Increases in the Bank of England interest rate have caused a spike in the price of company cars and van leases by an average of around 1.5%, according to the Association of Fleet Professionals (AFP).

The organisation said the increase was “not uniform” among leasing companies but had been reported widely by its members and was primarily a response to the increase in the cost of finance between the time at which the customer placed the order and the delivery date.

“Businesses are waiting on the delivery of an historically large backlog of vehicles because of ongoing production issues and some leasing companies are increasing their lease rates on these because of the higher base rate,” said AFP board director Denise Lane.

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