Brokers come in from the cold
A largely unrecognised but essential part of the vehicle leasing
industry, brokers have been working hard to raise their profile –
and their standards, says Graham Prince.
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Ship brokers, stockbrokers, insurance brokers, mortgage brokers:
all of these professions play a vital and respected role in their
particular industry sectors. But if you mention leasing brokers to
the average motor manufacturer or vehicle finance company you are
likely to be met with a wide range of responses, veering from
respect and appreciation to contempt or just complete
indifference.
The fact is that leasing brokers are playing an increasingly
important role in the motor finance sales channel. At least one
major leasing company saw its brokered sales double in 2007, with
broker units now representing around 20 per cent of its fleet
business.
Thousands and thousands of cars are leased through brokers, but
there is no database of active brokers or how many contracts we
sell.
Some of the negative image is justified. There have been
examples of brokers misusing customer information, not specifying
payment plans or advertising non-existent deals just to get the
phone ringing.
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By GlobalDataIt has been difficult to improve the profession’s reputation
without any form of regulation or code of conduct to refer to. But
things have changed.
The BVRLA’s Leasing Broker Committee is now just over a year
old, and a lot has been achieved since the first meeting in June
2007.
Firstly, we have established a code of conduct that sets out the
level of service customers can expect, ensuring that pricing is
clear, vehicle descriptions are correct, the product offered is
appropriate and a complaints procedure is laid out.
So far 45 brokers have taken membership of the BVRLA and agreed
to adopt these standards. We hope to welcome many more in the near
future.
The BVRLA has also introduced a guide that provides standard
terms and conditions that brokers can use when drawing up contracts
with vehicle funders and leasing customers.
Industry recognition
But perhaps most importantly, the BVRLA Leasing Broker Committee
has earned some greater recognition from the leading leasing
companies. Five of them – Lombard Vehicle Management, Lloyds TSB
Autolease, LeasePlan, Lex and Arval – are now represented at our
meetings, and providing valuable input.
It is an important sign that vehicle funders, who have
dealt with brokers for decades, have become more willing to
acknowledge what we add to their business.
So far, brokers and funders are in agreement that we need to
continue to work towards raising standards. It shouldn’t matter
whether a broker is working from an office or at home, as long as
they do so in a professional and ethical way.
In the near future we plan to introduce an industry recognised
training programme, designed in conjunction with the leasing
companies we all work with every day. This will then be used to set
and maintain standards among brokers.
For many people, broking is an entry point into the vehicle
leasing sector; it is where the industry finds much of its new
blood. Let us hope that all of us – vehicle manufacturers, dealers,
funders and brokers – can work together to ensure that this
neglected but growing area of the motor finance business can
continue to raise its game.
Graham Prince is senior partner of Neva Consultants and
chairman of the BVRLA Leasing Broker Committee
