Brian Rogerson finds a new business –
led by a familiar name – that is thriving amid economic
turmoil
 
It is some three months since Saul Parsonson launched Logical
Vehicle Management (Logical) and already he is aiming to increase
its staff complement to cope with new business leads.

As a fleet vehicle intermediary, Logical is specifically
designed to offer a far wider range of services than that of most
brokers in the company car sector. Parsonson explains: “Firstly, we
are able to provide the usual contract hire facilities through
major funding sources such as Lex, LeasePlan, Lloyds TSB Autolease
and Lombard Vehicle Management. Secondly, we can make available
full management to fleets that are self-funded and thirdly, we can
provide a comprehensive fleet consultancy ranging from
benefit-in-kind tax considerations through to legislative
guidelines including duty of care and health and safety
issues.”

Running with such a comprehensive range of services only four
months from launch is remarkable for a start-up company – although
perhaps not so if the principal happens to be Parsonson, who was
managing director of Lombard Vehicle Management (Lombard), the UK’s
fourth largest motor lessor, from 2004 until 2007.

As such, he brings almost-unrivalled experience to the new
company. During his time at the helm of Lombard he achieved annual
double-digit growth for the company by a mixture of acquisition and
organic growth. He also headed up Lombard’s other sales channels
which included Jamjar, the online car retailer, and Yourcar, Royal
Bank of Scotland’s employee affinity scheme. In 2003 he led the
acquisition of the TLG business which managed the fleets of a
number of utilities businesses.

Prior to his time with Lombard, Parsonson’s career in the
automotive sector began originally with Barclays Mercantile; later
he moved to Rover Cars. He joined Royal Bank of Scotland (Lombard’s
parent) in 2004 after spending some three years working with
Centrica on its strategic partnership businesses within the AA.
During this period he had overall remit to develop the AA Roadside
operation with key business-to-business clients – including
manufacturers, lessors and dealer groups.

He tells Motor Finance that setting up Logical was something he
had wanted to do for some time. “The small to medium-sized company
which runs a fleet of up to 50 vehicles,” he says, “has
traditionally not been well served by lessors. Many brokers are
able to provide funding facilities but these consist predominantly
of contract hire – whereas we can tailor a range of finance
products to suit the customer.”

He adds: “Other providers can supply management facilities,
whilst there are also consultancies which make available advice on
legislative compliance. However, we are able initially to visit a
company and advice on the best finance products – including
alternatives to company car schemes – and take the whole process
through to vehicle supply and management.”
Parsonson’s experience of the automotive industry, and especially
how different lessors have often unstated preferences for specific
vehicles which reflect in the rental quotation, is likely to be of
great advantage to Logical’s customers.

At a time of unsettling lack of credit in the marketplace
Parsonson stresses that Logical has behind it “sound investors” and
the company is “well funded, with a bonded investment” which has
assisted in development of its interactive website.

He has a clear message to those companies who have outright
purchased a company car fleet and are currently viewing with
concern its dwindling residual value (RV). “Sale and leaseback is a
valid option,” he emphasises, “which has the benefit of releasing
liquidity into a company at a time when bank lines may be at
risk.”

In addition, he says, some bank-owned lessors have negative
views on certain vehicles that are perceived to be at greater risk
of falling residuals and, therefore, mark down the RV accordingly.
“We can advise on, and obtain, the best funding route for such
vehicles often with a much higher RV perception elsewhere. For
example, the RV outlook on 4×4 products at the moment can represent
rental differences of up to £80 a month between funders,” Parsonson
claims.

The company already has national coverage with recent customer
contact occurring in “Aberdeen and Cornwall”. Parsonson confirms
Logical is seeking extra staff with telesales experience to add to
its current total of five employees. Notwithstanding the economic
gloom, he is predicting steady growth – and even hopes to be
writing his own book by 2010.