The British School of Motoring (BSM),
the UK’s largest driving school group, has decided to switch
thousands of its learner drivers and teachers from Vauxhall Corsas
to Fiat 500s, with the Italian manufacturer to provide 14,000 cars
over the next four years.
The Fiat models will be provided on
contract hire with a 12-month buy-back, said Andrew Sproston, sales
director at Fiat. The General Motors vehicles that the BSM
previously employed were on a six-month buy-back cycle.
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Any learner drivers who pass their
test with the BSM will be given a £500 voucher, which can be used
to purchase any model of Fiat at franchised dealerships.
According to BSM research, around 70
percent of learner drivers end up buying the same model of car in
which they passed their test – meaning the partnership could
provide a substantial marketing boost to Fiat.
Sproston emphasised that Fiat is keen
to bolster the future residual values of the 500, through close
co-operation with the BSM and with Fiat’s own dealer network.
The cars which will come back from the
BSM will be “genuine used cars with around 24,000 miles on the
clock,” he said, and will return to the Fiat dealer network at a
rate of around 250 to 300 per month – or less than one car per
dealer, ensuring that residuals will be protected.
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By GlobalData“It’s a win-win situation for both
parties,” he commented. “The BSM gets an iconic car that fits its
customer base’s preferences, and which is Euro V-compliant, with
airbags and a tight turning circle and so on, while Fiat gets great
brand exposure.”
Fiat’s joint-venture financial
services unit (which is half-owned by Crédit Agricole) is involved
in providing funding for the deal, Sproston confirmed.
