Changes to car funding market will strengthen sector

FIRST it was Hitachi Capital Vehicle Solutions back in the summer.

Then Lombard Vehicle Management followed suit and pulled out of the car leasing broker market earlier this month.

The effect was to reduce the amount of small business advisers and funding options to small businesses. But then Network reduced the number of its car leasing brokers by virtually half, while Lex Autolease executed a significant cull, also during October.

The effect has been to drastically reduce car funding availability for small businesses.

But it’s all for the good say the leading contract hire and leasing firms, who wish to support the car leasing broker sector but only with long-term relationships that produce high-quality business. In a prepared statement form the BVRLA, which represents vehicle funders, this is what they had to say.

“Car leasing broker business is a key part of our product mix,” said Jo Elms, brand director at Leaseplan’s Network broker franchise division. “We intend to significantly grow our volumes in this area in 2010, but we will use fewer brokers and will deliver higher levels of customer service.”

Reiterating his company’s continued presence in the sector, Steve Cocks, national sales manager at Lex Autolease, said: “Car leasing brokers play a vital role in bringing a growing number of customers to Lex Autolease and we are firmly committed to this important channel. Following a review of all our existing relationships we are continuing a partnership with the vast majority of our brokers based on factors such as quality and volumes of new business.”