The imbalance between personal and business demand is growing, according to the latest BVRLA Leasing Broker report. Presenting data to December 2023, the report shows PCH and BCH going in opposite directions, resulting in a net decline in the overall Leasing Broker fleet size.
Demand for Personal Contract Hire (PCH) is down 10% year-on-year, impacted by the vehicle availability challenges caused by the pandemic and cost-price inflation. Those negative pressures are mitigated within the Business Contract Hire (BCH) market, where strong electric vehicle incentives and innovative new SME-focused salary sacrifice offerings have enabled brokers to deliver strong growth. BCH is up 9% year on year (for cars), taking its share of the broker fleet to 41% (up from 36% in 2022).
Toby Poston, BVRLA Director of Corporate Affairs said: “As ever, the leasing broker sector is proving resilient and adept at anticipating future demand and turning challenges into opportunities. By embracing the popularity of salary sacrifice, brokers are growing the BCH fleet and making electric vehicles more accessible to new sectors."
View/download the report: BVRLA Bi-annual Leasing Broker Survey December 2023
