Couple with personal car leasing car
Personal contract hire: big growth area for Arval

THE growth in Arval’s personal contract hire will be underpinned by the performance of its leasing brokers.

That’s the view of Miguel Cabaça, the new managing director of Arval.

Miguel expects to see “double digit” growth in PCH over the next five years.

“I expect our leasing brokers to play a significant role in that growth,” he explained at Arval 2018 Conference in Paris on February 13, 2018.

The growth in PCH would not just be from consumers turning to personal leasing, but also from factors such as salary sacrifice growth where company car drivers opt out of the car and into salsac due to the prevailing taxation conditions, according to Miguel.

“There used to be very clear silos: private buyers; SME sector – a cross between the consumer and business; and then corporate. But those sectors are now blurring,” continued Miguel.

Miguel Cabaça Arval
Cabaça: brokers key

“Personal contract hire is becoming a major factor across all of those areas, and we must be in a position to help our customers make those choices and changes.

“Brokers have a really important role here thanks to their access to the SME sector and their ability to consult with that market. At all levels of the Arval organization we are here to help our customers. And that includes the brokers.”

Prior to joining Arval in the UK, Cabaça was director of private lease for Arval in Paris and before that worked in the BNP Paribas Personal Finance business which he joined in 2000.

“I’m sure that one of the reasons I was chosen to lead Arval in the UK was down to my background in personal finance,” continued Miguel.

While admitting that economic conditions and market behaviours would influence the growth prospects for personal leasing, Miguel added:

“If it’s a case of corporate versus private leasing, I’d back the latter as a growth area.”

Arval currently has a fleet of 85,000 vehicles in the SME market, 53,000 of which are business contract hire customers, and 32,000 which are PCH.

At Arval Conference 2018, the company launched five new products, the majority designed to support a concerted push into the consumer sector:

  • Arval for Me – a consumer based maintenance, repair and recovery solution – due UK early 2019;
  • Arval Car Sharing – a corporate car sharing product to encourage better utilisation of pool cars, but with the ability for employees to rent vehicle directly from Arval – due Q3/Q4l;
  • Arval for Employee – a variety of products from personal lease to salary sacrifice and employee leaver offers (including used PCH) – available now;
  • My Arval – a fleet management online portal for small businesses right through to multilease large corporates – phased introduction from April 2018;
  • Electric Vehicle – a dedicated one-stop shop offering consultancy and expertise through an alliance with Renault-Nissan and home and workplace charging through NewMotion. Launching in UK February 2018.


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