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Increased uncertainty drives UK commercial vehicle operators towards flexible finance solutions

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Demand for rented and leased commercial vehicles in the UK is increasing as operators look for flexible options during continuing economic uncertainty, new research from the British Vehicle Rental and Leasing Association has revealed.

The 2020 Industry Outlook for Commercial Vehicles report charts the main challenges faced by end-user vehicle operators in the sector and provides insight into how difficulties are being overcome.

BVRLA chief executive Gerry Keaney said: “Commercial vehicles are the lifeblood of the UK economy, 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.”

He said renting and leasing is becoming an increasingly attractive option for commercial vehicle operators, particularly when it comes to ensuring vehicles are Clean Air Zone compliant.

The 1,000-plus member organisations of the BVRLA are responsible for more than 5 million vehicles, including 20% of all trucks and vans on UK roads.

Issues highlighted in the 2020 report include:

  1. Operator behaviour – Operator demand for rented or leased commercial vehicles is increasing.
  2. Brexit – Brexit-related uncertainty continues to affect 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 – When it comes to technology driven innovations for ‘last mile’ logistics, there is still much progress to be made.
  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.

 Download the report here