2012 - A Fleet Optimist's Guide
A new 'Fleet Optimist's Guide' has been created to give guidance
and advice to those managing fleets in 2012. The guide, created by
the BVRLA contains information on vehicle
registrations, funding, the used market, rental market, electric
vehicles and taxation and legislation:
2012 - A Fleet Optimist's Guide
Vehicle
registrations
The BVRLA expects fleet vehicles to continue to dominate the car
market in 2012, potentially gaining an even bigger share of new
registrations, which will fall short of the 1.9 million achieved in
2011. Lead times should return to normal levels as economic growth
across the world falls, particularly in Europe.
"We are going to see some very interesting competition below the
premium marques, with Korean brands in particular challenging
existing fleet favourites including Vauxhall, Ford and the French
carmakers with their much improved build quality, low emissions and
aftercare offering," said Chief Executive, John Lewis.
Rising demand for contract hire and rental customers will continue
to bolster commercial vehicle registrations, particularly in the
van market, which will be boosted by even more growth in the
courier and home delivery sector.
Funding
The BVRLA expects the half-dozen new funders recruited last year to
really start delivering credit to the independent leasing and
rental sectors during 2012.
"These funders are fully engaged with the motor finance market and
should hopefully be immune to any further Eurozone-related banking
crisis," said Lewis.
"They will also reduce the industry's dependence on non-interested
parties like Lloyds, who continue to cynically price themselves out
of the market."
Used
market
Despite a continued drop in demand for used cars, the BVRLA expects
residual values to hold up well this year due to the reduced amount
of stock that is coming into the remarketing system. The new car
retail market will remain subdued, with dealers and their customers
turning to high-quality six-month to four-year-old ex-rental and
leasing stock.
"You only have to look at the way prices held up in the final
quarter of 2011, despite some of the pessimistic predictions from
so-called remarketing 'gurus'," said Lewis.
Rental
market
With growing numbers of manufacturers either returning or
increasing their allocation to the rental market, this year will
see a greater choice of newer, more fuel-efficient vehicles for car
hire customers.
"We expect to see even more urbanites turn their back on car
ownership and take a pay-as-you-go approach to motoring," said
Lewis. "At the same time, we hope that more organisations will take
the brave step of tackling the cost-inefficiencies and safety
threat posed by their grey fleet, which would also give a boost to
the rental sector"
Electric
vehicles
If 2011 was the year that the electric vehicle hype bubble was
burst, 2012 could be the year that this exciting new technology
recovers some of its credibility. This year will see a much wider
range of electric cars and vans made available. It could be the
year when EV sales really take off, but only if manufacturers are
more realistic on pricing and the government extends the incentive
grant scheme to electric vans as well, where the running cost
equations are much more attractive.
"The new range-extender Ampera and Volt are an attractive prospect
for company car fleets, as are the next generation of diesel
hybrids and plug in hybrids. Depending on manufacturer allocations,
up to 80% of these vehicles could end up on fleets," said
Lewis.
Taxation and
Regulation
Late last year the government produced some concrete results from
its Red Tape Challenge and also announced plans for a major
modernisation of the Driver and Vehicle Licensing Agency.
"I am confident that both these measures will lead to less
bureaucracy and administrative costs for the fleet sector," said
Lewis.
"However, as with many government projects, the improvements on
offer will take a long time to materialise."
All motorists have long since given up any hope of redressing the
unequal tax burden they pay for use of Britain's roads, but there
are signs that the government is beginning to implement its simpler
and fairer approach to fiscal matters. This should lead to a steady
and well-signposted change in company car tax CO2 thresholds that
will hopefully enable fleets to plan at least three or four years
ahead.
"The government has just started to wake up to the fact that a
successful emission-based tax regime means less revenue for the
Exchequer, but we will be alert to any knee-jerk efforts to make up
the shortfall" said Lewis.
Source, BVRLA
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