LATEST figures from the Society of Motor Manufacturers and Traders (SMMT) show that van registrations increased by 4.7% during April despite the current uncertain economic climate.
However Europcar Mobility Group warned that outright van purchase can tie up significant capital that may need to be reserved for changing circumstances.
This rapidly changing climate is likely to have a significant impact, particularly on smaller businesses with smaller pockets than large corporations.
Research from Europcar Mobility Group revealed that over a third (37%) of SMEs say that this economic uncertainty is a transport issue that is going to impact their productivity in 2019.
Despite this, during April, a total of 24,604 vans and pick-ups were registered. For many companies vans are an essential wheel in their business but they don’t need to be a costly one.
Renewing a fleet through acquisition is a significant investment that has the potential to restrict the flexibility of businesses whose fortunes are by no means certain. Many firms may need to up or downsize fleets to account for economic changes so this is a high-risk strategy.
There is a second element to this discussion and that is the introduction of clean air zones around the UK.
The Ultra-Low Emissions Zone was introduced in London in April meaning that non-compliant vehicles travelling within the zone will be charged an extra £12.50 a day.
The London ULEZ is just the first stage in a nationwide vision to clean up Britain’s air. This wider movement encompasses clean air zones that are scheduled to be introduced in Birmingham, Leeds, Nottingham, Derby and Southampton.
Many businesses will be looking to renew their fleets and get ahead of these changes.
Stuart Russell, Director Commercial Vehicles, Europcar Mobility Group, said: “For businesses around the UK, the importance of access to new commercial vehicles cannot be understated.
“With motoring technology developing at such a rapid rate and clean air zones set for introduction around the country, businesses won’t want to get left behind. Long term rental can provide businesses with the reward that is access to the latest technology without the risk that comes with acquisition.”
“The reality of business is that sometimes as circumstances change companies will need to increase or decrease the size of fleets. Forward planning is always going to be plan A but in the current environment that isn’t always possible.
“Long-term van rental means that businesses have this flexibility without the cost of either acquisition or any early exit penalties that come with many leasing deals.”
