FLEET MANAGEMENT: LEASING


Leasing pressure T


A growing shortage of new vans, rising prices for used vehicles and an increasing workload for many businesses as we emerge from multiple lockdowns, is pushing the leasing and rental markets like never before, says Dan Gilkes


he demand for vans is rising rapidly and looks set to con- tinue to grow for some time to


come. Much of the requirement for ad- ditional LCVs has been from the ex- pansion of the home delivery and last- mile markets. While it has always been true to say that pretty much everything that you buy from a supermarket ar- rived on a truck, these days you could add that almost anything that is deliv- ered to your home or offi ce, will come in the back of a van.


“This is familiar for us at Free- 2Move Lease, with increased interest in larger vans such as Citroën Relay, Peugeot Boxer and Vauxhall Movano,” said Robert Handyside, head of mar- keting at Free2Move Lease. “Smaller vans continue to be popu-


lar, but the home delivery market that has infl uenced the increased demand, tends to run the larger models.” “Since lockdown restrictions have


eased, we’ve found that there has been a notable shift from large conversions,


to a more standard fi t-out, to meet de- livery requirements,” said Paul Hyne, Arval UK’s commercial director. “This is potentially driven by the need for LCV fl eets to remain fl exi- ble, while the pandemic remains a key consideration in operational de- mands. The latest SMMT fi gures show that the LCV market has returned to pre-Covid levels and, in line with that, our own fl eet has continued to grow signifi cantly, indicating a strong de- mand for LCVs.”


“Enquiry volumes have increased signifi cantly, mainly for medium and large panel vans,” confi rmed Keith Hawes, director of Nationwide Vehi- cle Contracts.


Clive Forsythe, commercial director at Europcar Mobility Group UK add- ed: “As well as a shortage of new ve- hicles, prices of second-hand vehicles have also increased, creating a perfect storm for businesses that need to ex- pand their fl eets.”


This concentrated market de-


mand is pushing some van operators to keep their existing vehicles longer, while they await new deliveries. That can be simply not selling older models where they are purchased, or by ex- tending lease terms for those under some form of rental contract.


“More customers are asking for lease extensions and the funders are putting in place programmes to enable customers to extend for 6-12 months, due to availability,” said Hawes. “Customers are also looking for short-term leases, to provide inter- im vehicles until their new vans ar- rive. However, the rental companies who provide the short-term lease prod- ucts have little or no availability them- selves, as they cannot access new ve- hicle replacements.”


That’s not the case for all compa- nies, however. Europcar’s Forsyth said: “Through our strong rela- tionships with some leading manufacturers, we have been able to ensure continued access to new vehicles.”


The last-mile delivery sec- tor is not the only driving force behind this rapidly increasing demand. As we’ve reported in Va- nUser before, a global shortage of computer chips, manufac- turing component supply


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22 VANUSER • JULY 2021


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