SME fleets looking for medium term rental facilities are turning to Arval’s flexi fleet and heading for the vehicle class marked family hatchback.
According to latest data from the leasing and mobility provider, the company’s medium-term rental fleet grew by 50% during 2022, expanding from 2,500 cars and vans to 3,800.
And the vehicle class most in demand was the family hatchback model under Arval Flex, followed by medium-sized vans and then small vans. Electrification is also growing, with 14% of the fleet now electric, expected to rise to 90% in two years as the 2030 ban on new petrol and diesel sales approaches.
Factors Behind Growth Of Medium-Term Fleet
Arval says that the pandemic was the number one reason for the growth, pointing out that with an uncertain economy, retaining flexibility was key. The second was around the continued delay in new vehicle deliveries, offering fleets the ability to start and end a rental quickly.
The final point was around new starters or for prescribed term contracts where the driver needed a vehicle.
Our experience is that fleet decision makers have become more and more aware of medium-term rental in recent years as a means of car and van provision, but that market conditions have meant that the product has perhaps reached a point where it is achieving genuine mass market acceptance for the first time.
The substantial investment we are making in the fleet is very much a sign that we believe that usage will grow in the coming years and that medium-term rental is well on the way to becoming an established ‘third way’ between daily rental and long-term fleet leasing.
The Arval Flex Fleet By Numbers
- 2021 – 2,500 cars and vans
- 2022 – 3,800 cars and vans
- Number one most popular class was the family hatchback at 28%
- At number two was medium vans accounting for 13% of all rentals
- Third most popular was mall vans, accounting for 10% of all rentals
- In total, 70% of the Arval Medium-Term fleet is cars and 30% are vans.
- The average rental was between 6-7 months with termination available subject to 48 hours’ given notice
Source: Arval
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