Study Touts Value of U.K. Vehicle Rental, Leasing

The U.K. vehicle rental and leasing industry is worth £24.9 billion ($39 billion) a year to the national economy and supports more than 317,000 jobs.

The British Vehicle Rental and Leasing Assn. says a study it commissioned from research group Oxford Economics provides independent data on the size, scope and importance of the sector.

The valuation takes into account the operations of the industry, the U.K.-built vehicles and engines it purchases, the activity of U.K. dealerships and its impact on the used-car market.

In the process, the sector generates about £5.2 billion ($8.1 billion) in tax revenue a year.

The industry directly employs 53,600 people and another 263,400 through wider supply-chain and consumer-spending effects. The total employment supported by the industry is equivalent to one in every 88 workers in the U.K., according to the study.

The association says vehicle rental and leasing companies are among the U.K. automotive sector’s largest customers, purchasing an estimated 308,000 locally made vehicles in 2013 – 20% of total output. It also says rental and leasing companies bought more than 80% of the U.K.-built vehicles sold in the region. This is estimated to have supported a £4.3 billion ($6.7 million) gross value-added contribution to gross domestic product.

In the same year, industry spending on foreign-made vehicles containing U.K.-made engines is estimated to have generated a £600 million ($941 million) contribution to GDP, supporting 13,000 jobs.

The association says most of this business is conducted through motor dealers. The sector last year bought £15.9 billion ($24.9 billion) worth of foreign-made vehicles from U.K. dealerships.