The BVRLA are predicting that 2014 will be a good year for Leasing businesses and the rental industry

During 2013 the transport sector saw used equipment values hit record highs and the BVRLA are predicting that this will continue especially in view of improving confidence in the industry and a lack of good used equipment.

New van registrations are expected to  rise to pre-recession levels as the economy in general recovers, though trucks sales remain flat with a reluctance int he market for operators to purchase more expensive Euro 6 vehicles.

There is a view that BVRLA members are likely to see opportunities to refinance equipment as funders become more comfortable with used equipment values.

The only major concern is the implementation of regulation in the sector, the BVRLA says that the consumer credit environment will get tougher, more complex and more costly with the arrival of the FCA (Financial Conduct Authority) this year. This new regulation will be a potential minefield for businesses, with dealers, brokers and funders having to adopt more stringent policies to meet regulatory requirements.

As with 2013, new leasing business will come from SMEs looking for alternative sources of vehicle finance and the growing popularity of competitively-priced personal contract hire.