The association’s latest Leasing Outlook report covers Q3 2024 and shows that the van sector fell 3.6% year-on-year, down for the third consecutive quarter. The decline to 497,634 vehicles came against the wider market backdrop of new LCV sales rising by 3.6% in the first nine months of the year. The BVRLA said there are accounts of customers forensically examining the need for each new van in the wake of the inflation that has hit the sector.
The BVRLA report also noted that the light commercial vehicle market had become more important to leasing companies over the past five years. LCVs now account for 26% of members’ fleets, compared to 22% before the pandemic.
The report also highlights that electric van uptake remains extremely limited and even leasing companies with eLCV penetrations above the ZEV mandate attribute demand to a handful of major fleets trying to make the technology work.
There is also a considerable lack of confidence about the future residual values of eLCVs. Leasing directors say that, in theory, electric vans should be ideal for many used van buyers such as local tradesmen, who drive modest mileages within a local area. But, in reality, when a sole trader or small business’s livelihood depends on its transport, some are wondering why they should take the gamble of switching from diesel to electric.
