THE increasing popularity of personal contract hire has seen captive finance houses become a significant source of funding for leasing brokers.
Not only that, newer bank entrants are beginning to make their presence felt. Santander now rivals Arval as a source of new underwriting business and FCA’s Lysys has also entered the broker arena for the first time.
The findings come from the new Leasing Broker Attitude Survey 2018 which saw Lex Autolease – itself having a record year – just edged by the OEM funders.
Third was a tie between Santander and Arval, while also growing was Hitachi Capital in fifth. New entrant Lysys was 10th behind ALD Automotive, Alphabet, LeasePlan and Ogilvie.
Rob Whalley, Managing Director of APD Global who analysed the survey of Leasing Broker Federation members, said:
“With car sales down it is no wonder that manufacturer finance houses are looking to support sales and are now turning to a vibrant leasing broker market. As brokers predominantly look for competitive rates then manufacturers can support sales in this way.“
Ralph Morton, Editor of the report, added:
“While a competitive rate book is the number one criteria brokers look for in a funder – to be honest no real surprise – a competitive rate is not the only aspect. Brokers want speed of processing and a fast and easy-to-use quotation system to speed up the enquiry to completion process. This is where future developments will be key.”
Overall, funders were considered reliable partners by brokers in the 2018 survey.
Get the inside line on brokers with the Leasing Broker Attitude Survey 2018
To gain further insights into the leasing broker sector, copies of the report can be downloaded here