Manufacturers urged to strengthen leasing broker relationships
Potential growth in the leasing broker sector is being hampered by poor communications and account management, according to a new survey.
Carried out by the Leasing Broker Federation, an independent membership organisation that supports and promotes leasing brokers across the UK, the survey shows participants felt manufacturers could make brokers’ lives easier by offering better special terms and exclusive deals (60%) and improving communications channels (45%).
Despite this, brokers appear to be bullish about their future prospects, with 87% of brokers reporting a buoyant market with demand for leases or other financial products on the up.
Colin Tourick, author of the report, said: “The survey provides interesting insights for car manufacturers. Citroën, Ford, Mercedes-Benz, Nissan and Vauxhall are clearly investing time and effort in these relationships and are no doubt enjoying the results.
“Others are barely engaging at all with brokers. Manufacturers have a patchy record with brokers and need to invest some time in the relationship, with some appearing to ignore this valuable route to market. However, manufacturers could improve how they communicate and manage their relationships with this sector.”
Whilst most brokers are relatively small, placing only some hundreds of vehicles with funders each year, 60% of brokers have placed over £50m of business over the last four years and some of these have placed over £250m of business.
Tourick, Professor of Automotive Management, University of Buckingham, added: “The leasing broker channel is a vibrant sector of the market, growing by more than 40% over the last 24 months yet it continues to evolve and as the market matures most brokers expect a period of consolidation over the next five years. As the brokers grow in size they will become more innovative in the range of services and products offered, expanding into the mid-sized and corporate sector. Some may even make inroads into the preserves of the leasing companies.”