Car Fleets finance reliance increased by 21%

Is the recovery really underway in the business car market, is confidence soaring or is the increase in vehicle sales on finance due to companies having to replace older cars and vans?
The latest figures produced by the Finance & Leasing Association (FLA) show just under 30,000 fleet sales using finance were completed during the month. It brings the total for the rolling quarter to more than 109,000 – also a 21% rise on the same period last year.

“These figures look good, and they’re up 1% in the 12 months to May. But the problem is it’s an increase from a very low base. There’s confidence in the market, but it’s fragile,” said an FLA spokeswoman.

With the all businesses looking to make cost savings and ensure they are getting best value for money, many have deferred replacing their car and van fleets and are now finding that they have to begin replacing them due to the age and mileage. As we all know the cost of running and maintaining both cars and vans increase with the age and mileage of the vehicle and there comes a point when deciding not to replace them becomes uneconomic. This is not just due to the cost of servicing and repairs but also the down time, not much use having a van for.....read more