New channels, new opportunies

Intermediates are an increasingly crucial part of the leasing
sector. Brian Rogerson sought the opinions of several motor leasing
brokers to determine what degree they rely on the internet as a
tool for obtaining and processing new business
 
 
 

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Q:How do you track, collect and process customer approaches via the
online channel?

A:Currently we are using software called ACT and
manual inputting the data. We are just about to launch an automated
system using Microsoft customer relationship management – DSG
Auto Contracts

We use our own in-house designed software to distribute leads,
track deals and process customers to ensure that at all stages we
can readily identify what point any customer/car is in the
sale/delivery process – First
Vehicle Leasing

Customers send in online quotation forms – we then have the
information to track – MVM
Vehicle Contracts

Principally by word of mouth. We also have a marketing company that
provides us with leads and appointments. We track all these
thoroughly – Tuskerdirect

Q:Is there any difference to the package offered online
to one available through your conventional
channels?

A:There is no difference. We are a traditional
contract hire company in the same way as any other. There are an
increasing amount of potential lessees and fleet users who prefer
to transact online – Tuskerdirect

Our offline business is mainly from repeat business and referrals.
These tend to get a more personal service because we know more
about them. The online business starts with a rental and then we
try to build and develop the relationship. Our current
communication strategy lends itself to a price lead enquirer –
DSG Auto Contracts

No difference – First Vehicle Leasing
Our clients have access to web-based information which contains the
best finance options including CO2 emissions and benefit-in-kind
advice – MVM Vehicle Contracts

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Q:Which funders are your main sources of
finance?
A:Network, Lombard Vehicle Management, Hitachi,
Alphera and Paragon – DSG Auto Contracts

Lombard Vehicle Management, Bank of Scotland, network, Lex, Arval –
First Vehicle Leasing

Lloyds TSB, Arval, Ogilvie Fleet and Bank of Scotland – Fleet
Alliance

Lombard Vehicle Management, Custom Fleet and Bramall & Jones
Leasing – MVM Vehicle Contracts

Undisclosed – companies you would expect. Last month we
spread some £2m in advances amongst three different funders –
Tuskerdirect

Q:As a broker, how well do you feel that your funders
understand your needs?

A:In general they understand the market well. But often
they view it through their eyes and not from the perspective of the
broker – First Vehicle Leasing

This differs with each funder relationship. For example,
Network has offered a broker service for a long time and therefore
has a greater understanding of our needs – DSG Auto
Contracts

Our principal funders have a clear understanding of our
needs – Fleet
Alliance

They all have a good understanding – MVM Vehicle
Contracts

Q:Since some 40 per cent of SMEs still use cash to
acquire their vehicles, do you believe that online leasing can
convert them to other financing arrangements?

A:I believe that cash purchasing of fleets is declining.
With Health and Safety issues becoming paramount companies are
concerned that they don’t have the same control over drivers’ cars
as when they are subject to a contract hire arrangement –
Tuskerdirect

Yes, mainly due to the tax benefits and low initial outlay of
leasing which releases vital cash flow – MVM Vehicle
Contracts

In my experience the vast majority of SMEs would still prefer some
traditional face-to-face or phone-based selling. The internet at
the moment is, I believe, more useful for brokers who sell on price
– and mainly to private individuals – Fleet Alliance

Of those 40 per cent, I would guess that a lot of those who claim
to use ‘cash’ in fact use bank funding or hire purchase to finance
their fleets – but the transaction is recorded as a cash sale. No,
I don’t believe the online approach alone will convert them to
financing their fleet. From experience the online approach opens
their eyes to an alternative way, but if they are to change the
procurement method it is a consultative approach with a sales
person that will show the buyer a different way – DSG Auto
Contracts

I do not believe that online car leasing will convert any company.
Rather it will increase their awareness of what is on offer. Online
leasing cannot be all things to all SMEs. Our job is to ensure that
when contacted by such companies we are in a position to give
concise and accurate information regarding their options to ensure
that they have all the relevant information to make an informed
choice – First Vehicle Leasing

Q:How much of the software you use is develop in-house
and how much by external companies?

A:All developed in-house. We have our own IT team with
whom we have regular market-update meetings. Our policy is to stay
some 12 months ahead of the competition – Tuskerdirect

Most of our software is developed in-house and bespoke.
The remainder are funder-quote systems – MVM Vehicle
Contracts

Roughly a 70/30 split in favour of external providers. Our database
and online procurement software is developed and hosted by TQ
Maingate (linked to Towquest). Recently we have developed our own
online client management facility which we are piloting with our
largest account – Fleet Alliance

We use the systems provided by our funders for the majority of our
quoting. However, we have taken data from several funders to
produce a combined quoting system. This development has allowed us
to offer web browsers the opportunity to obtain online quotes on
personal contract purchase and lease purchase direct from our site
without the need of a salesperson – DSG Auto
Contracts

All our administration software is developed in-house. We use
funders’ software to calculate rates, etc. and contemporary
software as applicable – First Vehicle Leasing

Q:Do you supply vehicles? If so which makes?

A:We hold no franchise and source all our vehicles through
our national network of preferred dealers – First Vehicle
Leasing

Yes, we supply most makes and models of UK cars. Our main focus and
speciality is on the lower-to-medium sized brands. For example, we
are not experts in Aston Martin, Bentley, Maserati or the like. The
client/dealer sales relationship is, in my opinion, too close for a
customer to browse the web to make this type of purchase – DSG
Auto Contracts

We provide all makes – Fleet Alliance

Yes, any make – MVM Vehicle
Contracts

From time to time we negotiate bulk deals with a manufacturer.
Makes, however, vary with the specific deals on offer –
Tuskerdirect

Q:What is the future for online leasing?

A:Online leasing has a bright future. The internet has
gained ‘respectability’ and this respect will continue to grow.
People will pass on their experiences and we as a company are doing
everything to ensure that the experience of our clients is second
to none. I am confident that huge increases in online leasing –
especially for the private individual – will continue over the next
five to 10 years – First Vehicle Leasing

The future lies in leasing brokers investing in IT while remaining
focused on customer service. It is no longer enough simply to offer
internet browsers a low rate – they now want a great service to
back this up – DSG Auto Contracts

It is a route to market that Fleet Alliance has chosen not to
operate in, as our business is based on relationships and not a
transactional commodity sale – Fleet Alliance

The future is bright. Over the next five years online leasing will
overtake the buying experience from dealerships – MVM Vehicle
Contracts

I think that online leasing will mirror life in general. If you go
back only five years how many of us were comfortable with
purchasing anything online? Companies such as Amazon and eBay have
given buyers confidence and car leasing will therefore became more
prevalent in the future – Tuskerdirect

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