time last year.

I have been a company car fleet manager for almost 30 years and for more than the past decade my role has also embraced travel management. But, in my experience, the current pace of change we are witnessing is unprecedented.

Uncertainty is the word on everyone’s lips as contract hire companies reveal underlying trends behind their pessimism

Two-thirds of FN50 companies expect van residual values to fall in 2018, with predictions ranging from 1% to 15%, and resulting in an average decrease in price across these 19 companies of 5.5%.

Just one quarter of FN50 customers are on sole supply contracts with their leasing provider, lagging well behind cars, where 37% are happy to sign up to solus contracts.

Broker partnerships are playing an important role in driving volumes in the SME and personal leasing space for major FN50 companies.

Leasing companies’ success in winning business in the retail sector, such as company staff who have opted to take cash and buy outside the car scheme, has resulted in a dilution of their contract hire business and the rise of ‘other’ funding methods, primarily personal contract hire (PCH).

Brexit, sterling trends and impact of WLTP are just a few of the issues on executives’ minds in the FN50 contract hire companies.

The vast majority of the FN50 saw pre-tax profits fall year-on-year, according to the latest available figures. A deterioration in residual values was blamed by some, while increasing staff costs were held responsible by others.

Mercedes-Benz moves up two places to topple Ford from the No1 spot and its Sprinter is voted the most reliable van

The 3 series is most reliable car for the eighth year in a row and German brand completes a hat-trick as best manufacturer.

For the first time, the five biggest leasing companies account for more than one million vehicles. They now fund 61% of the cars and vans in the FN50.

Pendragon Vehicle Management (PVM) has been chosen by Aarsleff Ground Engineering for the supply and management of its vehicle fleet.

Lloyd Motor Group has been named Lex Autolease supplier of the year in recognition of its exceptional service levels over the past 12 months.

Personal leasing is growing faster than business leasing, according to the BVRLA’s latest Leasing Survey.

One the industry’s leading experts on future transport issues has completed the line-up for the inaugural industry Automotive Outlook conference.

Construction company Mick George has branched out into leasing and fleet management with the launch of a broker division.

Activa Contracts has won a sole supply, full outsourcing fleet deal with Winterbotham Darby that also sees it take on a consultancy role.

Synergy Automotive is meeting the growing demand for its services with six new appointments.

FCA Fleet Services has launched Be-Free a new Personal Contract Hire package, which includes maintenance, servicing and tyre replacement in the monthly rental.

Three Activa Contracts employees have become the company's first members of staff to successfully complete National Vocational Qualifications.

Vanarama has announced the introduction of its Total Lease Care (TLC) package which offers free and enhanced breakdown cover to its commercial vehicle leasing customers across the duration of their lease agreements.

Total Motion is encouraging UK motorists to consider leasing as a convenient and money-saving alternative to vehicle ownership.

Overseas crime groups are targeting leasing companies to fraudulently obtain high-performance motor vehicles.

Wheels4Sure is rebranding its business to mark the start of major expansion plans.

Lex Autolease’s funded fleet increased to more than 353,000 vehicles in 2016, a year-on-year rise of 36,000 vehicles.

Alphabet International has officially launched in the Chinese market, offering a portfolio of services focused on financial leasing and business mobility.

Fleet Alliance has acquired a controlling interest in East Sussex-based Neva Consultants for a seven figure sum.

Fleets need to assess impact of stricter emissions laws and evaluate residual value risk as the Chancellor signposts and electric future, according to a new white paper from Sewells Research & Insight.

Customer service champions of the vehicle leasing industry were recognised at last night's FN50 Dinner.

Latest survey includes all forms of finance funding in bid to avoid anomalies