THE latest Leasing Broker Federation Quarterly research has thrown up some interesting results – an increased demand for shorter term contracts and daily rental, the continued move away from PCP to PCH, a significant increase in the level of interaction between Leasing Brokers and customers and a fairly resilient outlook regarding new sales inquiries and fleet size growth.
The move to short and daily rental is likely to be down to the current period of uncertainty as customers are reluctant to sign up to long contracts. Brokers have experienced more demand for shorter term solutions from businesses as well as consumers. The Leasing Broker Federation recently launched its partnership with Europcar offering 28-84 days contracts as well as three to 18-months for consumers.
LBF Relationships Director Graham Prince said: “This now gives the Leasing Brokers access to short term leasing solutions for Businesses as well as Consumers and enables them to continue to offer a ‘one stop shop’ solution for leases.”
The increasing demand for PCH or BCH over PCP continues, although PCP does seem to remain a relevant product. Prince added: “This continued move towards PCH could be because of the FCA Investigation or consumers are moving away from dealers that traditionally sell purchase products, such as PCP, and are now ordering their vehicles with brokers who predominantly sell PCH?”
The research also showed that there has been a significant upturn in the level of contact Leasing Brokers are having with customers; up to 80% in Q2 compared to 37% in Q1. This is likely to be for a mixture of reasons ranging from requests for contracts be extended, how to do a new vehicle handover, can you still order a new vehicle to prospects discussing cancelling orders. Whatever the reasons, it will be interesting to see if these higher levels of customer contact is an ongoing feature.
In line with current economic predictions, the latest survey showed that leasing brokers are less optimistic regarding increased inquiries over the next 12 months which stood at 36%in Q2 against 50% in Q1. However, if you compare the predictions of having the same or more inquiries over the next 12 months, the quarters are very comparable – 71% for Q1 and 70% for Q2.
Although there is slightly less optimism regarding fleet size growth, 41% still believe their fleets will grow against a 48% figure in Q1. 23% who believe their fleet size will decrease from the Q2 feedback, compared to 19% in Q1. This shows a fairly solid resilience in the market compared to many others.
The full research report can be requested via the Leasing Broker Federation website, or by clicking here.