Leasedrive Group commercial director Roddy Graham has predicted that, despite facing a tough year, the fleet sector’s opportunities will outweigh the challenges.
It is a forecast backed up by the results of a recent BVRLA poll, where 56% of members questioned predicted fleets will grow, based on what customers were telling them, compared to 34% who predicted no change and just 10% expecting negative change.
The poll, which involved rental and leasing executives, took place at the association’s annual conference in November.
After being briefed on the impact of last March’s Budget, 65% of delegates felt the new benefits-in-kind thresholds would not threaten the popularity of company cars, despite 58% of them admitting that not being able to claim 100% first year allowances for ultra low emission vehicles could challenge the lease-versus-purchase model for a short period.
David Rawlings, of BCF Wessex suggested that manufacturers will develop low emission cars that will mitigate the 2012 budget, which Roddy Graham agreed with, saying that the trend of smaller, more efficient combustion engines will continue as petrol prices increase.
However Graham suggested that a lack of standardisation in EV cars for charging solutions will continue to be a major problem in that field.
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By GlobalDataGraham other predictions included:
- Further industry consolidation in 2013, with equipment manufactures taking an increasing interest in the industry as foreign banks like ING leave.
- a proliferation of city car clubs
- "Radical change" in vehicle mobility, with inadequate parking in urban areas and the high cost of vehicle ownership pushing consumers towards short term vehicle rental companies.
- Lowering costs, as long as the economic crisis continues, will remain a priority for businesses, even if asset funding prospects are predicted to improve as the sector continues to be seen as a good risk.
- The economic climate will also force companies to be more creative with their total reward packages, but as long as employers are able to communicate the benefits of car salary sacrifice schemes properly, there will be an improved take-up.
- Fleet management outsourcing will continue as businesses seek to focus on core activates.