Commercial Van Rental Companies Optimistic About Business
Fleet sizes in the United Kingdom are showing remarkable growth, but nowhere to the extent that is being seen in the van market. Van fleets are the industry’s fastest growing sector, and according to the British Vehicle Rental and Leasing Association (BVRLA), commercial vehicle companies are expecting that to continue, particularly in the area of commercial vehicle rentals. A poll of CV leasing and rental companies revealed that 75% an increase of business in 2015.
In response, the commercial van rental companies are planning on investing in an additional 70,000 vehicles over the next year, a forecast that is encouraging for business overall. The BVRLA says that they are seeing plenty of new businesses and collaborations forming, and that is reason for optimism. According to Gerry Keaney, chief executive of BVRLA, “New entrants, acquisitions and consolidations are hallmarks of a healthy sector, and the rental and leasing industry is going from strength to strength in 2014.” He reports that short-term rental fleet inventories grew by 20% last year, and there have been a number of rental brokers that have recently joined the organization.
In addition to growth in the rental area, contract hire and leasing companies are also expanding, and have been particularly active in purchasing light commercial vehicles.