The latest BVRLA Leasing Outlook report highlights a fleet market in growth, but with significant shifts beneath the surface. Overall, the lease fleet has grown 5.9% year-on-year to nearly 2 million cars and vans, but the story looks very different, particularly when focussing on light commercial vehicles (LCVs).
Car fleets rising, van fleets falling
Car fleets continue to expand, up 10.7% year-on-year, while the van market has declined by 6.7%. Business contract hire (BCH) and salary sacrifice agreements are seeing strong growth, with salary sacrifice surging 118%, largely driven by employee uptake of electric cars. PCH agreements, however, are down 7.6%.
Meanwhile, the rise in electric vehicles is largely concentrated in salary sacrifice and BCH schemes. Around 70% of new salary sacrifice orders are pure EVs, while PCH uptake remains very low. This highlights that overall EV adoption is being driven by targeted corporate schemes rather than broad consumer demand.
For LCVs, the decline in new fleet vehicles is notable. OEMs are increasingly including electric vans in supply packages, which pushes up costs and makes entering new agreements less appealing for many operators. For fleets still operating under tight budgets, these higher prices are a barrier, and uptake is slow outside the most climate-committed businesses.
Aging fleets and used LCVs
As a result, many operators are turning to used LCVs to meet operational needs. While this provides a short-term solution, it comes with trade-offs: older vehicles require more maintenance and are more likely to experience downtime. The BVRLA report notes that managing these vehicles effectively is becoming increasingly important for fleet efficiency and reliability.
This trend has broader implications for fleet management and maintenance software like Jaama. With older, more diverse vehicles on the road, tracking maintenance schedules, service history, and compliance becomes essential to avoid disruptions and additional costs.
Looking ahead
The BVRLA report underscores the changing fleet landscape: car fleets are growing, EV adoption is increasing in specific segments, and the van market is facing affordability and adoption challenges. Operators moving to used LCVs need to prepare for higher maintenance requirements, while fleets navigating electrification must balance cost, availability, and operational needs.
Tools that provide robust maintenance tracking, compliance management, and vehicle history, like Jaama, are increasingly critical in this environment. They help operators get the most out of aging fleets while planning effectively for electrification in the future.
