SELECT Car Leasing is warning that uncertainty over vehicle deliveries is going to put pressure on many leasing brokers.
“It doesn’t matter what size you are, if you’ve not got the financial provision in place to maintain cash flow, then 2022 could be a rocky place,” says director Mark Tongue (pictured).
While the leasing broker market remains buoyant, getting cars delivered to payout has the potential to cause financial stress. Current estimates are production ramping up in Q3 for delivery in Q4.
“We’ve sold 30,000 contracts in 2021 but only delivered 23,500 vehicles (which was down from our forecast). So we’re carrying over a lot of vehicles. That’s a lot of money you’re carrying over and that has to be managed so customers don’t cancel.
“You also have to manage the suppliers to ensure you receive effective updates from them and ensure these are constantly communicated to your customers. But it’s not easy.”
Despite the uncertainty, Mark said Select Car Leasing would look to further grow its already highly successful Appointed Representative channel in 2022.
“Being part of a strong organisation such as Select can safeguard smaller brokers, for what is becoming an ever more unpredictable future.”
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.
