Fleet Managers Choosing Leasing vs Buying, as ULEZ Tolls Loom Large

There is a concerted effort by many politicians and activists to ban all vehicles from town and city centres, although how anyone would get anything delivered on time, visit a sporting or cultural event, or attend a hospital appointment, remains a mystery. What is certain, is that green or climate change taxes and tolls will be levied on both business and private drivers in the future. With that in mind, fleet managers are holding off on buying petrol, diesel or hybrid vans until a unified UK strategy emerges on ULEZ taxation rates.

BVRLA has today published its 2020 Industry Outlook for Commercial Vehicles report, charting the main challenges faced by the sector and providing insight into how they are being overcome.

The association, whose 1,000+ member organisations are responsible for over 5 million vehicles, including 20% of all trucks and vans on UK roads, has collaborated with Motor Transport and ten automotive leaders to provide a collective industry view.

The 22-page report highlights a trend that shows demand for rented and leased commercial vehicles is increasing as operators look for flexible options during this continuing period of uncertainty.

BVRLA Chief Executive Gerry Keaney said: “Commercial vehicles are the lifeblood of the UK economy and which means operators are looking for flexible and adaptable support with their fleets. Many truck and van operators are delaying re-fleeting decisions, largely due to a lack of confidence in their ability to forecast as a result of continuing uncertainties.

“Cost remains a major concern for operators, as knowing what a vehicle will cost post-Brexit is still an unknown. When you combine this with the confusing array of local air quality initiatives, the landscape becomes even more uncertain.

“Renting and leasing is becoming an increasingly attractive option for commercial vehicle operators and with 88% of members’ rental van fleet and 67% of leased vans currently Clean Air Zone compliant, compared to 21% of the total UK van fleet, BVRLA members stand ready to meet the needs of businesses across the UK who are looking for cleaner, cost-effective vehicles.”

The 2020 Industry Outlook for Commercial Vehicles report provides an industry view on 7 key areas:

1. Operator behaviour– Evidence suggests that operator demand for rented or leased commercial vehicles is increasing.
2. Brexit– Brexit-related uncertainty continues to dog all areas of the road transport supply chain.
3. Clean Air Zones– Devolving the introduction of air quality strategies to local government has created inconsistency and uncertainty.
4. The Road to Zero– Electric vans and some form of gas for long haul trucks is the industry’s consensus for delivering the UK’s zero-emission goals.
5. Last mile – The reality is some way behind the excitement when it comes to technology driven innovations for ‘last mile’ logistics.
6. Big data – Capturing and analysing data is big business and becoming increasingly important.
7. Skills and talent – Retaining and recruiting skilled staff whilst tackling skill shortages is crucial.