Fleet and leasing sector predicts growth in 2013

The fleet and leasing sector is resoundingly positive about its future, new research suggests.

A poll of BVRLA members taken at the association’s recent industry conference, revealed that 56 per cent of rental and leasing executives expect fleet numbers to grow in 2013.  Based on what their customers tell them, just 34 per cent said they expected fleets to stay the same size and just 10 per cent expect some shrinkage next year.

That’s despite what, the association labels a ‘tax attack’ on the industry in recent times.

The conference saw members briefed on the impact of last March’s Budget, which announced a tightening of the emissions thresholds within the company car tax regime and made it much harder for fleet providers and their customers to claim tax relief (capital allowances) on lease and rental vehicles.

Asked if new Benefit-in-Kind thresholds would threaten the popularity of company cars, nearly two-thirds (65 per cent) of delegates said no. However, 58 per cent of them admitted that not being able to claim 100 per cent first-year allowances for ultra-low emission vehicles could challenge the ‘lease versus purchase’ model for a short period.

However, despite these concerns, 98 per cent of members present remained confident that the industry could continue to make a business case for the company car through 2013 and beyond.

“Manufacturers will continue to develop low emission cars, mitigating the 2012 Budget, so that the company car will continue to offer great value”, said David Rawlings of BCF Wessex, one of the speakers at the conference.

“Despite the capital allowance changes, contract hire will still be a tax-efficient service, and should not be seen as a low-cost commodity.”

For more information
www.bvrla.co.uk