The UK is the third largest vehicle and asset leasing market in the world. The latest British Vehicle Rental & Leasing Association figures (data to June 2019) show the number of vehicles on lease contract grew by 12% year-on-year, with business contracts for vans growing even faster at 16%. The total number of contracts at the end of June 2019 was 338,111, up 35,699 compared to the same period the previous year.
Whilst the overall market for new vehicle registrations remains depressed, the attraction of leasing as an alternative to outright purchase has grown significantly. This hassle-free convenient service for both Business and Personal customers paying to use the vehicles of their choice, without the worry of depreciation or resale value fits perfectly in the 21st Century. Leasing can offer Tax and Cash Flow advantages to businesses large and small and is increasingly more popular with SMEs. A significant reduction in the Benefit in Kind Tax payable on Hybrid and Electric vehicles from April 2020 will also boost the take up of company cars.
Paul Parkinson, Synergy CEO, said, “I see so much opportunity in this sector – from helping customers transition to electric vehicles to supporting more SME business customers. We are delighted to be working with a Newable, a business that shares our ambitions for growth with the resources and support to help us deliver on these in a dynamic change driven marketplace.”
Chris Manson, Newable CEO, said, “Newable is looking to capitalise on market opportunities created by the changing nature of work and the shifting pattern of how users pay to access assets that help them run their businesses and personal lives. Synergy is an exciting addition to our offering within our lending portfolio.”
Paul Parkinson will continue to lead Synergy as CEO, with Newable providing additional support across IT systems and automation, HR, finance and marketing.