What is a leasing broker?

2 October 2015 2 min read

Mike Lloyd of Central Contracts — Lloyd: look for support

A LEASING BROKER is an intermediary who sits between the customer, the motor manufacturers and the vehicle funders.

A broker marries the best available vehicle prices with the best available funding terms. The process is similar to an insurance broker.

What does a leasing broker do?

At its most basic, a broker should provide competitive supply terms to customers. They should be aware of market trends. And the best deals. But better brokers will take this further. They will provide support, advice, fleet management and management information – all this is designed to save customers time and money.

What are the advantages of using a leasing broker?

Brokers have no affiliation to any particular manufacturer. They usually represent a number of funders, too. This means: their advice should be impartial; their terms competitive; and their turnaround time short. The best brokers are flexible. They want to build long term relationships with their customers. This includes providing support and information to reduce the customer’s management time and liability.

What are the disadvantages of using a leasing broker?

As with all industry sectors there are good players. And bad players. It is relatively easy to set up a business in this sector. That means there are a number of individuals and small companies that trade with a short term approach. A number of brokers also advertise ‘special offers’: on closer inspection these can turn out to be bogus deals designed to make the phone ring. It is not normal to provide brokers with large deposits in advance. Be cautious before parting with your cash.

What should I look for in choosing a leasing broker?

Professional accreditations are a good guide to the company’s likely business standards and ethics. Look for BVRLA (British Vehicle Rental and Leasing Association) membership. Seek out those brokers authorised and regulated by the Financial Conduct Authority (FCA). These companies will have invested time and money in training and systems and will abide by the BVRLA code of conduct. They should provide a holistic solution to all of your transport needs – not just the supply of vehicles.