Motoring Year reviewed and what to expect from Vehicle Leasing in 2016 - GKL: Vehicle Leasing

Motoring Year reviewed and what to expect from Vehicle Leasing in 2016

December 21st, 2015

2015 has been a very busy year in the world of motoring, with car registrations, traffic levels and electric and plug-in hybrid car sales rising to new heights. We have put together a list of some of the top motoring news and figures from the last year, as well as what we might expect from business vehicle leasing in 2016.

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2015 so far:

A record year for new car registrations

2015 is very likely to be a record year for new car registrations. As we entered the 4th quarter of this year, 2,096,886 cars had been registered so far. This is the first time that the 2 million mark has been reached since 2004, and 7.1% higher than the number of cars registered at the same time last year. September saw a new record of 462,517 cars registered, a rise of 8.6% compared to September 2014.

As registrations continue to increase, not only will 2015 likely be a record breaking year, but 2016 could well exceed this.

Electric and plug-in hybrid sales increased considerably this year

2015 has been a big year for electric and plug-in hybrid cars as UK sales have jumped by a huge 139%. Whilst this is only a one percent market share in the global market, this is a big step for the UK – there are now more than 27 electric vehicles and plug-in hybrids that are on sale and this number continues to increase as more and more car manufacturers are launching vehicles with some form of electrical assistance.

Used car and van values have risen

Used car and van values rose in 2015, with the average sale prices for used fleet cars of 2.6 to 4.5 years old increasing to £9,325 this October. This is a 3% rise compared to the same time last year. This rise in value demonstrates how cost effective leasing business vehicles is as opposed to buying them outright.

UK traffic volumes reached their highest ever levels

According to data collected from the period covering October 2014 to September 2015, motor vehicle traffic has reached its highest ever level in Great Britain, with a provisional figure of 316.1 billion vehicle miles for the year. Compared to the previous year, car traffic from October 2014 to September 2015 has increased by 1.7%, which van traffic grew by 6%.

Predictions for 2016:

An increase in sales for hybrids and green cars

With the UK signing an agreement to strive to make all new cars sold here zero emissions by 2050, we can expect sales for electric and plug-in hybrid cars to continue to increase in 2016. To help achieve the increase in zero-emissions vehicles, the agreement demands that the UK will continue to provide vehicle buyers with incentives to purchase ZEVs, helping to increase sales.

Plug-in cars due in 2016 here at GKL include:

  • The BMW 330E and 220E Active Tourer are due in March 2016
  • The Volkswagen Passat GTE is due in Spring 2016
  • The Audi Q7 is due in Spring 2016
  • The Ford plug-in hybrid Mondeo is also due in 2016

As used car and van values rise, more business will turn to vehicle leasing

As we can expect sale values for both cars and vans to continue to rise in value, it’s likely that increasing numbers of businesses will turn to leasing their fleet of vehicles rather than choosing to buy them. As leasing is usually much more cost effective, many businesses will be able to lease a more reliable and higher quality of vehicle than they would have been able to buy. For new businesses, vehicle leasing can also provide the options of short term vehicle lease, or even initial trial hire periods.

To find out how vehicle leasing can benefit your business call GKL today on 01246 572180.