LEASING brokers feel that motor manufacturers miss out on broker growth through not delivering proper account management and communications which is hampering potential growth in the sector, according to a new survey from the Leasing Broker Federation.
The Leasing Broker Attitude Survey, conducted by the independent membership organisation that supports and promotes leasing brokers across the UK, shows that while every broker would clearly like manufacturers to offer them better terms, they were particularly keen to have proper communications and account management.
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
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.
Respondents felt manufacturers could make brokers’ lives easier by offering better special terms and exclusive deals (60%) and improving communications channels (45%).
Colin Tourick, author of the Report, said: “The survey provides interesting insights for car manufacturers. Citroen, 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.”
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While 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.”
The Leasing Broker Federation was launched in January 2015 as the Small Fleet Leasing Federation, before rebranding to the Leasing Broker Federation in January 2016 to recognise the increasing influence of the channel on the new car and new van markets.
To chart the progress of this success, the Leasing Broker Federation conducted a survey of its members to find out where the growth is coming from, what the present looks like, and how brokers see the future of their sector.
For more information on the Leasing Broker Attitude Survey, go to Personal Contract Hire drives bullish outlook for brokers
- The Leasing Broker Attitude Survey was conducted in Q3 & Q4 of 2015 among members of the Leasing Broker Federation, who represent the full spectrum of brokers. Lead author of the Broker Attitude Survey is Colin Tourick, Professor of Automotive Management, University of Buckingham. The co-author is Ralph Morton, editorial director of Business Car Manager. The cost of the survey is £595 + VAT.
- The survey and the report on its findings were written before the BREXIT vote was taken.