Brokerage/leasing business
Discussion
If anybody here works or is involved in the motoring industry, especially brokers/leasing firms, then I would like to hear your opinions on these following questions.
This a question for the uk automotive industry itself:
Would you agree with me that the uk motoring industry is rapidly growing year after year what with car/van sales at record highs?. If yes, do you see it continuing to grow or decrease over let's say 5 years time?. (Bearing in mind the eu referendum could have a big impact in the outcome of that).
These questions are for the brokerage/leasing firms:
Would it be fair to say that your firms are relitively Unknown to most of the uk population? Is there a reason for this? E.g I have not seen or heard any t.v or radio advertising to premote your firms.
Is it to do with budget or something else maybe?.
Secondly:
I assume people would be apprehensive when purchasing something expensive like a car online, especially from firms they've never heard of, so how do you get people to trust you?
What's to stop people from going to there local dealership instead?
I do have other questions that I would like to ask but I feel it will be to much of a long winded post.
All your answers are appreciated.
This a question for the uk automotive industry itself:
Would you agree with me that the uk motoring industry is rapidly growing year after year what with car/van sales at record highs?. If yes, do you see it continuing to grow or decrease over let's say 5 years time?. (Bearing in mind the eu referendum could have a big impact in the outcome of that).
These questions are for the brokerage/leasing firms:
Would it be fair to say that your firms are relitively Unknown to most of the uk population? Is there a reason for this? E.g I have not seen or heard any t.v or radio advertising to premote your firms.
Is it to do with budget or something else maybe?.
Secondly:
I assume people would be apprehensive when purchasing something expensive like a car online, especially from firms they've never heard of, so how do you get people to trust you?
What's to stop people from going to there local dealership instead?
I do have other questions that I would like to ask but I feel it will be to much of a long winded post.
All your answers are appreciated.
if that's the case then let me give you my 2p as somebody who has been involved in the leasing game as an employee and then later self-employed (I've also worked in the main dealer network as well).
I would expect a steady level of sales with a trend towards a gradual increase. The contract hire/PCP market has had a lot to do with the uptake of new cars so a lot depends on things like company car tax and residual values.
I won't comment on the EU referendum apart from to say that if car prices do increase then naturally sales will slow. Importing cars to the UK will be too expensive to offset this but may become more popular.
2. vehicle leasing has predominantly become a self-employed type business much like independent financial advisors. There was a lot of franchising in the early noughties with the likes of Vehicle Options and others whose names elude me which then evolved into the CALAS system which is dominant today. The majority of companies out there tend to be 1-3 person businesses with access to the same competitive rates (usually through CALAS) as larger players but with the potential for more hands-on customer care and lower overheads. Ultimately, it's very easy for a successful salesperson in a leasing business to start doing the same on their own for more money (eventually).
3. people do go to dealerships and this is where a lot of business is done but they have a reputation for not being particularly easy to deal with sometimes which has opened the market up to other businesses. Also, the likes of ALD, Lombard and Ogilvie provided more competitive rates in a lot of cases which the dealers won't be able to match using their manufacturer's finance house. There's more to it than that as well but I won't go into all the details just now.
Trust is a major factor and deals are normally done within a framework laid down by car manufacturers or finance houses. There is also consumer credit licensing which is mandatory for around 50% of deals done. It's something you'd be better off asking somebody who is leasing for the first time.
Chris-21 said:
Would you agree with me that the uk motoring industry is rapidly growing year after year what with car/van sales at record highs?. If yes, do you see it continuing to grow or decrease over let's say 5 years time?. (Bearing in mind the eu referendum could have a big impact in the outcome of that).
Would it be fair to say that your firms are relitively Unknown to most of the uk population? Is there a reason for this? E.g I have not seen or heard any t.v or radio advertising to premote your firms.
Is it to do with budget or something else maybe?.
I assume people would be apprehensive when purchasing something expensive like a car online, especially from firms they've never heard of, so how do you get people to trust you?
What's to stop people from going to there local dealership instead?
1. yes and no. Historically, car sales have been gradually decreasing overall but are rebounding at the moment. The UK carparc is getting older so it would seem cars are either getting more reliable and people are hanging onto them or people are more willing to do repairs than to replace their cars. Would it be fair to say that your firms are relitively Unknown to most of the uk population? Is there a reason for this? E.g I have not seen or heard any t.v or radio advertising to premote your firms.
Is it to do with budget or something else maybe?.
I assume people would be apprehensive when purchasing something expensive like a car online, especially from firms they've never heard of, so how do you get people to trust you?
What's to stop people from going to there local dealership instead?
I would expect a steady level of sales with a trend towards a gradual increase. The contract hire/PCP market has had a lot to do with the uptake of new cars so a lot depends on things like company car tax and residual values.
I won't comment on the EU referendum apart from to say that if car prices do increase then naturally sales will slow. Importing cars to the UK will be too expensive to offset this but may become more popular.
2. vehicle leasing has predominantly become a self-employed type business much like independent financial advisors. There was a lot of franchising in the early noughties with the likes of Vehicle Options and others whose names elude me which then evolved into the CALAS system which is dominant today. The majority of companies out there tend to be 1-3 person businesses with access to the same competitive rates (usually through CALAS) as larger players but with the potential for more hands-on customer care and lower overheads. Ultimately, it's very easy for a successful salesperson in a leasing business to start doing the same on their own for more money (eventually).
3. people do go to dealerships and this is where a lot of business is done but they have a reputation for not being particularly easy to deal with sometimes which has opened the market up to other businesses. Also, the likes of ALD, Lombard and Ogilvie provided more competitive rates in a lot of cases which the dealers won't be able to match using their manufacturer's finance house. There's more to it than that as well but I won't go into all the details just now.
Trust is a major factor and deals are normally done within a framework laid down by car manufacturers or finance houses. There is also consumer credit licensing which is mandatory for around 50% of deals done. It's something you'd be better off asking somebody who is leasing for the first time.
Just be aware that if you have a business idea in this industry you really need to look into the many, many hoops you will need to jump through before you can get close to completing your first vehicle order.
The FCA took over the governing of car leasing from the OFT about 1.5-2 years ago, and you must now go through a very strict, costly and time consuming process - at least 6-12 months if your business plan etc. is really good, otherwise longer.
Regarding promoting this type of business (TV/Radio advertising), in my experience word of mouth is the best form of marketing. If you can really look after your Customers then they will look after you. There are specific websites dedicated to promoting particular deals that you would like to push, but these sites are very expensive (although they do work).
And regarding trusting you, if a friend/colleague has told them about you then half of that battle has already been won.
The FCA took over the governing of car leasing from the OFT about 1.5-2 years ago, and you must now go through a very strict, costly and time consuming process - at least 6-12 months if your business plan etc. is really good, otherwise longer.
Regarding promoting this type of business (TV/Radio advertising), in my experience word of mouth is the best form of marketing. If you can really look after your Customers then they will look after you. There are specific websites dedicated to promoting particular deals that you would like to push, but these sites are very expensive (although they do work).
And regarding trusting you, if a friend/colleague has told them about you then half of that battle has already been won.
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