Motiva: Age of big bank price-driven leasing is over
Actions such as the decision of the Royal Bank of Scotland to pull out of the leasing market gives smaller, independent players more chance to grow, according to the the Stoke-on-Trent-based rental, leasing and fleet management firm.
Peter Davenport (Inset, Left), Motiva Group managing director, said: ‘Lombard and RBS have been looking for a buyer for Lombard Vehicle Management (LVM) for about three years without much success.
‘I think that’s partly because LVM was so price-driven, which meant it ran at profits that weren’t attractive to potential buyers – especially in this climate.
‘As banks retrench to what they see as their core offer, their relentless downward pressure on prices becomes diluted.
‘Price will always be a critical factor, and competition will continue to be fierce, but over the next few years I can see there being a bit more leeway to sell on value rather than just price.
‘Anything that independents can do to retain or grow margin is a help in a downturn, and as long as we combine that with services and products that genuinely add value for the customer then everyone benefits.’
Motiva operates a fleet of more than 4,000 vehicles and has access to a rental fleet numbering in excess of 25,000 vehicles.