OEMs are jettisoning relationships for profits as discount rollbacks are cut for fleet deals and price protection pledges conveniently dismissed.
The worsening relationship between fleets and OEMs has been highlighted by the Association of Fleet Professionals (AFP).
It says the behaviour is “damaging manufacturer-fleet relationships”.
But leasing brokers will recognise exactly the same treatment, as OEMs prioritise captive retail channels and steer available vehicles towards captive finance agreements.
Paul Hollick, AFP chair, commented:
“Clearly, we are living through a time when there is substantial upwards pressure on prices generally and we understand the many reasons why this is happening but some manufacturers are leaving fleets essentially unsupported, ignoring existing discount agreements and refusing to honour price protection pledges.”
The AFP also highlights the capricious behaviour towards order cancellations.
“It is creating a situation where, if you manage to get a confirmed order for a vehicle, there is no guarantee you will receive it because a cancellation remains likely and, even if it does arrive after 9-12 months, there is a strong chance that the price will have risen markedly,” Paul added.
Such behaviour means leasing brokers are continuously having to communicate a variety of often difficult and unwelcome messages to clients.
Editor of Broker News, Ralph Morton, added: “Brokers are telling me that it’s creating huge amounts of frustration and making a difficult business climate worse. What we need from OEMs is a little more cooperation and a little less self interest.”
Lee Jones, founder and managing director of Fleet Procure said:
“What this situation has additionally highlighted is an issue in the market where OEMs count their white label leasing offerings as ‘retail’ versus anything done via an FN50 independent funder as ‘fleet’ even if they are PCH.
“Therefore a consumer is price protected if they chose OEM white label lease funding but not if they choose FN50 independent funding… which would seem to be in contradiction to the FCA’s guidelines on TCF.”
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.
