CHAIR of the BVRLA Leasing Broker Committee, Alan Carreras, was upbeat about the business outlook for leasing brokers during an online industry briefing.
Taking part in an Industry Outlook webinar #2 organised by the BVRLA on 19 August, the director of The Bridle Group was one of four expert panelists joining a discussion hosted by Toby Poston, director of corporate affairs at the BVRLA.
The other presenters were:
- Andrew Mee – head of forecast UK, cap hpi;
- Nina Bell – managing director Avis Budget Group and chairwoman of the BVRLA; and
- Nick Brownrigg – chief executive officer Alphabet and vice chair of the BVRLA.
At the end of the presentations, when panelists were asked their opinion on 2021 prospects, all expressed a negative outlook with concerns about COVID-19 and Brexit impacting on business success, apart from Carreras.
Alan Carreras explained:
“I’ll buck the trend on this. From a leasing broker perspective, enquiries are up and brokers are recruiting to meet the increased sales demand.
“While you can’t ignore some of the stats, brokers are quietly confident and capable of adapting quickly to new models. I think it is testimony to the resilience and versatility of the broker market to take the opportunity from the retail sector when dealers were in lock down.
“There are certainly issues we face, such as the supply chain being able to meet the demand for EVs – one in three enquiries is for EV products.
“There are fleet management issues, too, such as getting postponed MOT vehicles through the test – I heard that Birmingham alone has 80,000 delayed MOTs outstanding!
“And you cannot ignore the challenges represented by the FCA’s banning of DCI in the motor finance sector – how will funders implement new schemes, for example?
“I think liquidity will be challenging and we’ll see some consolidation in the market as funders enter and exit the market. People will also be looking for credit, and given the recent backdrop created by the pandemic I expect we may see some sub-prime funders entering the sector which will raise questions regarding Know Your Customer and Treating Customers Fairly.
“But overall the broker sector is best placed to meet these challenges and is certainly up for the fight.”
Brokers can explore the current issues facing the sector, as well as upcoming events, by clicking through to BVRLA’s Industry Outlook page.
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.