JAGUAR Land Rover says it is keeping an open mind on the UK leasing broker market, but is watching carefully as the market experiences significant growth.
Last year the leasing broker sector expanded on the back of a PCH boom, with brokers growing their combined new contracts book by 27% year-on-year to over 56,000 vehicles.
Fleet & business sales boss Jon Wackett was non-committal about discussing Jaguar Land Rover UK’s plans, saying: “We will address any segment of the market where we think it is appropriate to do so.”
Nevertheless, the broker sector is clearly on the move and with new JLR products on the horizon – such as the Jaguar XF Sportbrake and all-new Range Rover Velar – and with stellar fleet performers such as the Range Rover Evoque, the importance of the broker sector will be hard to ignore.
“We currently have no plans to provide direct terms with brokers,” continued Jon.
“We understand their importance but we must have a balanced approach to the market and currently this is best delivered through our relationship with the leasecos or via our retailers.
“There are many relationships here to consider – our customers, the leasing companies as well as the brokers – and how they operate together.”
Jon acknowledged the area is becoming increasingly grey as to where some of the larger leasing brokers sit in the market, recognising that some of the larger brokers are managing larger fleets than some of the smaller leasing companies.
While leasing brokers don’t take the RV risk, they still represent significant volume: Fleet Alliance’s acquisition of Neva Consultants earlier this year gave them a fleet size of 20,000, enough to place them at number 13 in the FN50.
Meanwhile Nationwide Vehicle Contracts is the leading broker in the personal contract hire market, with a fleet size of 39,700 in 2016 – enough to place them above such established leasing companies as Inchcape Fleet Solutions, and just behind captives such as Mercedes-Benz Financial Services.
Last year Jaguar Land Rover UK sold 22,147 cars into the leasing sector, 20% of the company’s UK volume (including SMMT T codes).
The most popular Jaguar and Land Rover vehicles with the UK fleet leasing sector were the Range Rover Evoque, Jaguar XE and Jaguar XF.