MEDIUM-term rental provider, Meridian Vehicle Solutions, is planning to target the leasing broker with increased energy in 2020.
The Elstree, Hertfordshire-based company supplies rental vehicles for six to 12 month periods. The cars are supplied new from a franchise dealer.
Meridian says it began marketing to the sector in 2019 – which included taking a stand at the first BVRLA Leasing Broker Conference – and was surprised by the strength of response.
Managing director Phil Jerome, said:
“Our core business model is to be a white label supplier of medium term rental for leasing companies. So it has not been a huge stretch to also act in the same role for brokers.
“However, we have found the broker sector more receptive to the concept of supplying cars on a 6-12 month basis. Much of this appears to be thanks to the nature of the customer relationships that exist in this market.
“These are more likely to be personal in nature, with the broker effectively acting as a bespoke leasing provider for the fleet. Therefore, they are able to structure medium term rental into their proposition very easily and effectively.”
Jerome said that typically brokers were able to spot opportunities for medium term rental when a business wanted a lease car but the lead time was long.
“There are many other kinds of broker scenarios where medium term rental makes sense – for example, when a new employee is taken on probation or when someone has been taken on for a fixed term contract.
“The key is that the broker is more likely than a large leasing company to be having an in-depth conversation about their car requirements, so they are able to suggest medium term rental as a solution at appropriate moments.”
Phil said that Meridian’s plans for the broker sector included increased marketing and direct sales, as well as the potential development of specialist products.
“Working with major leasing fleets will always be the core of our business but the broker sector offers a major opportunity. Our aim is to be be having more conversations with more brokers about how medium term rental can fit into their portfolio.”
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.