FACTORY closures during the pandemic and a shortage of semi-conductor chips, has meant that manufacturers have been unable to meet the demand for new vehicles.
Europcar Vans and Trucks is urging businesses to think carefully about their vehicle requirements over the next few months and to plan ahead.
Shortages have led to an increase in the average sold values of second-hand light commercial vehicles, which according to the BCA, are up 57% year on year. At a time when many businesses are dealing with increased workloads as customer confidence returns following the easing of COVID-19 restrictions, this is a huge challenge.
The construction sector, for example, has seen a 39% rise in the value of contract awards during the three months to April and an 18% increase in project-starts in the same period.
Clive Forsythe, Commercial Director, Europcar Mobility Group UK, said: “As well as a shortage of new vehicles, prices of second-hand vehicles have also increased, creating a ‘perfect storm’ for businesses that need to expand their fleets.
“With this scarcity of new vehicles and rising prices in the used vehicle market, our mid and long-term offers can support businesses with their plans to ensure that they have the vehicles they need to meet their requirements.”
Whilst outright purchase of vans and commercial vehicles is proving challenging, long-term rental solutions can bridge the gap and offer a viable cost-effective solution.
Forsythe added: “Through our strong relationships with some of the leading vehicle manufacturers we have been able to ensure continued access to new vehicles. Our pipeline of new vehicles coming on fleet from next month is in good shape. So, for businesses looking for additional vehicles to get them through a busy period, I would suggest they get ‘on the list’ now as we are seeing very strong demand.”
With no deposit or early termination charges, long-term rental offers a cost-effective alternative to outright purchase or traditional leasing agreements. Rental can give businesses added flexibility at any time, but particularly now when vehicles are not available or at the very least delayed.
