Leasing companies drive uptake of ultra-low vehicles

The leasing sector is a leading adopter of cleaner and more fuel-efficient vehicles, according to the latest quarterly survey by the BVRLA.

Leasing companies drive uptake of ultra-low vehicles

The survey of the BVRLA’s leasing members found that almost one in 20 (4.7%) of all new leased cars registered in the final quarter of 2015 was a plug-in, well-ahead of the market penetration achieved across all new registrations, which stood at 1.3%.

The leasing sector’s low-emission credentials were also demonstrated by the fact that more than 25% of lease cars currently sit in VED band A (sub 100g/km CO2) while the overall market share for all new cars sold in 2015 stood at 20%.

The average lease car added to a BVRLA member fleet in 2015 emitted just 112.6g/km CO2, more than 7% less than the average new car registered in 2015.

Poppy Welch, head of the Go Ultra Low campaign team, said: “We’ve been encouraged by the growing number of fleets realising the multiple advantages of electric vehicles – and BVRLA members continue to play a pivotal role through education on whole-life costs and employee benefits. More businesses need to be bold, opening their thinking to incorporate electric vehicles and the cost-savings they bring.”

According to the latest BVRLA survey, leasing companies were responsible for around 1.3m business cars and vans at the end of 2015, which was a 5.5% increase year-on-year.

Commenting on the news, BVRLA chief executive Gerry Keaney said: “More and more businesses are turning to leasing as a source of finance and BVRLA members are helping these companies to operate cleaner, more fuel-efficient vehicles.

“The government needs to recognise that the company car or van is more than just a taxable perk and a valuable source of revenue for the Treasury. These vehicles are vital business tools that can play a huge role in reducing the UK’s road transport carbon emissions. Without a fair and simple tax regime for company vehicles, this won’t happen.”