LEASING brokers are well placed to survive and thrive through the latest lockdown, says Synergy Car Leasing’s Paul Parkinson.
With the logistics chain still able to operate, meaning cars can be delivered, an established online presence, and a range of stock offers, brokers have the capability to fulfill consumer car demand he says.
Under current lockdown rules, MOT, repair and maintenance centres can still operate, while car dealers can operate click and collect or delivery, but the showrooms are deemed non-essential, so they must remain shut.
“With car retailers closed, customers have no physical place to research new cars, so they’ll go online,” reckons Parkinson. “We’ve seen an increase in website traffic which rather confirms this supposition. People are also less alarmed than they were in March.”
The boss of Synergy is backed up by a survey from Auto Trader issued 06 November, which said that the appetite for new cars remained undiminished. The online buying portal surveyed 1,000 car buyers last week asking if the government’s announcement had affected their decision to buy a car: 55% said it had made no impact; 7% said it made them want to purchase a car more quickly; and just 14% said it had made them delay their purchase.
And the The RAC Report on Motoring has found that more than two thirds of drivers now want access to a car – higher than the same need prior to March.
“We’ve got a good range of stock offers in place, particularly around EVs, and for consumers worried about the potential increase in costs if there is no Brexit trade agreement, then they are increasingly minded to do a deal now.”
He also believes that the online pricing transparency of leasing brokers helps, rather than the retail offering based on how much you want to pay.
“Consumers are also time poor, so being able to research all brands in one place is hugely convenient. And they are increasingly prepared to pay on use.”
According to Parkinson, Synergy Car Leasing was 45% up on leasing enquiries year-on-year, and with a further three weeks of people cooped up in their homes, he expected no change in the level of enquiries.
As a sector, I think leasing brokers are in a better place than many people think. And the last few months of 2020 will be stronger than many believe.Paul Parkinson is the CEO and founder of Synergy Car Leasing, and the vice chair of the BVRLA Leasing Broker Committee
Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.