Masterlease LCV rentals to be run by Leasedrive Velo Group

The contract hire operations of Birmingham LCV rental firm Masterlease is to be managed by Wokingham, Berks-based Leasedrive Velo Group after the division was bought by Investec.

Under the terms of the deal, Investec - which bought the operations from Ally Financial - has contracted the management and day-to-day contract hire operations to Leasedrive, resulting in a combined fleet of 40,000 vehicles.

Leasedrive MD David Bird says: "We are delighted to have been appointed by Investec to manage, operate and integrate its acquisition of the UK contract hire business of Masterlease UK.

"The fit between Leasedrive Velo and Masterlease is excellent and we look forward to developing and delivering exciting products and services for our customers."

The deal comes during a turbulent period in the LCV rental sector: on 2 December Glasgow-based Leaseway Vehicle Rental entered administration and, on 15 November, GE Capital confirmed that TLS Vehicle Rental will close by the end of the year.

British Vehicle Rental and Leasing Association (BVRLA) chief executive John Lewis says its members have reported a "major increase in demand for light commercial vehicle rental" as the economy continues to recover. He insists that many of its members are investing in new vehicles and there is "no danger of the market not having enough capacity".

"I think the events of recent weeks have shown that some smaller operators that have relied on a simplified, cost-based product offering have struggled to compete with larger operators that have greater economies of scale and the ability to invest in value-added services, such as fleet management," he says.