Automotive leasing and mobility provider Arval U.K. says demand for its medium-term leasing product has seen fleet growth of 50% during 2022, rising from 2,500 to 3,800 cars and vans by year end.
The company said the average rental lasted between six to seven months with delivery and termination possible within 48 hours for the vast majority of vehicles.
Arval UK product manager, Glynn Hopkins, said market conditions had helped make the product more appealing, pointing to the pandemic as a factor, along with the delay in new vehicle deliveries.
“Difficulties surrounding the supply of new vehicles have created a need for a form of car and van rental that is measured in periods of months, and which can be started and ended quickly and easily with no long-term commitment,” he said.
In addition to fleet growth, Hopkins said the medium-term fleet was becoming increasingly electrified. Currently more than 14% were electric vehicles, but by the middle of the decade Hopkins said it should be more than 90%, in line with the 2030 deadline when the sale of new petrol and diesel cars will be banned in the UK.
Hopkins highlighted the growing acceptance of electric vans, saying 90% of businesses that tried an electric van using its medium-term rental opted to keep them.
“There’s obviously a lot of discussion around some of the practicalities of electric vans, looking at everything from range to charging to payload, and taking a van for a few months on medium-term rental is a good way of trying the vehicles out in real world conditions.
“What we are finding is that the overwhelming majority, once they get hold of the vehicle, find they are a practical addition to their operations and choose to extend the original booking. We see this very much as a vote of confidence in van electrification.”
Hopkins added that Arval UK was committed to substantial investment in the current fleet, saying its usage would grow.
“Medium-term rental is well on the way to becoming an established ‘third way’ between daily rental and long-term fleet leasing,” he added.