BVRLA's Predictions for 2018
The British Vehicle Renting and Leasing Association make their predictions about what will be happening on our roads in the coming year ...
On the whole the BVRLA recognise 2018 has the potential to be a challenging year for the motor industry filled with economic uncertainty and confusion over emissions as the role of diesel vehicles is questioned.
For 2018 the BVRLA believe we will see the following trends within the motoring world;
Fuel Type and Emissions
- Consumers will continue the move towards petrol and hybrid vehicles. This will mark the end of diesel being the most popular fuel for new registrations.
- As petrol vehicles become more favoured we will see Co2 emissions rise on average for all new registrations, and the average Nox emissions fall.
- In the case of commercial vehicles, a change in fuel type used is not likely, the BVRLA believe diesel will continue to dominate. Even so Co2 and Nox emissions will fall as more vehicles comply with Euro 6 emissions standards.
- As clean air zones spread out across the country it will lead many businesses to conduct a fleet review. Businesses may want to avoid paying extra taxes to enter these zones or may want to portray an eco conscious image for their company.
- As both personal drivers and businesses assess the uncertainty and fast changing nature of air quality measures it is likely leasing will be seen as an answer. This allows for the changing of vehicles every few years so new vehicles can be selected to match current policy.
- Concerns over the way Personal Contract Purchase is sold were highlighted in 2017 and this feeling of suspicion is likely to last into 2018.
- Personal leasing will continue to grow as a new generation of drivers who are used to paying monthly for items such as a mobile phone or TV subscription view a car in this same way.
- For business the Duty of Care for staff will become a focus, particularly those who use their own vehicle for business miles. This will fuel the need for 'grey' fleet management specialists.
- Leasing brokers will be focusing more intently on their own compliance and internal safeguarding procedures. As the impact of Brexit is felt, alongside price inflation and falling residual values, the cost of leasing will rise. Affordability will become a great concern for brokers as the effect of rises on customers is assessed.
- The range of mobility services available will grow during 2018 as people increasingly look for pay-as-you-go transport schemes. Even as the range increases, a substantial rise in use is not expected nationally.
- In London, there is expected to be a 20% rise in the number of people using car clubs in response to air quality measures.
- 2018 is thought to be the year of the hybrid as new petrol hybrids match or outperform diesel engines in both miles per gallon achieved and Co2 emissions.
- Most BVRLA members believe the popularity of pure electric vehicles will not boom until 2019.
- In the commercial vehicle market there has been no significant growth in electric registrations and this is not likely to change during 2018.