The Market Place
There is no doubt that the market place is competitive. Virtually every retailer of vehicles will offer some form of financing to its customers and there are also multiple independent brokers. However, many will be committed to using only one finance company which may not always offer the best deal.
Whilst the market is competitive, it is also very large. FVF is a member of BVRLA (British Vehicle Renting and Leasing Association), which is the trade body for the vehicle renting and leasing sector. They report that in 2021 their members were responsible for almost 5 million vehicles on UK roads. That is to say, 1 in 8 cars, 1 in 5 vans and 1 in 5 trucks.
The BVRLA’s Leasing Broker Survey report for 2021 shows that the car fleet grew 6% year-on-year during 2021 to 298,497. With new car contracts rising by 24%. Sales reached 96,896, which is 12% higher than the pre-pandemic highs achieved in the second half of 2019.
Virtually every business, even one-man operations like plumbers and electricians, need a vehicle to access their customers and leasing provides a way to obtain a new vehicle without tying up large capital sums. Additionally, more and more people are now considering the benefits of leasing for their private vehicles with servicing and maintenance packages included, allowing them to budget more accurately for their motoring costs.
Moreover, the requirements for vehicles is unlikely to disappear. Certainly, the type of vehicle that is in demand will change but whether the fuel is petrol, diesel, electricity or hydrogen, vehicles will always be in demand and they will all require financing of some description or another.
So, the opportunity exists – local customers serviced by local finance companies. The opportunity is yours if you wish to take it up. But how will you differentiate yourself from other finance providers?