Brexit-fuelled economic uncertainty set to boost corporate car rental

January 23, 2017

Despite positive comments from two of the UK’s major automotive associations, there is a growing sentiment of caution among businesses post-Brexit that is set to boost demand for medium-term fleet rental in 2017.  

Meridian vehicle solutions managing director Phil Jerome highlights that more flexible arrangements are being seen as increasingly attractive under the clouds of a possible economic downturn.  

However, this contrasts with overtures from the Society of Manufacturers and Traders (SMMT) and the Freight Transport Association (FTA), which both praised Prime Minister Theresa May for stressing the importance of ‘tariff-free and frictionless trade’ with the European single market once the UK leaves it.  

Jerome said: ‘The effects of Brexit are so difficult to forecast that the majority of businesses are adopting a wait-and-see approach to this year, something that is likely to affect all kinds of areas from capital investment to recruitment.  

He added: What medium-term rental offers against this backdrop is a flexible solution for companies that don’t want to enter into longer-term arrangements. If you are recruiting someone and need a car for their probation period, for example, or if you are employing someone on a fixed-term contract, then it is a very viable product.  

Especially [since] in most cases, the monthly cost of medium term rental of between one and six months is only marginally higher than a traditional three year/60,000 mile contract.’  

In other news, a change to the UK's MOT (annual roadworthiness test) system is being proposed, with new cars only needing their first MOT after four years from 2018, compared to three currently, bringing the UK in line with the European norm.  






Also in News & Insights

UPDATE: News & Insights have moved to the Autovista Group website

March 31, 2017

Our regular automotive industry News & Insights are no longer being published on the Autovista Group Market Reports website.

Instead, you can now find the latest updates at our central Autovista Group website, home to our pan-European brands including Autovista, Eurotax, Glass's and Schwacke.

To stay up to date with rapidly changing market trends, we recommend signing up to our free Autovista Group Daily Brief which delivers our daily news stories directly to your inbox.

You can still find our in depth market reports here on the Autovista Group Market Reports site. Keep checking back as we have an exciting new report due to be launched shortly!

PSA to boost UK presence in the event of a ‘hard Brexit'

March 08, 2017

UK sales flat despite upcoming road tax hike, diesel demand plummets

March 08, 2017

UK new car registrations fell annually by 0.3% in February to 83,115 units according to the SMMT, driven down by weaker demand from individuals and companies. More noticeable, however, was the 9.2% drop in demand for diesels compared to February 2016, a steeper drop than the decline in Germany...