April 9, 2025
Sara Davies
Wessex Fleet Updates
We’ve made it to the end of the first quarter, and we’re eager to know if predictions made at the close of 2024 for the fleet and leasing sector are materialising as 2025 gets underway. Following his attendance at the Spring Statement breakfast in Salisbury, where Rt Hon John Glen MP for Salisbury discussed the Chancellor’s latest announcements, our Director Simon Naylor gives us his expert opinion on the months ahead, as well as revealing insights from our new journey as the force behind AA Lease…
Growth Amid Low Confidence
The overwhelming picture is one of low business confidence, and flat growth predicted for a while. Sadly, as I predicted when I last wrote, the forthcoming changes in Employer NI and Employment Rights Bill, are placing pressure on SMEs. We’re expecting the economic outlook to be uninspiring for some time to come I’m afraid.
That said, Wessex is experiencing unprecedented growth, even in these tough times. Our overall share of the market is small, so if we’re good enough at what we do, we will continue to add clients and grow. We’ve gained two new sizeable contracts: AA Lease and PTSG - and are continuing to work with confidence on a number of new opportunities.
Director Simon Naylor and Tracy Coles, Compliance Officer and Resources Manager for Wessex Fleet, with Rt Hon John Glen MP for Salisbury at the Spring Breakfast hosted by Moore (South).
Driving New Business to AA Lease
Having beaten 40 applicants, 2 of which were top 10 leasing brokers, to win the AA contract towards the end of 2024, the partnership’s got off to an outstanding start. The total number of car deals has already increased from 1,000 at the start of the partnership to over 3,000 available on the AA Lease website today. In March we hit more new orders than the AA had ever achieved in the entire four years with their former leasing partner which we’re incredibly proud of.
Moving forward into Q2 we’ll continue to implement strategies and changes to meet the ambitious month-on-month growth in the AA’s lease number targets. As well as recruiting more members to our teams, we’ll be diving into the world of AI and potential new telephone solutions too. This should put us in a position by Q4 whereby we’re able to deliver almost quadruple the number of vehicles we’ve delivered in March. It’s going to be very exciting times for us and the AA.
New PTSG Contract Gathers Pace
Our biggest client yet, Premier Technical Services Group, appointed us as their new supplier towards the end of last year to provide our full suite of fleet management and vehicle supply. The implementation is continuing apace. We set up over 1500 drivers to use the Wessex App during March. Vehicle Maintenance Checks are in full swing. April will see development of reporting, accident management and logistics - and we’re in discussions with them about a new fleet order as well.
PTSG is the parent company for Trinity Fire & Security who were one of our largest customers with a fleet of 350 vehicles. Now we’re serving their combined fleet of over 1600 vehicles, by far our biggest win to date!
Electrification Continues
Electric vehicles( EVs) have continued to be a significant part of our fleet management provision for clients as we’ve moved through the first quarter of 2025. EVs continue to represent the most tax efficient way to drive. The changes in April on VED, and Luxury Car Supplement are going to hit this sector, but EVs are still very attractive to corporate customers. The government have given EVs unprecedented tax relief over the last ten years or more. As this starts to change, costs will rise, but they still represent great value, and the most efficient tax option out there today.
Upcoming Challenges
Aside from meeting the AA’s targets, I think the big changes on the horizon for us, and the industry as a whole, are tax adjustments this month regarding First Registrations, VED and Luxury Car Tax. There’s also the forthcoming decision from the Court of Appeal on vehicle financing.
It will be interesting to see how a confirmed decision effects the automotive sector, and UK banking as a whole. Leasing appears protected to a point, but what changes will there be as a result of the ruling? Many adjustments around commission disclosure have already come in, but will there be retrospective clawback on HP and PCP sales? Could banks that offer leasing be put under financial pressure? Banks have provisioned significant funds. If they pay out, could some decide to leave the UK or the automotive sector - or stop lending on retail entirely? It’s a very interesting picture, but I think it’s likely to have an effect on leasing in one way or another.
Enjoyed this article? Read more of our latest blogs below:
- Digital Driving Licences are Being Introduced
- Road Tax Changes in April 2025 for EVs
- Stricter Emission Tests in 2025 for Plug-in Hybrids
- Wessex Fleet Off to Electrifying Start with AA Lease
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