Features
31 Jul 23

Parts shortage increases costs and downtime for fleets

Fleets are facing delays in the service and maintenance of vehicles, due to a decline in parts availability, according to the British Vehicle Rental and Leasing Association (BVRLA).

The association’s half-yearly survey has found that 90% of leasing and rental companies are reporting a shortage of parts, and 92% are suffering an increase in downtime for vehicles that need maintenance.

The situation is compounded by the fact that leasing companies are operating a higher than usual number of older vehicles, which need more maintenance. Lease contracts have been extended as a consequence of the new vehicle supply crisis, with more than a third (36%) of BVRLA members saying the average age of their fleet is now more than 12 months older than in was in 2019.

Leasing companies are also confronted by inflationary pressures in the cost of service and maintenance, with 94% reporting higher labour rates in garages and workshops.

Gerry Keaney, BVRLA Chief Executive, said: “The global automotive supply chain continues to lurch from one crisis to another, with BVRLA members bearing the brunt.”

However, the outlook is not entirely gloomy, with leasing and rental companies finding a more positive situation in new vehicle supply, allowing them to increase sales, and 58% now expect to increase their fleet size in the next six months. Car availability is significantly better than light commercial vehicle supply, with over half of all new vans taking more than 10 months to deliver.

 

Image: Shutterstock ID: 1711144648

Authored by: Jonathan Manning