FN50 2021 analysis: Vans stabilise total, cars continue to slide (video)

After two consecutive years of decline, the FN50 has stabilised over the past 12 months with a slight rise in the number of funded cars and vans to 1,663,421 (up by 1,101 units).

Despite the ongoing market turmoil and uncertainty, with the automotive industry lurching from three lockdown crises to the semiconductor shortages, resulting in contract extensions and mileage reductions, the order books at UK business have reopened.

The only thing holding fleets back is a lack of product, with delivery times lengthening to 12 months-plus for many models.

However, the fortunes of company cars and vans are in stark contrast.

“We may see a shift from outright purchase to leasing as organisations look to release capital to invest in other areas of their operations/front line services.” Venson director of client management Simon Stanton

Cars, under pressure from redundancies and cash opt-outs due to falling business and personal mileage, have reduced by more than 20,000 – or 1.7% - to 1,200,558, although that’s half the volume drop of 2020’s decline.

Perk and job-need cars have both been affected, but leasing bosses and manufacturer fleet directors are generally upbeat about the sector’s prospects, thanks to the proliferation of new electric vehicles (EVs) coming to market with their highly attractive benefit-in-kind (BIK) tax rates.